Expedia Group, Inc.
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Note About Forward-Looking Statements
This Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the views of our management regarding current expectations and projections about future events and are based on currently available information. Actual results could differ materially from those contained in these forward-looking statements for a variety of reasons, including, but not limited to, those discussed in the section entitled “Risk Factors” as well as those discussed elsewhere in this report. Other unknown or unpredictable factors also could have a material adverse effect on our business, financial condition and results of operations. Accordingly, readers should not place undue reliance on these forward-looking statements. The use of words such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “goal,” “intends,” “likely,” “may,” “plans,” “potential,” “predicts,” “projected,” “seeks,” “should” and “will,” or the negative of these terms or other similar expressions, among others, generally identify forward-looking statements; however, these words are not the exclusive means of identifying such statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. We are not under any obligation to, and do not intend to, publicly update or review any of these forward-looking statements, whether as a result of new information, future events or otherwise, even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized. Please carefully review and consider the various disclosures made in this report and in our other reports filed with the Securities and Exchange Commission (“SEC”) that attempt to advise interested parties of the risks and factors that may affect our business, prospects and results of operations.
We refer to Expedia Group, Inc. and its subsidiaries collectively as “Expedia Group,” the “Company,” “us,” “we” and “our” in this Annual Report on Form 10-K.
Part I. Item 1. Business
Overview
Expedia Group, Inc. is the global travel marketplace with one purpose: to help travelers explore the world, one journey at a time. We connect travelers, partners, and advertisers throughout our trusted brands, leading technology, and rich first-party data, delivering predictive, personalized experiences that shape the future of travel. We leverage our supply portfolio, platform and technology capabilities across an extensive portfolio of consumer brands, and provide solutions to our business partners, to empower travelers to efficiently research, plan, book and experience travel.
At the end of 2025, we had approximately 3.6 million lodging properties available, including approximately 2.4 million online bookable alternative accommodations through Vrbo, approximately 1.2 million hotels and alternative accommodations through our other brands, over 500 airlines, packages, rental cars, cruises, insurance, as well as activities and experiences.
Travel suppliers distribute and market products via our apps, desktop and mobile offerings, as well as through alternative distribution channels, our business partnerships and our call centers in order to reach our extensive global audience. In addition, our advertising and media businesses help other businesses, primarily travel providers, reach a large multi-platform audience of travelers around the globe.
Historical Development
Nearly 30 years ago, we began operations as one of the first online travel agencies (“OTAs”) and played a significant role in revolutionizing and democratizing travel, by empowering customers to manage their own travel plans. We did so by building and then leveraging proprietary technology to connect partners and their respective inventory to those travelers, while unlocking the marketplace for travel to other businesses as well. Since then, the travel industry has experienced significant transformation, including the material shift from offline to online travel booking. This transformation led to many years of exciting growth for OTAs along with increased competition. In order to remain innovative and competitive, we made several strategic acquisitions, which materially expanded the breadth and depth of our Company. Much of our strategy leading up to the COVID-19 pandemic focused on our brands competing aggressively for share all around the world, each with their own offerings and benefits. However, it also created certain complexities and inefficiencies over time.
To reduce complexity and improve operations, in 2020, we shifted to a platform operating model, which enabled us to deliver more scalable services and operate much more efficiently. For example, we now manage our marketing investments holistically across the entire brand portfolio, allowing us to optimize our spend to achieve better returns, and run on a unified marketing technology platform, improving our performance by scaling our marketing capabilities. These changes were made in an effort to simplify and streamline our organization, improve our cost structure, and the operation of our business.
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Moreover, to streamline activities and enhance focus on our core businesses, we shut down or sold a number of businesses since the beginning of 2020, including Egencia, a travel management company focused on corporate travel, in November 2021 and shifted to a 10-year lodging supply agreement with its purchaser, American Express Global Business Travel (“GBT”). The result of these cumulative actions enables more focus on improving the overall experience for our travelers.
As part of our platform operating model strategy, we migrated both the Hotels.com and Vrbo front-end stacks onto the Brand Expedia stack and created one unified front-end stack in 2023, which increases our test-and-learn capacity and feature release velocity while also providing a scalable and efficient base to operate upon. We also launched One Key in the United States, which serves as the unified loyalty program under Brand Expedia, Hotels.com and Vrbo, enabling travelers to cross-earn and cross-redeem awards across these brands and access our range of products such as air, hotels and alternative accommodations. In 2024, we rolled out One Key in the United Kingdom and, in 2025, we continued to expand the program with the majority of Expedia Rewards members migrating to One Key. In 2024, we also introduced general managers to lead each of our core consumer brands in order to highlight each brand’s distinct value proposition and improve accountability, while also leveraging the scale and efficiency of our unified tech platform. With greatly improved product driven by the latest in machine learning and artificial intelligence capabilities, we believe we will continue to drive greater retention, repeat and direct business.
Market Opportunity and Business Strategy
Expedia Group is one of the world’s largest online travel companies, yet our gross bookings represent a single-digit percentage of total worldwide travel spending highlighting the size of our market opportunity. Phocuswright estimates global travel spending, inclusive of alternative accommodations and tours and activities, at over $2 trillion in 2026.
Our focus is to: leverage our brand, supply, and platform technology strength, to provide greater services and value to our travelers, suppliers and business partners, and build longer-lasting direct relationships with our customers. During 2025, we have used artificial intelligence (“AI”) to amplify our strategic priorities. We have leveraged AI by integrating it into our products and technology as well as to drive efficiencies from enhancing developer productivity and improving resolution speed in our customer service teams.
Leverage Brand and Supply Strength to Power the Travel Ecosystem. We believe the strength of our core brand portfolio and consistent enhancements to our product and service offerings, combined with our global scale and broad-based supply, drive increasing value to customers and customer demand. With our significant global audience of travelers, and our deep and broad selection of travel products, we are also able to provide value to supply partners seeking to grow their business through sophisticated technology, a better understanding of travel retailing and reaching consumers in markets beyond their reach. Our deep product and supply footprint allows us to tailor offerings to target different types of consumers and travel needs, employ geographic segmentation in markets around the world, and leverage brand differentiation, among other benefits. We also market to consumers through a variety of channels, including internet search, metasearch and social and digital media. In 2025, we continued our investments in global market expansion beyond our core markets.
Our portfolio of brands, operated and organized by reportable segment are as follows:
B2C. Our B2C segment provides a full range of travel and advertising services to our worldwide customers through recognized consumer brands that target a variety of customer segments and geographic regions with tailored offerings. Our portfolio of B2C brands includes:
•Expedia. Brand Expedia is a leading full-service online travel brand in a wide range of countries around the world offering a wide selection of travel products and services.
•Hotels.com. Hotels.com focuses on lodging accommodations.
•Vrbo. Vrbo operates an online marketplace for alternative accommodations with localized websites around the world, as well as other regional alternative accommodation brands.
•Other portfolio brands. Includes Orbitz, Travelocity, ebookers and Wotif Group, among others.
While we maintain a large portfolio of consumer brands, we put the majority of our marketing efforts towards our three core consumer brands: Expedia, Hotels.com, and Vrbo.
B2B. Our B2B segment fuels a wide range of travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management and financial institutions, who leverage our leading travel technology and tap into our diverse supply to augment their offerings and market Expedia Group rates and availabilities to their travelers.
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Expedia’s B2B partners can benefit from our technology and supply in the way that best suits their business. This includes connecting to Expedia Group's travel content through our API, Rapid; adopting one of our customized white label or co-branded ecommerce template solutions; or using our powerful agent booking tool, Expedia Travel Affiliate Agent Program ("TAAP"). We also offer an “optimized distribution” product to help hotel suppliers distribute wholesale rates through authorized channels.
trivago. Our trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its hotel metasearch websites. trivago N.V. is our majority-owned hotel metasearch company, based in Dusseldorf, Germany. The online platform gives travelers access to price comparisons from hundreds of booking websites for millions of hotels and other accommodations. Officially launched in 2005, trivago is a leading global brand in hotel search and can be accessed worldwide. The company is listed on the Nasdaq Global Select Market and trades under the symbol “TRVG.”
Leverage Our Platform to Deliver More Rapid Product Innovation Resulting in Better Traveler Experiences. We have coordinated our technology, product, data engineering, and data science teams in order to build services and capabilities that can be leveraged across our business units to provide value-add services to our travel suppliers and serve our end customers. The synergies in our team structure enable us to deliver more scalable services and operate more efficiently with our core B2C brands benefiting from a unified technology front-end infrastructure. Going forward, we expect to continue to cement our leadership in the B2B segment as our B2B business also benefits from all the work we have done in product and technology for our B2C brands.
As we continue to mature our shared platform infrastructure, our focus is on developing configurable technical capabilities that support various travel products while using simpler, standard architecture and common applications and frameworks. We believe this strategy will enable us to: simultaneously build pieces of technology that work in tandem; ship new capabilities and features faster; create a foundation for more innovative solutions; and achieve greater economies of scope and scale. Ultimately, we believe this will result in more product improvements faster and therefore better traveler experiences. All of our transaction-based businesses now benefit from our shared platform infrastructure, including customer servicing and support, data centers, search capabilities, payment processing, and fraud operations.
We also launched One Key in the United States and United Kingdom, which serves as a unified loyalty program for Brand Expedia, Hotels.com and Vrbo, enabling travelers to cross-earn and cross-redeem rewards across these brands and our range of products such as air, hotels and alternative accommodations. Recently, One Key was expanded to a number of new Brand Expedia markets across the globe with the majority of Expedia Rewards members now migrated to the program.
We provide 24-hour-a-day, seven-day-a-week traveler sales and support by our virtual agent platform, telephone, chat, or e-mail. For purposes of operational flexibility, we use a combination of outsourced and in-house contact centers. Our contact centers are located in several countries throughout the world. We invested significantly in our contact center technologies, with the goal of improving customer experience and increasing the efficiency of our contact center agents and we expect to continue reaping the benefits of these investments going forward. In addition, we have continued to invest in our customer service platform technology, which leverages technology and artificial intelligence to provide our customers with online customer service options and self-service capabilities.
