EXPE

Expedia Group, Inc. (NASDAQ:EXPE) is entering a new phase of the online travel debate. Artificial intelligence may become another channel through which people book rooms, or it may weaken the ability of established booking platforms to attract travelers directly. Expedia Group, Inc.'s September 23 announcement that it would work with Meta's Muse assistant puts both possibilities into focus. The company could supply bookings to a new interface, but it may also surrender part of the customer relationship to whoever controls that interface. Expedia Group, Inc. ranks eighth among the 10 best undervalued stocks to buy now according to Reddit. Its ranking is based on hedge fund positioning, not a claim that its travel business is immune to disruption. Which of the seven stocks above it attracted stronger institutional interest, and how many face an equally direct challenge to their customer relationships? Muse is not Expedia Group, Inc. (NASDAQ:EXPE)'s only attempt to monetize traffic it does not originate. A September 22 advertising collaboration with Redion extended the company's advertising business into travel insurance, building on a longstanding protection-services relationship. Neither announcement includes a disclosed near-term contribution to earnings, however. Their importance lies in whether Expedia Group, Inc. can earn commission or advertising revenue when trip discovery moves away from its own websites. The operating data leave room for both interpretations. In second-quarter 2026 coverage, Expedia Group, Inc.'s gross bookings rose 12%, with business-to-business bookings expanding 21% and B2B revenue rising 23%. That partner business had delivered twenty consecutive quarters of double-digit booking growth. A booking made through a bank, airline or other partner does not depend on an Expedia consumer visiting its own app, supporting an argument that the platform can adapt to new distribution models. However, Morgan Stanley's September 16 downgrade identified a different problem: monthly active users were flat year-over-year, compared with growth of roughly 6% at Booking.com and 10% at Airbnb, according to the bank's estimates. If customer acquisition becomes more expensive while direct traffic stagnates, incremental booking revenue may require more marketing spending. Our earlier report on Morgan Stanley's Expedia Group, Inc. downgrade examines why rising B2B bookings did not fully answer the bank's concern about consumer engagement. The Seeking Alpha data places Expedia Group, Inc. (NASDAQ:EXPE) at 17.07 times trailing GAAP earnings and 14.76 times forward GAAP earnings. On a non-GAAP basis, the forward P/E is 13.07 times, compared with the company's five-year average of 23.84 times and the sector median of 14.84 times. Forward enterprise value to EBITDA is 7.94 times, versus 9.30 times for the sector and 8.91 times for Expedia Group, Inc.'s five-year average. The shares therefore carry a discount on several forward measures, though the relevant issue is whether the earnings behind those measures can hold up. The same consensus projects EPS growth of 32.54% for 2026, slowing to 16.72% in 2027, 14.33% in 2028, and 3.45% in 2029. At the current share price, implied estimated earnings multiples descend from 13.07 times in 2026 to 11.20 times in 2027, and 9.79 times in 2028. That trajectory assumes Expedia Group, Inc. continues converting bookings into rising per-share profit while AI-related disruption remains manageable. It does not price a proven collapse in the intermediary model, nor does it guarantee that one will not occur. There is a balance-sheet dimension to the discount as well. The data shows $7.13 billion of cash and $5.69 billion of debt, leaving net cash of approximately $1.44 billion before other obligations. It also places trailing price-to-cash-flow at 6.32 times against an 8.79-times sector median. Cash generation and repurchases can support per-share earnings during slower organic growth, but neither can permanently protect the multiple if the cost of winning travel bookings rises. Wells Fargo cut its target to $275 from $307 on October 7 while maintaining Equal Weight, expecting the third quarter to mark a low point in room-night growth and describing choppy demand. Truist reduced its target to $288 from $309, keeping Hold, and warned that the AI threat was still more clearly visible in sentiment than in demonstrable profit erosion. Morgan Stanley took the firmer Underweight stance at $235, citing weaker consumer differentiation and risks from suppliers selling directly. Those views differ in severity but meet at the same question: how much future distribution and marketing expense should be embedded in today's earnings estimates? A useful comparison is Airbnb, whose inventory and direct traffic may be harder for AI booking agents to reproduce. Why does Airbnb's growth command a different valuation, and how does that comparison change the Expedia Group, Inc. debate? Expedia Group, Inc. (NASDAQ:EXPE)'s strength in partner distribution is real; the difficulty is deciding how much protection it provides if consumer-facing discovery migrates elsewhere. Hedge fund holders declined from 62 in Q1 to 55 in Q2 2026. Meanwhile, reported short interest increased from 5.20 million shares on August 31 to 7.92 million on September 30, representing 8.50% of the float. Those observations cannot identify why individual investors traded, but they provide context for a valuation that appears undemanding relative to its history. A separate Booking-versus-Airbnb comparison illustrates how margins, proprietary supply and cash flow can reshape the online travel valuation hierarchy. For Expedia Group, Inc. (NASDAQ:EXPE), the deciding variables are partner bookings growth, consumer user retention and whether any AI-driven bookings preserve sufficient economics to support consensus EPS. While we acknowledge the potential of EXPE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Jim Cramer Used Expedia To Go Against The Trend For This Major Company and Booking's Traveler Advances Boost Cash Flow. What Can Shareholders Actually Keep? Disclosure: None. Follow Insider Monkey on Google News.

