Summary of Expedia Group Q2 2026 Earnings Call

1Key Financial Results and Metrics

Gross Bookings: Increased by 12% year-over-year.

Revenue: Grew by 14%, exceeding expectations.

Adjusted EBITDA: Reached $1.1 billion, with a margin of 25.9%, up nearly two points from the previous year.

Adjusted EPS: Increased by 36% year-over-year.

Free Cash Flow: $4.5 billion on a trailing 12-month basis.

Share Repurchases: Approximately 880,000 shares repurchased for $200 million at an average price of $226 per share.

2Strategic Updates and Business Highlights

Consumer Spending: Healthy, particularly in the U.S., with longer lengths of stay and booking windows.

B2B Growth: Achieved 20 consecutive quarters of double-digit growth.

Product Innovations: Launched AI-driven features for personalized travel experiences and expanded partnerships, including becoming the first OTA to distribute Allegiant flights.

Market Expansion: Continued to enhance the travel marketplace with new product offerings and improved marketing efficiencies.

Acquisitions: Announced the acquisition of Layla, an AI conversational planning app, and CarTrawler, a B2B car rental and insurance platform.

3Forward Guidance and Outlook

Q3 Guidance: Expected gross bookings of $32.2 billion to $32.8 billion (5%-7% growth) and revenue of $4.65 billion to $4.75 billion (5%-8% growth).

Full-Year Guidance: Raised to gross bookings of $129.5 billion to $130.8 billion (8%-9% growth) and revenue of $16.05 billion to $16.22 billion (9%-10% growth).

Adjusted EBITDA Margin Expansion: Expected to be 150-175 basis points for the full year.

4Bad News, Challenges, or Points of Concern

European Market Pressure: Continued challenges in outbound travel from Europe due to macroeconomic headwinds and reduced air capacity.

Moderation in Growth: Anticipated slower growth in bookings and room nights in the second half of the year due to tougher comparisons.

Competitive Landscape: Increased competition in the B2B segment, necessitating ongoing investment and innovation to maintain market position.

FX Headwinds: Expected unfavorable impacts from foreign exchange rates in Q3.

5Notable Q&A Insights

AI Integration: Discussion on the interplay between AI-driven channels and traditional advertising, with a focus on enhancing traveler experiences and conversion rates.

B2B Strategy: Emphasis on the importance of building trust with partners and expanding service offerings to remain competitive.

Market Dynamics: Insights into geographic trends, with a focus on the U.S. and APAC recovery, while acknowledging challenges in Europe.

Advertising Revenue: Stable growth in advertising revenue, with plans to expand into more surfaces and B2B offerings.

Attach Rates: Strong attach rates for additional services, indicating potential for further growth in multi-item bookings. Overall, Expedia Group reported strong financial performance in Q2 2026, driven by healthy consumer demand and strategic investments, while also facing challenges in certain markets and competitive pressures. The company remains optimistic about its growth trajectory and strategic initiatives moving forward.