Today our websites and apps are powered primarily through cloud platforms and, to a lesser extent, legacy company-owned data centers. For our legacy company-owned data centers, our systems infrastructure and web and database servers are housed in various locations, mainly in the United States, which have 24-hour monitoring and engineering support. These data centers have their own generators and multiple back-up systems. For some critical systems, we have both production and disaster-recovery facilities. Our technology systems are subject to certain risks, which are described below in Part I. Item 1A. Risk Factors.
Business Models
We make travel products and services available both on a stand-alone and package basis, primarily through the following business models:
•Merchant Model. Under the merchant model, we facilitate the booking of hotel rooms, alternative accommodations, airline seats, car rentals and destination services from our travel suppliers and we are the merchant of record for such bookings. For example, we provide travelers access to book hotel room reservations through our contracts with lodging suppliers, which provide us with rates and availability information for rooms but for which we have no control over the rooms and do not bear inventory risk. Our travelers pay us for merchant hotel transactions prior to departing on their trip, generally when they book the reservation. The majority of our merchant transactions relate to lodging bookings.
•Agency Model. Under the agency model, we facilitate travel bookings and act as the agent in the transaction, passing reservations booked by the traveler to the relevant travel provider. We receive commissions or ticketing fees from the
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travel supplier and/or traveler. We record revenue on air transactions when the traveler books the transaction, as we do not typically provide significant post booking services to the traveler and payments due to and from air carriers are typically due at the time of ticketing. We generally record agency revenue from the hotel when the stayed night occurs as we provide post booking services to the traveler and, thus consider the stay as when our performance obligation is satisfied. The majority of our agency gross bookings relate to air bookings.
•Advertising Model. Under the advertising model we offer travel and non-travel advertisers access to a potential source of incremental traffic and transactions through our various media and advertising offerings across several of our transaction-based websites, as well as on our majority-owned metasearch site, trivago.
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Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “goal,” “intends,” “likely,” “may,” “plans,” “potential,” “predicts,” “projected,” “seeks,” “should” and “will,” or the negative of these terms or other similar expressions, among others, generally identify forward-looking statements; however, these words are not the exclusive means of identifying such statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements reflect the views of our management regarding current expectations and projections about future events and are based on currently available information. Actual results could differ materially from those contained in these forward-looking statements for a variety of reasons, including, but not limited to, those discussed in our Annual Report on Form 10-K for the year ended December 31, 2025, Part I, Item 1A, “Risk Factors,” as well as those discussed elsewhere in this report. Other unknown or unpredictable factors also could have a material adverse effect on our business, financial condition and results of operations. Accordingly, readers should not place undue reliance on these forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, because of new information, future events, or otherwise.
The information included in this management’s discussion and analysis of financial condition and results of operations should be read in conjunction with our consolidated financial statements and the notes included in this Quarterly Report, and the audited consolidated financial statements and notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the year ended December 31, 2025.
Overview
Expedia Group is the global travel marketplace with one purpose: to help travelers explore the world, one journey at a time. We connect travelers, partners, and advertisers throughout our trusted brands, leading technology, and rich first-party data, delivering predictive, personalized experiences that shape the future of travel. We make available, on a stand-alone and package basis, travel services provided by numerous lodging properties, airlines, car rental companies, activities and experiences providers, cruise lines, alternative accommodations property owners and managers, and other travel product and service companies. We also offer travel and non-travel advertisers access to a potential source of incremental traffic and transactions through our various media and advertising offerings on our websites.
All percentages within this section are calculated on actual, unrounded numbers.
Trends
The Company continues to operate in an increasingly complex business environment and global macroeconomic and geopolitical pressures, including trade disruptions, currency fluctuations and energy price volatility, contributed to this environment for the travel industry. As an example, during the first quarter of 2026, events in the Middle East and Mexico had an adverse impact on the travel industry. If these pressures are intensified or sustained, travel behaviors may be impacted and any associated decrease in overall demand would negatively impact our business. In addition, our suppliers, business and service partners could also be impacted, thereby increasing our risk of credit losses and service level or other disruptions. Our future operational results may be subject to volatility, particularly in the short-term, due to the impact of the aforementioned trends.
These broader economic and regulatory uncertainties also extend to the global tax environment in which we operate. Domestic and international taxing authorities have in recent years become increasingly focused on ways to increase tax revenue, including the enactment of new taxes such as digital services taxes, and have become more aggressive in their interpretation and enforcement of existing tax laws, rules and regulations. We are in various stages of inquiry or audit with various tax authorities, some of which may require that we prepay any assessed taxes prior to contesting the validity of the assessment (“pay-to-play”) which will be repaid if we prevail in our challenge. However, any significant pay-to-play payment or litigation loss could negatively impact our liquidity.
Other events that could have a negative impact on the travel industry and our businesses in the future are discussed in our Annual Report on Form 10-K for the year ended December 31, 2025, Part I, Item 1A, Risk Factors – “Declines or disruptions in the travel industry could adversely affect our business and financial performance.”