NEW YORK, Sept. 14, 2026 /PRNewswire/ -- Fred Alger Management, LLC ("Alger"), a privately held growth equity investment manager, today announced the quarterly rebalancing of the Alger Russell Innovation Index ("Index"). Following the close of trading on Friday, September 18, 2026, the Index will be rebalanced, and the following changes will be effective. For additional information, please visit www.lseg.com. Unlock Your Growth Potential with AlgerFounded in 1964, Alger is recognized as a pioneer of growth-style investment management. Privately-owned and headquartered in New York City, Alger can help "Unlock Your Growth Potential" through a suite of growth equity separate accounts, mutual funds, ETFs, and privately offered investment vehicles. Alger's investment philosophy, discovering companies undergoing Positive Dynamic Change, has been in place for more than 60 years. For more information, please visit www.alger.com. Risk Disclosures: Investing in the stock market involves risks, including the potential loss of principal. Growth stocks may be more volatile than other stocks as their prices tend to be higher in relation to their companies' earnings and may be more sensitive to market, political, and economic developments. This material is not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities. Alger pays compensation to third party marketers to sell various strategies to prospective investors. London Stock Exchange Group plc and its group undertakings (collectively, the "LSE Group"). © LSE Group 2026. FTSE Russell is a trading name of certain of the LSE Group companies. "FTSE®" "Russell®", "FTSE Russell®" are trade marks of the relevant LSE Group companies and are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company's express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication. View original content to download multimedia:https://www.prnewswire.com/news-releases/alger-russell-innovation-index-updates-for-third-quarter-2026-302877884.html

Google rolled out changes to its search results in Europe on Tuesday that it said will reduce the quality of its service, making the changes to comply with the European Union's Digital Markets Act. The company called it the largest reduction in search quality in its 29-year history, according to Reuters. The redesigned results elevate price comparison services like Expedia and Booking.com in travel and hospitality categories such as hotels, airlines, and restaurants. In the redesigned layout, a single specialized search engine is featured prominently at the top, with two additional ones below it showing less detail, and a carousel of businesses beneath those. Google said it has removed live pricing data from that scrollable section. Nick Fox, Google's senior vice president for knowledge and information, said the changes hurt European users. "These changes degrade the user experience for Europeans — boosting online intermediaries at the expense of local businesses, and removing helpful features people rely on every day. Users outside the E.U. will not be impacted by these changes," Fox said in a statement to Reuters. Internal testing across millions of European users revealed widespread frustration, with many people searching again because the initial results failed to surface what they were looking for, Google said. Google added that previous DMA compliance measures had reduced free direct-booking referrals to European businesses by 30%, and it warned the newest adjustments will likely deepen that decline. The European Commission gave Google 60 days to comply with the DMA or face periodic fines of up to 5% of its total worldwide turnover. The deadline followed a pair of fines the Commission issued in July — €460 million for self-preferencing in search results and €430 million for restricting how app developers directed users to cheaper alternatives outside Google Play — totaling €890 million. When the European Commission issued those fines, regulators found that Google elevated its own services above competing offerings, presenting them with richer visuals and filtering tools unavailable to third-party services. The E.U.'s antitrust chief Teresa Ribera defended the penalties at the time, saying "the best products should succeed because they're better, not because they're owned by the company running the search engine." Google has now accumulated €10.38 billion in total E.U. antitrust penalties across its nearly two decades of disputes with European regulators, according to Reuters. On its Google Play obligations, the company said it has already updated its external offers program following changes it announced in August 2025.

