Expedia Group (EXPE) soars on Q3 2025 beat and higher full‑year outlook; B2B bookings power rally — Nov. 7, 2025

Expedia Group, Inc. (NASDAQ: EXPE) reported stronger‑than‑expected third‑quarter results after the bell on Nov. 6 and raised its 2025 guidance. Shares jumped as much as ~16% in pre‑market trading today (Nov. 7) as investors cheered accelerating B2B momentum and margin expansion. 1

Key takeaways

• Q3 2025 topped guidance: Revenue $4.41B (+9% y/y); gross bookings $30.73B (+12%); adjusted EBITDA $1.45B (+16%; ~33% margin); adjusted EPS $7.57 (+23%). Room nights 108.2M (+11%). 2
• B2B strength: B2B gross bookings rose 26% y/y and B2B revenue grew 18%, continuing a multi‑quarter streak of double‑digit growth. Advertising revenue grew 16%. 3
• Guidance raised: For FY 2025, Expedia now sees revenue up 6%–8% and gross bookings up 6%–8%, with ~2 percentage points of adjusted EBITDA margin expansion (prior outlook: ~1 point). For Q4 2025, management guides to ~7% gross bookings growth and 6%–7% revenue growth. 2
• Capital returns: Expedia repurchased $451M of stock in Q3 and declared a $0.40 quarterly dividend payable Dec. 11, 2025 (record date Nov. 19, 2025). 2
• Market reaction: Shares spiked in early trade on the outlook boost and continued B2B gains, with analysts highlighting the cleaner path to margin expansion. 1

What happened

Expedia said demand accelerated into the September quarter, with U.S. room‑nights growing at the fastest pace in over three years while international momentum remained solid. CEO Ariane Gorin pointed to reinforcing effects of its two‑sided marketplace and execution against strategic priorities as drivers of the outperformance. 2

The company’s B2B platform—powering partners like travel agencies, banks and offline sellers—again led the way: B2B bookings +26% y/y and B2B revenue +18%. That mix shift, coupled with expense discipline, lifted adjusted EBITDA margin by ~208 bps to roughly 33% in Q3. Advertising also provided a tailwind, up 16% year over year. 3

By the numbers (Q3 2025)

• Gross bookings:$30.73B (+12% y/y)
• Revenue:$4.41B (+9%)
• Adjusted EBITDA:$1.45B (+16%); ~32.9% margin
• Adjusted EPS:$7.57 (+23%)
• Room nights:108.2M (+11%)
• Share repurchases:$451M in Q3
• Dividend:$0.40 per share declared Nov. 6; payable Dec. 11, 2025
  These figures come from Expedia’s earnings materials and investor update. 2

2025 outlook: raised across the board

Management lifted full‑year guidance to 6%–8% revenue growth and 6%–8% gross bookings growth, and now expects ~2 points of adjusted EBITDA margin expansion for 2025 (previously ~1 point). For the holiday quarter (Q4 2025), Expedia targets ~7% gross bookings growth and 6%–7% revenue growth. 2

External reporting echoed the stronger setup, with pre‑market gains of about 15%–16% as investors focused on the higher margin outlook and B2B traction. Reuters also highlighted that Asia room‑nights climbed 20%+, while U.S. growth showed share gains amid more price‑sensitive travelers. 1

Street reaction today (Nov. 7, 2025)

• Piper Sandler upgraded EXPE to Neutral from Underweight and raised its price target to $250 following the print. 4
• RBC Capitallifted its target to $260; other firms raised targets as well, citing accelerating bookings and operating leverage. 5
• Coverage also noted that Expedia’s partnerships and AI roadmap help calm disruption fears while preserving marketing efficiency. 6

Why it matters

• Mix shift to B2B: B2B continues to outgrow consumer travel, providing steadier, higher‑visibility revenue and cushioning against consumer cyclicality. 3
• Margin credibility: The step‑up from ~1 point to ~2 points of expected margin expansion for 2025 suggests Expedia’s re‑platforming and marketing optimization are flowing through to profitability. 2
• Travel demand breadth: Management and third‑party reporting indicate travel demand remains resilient across income tiers—not just among premium travelers—supporting volumes into the holiday quarter. 7

What to watch next

1. Holiday quarter cadence: Can Expedia hit its Q4 guide (revenue +6%–7%; bookings ~+7%) amid a mixed U.S. macro? 2
2. B2B pipeline & partner adds: Sustaining ~20%+ B2B growth will be key to the multi‑year margin story. 3
3. Regional mix: With Asia room‑nights up 20%+, watch whether international strength offsets any U.S. softness. 1
4. Capital returns: Follow‑through on dividend continuity and buybacks after the Q3 $451M repurchase. 2

This article is for informational purposes and is not investment advice. 2