Online Travel
The market opportunity for online travel is broad and highly competitive. Online penetration of travel expenditures is higher in the U.S. and Western European markets with online penetration rates in some emerging markets, such as Latin America and Eastern European regions, lagging behind those regions. Emerging markets continue to present an attractive
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growth opportunity for our business, while also attracting many competitors to online travel. Technological developments in generative artificial intelligence (“AI”) tools are increasingly being used to create competing offerings, such as AI powered digital planning and assistance, further increasing competition.
In addition to the growth of online travel agencies, we have seen continued interest in the online travel industry from search engine companies such as Google, evidenced by continued product enhancements, and prioritizing its own AdWords and metasearch products such as Google Travel, Google Flights and Hotel Ads, in search results. Competitive entrants such as “metasearch” companies, including Kayak.com (owned by Booking Holdings), trivago (in which Expedia Group owns a majority interest) as well as TripAdvisor, introduced differentiated features, pricing and content compared with the legacy online travel agency companies, as well as various forms of direct or assisted booking tools. Further, airlines and lodging companies are aggressively pursuing direct online distribution of their products and services.
In addition, the increasing popularity of the “sharing economy,” accelerated by online penetration, has had a direct impact on the travel and lodging industry. Businesses such as Airbnb, Vrbo and Booking.com have emerged as the leaders, bringing incremental alternative accommodation inventory to the market. Other competitors have arisen, including alternative accommodation property managers, who operate their own booking sites in addition to listing on Airbnb, Vrbo, and Booking.com. Additionally, traditional consumer ecommerce players have expanded their local offerings by adding hotel offers to their websites. Ride sharing app Uber has added transportation and experience offerings to its app via partnerships with other travel providers. Our B2B business has grown significantly but faces competition from other online travel agencies (“OTAs”) with B2B offerings, as well as other competitors such as independent B2B providers.
The online travel industry also saw the development of alternative business models and variations in the timing of payment by travelers and to suppliers, which in some cases place pressure on historical business models. In particular, the agency hotel model saw rapid adoption in Europe. Expedia Group facilitates both merchant (Expedia Collect) and agency (Hotel Collect) hotel offerings with our hotel supply partners through both agency-only contracts as well as our hybrid Expedia Traveler Preference (“ETP”) program, which offers travelers the choice of whether to pay Expedia Group at the time of booking or pay the hotel at the time of stay.
Lodging
Lodging includes both hotel and alternative accommodations. As a percentage of our total worldwide revenue in the first quarter of 2026, lodging accounted for 76%. Room nights booked grew 6% in the first quarter of 2026, as compared to growth of 8% in 2025 and 9% in 2024. Average Daily Rates (“ADRs”) booked for Expedia Group increased 7% in the first quarter of 2026, increased 1% in 2025 and decreased 1% in 2024.
As of March 31, 2026, our global lodging marketplace had approximately 3.7 million total lodging properties available, including approximately 2.5 million online bookable alternative accommodations through Vrbo and approximately 1.2 million hotels and alternative accommodations through our other brands.
Hotel. We generate the majority of our revenue through the facilitation of hotel reservations (stand-alone and package bookings). Our relationships and overall economics with hotel supply partners have been broadly stable in recent years. As we continue to expand the breadth and depth of our global hotel offering, in some cases we have reduced our economics in various geographies based on local market conditions. These impacts are due to specific initiatives intended to drive greater global size and scale through faster overall room night growth. Additionally, increased promotional activities such as growing loyalty programs, discounting, and couponing have contributed to declines in revenue per room night and profitability in certain cases.
Further, while the global lodging industry remains very fragmented, there has been consolidation in the hotel space among chains as well as ownership groups. In the meantime, certain hotel chains have been focusing on driving direct bookings on their own websites and mobile applications by advertising lower rates than those available on third-party websites as well as incentives such as loyalty programs, increased or exclusive product availability and complimentary benefits.
Alternative Accommodations. Over the past decade, we expanded into the alternative accommodations market. Vrbo is a leader, specializing in unique whole home inventory, primarily in North American leisure markets, and represents an attractive growth opportunity for Expedia Group.
Vrbo has transitioned from a listings-based classified advertising model to an online transactional model that optimizes for both travelers and homeowner and property manager partners, with a goal of increasing monetization and driving growth through investments in marketing as well as in product and technology. Vrbo primarily offers pay-per-booking service model and generates revenue from a traveler service fee for bookings, as well as insurance products.
Since our hotel and alternative accommodation supplier agreements are generally negotiated on a percentage basis, any increase or decrease in ADRs has an impact on the revenue we earn per room night. In the future, we could see macroeconomic factors influence ADR trends, including rising living costs due to inflation and higher interest rates. Other factors that could lead to moderating ADRs include growth in hotel supply and the increase in alternative accommodation inventory.
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Advertising & Media
Expedia Group (“EG”) Advertising is responsible for generating advertising revenue on our global online travel brands through a variety of digital marketing solutions. In the first quarter of 2026, we generated $197 million of advertising revenue from EG Advertising, a 13% increase from the same period in 2025.