A month has gone by since the last earnings report for Expedia (EXPE). Shares have lost about 1.1% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Expedia due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Expedia Group, Inc. before we dive into how investors and analysts have reacted as of late. Expedia Group reported second-quarter 2026 adjusted earnings of $5.76 per share, up 36% year over year. The figure surpassed the Zacks Consensus Estimate by 5.69%.Revenues increased 14% year over year to $4.32 billion and beat the consensus mark by 3.13%. Sustained B2B momentum, stronger consumer-brand performance and disciplined cost management drove the results. In the second quarter, total gross bookings climbed 12% year over year to $33.93 billion. Lodging gross bookings increased 11% to $24.60 billion, while non-lodging gross bookings advanced 12% to $9.33 billion.Merchant gross bookings grew 14% to $20.61 billion, outpacing an 8% increase in agency gross bookings to $13.32 billion. Average daily rate booked rose 5% to $220.60, partly supporting the higher booking value. Booked air tickets, however, declined 5% to 14.2 million. Booked room nights rose 6% to 111.5 million. In the second quarter, B2B revenues surged 23% year over year to $1.49 billion, supported by double-digit growth across all regions and elevated marketing activity from some large partners. B2B gross bookings increased 21% to $10.74 billion.B2C revenues rose 8% to $2.68 billion, while gross bookings increased 8% to $23.19 billion. Management noted that the consumer business benefited from sustained U.S. momentum, with the market growing at its strongest pace in 15 quarters. Second-quarter adjusted EBITDA increased 23% year over year to $1.12 billion. The adjusted EBITDA margin expanded 196 basis points to 25.9%, reflecting disciplined cost management, favorable revenue mix and marketing leverage.B2C adjusted EBITDA rose 22% to $889 million, with margin expanding 380 basis points to 33.2%. B2B adjusted EBITDA increased 12% to $369 million, though margin contracted 258 basis points to 24.8% because of partner mix and acquisition consolidation. In the reported quarter, adjusted cost of revenues increased 7% to $399 million but declined 61 basis points as a percentage of revenues to 9.2%. The improvement reflected continued efficiencies in payments.Direct selling and marketing expenses rose 10% to $2.12 billion. B2C direct marketing costs increased only 1% to $1.10 billion and declined 31 basis points as a percentage of B2C gross bookings to 4.7%, indicating improved returns across marketing channels. As of June 30, 2026, cash and cash equivalents and short-term investments were $7.13 billion, up from $5.79 billion as of March 31, 2026.Long-term debt was $5.46 billion as of June 30, 2026, up from $4.47 billion as of March 31, 2026.The company repurchased approximately 880,000 shares for $200 million during the quarter. Through the first six months of 2026, purchases of treasury stock totaled $1.06 billion.Expedia Group also declared a quarterly cash dividend of 48 cents per share, payable Sept. 17, 2026.Net cash provided by operating activities rose 32% to $1.48 billion in the quarter. Free cash flow grew 39% to $1.28 billion, underscoring the company’s ability to convert improved operating performance into cash. For the third quarter of 2026, Expedia Group expects gross bookings between $32.2 billion and $32.8 billion, representing growth of 5-7%. Revenues are projected in the range of $4.65 billion to $4.75 billion, implying growth of 5-8%.Adjusted EBITDA is expected between $1.51 billion and $1.56 billion. The outlook factors in slower top-line growth than in the second quarter, while maintaining a strong level of adjusted profitability.Expedia Group raised its 2026 gross bookings forecast to $129.5-$130.8 billion from $127-$129 billion. The revised range represents projected growth of 8-9%, compared with the prior expectation of 6-8%.The company now anticipates revenues of $16.05-$16.22 billion, up from its earlier range of $15.6-$16 billion. Adjusted EBITDA margin expansion is expected to reach 1.5-1.75 percentage points, compared with the prior outlook of 1-1.25 points. Since the earnings release, investors have witnessed a upward trend in estimates revision. At this time, Expedia has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock has a score of B on the value side, putting it in the top 40% for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Expedia has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

When you buy through links on our articles, Future and its syndication partners may earn a commission. Stocks were mixed at the beginning of a big week for the AI trade and long-term monetary policy, with an uneasy stalemate holding in the Middle East and a trade war widening in North America. Relatively few management teams are scheduled to report financial results and offer guidance this week, but the biggest company in the world by market cap is among them. We'll also hear from Fed Chair Kevin Warsh on Friday. At the closing bell, the blue-chip Dow Jones Industrial Average was up 0.3% at 53,417. But the broad-based S&P 500 was down 0.3% to 7,652, and the tech-heavy Nasdaq Composite had declined 0.8% to 25,980. This week will be defined by the earnings calendar, with Nvidia (NVDA, -2.9%) reporting fiscal 2027 second-quarter results and management sharing its vision of where the artificial intelligence (AI) revolution goes from here after the closing bell on Wednesday. "Geopolitics, oil prices, high yields, and tech volatility all contributed to last week's stock market pullback, and they all look to be in play this week, too," writes E*TRADE from Morgan Stanley Managing Director Chris Larkin. Larkin notes that U.S. economic sanctions on Iran, the Treasury's attempts to lower long-term yields and incoming data, including the Federal Reserve's preferred inflation gauge, may shape sentiment. "But," he concludes," Nvidia and other tech earnings are positioned to be a major weight on the market's momentum scale." At the same time, with Treasury yields across the maturity spectrum trending higher, the week could be redefined by the economic calendar, beginning on Friday at 10 am Eastern Standard Time. Looking for more timely stock market news to help gauge the health of your portfolio? Sign up for Closing Bell, our free newsletter that's delivered straight to your inbox at the close of each trading day. That's when Warsh makes his first keynote speech as the leader of the most important central bank in the world at the Kansas City Fed's annual Jackson Hole Economic Symposium. The yield on the 2-year Treasury inched up to 4.240% vs 4.234% on Friday. The 2-year yield was 3.379% on February 27, the day before the war in the Middle East between the U.S. and Iran began. The 10-year Treasury yield ticked down to 4.706% from 4.738%, but is up from 3.960% on February 27. The 30-year Treasury yield declined to 5.235% vs 5.276% last week and 4.630% before the war. Marvell Technology (MRVL, -3.3%) follows fellow semiconductor stock Nvidia in the reporting-season order when it steps up after the closing bell on Thursday. But Marvell is ahead of Nvidia when it comes to year-to-date share-price performance, with MRVL up 179.3% vs 15.3% for NVDA (and 13.0% for the S&P 500) through Friday. Wall Street expects MRVL management to report year-over-year earnings growth of 39% on revenue growth of 35%, pale compared to 99% and 97% growth anticipated for NVDA. Of course, much of Marvell's run is rooted in a $2 billion investment from Nvidia announced on March 31. And there is significant demand elsewhere for its custom application-specific chips, and Wall Street is bullish. Indeed, Wells Fargo analyst Aaron Rakers reiterated his Outperform (Buy) rating and raised his 12-month target price on the tech stock from $240 to $310, citing its opportunity in custom silicon. Track all markets on TradingView Meanwhile, Morgan Stanley analyst Joseph Moore maintained his Equal Weight (Hold) rating but raised his 12-month target price from $195 to $224. The iShares Semiconductor ETF (SOXX, -2.7%), up 72.9% through Friday, was also down on Monday, as investors, traders and speculators continue to moderate their optimism with incoming data and updated guidance from Nvidia on the way. Micron Technology (MU, -5.8%), which was up nearly 240% year to date through Friday, and Advanced Micro Devices (AMD, -3.5%), up 121% in 2026, posted big red numbers. Expedia (EXPE, +5.4%) was the top-performing S&P 500 stock on Monday after Evercore ISI analyst Mark Mahaney reiterated his Outperform (Buy) rating and raised his 12-month target price for the online travel agency from $375 to $430. Mahaney had reiterated his rating and raised his target from $350 to $375 on August 6 following a beat-and-raise second-quarter report from management of the consumer discretionary stock. His current target is now the highest among 35 analysts who provide one. Track all markets on TradingView Since hitting a 52-week low of $185.34 intraday on February 23, EXPE is up more than 70%, far outpacing a gain of about 14% for the S&P 500. Mahaney still sees upside of almost 30% from here. The travel stock has split the Wall Street analyst community, reflected in 17 Buy ratings vs 20 Holds and 1 Sell. The average 12-month target price through August 21 was $336.23. 33 Stocks That Could Rally 33% or More 5 Undervalued Stocks to Buy in This Market The Best Vanguard Bond Funds to Buy

