Expedia Beats Q4 Estimates, Repurchases $1.7B But Flags Muted 2026 Margins
Revenue rose 11% year-on-year to $3.55 billion with adjusted EPS of $3.78 and EBITDA margin expanding to 23.9%, while the company repurchased $1.7 billion in shares and hiked its dividend by 20%. CFO warned of a more cautious margin outlook for 2026, guiding sales to $15.6–16 billion.
1. Strong Fourth-Quarter Results
Expedia delivered an 11% year-over-year revenue increase to $3.55 billion in the fourth quarter, surpassing estimates, and reported adjusted EBITDA of $848 million with a margin of 23.9%. Adjusted EPS rose 58% to $3.78, while operating cash flow reached $304 million and free cash flow was $119 million.
2. Capital Returns and Cash Position
The company returned capital to shareholders through a 20% dividend increase, raising the quarterly payout to $0.48 per share, and repurchased approximately 9 million shares for $1.7 billion in 2025. It ended the period with $5.7 billion in unrestricted cash and short-term investments on the balance sheet.
3. Cautious 2026 Guidance
Guidance for 2026 sales ranges from $15.6 billion to $16.0 billion, slightly below consensus, with first-quarter revenue expected between $3.32 billion and $3.37 billion. CFO highlighted a dynamic macroeconomic environment and tempered margin expectations for the full year, signaling more measured growth and margin expansion.