We also generate advertising revenue from trivago, a leading hotel metasearch website. In the first quarter of 2026, we generated $125 million of third-party revenue from trivago, a 47% increase from the same period in 2025.
As a percentage of our total worldwide revenue in the first quarter of 2026, total advertising and media accounted for 9%.
Air
During 2025, air travel demand exhibited a mixed but improving trend. While ticket volumes were positive throughout the year, pricing was pressured by softer consumer demand in the United States and weaker inbound international travel into the United States in early 2025. By the end of the year, domestic and international travel demand improved, supporting air ticket price growth. For the full year 2025, U.S. domestic trips were up approximately 2% year-over-year according to Airlines Report Corporation ("ARC") data. Our air bookings grew in 2025 compared to 2024 but continued to lag the growth in our lodging business. Our air bookings grew in the first quarter of 2026 compared to the same period in 2025 in line with growth in our lodging business.
In the future, we could encounter pressure on air remuneration as air carriers combine, more air carriers shift to our “direct connect” technology, certain supply agreements renew, and as we continue to add airlines to ensure local coverage in new markets.
Booked air tickets increased 6% in the first quarter of 2026, 3% in 2025 and 6% in 2024. As a percentage of our total worldwide revenue in the first quarter of 2026, air accounted for 3%.
Business Strategy
As we endeavor to power global travel for everyone, everywhere our focus is to leverage our brand, supply and platform technology strength to provide greater services and value to our travelers, suppliers and business partners, and build longer-lasting direct relationships with our customers. We continue to integrate artificial intelligence across our platform, including in traveler-facing experiences, customer service operations and internal processes, with the goal of improving conversion, personalization and operational efficiency. We also collaborate with leading AI platforms to enhance our capabilities and accelerate innovation.
We believe the strength of our core brand portfolio and consistent enhancements to product and service offerings, combined with our global scale and broad-based supply, drive increasing value to customers and customer demand. With our significant global audience of travelers, and our deep and broad selection of travel products, we are also able to provide value to supply partners seeking to grow their business through sophisticated technology, a better understanding of travel retailing and reaching consumers in markets beyond their reach. Our deep product and supply footprint allows us to tailor offerings to target different types of consumers and travel needs, employ geographic segmentation in markets around the world, and leverage brand differentiation, among other benefits. We also market to consumers through a variety of channels, including internet search, metasearch and social and digital media.
We have coordinated our technology, product, data engineering, and data science teams in order to build services and capabilities that can be leveraged across our business units to provide value-add services to our travel suppliers and serve our end customers. The synergies in our team structure enable us to deliver more scalable services and operate more efficiently with our core B2C brands benefiting from a unified technology front-end infrastructure. Going forward, we expect to continue to cement our leadership in the B2B segment as our B2B business also benefits from all the work we have done in product and technology for our B2C brands.
As we continue to mature our shared platform infrastructure, our focus is on developing configurable technical capabilities that support various travel products while using simpler, standard architecture and common applications and frameworks. We believe this strategy will enable us to: simultaneously build pieces of technology that work in tandem; ship new capabilities and features faster; create a foundation for more innovative solutions; and achieve greater economies of scope and scale. Ultimately, we believe this will result in more product improvements faster and therefore better traveler experiences. All of our transaction-based businesses now benefit from our shared platform infrastructure, including customer servicing and support, data centers, search capabilities, payment processing, and fraud operations.
We launched One Key in the United States and United Kingdom, which serves as a unified loyalty program for Brand Expedia, Hotels.com and Vrbo, enabling travelers to cross-earn and cross-redeem rewards across these brands and our range of products such as air, hotels and alternative accommodations. During the second half of 2025, One Key was expanded to a
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number of new Brand Expedia markets across the globe with the majority of Expedia Rewards members now migrated to the program.
Seasonality
We generally experience seasonal fluctuations in the demand for our travel services. For example, traditional leisure travel bookings are generally the highest in the first three quarters as travelers plan and book their spring, summer and winter holiday travel. The number of bookings typically decreases in the fourth quarter. Since revenue for most of our travel services, including merchant and agency hotel, is recognized as the travel takes place rather than when it is booked, revenue typically lags bookings by several weeks for our hotel business and can be several months or more for our alternative accommodations business. Historically, Vrbo has seen seasonally stronger bookings in the first quarter of the year, with the relevant stays occurring during the peak summer travel months. The seasonal revenue impact is exacerbated with respect to income by the nature of our variable cost of revenue and direct sales and marketing costs, which we typically realize in closer alignment to booking volumes, and the more stable nature of our fixed costs. As a result, on a consolidated basis, revenue and income are typically the lowest in the first quarter and highest in the third quarter.
The growth in our B2B segment, international operations, advertising business or a change in our product mix, among others, may also influence the typical trend of seasonality in the future.
Critical Accounting Policies and Estimates
Critical accounting policies and estimates are those that we believe are important in the preparation of our consolidated financial statements because they require that we use judgment and estimates in applying those policies. We prepare our consolidated financial statements and accompanying notes in accordance with generally accepted accounting principles in the United States (“GAAP”). Preparation of the consolidated financial statements and accompanying notes requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements as well as revenue and expenses during the periods reported. We base our estimates on historical experience, where applicable, and other assumptions that we believe are reasonable under the circumstances. Actual results may differ from our estimates under different assumptions or conditions.
There are certain critical estimates that we believe require significant judgment in the preparation of our consolidated financial statements. We consider an accounting estimate to be critical if:
•It requires us to make an assumption because information was not available at the time or it included matters that were highly uncertain at the time we were making the estimate; and
•Changes in the estimate or different estimates that we could have selected may have had a material impact on our financial condition or results of operations.
For additional information about our critical accounting policies and estimates, see the disclosure included in our Annual Report on Form 10-K for the year ended December 31, 2025 as well as updates in the current fiscal year provided in Note 2 – Summary of Significant Accounting Policies in the notes to the consolidated financial statements.
Segments
We have the following reportable segments: B2C, B2B, and trivago. Our B2C segment provides a full range of travel and advertising services to our worldwide customers primarily through our three flagship brands, Expedia.com, Hotels.com, and Vrbo. Our B2B segment fuels a wide range of travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management and financial institutions, who leverage our leading travel technology and tap into our diverse supply to augment their offerings and market Expedia Group rates and availabilities to their travelers. Our trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its hotel metasearch websites.
Operating Metrics
Our operating results are affected by certain metrics, such as gross bookings and revenue margin, which we believe are necessary for understanding and evaluating us. Gross bookings generally represent the total retail value of transactions booked for agency and merchant transactions, recorded at the time of booking reflecting the total price due for travel by travelers, including taxes, fees and other charges, and are reduced for cancellations and refunds. Revenue margin is defined as revenue as a percentage of gross bookings.
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Gross Bookings and Revenue Margin
| Three months ended March 31, | ||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | ||||||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||||
| Gross Bookings | ||||||||||||||||||||||||||||
| B2C | $ | 24,784 | $ | 22,615 | 10 | % | ||||||||||||||||||||||
| B2B | 10,746 | 8,836 | 22 | % | ||||||||||||||||||||||||
trivago (1) | — | — | N/A | |||||||||||||||||||||||||
| Total gross bookings | $ | 35,530 | $ | 31,451 | 13 | % | ||||||||||||||||||||||
| Revenue Margin | ||||||||||||||||||||||||||||
| B2C | 8.5 | % | 8.6 | % | ||||||||||||||||||||||||
| B2B | 11.0 | % | 10.7 | % | ||||||||||||||||||||||||
trivago (1) | N/A | N/A | ||||||||||||||||||||||||||
Total revenue margin (1) | 9.6 | % | 9.5 | % | ||||||||||||||||||||||||
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(1)trivago, which is comprised of a hotel metasearch business that differs from our transaction-based websites, does not have associated gross bookings or revenue margin. However, third-party revenue from trivago is included in revenue used to calculate total revenue margin.
Gross bookings increased 13% for the three months ended March 31, 2026, compared to the same period in 2025. B2C gross bookings growth was driven by sustained momentum in the U.S. B2B gross bookings grew globally with Rapid API the largest contributor to growth. Booked room nights for our lodging business increased 6% for the three months ended March 31, 2026, which was led by growth in the U.S.
Revenue margin remained relatively consistent in the three months ended March 31, 2026 compared to the same period in 2025.
Results of Operations
Revenue
| Three months ended March 31, | ||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | ||||||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||||
| Revenue by Segment | ||||||||||||||||||||||||||||
| B2C | $ | 2,118 | $ | 1,956 | 8 | % | ||||||||||||||||||||||
| B2B | 1,183 | 947 | 25 | % | ||||||||||||||||||||||||
| trivago (Third-party revenue) | 125 | 85 | 47 | % | ||||||||||||||||||||||||
| Total revenue | $ | 3,426 | $ | 2,988 | 15 | % | ||||||||||||||||||||||
Revenue increased 15% for the three months ended March 31, 2026, compared to the same period in 2025, driven by lodging growth in both our B2B and B2C segments.
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| Three months ended March 31, | ||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | ||||||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||||
| Revenue by Service Type | ||||||||||||||||||||||||||||
| Lodging | $ | 2,610 | $ | 2,289 | 14 | % | ||||||||||||||||||||||
| Air | 107 | 107 | — | % | ||||||||||||||||||||||||
| EG Advertising | 197 | 174 | 13 | % | ||||||||||||||||||||||||
| trivago Advertising | 125 | 85 | 47 | % | ||||||||||||||||||||||||
| Other | 387 | 333 | 16 | % | ||||||||||||||||||||||||
Total revenue | $ | 3,426 | $ | 2,988 | 15 | % | ||||||||||||||||||||||
Lodging revenue increased 14% for the three months ended March 31, 2026, compared to the same period in 2025, primarily driven by an increase in room nights stayed in our hotel business and higher ADRs stayed.
Air revenue was consistent for the three months ended March 31, 2026, compared to the same period in 2025, as higher air tickets sold were offset by lower revenue per ticket.