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at consumer internet stocks, starting with Expedia (NASDAQ:EXPE). The ways people shop, transport, communicate, learn and play are undergoing a tremendous, technology-enabled change. Consumer internet companies are playing a key role in lives being transformed, simplified and made more accessible. The 44 consumer internet stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 3% below. While some consumer internet stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.2% since the latest earnings results. Originally founded as a part of Microsoft, Expedia (NASDAQ:EXPE) is one of the world’s leading online travel agencies. Expedia reported revenues of $4.32 billion, up 14% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and revenue guidance for next quarter slightly topping analysts’ expectations. Interestingly, the stock is up 1.6% since reporting and currently trades at $324.91. Is now the time to buy Expedia? Access our full analysis of the earnings results here, it’s free. Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet (NASDAQ:GOOGL) is the parent company of the eponymous Google Search engine, Google Cloud Platform, and YouTube. Alphabet reported revenues of $119.8 billion, up 24.2% year on year, outperforming analysts’ expectations by 2.2%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $340.83. Is now the time to buy Alphabet? Access our full analysis of the earnings results here, it’s free. Widely regarded as the face of crypto, Coinbase (NASDAQ:COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions. Coinbase reported revenues of $1.22 billion, down 18.5% year on year, falling short of analysts’ expectations by 5.9%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates. Interestingly, the stock is up 5.5% since the results and currently trades at $172.63. Read our full analysis of Coinbase’s results here. Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America. MercadoLibre reported revenues of $10.17 billion, up 49.8% year on year. This number beat analysts’ expectations by 4.5%. It was an exceptional quarter as it also logged a solid beat of analysts’ EBITDA estimates and impressive growth in its users. The company reported 89 million daily active users, up 25.4% year on year. The stock is flat since reporting and currently trades at $1,920. Read our full, actionable report on MercadoLibre here, it’s free. Founded by Stanford University students Evan Spiegel, Reggie Brown, and Bobby Murphy, and originally called Picaboo, Snapchat (NYSE: SNAP) is an image centric social media network. Snap reported revenues of $1.60 billion, up 18.9% year on year. This print topped analysts’ expectations by 3.8%. Overall, it was an exceptional quarter as it also produced a solid beat of analysts’ EBITDA estimates. The stock is up 3.6% since reporting and currently trades at $5.22. Read our full, actionable report on Snap here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 4:30 p.m. ET Vice President Investor Relations - Rob Bevegni Chief Executive Officer - Ariane Gorin Chief Financial Officer - Derek Andersen Operator: Good day, everyone. Welcome to the Expedia Group Q2 2026 financial results teleconference. My name is Holly. I will be the operator for today's call. If you wish to ask a question at the end of the presentation, please press star followed by the number one on your telephone keypad. If you change your mind, please press star followed by one again to cancel your request. For opening remarks, I will now turn the call over to VP Investor Relations, Rob Bevegni. Rob Bevegni, please go ahead. Rob Bevegni: Good afternoon. Welcome to Expedia Group's second quarter 2026 earnings call. I'm pleased to be joined on today's call by our CEO, Ariane Gorin, and our CFO, Derek Andersen. As a reminder, our commentary today will include references to certain non-GAAP measures. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are included in our earnings release. Unless otherwise stated, all growth rates are on a year-over-year basis. Any reference to expenses exclude stock-based compensation. We'll also be making forward-looking statements during the call, which are predictions, projections, and other statements about future events. These statements are based on current expectations and assumptions, which are subject to risks and uncertainties that are difficult to predict. Actual results could materially differ due to factors discussed during this call and in our most recent Forms 10-Q, Forms 10-K, and other filings with the SEC. Except as required by law, we do not undertake any responsibility to update these forward-looking statements. This call is being webcast on the investor relations section of our website at ir.expediagroup.com. A replay will be archived on our site. A slide presentation containing financial highlights has also been posted to our website. Starting this quarter, we expanded the presentation to provide additional context on our performance. For today's call, Ariane Gorin will begin with a review of our second quarter results. Derek Andersen will then provide additional detail on our financial performance, as well as our third quarter and full-year guidance. After our prepared remarks, we will turn the call over to the operator to begin the Q&A portion of our call. With that, let me turn the call over to Ariane Gorin. Ariane Gorin: Thanks, Rob Bevegni. Good afternoon, everyone. We had a solid second quarter, delivering strong financial results while making tangible progress on our strategic priorities. We exceeded the high end of both our top and bottom-line