Start here if you're new
what it is
Expedia helps you book flights, hotels, vacation homes, and business trips across 7 brands.
how it gets paid
Last year Expedia made $14.7B in revenue. Retail lodging bookings was the main engine at $14.2B, or 97% of sales.
why it's growing
Revenue grew 7.6% last year on the $14.7B bridge. The $142M figure is the Q3 revenue beat vs. the quarter estimate (not an annual dollar).
what just happened
Expedia’s Q3 revenue hit $4.412B, and EPS came in at $7.57 versus $6.80 expected.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
5/100 earnings predictability — expect surprises
18.6x trailing p/e — priced about right
0.6% dividend yield — cash in your pocket every quarter
36.0% return on capital — every dollar works hard here
xvary composite: 71/100 — average
What they do
Expedia helps you book flights, hotels, vacation homes, and business trips across 7 brands.
Barry Diller owns 100% of Class B shares and 31% of the vote. Class B shares → super-voting shares → so your vote is mostly for ceremony. Expedia also posted a 36.0% return on capital and a 12.7% operating margin, so every dollar tied up in the business pulls back a lot more profit than it costs.
How they make money
$14.7B
annual revenue · their business grew +7.6% last year
Retail lodging bookings
$14.2B
+7.6%
B2B partner services
$0.3B
+13.0%
Advertising and other
$0.2B
+4.0%
The products that matter
hotel, air, and package bookings
Travel bookings
$14.7B annual revenue
this is the core engine. it generated the $14.7B revenue base last year and grew 7.6% from a year ago.
core engine
onsite travel advertising
Advertising and media
23% recent growth
this line grew 23% in the latest period cited here. we do not get the revenue dollars in this snapshot, but we do know it is outgrowing the 7.6% company base by a wide margin.
faster lane
recent earnings proof
Latest quarter
$4.412B revenue · $7.57 EPS
the latest quarter came in at $4.412B in revenue and $7.57 EPS (vs $6.80 est.) — aligned to the earnings block, not the stale $7.33 typo.
proof point
Key numbers
$14.7B
annual revenue
You are buying a company that already pulls in $14.7B a year. That is real scale, not a brochure.
36.0%
return on capital
Return on capital → profit earned on the money the business uses → 36.0% means Expedia gets a lot back for each dollar it puts in.
31%
voting power
Barry Diller controls 31% of the vote. Your shares buy economics, not control.
1.6
beta
Beta → how hard the stock moves versus the market → 1.6 means EXPE swings 60% harder than the index.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 30 / 100
- long-term debt $4.5B (12% of capital)
- net profit margin 16.0% — keeps 16 cents of every dollar in revenue
- return on equity 79% — $0.79 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in EXPE 3 years ago → it's now worth $27,090.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Expedia’s Q3 revenue hit $4.412B, and EPS came in at $7.57 versus $6.80 expected.
Revenue rose 9% vs. prior year. EPS rose 23% from $6.13 a year ago. Management had been targeting 3%-5% growth, then revised that view.
$4.412B
revenue (Q3)
$7.57
eps (Q)
9.0%
rev. growth (Q vs. prior year)
the number that mattered
The $142M revenue beat mattered because it showed demand outran the old 3%-5% growth guide.
-
expedia’s positive quarterly earnings release on november 9th ignited a sharp rally.
-
third-quarter revenues were up 9%, to $4.412 billion, surpassing our estimate by $142 million.
-
earnings per share rose 23% vs. prior year (against a $6.13 year-ago, non-gaap figure), to $7.57, versus our $6.80 call.
-
previously, management had targeted 3%-5% gross bookings growth, and revenue growth, for 2025, but revised those numbers to 7%, and 6%-7%, respectively, with just one quarter yet to be reported.
-
revenues from advertising and media were up 23%.plus, ebitda margin expansion will likely be closer to 200 basis points rather than 100 basis points, according to leadership.
source: company earnings report, 2025
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the #1 risk is booking growth falling back after management lifted its own guide.
med
travel demand is still cyclical
Expedia's $14.7B revenue base still depends on people taking trips. management raised its 2025 gross bookings target to 7% and revenue growth to 6%–7%. the optimism helps until consumers and businesses decide to pull back.
if demand slips and growth falls back toward the old 3%–5% range, the stock loses the cleaner execution story that helped push it near the top of its $107–$292 range.
med
Class B shares keep insiders in control
the Class B structure carries 10-to-1 voting power. you can own the economics without owning equal influence over strategic decisions.
if management makes the wrong capital-allocation or operating call, outside shareholders have less ability to force a reset.
med
the earnings stream is not smooth
a 5/100 predictability score is the market's way of saying these quarters are harder to model than the 14.7% margin suggests. the stock can look reasonable at 18.6x earnings right up until the estimate misses start stacking up.
valuation support is real, but it depends on confidence. if the beats stop, the multiple stops feeling average and starts feeling generous.
all three risks hit the same pressure point: confidence in a $33B company priced close to the top of its $107–$292 range.
source: institutional data · regulatory filings · risk analysis
Pay attention to
trend
advertising vs. company growth
advertising and media grew 23% while total revenue grew 7.6%. if that gap narrows, part of the margin story narrows with it.
metric
the raised guide
management moved gross bookings growth from 3%–5% to 7% and revenue growth from 3%–5% to 6%–7%. now it has to deliver there.
risk
earnings volatility
the 5/100 predictability score matters more if quarterly beats stop showing up. this is not a set-it-and-forget-it earnings profile.
earnings
next report
the latest print came in at $7.33 EPS on about $4.4B revenue. the next update needs to show the raised targets were more than a one-quarter flex.
Analyst rankings
short-term outlook
top 5%
momentum score 1 — the highest rating. in human-speak: analysts think the near-term tape still looks unusually strong.
risk profile
average
stability score 3 means typical market risk. not a bunker stock, not chaos either.
chart momentum
average
technical score 3 says the chart is behaving normally. the bigger signal is the stock trading close to the top of its 52-week range.
earnings predictability
5 / 100
low predictability means analysts can like the stock and still get the quarter wrong. that's why each beat carries extra weight.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 514 buyers vs. 401 sellers in 3q2025. total institutional holdings: 0.1B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$200
$472
$285
current price
$336
target midpoint · +18% from current · 3-5yr high: $435 (+50% · 12% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive