Expedia Group, Inc. (EXPE)

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AI: Fair-priced

Price checkThe shares look fairly priced because strong cash returns offset demanding profit expectations.

At the latest close of $332.69, Expedia’s market value was about $39.9 billion. Trailing twelve-month free cash flow—cash left after running and investing in the business—was $4.46 billion, an attractive 11.2% yield. However, earnings were $16.09 a share, placing the stock at 20.7 times earnings; the operating business, after debt and cash, cost 13.3 times operating cash profit before interest, taxes, and noncash charges. Using steadier 2025 free cash flow of $3.11 billion lowers the yield to 7.8%, supporting a fair-priced verdict.

Big pictureGrowth and margins are improving, but travel cycles make today’s cash level uncertain.

Revenue climbed from $12.84 billion in 2023 to $14.73 billion in 2025, while operating income rose from $1.03 billion to $1.87 billion. In 2026’s second quarter, revenue grew 14% and operating income 65%, showing real margin improvement; trailing free cash flow reached $4.46 billion. Durability is not guaranteed: 2020 produced a $2.61 billion loss and negative $4.63 billion free cash flow. Expedia receives customer cash before many trips, so faster bookings can lift cash temporarily, while cancellations or a travel slump reverse that benefit.

Business strengthA stronger balance sheet and shrinking share count improve each owner’s claim on profits.

At June 30, 2026, cash of $6.68 billion exceeded $5.46 billion of debt, a $1.22 billion net cash cushion. Current liabilities exceeded current assets by $4.05 billion, but $15.43 billion was deferred merchant bookings—customer prepayments that fund later supplier payments rather than ordinary borrowing. Refund shocks still matter. Expedia spent $1.93 billion on buybacks in 2025 and $1.06 billion in 2026’s first half; common shares fell 23% from year-end 2022 to June 2026. Stock compensation was $398 million in 2025, yet repurchases more than offset dilution.

What could change the storyContinued consumer gains could justify upside, while slowing bookings or weaker partner margins would not.

The bull case needs Expedia to deliver its raised 2026 revenue target of $16.05-$16.22 billion and widen management’s adjusted profit margin by 1.5-1.75 percentage points. Business-partner revenue rose 23% in the second quarter, but that segment’s margin fell 2.58 points as Expedia invested. The bear case is visible in third-quarter guidance: bookings growth slows to 5-7% and revenue to 5-8%, with Europe already soft. My inference: today’s price needs sustainable annual free cash flow near $3.5-$4.0 billion, continued share reduction, and no severe travel downturn.

$332.69 price considered

AI: News

Guidance raised after growthStrong summer results lifted full-year targets, but slower third-quarter growth tempered the message.

On August 5, 2026, Expedia reported second-quarter revenue of $4.315 billion, up 14%, while management’s adjusted profit measure rose 23% to $1.119 billion. It raised 2026 revenue guidance to $16.05-$16.22 billion and expected 1.5-1.75 points of margin expansion, but guided third-quarter bookings growth to 5-7%. Shares fell 4.1% on August 6 to $306.57, then reached $332.69 on August 14. The timing suggests investors weighed both acceleration and slowing comparisons; it does not prove either item caused the moves.

CarTrawler acquisition agreedExpedia agreed to buy CarTrawler, expanding its fast-growing partner business beyond hotels and activities.

On May 20, 2026, Expedia announced an agreement to acquire Ireland-based CarTrawler; financial terms were not disclosed and closing is expected in 2026’s second half. CarTrawler connects more than 550 car-rental suppliers and 500 mobility suppliers to over 300 travel brands, including 70-plus airlines. The deal could let Expedia’s partner platform sell transport and insurance alongside lodging and activities, increasing each partner’s value. The unknown purchase price, regulatory review, and integration costs leave the return uncertain; no reliable standalone share reaction was established.

Buyback meets cautious outlookStrong first-quarter results met cautious yearly targets, while a large buyback added support.

On May 7, 2026, Expedia reported first-quarter revenue of $3.426 billion, up 15%, and said trailing free cash flow reached $4.1 billion. It repurchased $700 million of stock at an average $212 per share and authorized another $5 billion. However, unchanged annual revenue guidance of $15.6-$16.0 billion had a midpoint below then-current analyst expectations, while room-night growth missed expectations. Shares were reported down about 9% before the May 8 open. Immediate coverage linked the reaction to guidance, though exact causation remains uncertain.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$14.73B	$13.69B	$12.84B	$11.67B	$8.60B	$5.20B	$12.07B	$11.22B	$10.06B	$8.77B	$6.67B	$5.76B	$4.77B	$4.03B	$3.45B	$3.03B	$2.74B	$2.94B
Operating income	$1.87B	$1.32B	$1.03B	$1.08B	$186.0M	−$2.72B	$903.0M	$714.0M	$625.0M	$462.0M	$413.6M	$517.8M	$366.1M	$431.7M	$479.6M	$500.8M	$397.7M	−$2.43B
EBITDAderived	$2.76B	$2.16B	$1.84B	$1.88B	$1.00B	−$1.83B	$1.81B	$1.67B	$1.51B	$1.26B	$906.7M	$860.4M	$649.5M	$627.7M	$634.5M	$628.8M	$515.1M	−$2.28B
Net income	$1.29B	$1.23B	$797.0M	$352.0M	$12.0M	−$2.61B	$565.0M	$406.0M	$378.0M	$282.0M	$764.5M	$398.1M	$232.8M	$280.2M	$472.3M	$421.5M	$299.5M	−$2.52B
Basic EPSper diluted share	$10.32	$9.39	$5.50	$2.24	-$1.80	-$19.00	$3.84	$2.71	$2.49	$1.87	$5.87	$3.09	$1.73	$2.09	$3.48	$2.98	$2.08	-$8.80
Diluted EPSper diluted share	$9.81	$8.95	$5.31	$2.17	-$1.80	-$19.00	$3.77	$2.65	$2.42	$1.82	$5.70	$2.99	$1.67	$2.00	$3.41	$2.93	$2.05	-$8.80

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)52$41.06M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 5, 2026Form 4	Dzielak Robert JChief Legal Officer & Sec'y	SellCommon Stock	4.7K	$233.00	$1.10M	105.4K
May 26, 2026Form 4	Soliday Lance ASVP & Chief Accounting Officer	SellCommon Stock	940	$221.86	$208.5K	14.1K
Mar 4, 2026Form 4	Dzielak Robert JChief Legal Officer & Sec'y	SellCommon Stock	8.2K	$220.82	$1.82M	102.5K
Dec 1, 2025Form 4	Banerjee Madhumita MoinaDirector	SellCommon Stock	1.0K	$258.00	$258.0K	2.9K
Nov 25, 2025Form 4	Soliday Lance ASVP & Chief Accounting Officer	SellCommon Stock	856	$256.93	$219.9K	10.8K

Review ownership filings at SEC.gov ↗

Expedia Group, Inc. (EXPE)

Financial charts

Financial statements

Insider buys & sells