expectations for the fifth quarter in a row, growing bookings 12%, revenue 14%, and adjusted EBITDA 23%. We delivered new product experiences, expanded supply across our marketplace, and took an important step in building our one-stop B2B travel shop. Based on our first half results and the ongoing trends we're seeing, we're raising our full-year guidance. Derek Andersen will cover that shortly. Turning back to the second quarter, consumer spending was healthy, in particular in the U.S. Consumers continued to prioritize travel with longer lengths of stay and longer booking windows, even as air ticket and hotel prices rose. The World Cup generated modest incremental demand late in the quarter. A lot of bookings happened after the tournament began, a pattern we anticipated and were well-positioned to capture. Total booked room nights were up 6%, with mid-single digits in the U.S., low single digits in EMEA, and low double digits in the rest of the world. Europe remained pressured, particularly outbound travel, as macro headwinds and reduced air capacity weighed on demand. APAC rebounded from the disruption related to the Middle East. Our market-leading B2B team delivered its 20th consecutive quarter of double-digit growth, underscoring the durability and the momentum of this business. Consumer bookings were up 8%, driven by our fastest U.S. growth in 15 quarters. Active loyalty members increased low single digits with faster growth in our higher tiers. Over the last two years, we've executed on our three strategic priorities. One, delivering more value to travelers. Two, investing in our biggest growth opportunities. Three, driving operating efficiency and margin expansion. As a result, we've accelerated our consumer business, expanded margins by four points, and more than doubled our trailing 12-month free cash flow over that same period. We continued to progress these priorities in the second quarter. First, delivering more value to travelers. It starts with product experiences that make it easy for travelers to plan and book their perfect trip. AI is unlocking new ways to make these experiences simpler and more personalized. Last quarter, we launched new and updated conversational experiences, introducing natural language search on the Vrbo homepage and updating Property Expert and AI Compare in the hotel shopping flow. Our AI-powered personalization and recommendations keep getting smarter across all three of our consumer brands. On Expedia, our fastest-growing brand, this translated into another quarter of record attach rates. Travelers are getting even more value from booking their trips with us. Traveler value also comes from having the best assortment and price. We recently achieved a few big milestones. In July, we became the first OTA to distribute Allegiant flights and achieve full coverage of U.S. commercial airlines. This partnership further reinforces our position as the most complete travel marketplace in the U.S. On lodging, we expanded our supplier-funded promotions. More than 40% of Vrbo bookings last quarter included partner-funded offers, and our May sale was the first campaign to exceed $1 billion in bookings for participating properties. These are clear proof points of the strength of our two-sided marketplace, where travelers get better value and our supply partners capture incremental demand across rooms, seats, and cars. Turning to our second pillar, investing where we see the greatest opportunity to drive growth. In our consumer business, our sharper measurement and targeting capabilities are allowing us to invest in the highest return opportunities and leverage our marketing spend. We're investing in newer surfaces like AI and social platforms, where more consumers are starting their trip planning. AEO and social are two of our fastest-growing channels. While agentic traffic remains small, it's a promising channel with high purchase consideration. We're deepening our partnerships with leading AI platforms. During the quarter, we're an early adopter of ChatGPT's latest ad product and expanded our work across Google's newer AI services. Last week, we announced the acquisition of Layla, an AI conversational planning app, allowing us to capture new types of travelers while bringing learnings into our core business. In B2B, alongside investing in our existing partnerships, we continue building toward our vision of a one-stop travel shop for partners, in May, announced our intent to acquire CarTrawler, the leading B2B car rental and insurance platform. Moving to our third pillar, driving operating efficiencies and margin expansion. We expanded margins by nearly two points in the quarter, driven by tight expense management and the consumer marketing leverage I just mentioned. Importantly, we're continuing to deploy AI to innovate faster and operate more effectively. On Vrbo, we launched an agentic voice solution to support partner inquiries previously handled by human agents. Early results are promising, with faster resolution and lower contact propensity. More broadly, our