EG Advertising revenue increased 13% for the three months ended March 31, 2026, compared to the same period in 2025, driven by our sponsored listing business. trivago Advertising revenue increased 47% for the three months ended March 31, 2026, compared to the same period in 2025, driven by its strategic focus on brand rebuilding in recent years.
All other revenue, which includes insurance, car, cruise and activities, increased 16% for the three ended months ended March 31, 2026, compared to the same period in 2025 primarily due to higher insurance revenue.
In addition to the above segment and product revenue discussion, our revenue by business model is as follows:
| Three months ended March 31, | ||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | ||||||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||||
| Revenue by Business Model | ||||||||||||||||||||||||||||
| Merchant | $ | 2,401 | $ | 2,046 | 17 | % | ||||||||||||||||||||||
| Agency | 675 | 652 | 4 | % | ||||||||||||||||||||||||
| Advertising, media and other | 350 | 290 | 21 | % | ||||||||||||||||||||||||
| Total revenue | $ | 3,426 | $ | 2,988 | 15 | % | ||||||||||||||||||||||
The increase in merchant revenue for the three months ended March 31, 2026, compared to the same period in 2025, was primarily due to an increase in merchant lodging revenue. Agency revenue remained relatively consistent for the three months ended March 31, 2026, as compared to the same period in 2025. Advertising, media and other increased for the three months ended March 31, 2026, compared to the same period in 2025, primarily due to healthy growth in both EG Advertising and trivago revenue.
Cost of Revenue
| Three months ended March 31, | ||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | ||||||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||||
| Direct costs | $ | 304 | $ | 286 | 6 | % | ||||||||||||||||||||||
| Personnel and overhead | 73 | 71 | 2 | % | ||||||||||||||||||||||||
| Total cost of revenue | $ | 377 | $ | 357 | 5 | % | ||||||||||||||||||||||
| % of revenue | 11.0 | % | 12.0 | % | ||||||||||||||||||||||||
Cost of revenue primarily consists of direct costs to support our customer operations, including our customer support and telesales as well as fees to air ticket fulfillment vendors; credit card processing, including merchant fees, fraud and chargebacks; and other costs, primarily including data center and cloud costs to support our websites, supplier operations, destination supply, certain transactional level taxes as well as related personnel and overhead costs, including stock-based compensation.
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Cost of revenue increased $20 million during the three months ended March 31, 2026 compared to the same period in 2025, but decreased as a percentage of revenue during the period driven by continued efficiencies in payments and customer service.
Selling and Marketing - Direct and Indirect
| Three months ended March 31, | ||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | ||||||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||||
| Selling and marketing - direct | $ | 1,856 | $ | 1,757 | 6 | % | ||||||||||||||||||||||
| % of revenue | 54.2 | % | 58.8 | % | ||||||||||||||||||||||||
| Selling and marketing - indirect | 202 | 199 | 2 | % | ||||||||||||||||||||||||
| % of revenue | 5.9 | % | 6.6 | % | ||||||||||||||||||||||||
Selling and marketing - direct costs primarily include traffic generation costs from search engines and internet portals, television and print spending, private label and affiliate program commissions, public relations and other costs. Selling and marketing - indirect costs include personnel and related overhead in our various brands and global supply organization as well as stock-based compensation costs.
Selling and marketing - direct increased $99 million during the three months ended March 31, 2026, compared to the same period in 2025, primarily driven by an increase in B2B partner commissions to support revenue growth, partially offset by a decrease in B2C, which saw significant marketing leverage. Selling and marketing - indirect costs remained relatively consistent during the three months ended March 31, 2026, compared to the same period in 2025.
Technology and Content
| Three months ended March 31, | ||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | ||||||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||||
| Personnel and overhead | $ | 227 | $ | 237 | (4) | % | ||||||||||||||||||||||
| Other | 97 | 83 | 16 | % | ||||||||||||||||||||||||
| Total technology and content | $ | 324 | $ | 320 | 1 | % | ||||||||||||||||||||||
| % of revenue | 9.5 | % | 10.7 | % | ||||||||||||||||||||||||
Technology and content expense includes product development and content expense, as well as information technology costs to support our infrastructure, back-office applications and overall monitoring and security of our networks, and is principally comprised of personnel and overhead, including stock-based compensation, as well as other costs including cloud expense and licensing and maintenance expense.
Technology and content expense remained relatively consistent during the three months ended March 31, 2026, compared to the same period in 2025 as higher license and maintenance costs and cloud costs were mostly offset by lower personnel costs in connection with previously announced cost saving initiatives.
General and Administrative
| Three months ended March 31, | ||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | ||||||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||||
| Personnel and overhead | $ | 148 | $ | 146 | 1 | % | ||||||||||||||||||||||
| Professional fees and other | 48 | 34 | 43 | % | ||||||||||||||||||||||||
| Total general and administrative | $ | 196 | $ | 180 | 9 | % | ||||||||||||||||||||||
| % of revenue | 5.7 | % | 6.0 | % | ||||||||||||||||||||||||
General and administrative expense consists primarily of personnel-related costs, including our executive leadership,
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finance, legal and human resource functions and related stock-based compensation as well as fees for external professional services.
