Expedia Group Beats Q4 Estimates on B2B Power; Problems with Optimistic 2026 Guidance

Expedia Group Inc. (NASDAQ: EXPE) reported fourth-quarter financial results that exceeded Wall Street expectations on both the top and bottom lines, driven by growth in its business-to-business (B2B) segment and direct cost management. Despite the performance beat and profit increase, shares experienced volatility in after-hours trading, reflecting investor debate over the company’s consumer-oriented growth path.

For the quarter ended 31 December 2025, Expedia Group delivered strong growth metrics, reflecting a strong end to the financial year.

Earnings Per Share (EPS): Adjusted EPS came in at $3.78, a 58% year-over-year increase.

Revenue: Total revenue increased 11% to $3.55 billion.

Total Bookings: Total bookings increased 11% to $27.0 billion, driven by higher demand in both international and domestic markets.

Adjusted EBITDA: The company reported $848 million in adjusted EBITDA, a 32% year-over-year jump, with strong margins of 23.9%.

A clear difference in growth emerged between Expedia’s two main operating divisions, highlighting the strategic shift in which the company derives its most explosive value.

B2B Segment (Growth Engine)

The company’s B2B arm, which powers travel platforms for partners such as banks and airlines, continued its run. Total B2B bookings increased 24% year-over-year, cementing its position as a key driver of Expedia’s current expansion.

B2C (Core Consumer) segment

The consumer-facing business (including brands like Expedia.com, Hotels.com, and Vrbo) has shown steady growth, and more maturity. Total B2C bookings increased 5% to $18.3 billion. While positive, the single-digit growth rate pales in comparison to the B2B boom, a point likely to be weighed by growth-oriented investors.

Reimbursement Fee

Showing confidence in its cash flow, Expedia announced a 20% increase in its quarterly dividend to $0.48 per share. The company also repurchased nearly 9 million shares for $1.7 billion in 2025.

Integration of AI

Executives highlighted the accelerated rollout of GenAI features across its platforms, which are credited with improving “boarding speed” for partners and improving travel discovery for travelers.

Room Night

Room nights booked grew 9% to 94 million, international markets surpass US

For investors, the narrative surrounding Expedia is changing. The company is successfully transitioning from a pure consumer travel agency to a two-engine environment where B2B infrastructure plays a key role. The 24% growth in B2B bookings is a strong sign that Expedia’s technology stack is winning in the corporate and partner travel market, a segment that often commands sticky relationships and predictable revenue.

Expedia Group’s Q4 2025 results reflect an operationally disciplined and strategically progressive company. By eliminating ratios and increasing profits, management has demonstrated financial health. The key for 2026 will be whether the B2B segment can continue to slow down the maturity of the consumer business. For now, Expedia remains a strong cash flow generator with a diversified model that arguably offers better diversification against volatility than its retail peers.