agentic technology stack is allowing us to design and ship products faster, ultimately unlocking new capabilities for both travelers and partners. As we scale these capabilities, we're managing token costs thoughtfully while giving broad access to our teams. In closing, we delivered strong second quarter results and are raising our full year outlook. I want to thank our teams for their hard work and our partners and travelers for their continued trust in us. With that, I'll turn it over to Derek Andersen. Derek Andersen: Thank you, Ariane Gorin, good afternoon, everyone. I've had an exciting first quarter as part of the Expedia Group team and look forward to engaging with you all in the quarters ahead. Before I walk through our financials, you'll see that we've expanded the earnings presentation this quarter to provide additional details in an easier-to-access format. I'll focus my remarks here on the headline financials and guidance so we can get to your questions a little faster. Our second quarter performance exceeded the high end of our guidance, reflecting a healthy macro environment, continued momentum in our B2B segment, improved consumer marketing returns, ongoing cost discipline. Gross bookings increased 12% year-over-year, this was driven primarily by 6% room night growth, as well as 5% ADR growth on an FX neutral basis. Revenue increased 14%, which exceeded our expectations entering the quarter. Foreign exchange was a tailwind for the business, contributing nearly half a point to bookings growth four points to revenue growth. Adjusted EBITDA was $1.1 billion in Q2, representing a margin of 25.9%, which is an improvement of nearly two points compared to the prior year. The margin expansion was driven by a combination of cost efficiencies, consumer marketing leverage, the flow-through of higher volume. Adjusted EPS grew 36% year-over-year, which reflects strong earnings growth as well as the accretive impact of share repurchases over the past year. We continue to generate strong free cash flow, which reached $4.5 billion on a trailing 12-month basis, this has fueled the return of capital to shareholders. During the quarter, we repurchased roughly 880,000 shares for $200 million at an average price of $226 a share. This brought our year-to-date share repurchases to $900 million, which is roughly in line with the first half of last year. Our capital allocation priorities remain unchanged, including investing organically in the business, pursuing disciplined M&A in support of our strategic priorities, and returning cash to shareholders in the form of dividends and opportunistic share repurchases. For our third quarter outlook, we expect gross bookings of $32.2 billion-$32.8 billion, representing growth of approximately 5%-7% year-over-year. This assumes that growth in bookings and room nights moderates relative to Q2, reflecting tougher comparisons as we lap faster growth in the second half of last year and an estimated one point FX headwind at current rates. We expect revenue of $4.65 billion-$4.75 billion, representing growth of approximately 5%-8% year-over-year, including an estimated one point FX benefit at current rates. We expect adjusted EBITDA of $1.51 billion-$1.56 billion, implying a margin of 32.5%-32.8%. Margin expansion is expected to moderate in Q3 due to the lapping of prior year cost actions, ongoing investment in B2B growth, and unfavorable net FX impacts. We expect the pace of margin expansion to improve in Q4 as some of these pressures ease and as we continue to drive operating efficiency across the business. Based on the strength of the first half and our assumptions for the third quarter, we are raising our full year guidance. We now expect gross bookings of $129.5 billion-$130.8 billion, representing growth of 8%-9%, and revenue of $16.05 billion-$16.22 billion, representing growth of 9%-10%. Our guidance continues to assume foreign exchange tailwinds of approximately a point for gross bookings and two points for revenue. We are also raising our margin guidance for the full year and now expect adjusted EBITDA margin expansion of 150-175 basis points versus last year. With that, let's open the line to take your questions. Operator: As a reminder, if you would like to ask a question, please press star followed by the number one on your keypad. If you would like to retract your question, please press star followed by one again. Your first question comes from the line of Eric Sheridan with Goldman Sachs. Eric, your line is now open. Please go ahead. Eric Sheridan: Thanks so much for taking the question. Maybe just one, building on the prepared remarks. Would love to go as deep as you're willing to go on how you're thinking about the interplay between AI native channels away from the platform, some of the efforts you're making to build AI solutions that are consumer facing on the platform and traditional advertising channels, in terms of thinking about driving return on ad spend and conversion over the medium to long term. Thanks so much. Ariane Gorin: Sure. I'll take