General and administrative expense increased during the three months ended March 31, 2026, compared to the same period in 2025, primarily due to higher miscellaneous items, including charitable contributions in the current year.
Depreciation and Amortization
| Three months ended March 31, | ||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | ||||||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||||
| Depreciation | $ | 221 | $ | 208 | 7 | % | ||||||||||||||||||||||
| Amortization of intangible assets | 7 | 11 | (34) | % | ||||||||||||||||||||||||
| Total depreciation and amortization | $ | 228 | $ | 219 | 4 | % | ||||||||||||||||||||||
Depreciation increased $13 million during the three months ended March 31, 2026, compared to the same period in 2025, primarily as a result of increased capitalized website development costs. Amortization of intangible assets decreased $4 million during the three months ended March 31, 2026, compared to the same period in 2025.
Legal Reserves, Occupancy Tax and Other
| Three months ended March 31, | ||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | ||||||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||||
| Legal reserves, occupancy tax and other | $ | (64) | $ | — | N/A | |||||||||||||||||||||||
Legal reserves, occupancy tax and other primarily consists of increases in our reserves for court decisions and the potential and final settlement of issues related to hotel occupancy and other taxes, expenses recognized related to monies paid in advance of occupancy and other tax proceedings (“pay-to-play”) as well as legal reserves and certain other items.
The net credit in legal reserves, occupancy tax and other for the three months ended March 31, 2026 was primarily due to the reversal of Canadian digital service taxes (“DST”). On March 26, 2026, the government of Canada enacted legislation as part of its 2026 federal budget that repealed the Digital Services Tax Act, with retroactive effect to June 20, 2024.
We had previously recognized, during 2024 and 2025, accruals for anticipated Canadian DST liabilities related to certain digital services revenues, based on enacted law at that time and guidance then available from the Canada Revenue Agency. In connection with the repeal, during the three months ended March 31, 2026, we reversed $71 million of previously recognized Canadian DST liabilities, covering in-scope periods from January 1, 2022 through December 31, 2025. As of March 31, 2026, the Company no longer has an obligation related to the Canadian DST.
Restructuring and Related Reorganization Charges
We have continued to recalibrate resources and expand the restructure efforts that began in 2024 due to the significant completion of the Company’s organizational and technological transformation. As a result, we recognized $56 million and $26 million in restructuring and related reorganization charges during the three months ended March 31, 2026 and 2025, which were predominately related to employee severance, stock-based compensation and benefits costs. Based on current plans which are subject to change, we expect approximately $25 million in additional reorganization charges. We continue to evaluate additional cost reduction efforts, and should we make additional decisions in future periods to take further actions we may incur additional reorganization charges.
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Operating Income
| Three months ended March 31, | ||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | ||||||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||||
| Operating income (loss) | $ | 251 | $ | (70) | N/A | |||||||||||||||||||||||
| % of revenue | 7.3 | % | (2.3) | % | ||||||||||||||||||||||||
During the three months ended March 31, 2026, the increase in operating income from an operating loss in the prior year period was primarily due to a growth in revenue in excess of operating costs.
Adjusted EBITDA by Segment
| Three months ended March 31, | ||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | ||||||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||||
| B2C | $ | 426 | $ | 217 | 96 | % | ||||||||||||||||||||||
| B2B | 269 | 216 | 24 | % | ||||||||||||||||||||||||
| trivago | (7) | (5) | 34 | % | ||||||||||||||||||||||||
| Segment Adjusted EBITDA | 688 | 428 | ||||||||||||||||||||||||||
| Unallocated corporate and other expenses | (146) | (132) | 11 | % | ||||||||||||||||||||||||
Total Adjusted EBITDA (1) | $ | 542 | $ | 296 | ||||||||||||||||||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-06-05 | Dzielak Robert J | Chief Legal Officer & Sec'y | Sell | -4,702 | $233.00 | -$1,095,566 |
| 2026-05-26 | Soliday Lance A | SVP & Chief Accounting Officer | Sell | -940 | $221.86 | -$208,547 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-08-07 10-Q expected by 2026-08-10 (in 53 days)
- ~2026-11-06 10-Q expected by 2026-11-09 (in 144 days)
- ~2027-02-12 10-K expected by 2027-03-03 (in 242 days)
- ~2027-05-07 10-Q expected by 2027-05-10 (in 326 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-05-08 10-Q Quarterly Report
- 2026-05-07 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2026-04-29 DEF 14A Proxy Statement
- 2026-04-23 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-04-10 8-K Other Events; Financial Statements and Exhibits
- 2026-04-09 424B2 Prospectus Supplement
- 2026-03-30 8-K Material Agreement Entered; Material Agreement Terminated; Material Financial Obligation; Other Events; Financial Statements and Exhibits
- 2026-02-13 10-K Annual Report
- 2026-02-12 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2025-11-12 8-K Other Events; Financial Statements and Exhibits
- 2025-11-07 10-Q Quarterly Report
- 2025-11-06 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2025-08-08 10-Q Quarterly Report
- 2025-08-07 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2025-05-09 10-Q Quarterly Report