that. I'll start with what we're doing in our product, and I really think about it sort of in two categories. There's what are we doing with AI in our product right now that is delivering results in our core business? The second is, what are we doing in our product that's not necessarily delivering conversion right now, but we know is helping us better understand travelers and is going to have compounding benefits over time? In that first bucket, it's using AI for better recommendations, for better ranking, for personalizing the UX and the content. There, we are seeing immediate impacts, and it's not only just improving conversion, but you can imagine, as we're getting traffic, whether it's direct traffic or paid traffic, that is improving. In addition, I would say, just as an aside, is all the work we're doing in using AI in our technology teams in order to increase our cycle time is allowing us to innovate a lot faster. That's what we're doing in the product to increase conversion now. Also in the product, we're introducing these natural language experiences like Vrbo natural language search on the homepage, or these agents like Property Expert or AI Compare. Those are not driving conversion right now, but what we're finding is that you get over 60% more information about traveler intent, and that allows us to deepen the relationships with the traveler. Over time, I believe that's going to drive deeper conversion. That's what we're doing in our product. I also believe there's a big growth opportunity in getting access to travelers who are starting outside of our brands in these AI experiences. As a reminder, two-thirds of our bookings in our consumer brands come direct. Of the third that is coming through paid channels, obviously AI experiences, whether they are with ChatGPT or Claude or Google's new experiences, are new opportunities for our brands to show up there. It is early days. I would say that's an area that's fast-moving. The algorithms, the search UXs, all of that is moving really quickly, and so we're staying close to it and vigilant. We are testing and participating everywhere that things are evolving, and I see that over time as opportunities to bring more travelers into our business. There's a lot of complexity of how do you understand what the prompts are so that you can land them well in our product, again, I see that as a big opportunity. Eric Sheridan: Thanks so much. Operator: Your next question comes from the line of Justin Post with Bank of America. Justin, your line is now open. Please go ahead. Justin Post: Great. Thank you. Just on the B2B side, there could be some more competition coming down. Could you talk about the advantages you offer your partners and also the stickiness of the contracts that you have? Obviously lapping some of really good marketing efficiencies that started in the third quarter, how do you think about the potential for further marketing efficiencies from here? Thank you. Ariane Gorin: Well, I'll take the first one, then I'll hand it over to Derek Andersen for the second one. The thing about the B2B space is it's always been competitive. I've been in it for over a decade, it's always been a competitive space. The good news is there's a very large addressable market for B2B partners. When I think about what we bring to the table, obviously we have great supply and content, strong technology, really great servicing, great partner accompaniment sort of as we think about the integrations. Obviously I'm not going to talk about individual partners, but some relationships are exclusive, some are not exclusive. My view is we have to be proving day in and day out to our partners that they can trust us to build their business on top of us. I think it's been important for us for many years that it's a standalone business, a standalone P&L that has resources that it can invest on its own. I'm excited about the investments we're making to build out the one-stop shop value proposition so that we can offer all components that a partner might need to build their travel program. That was the announcement of CarTrawler this quarter, the acquisition we did of Tiqets. It's really so that we can have that complete one-stop travel shop from supply to technology to servicing and beyond. Derek Andersen: Interesting. As it pertains to the contribution of marketing to the operating leverage and margins overall, you're right, we did make substantial progress over the last year in terms of driving margins. We are going to begin lapping that in the second half of the year. We had the substantial reductions in marketing spend and driving out inefficient spend, but also redirecting spend to more productive channels. That's been a big contribution over the last year, and you can see that in the margins. We also made progress on overhead as well, so it's a broader picture than just marketing. As we go into the third quarter and the quarter ahead in the second half of the year, we will begin lapping those things. However, the structural improvements that we've made on the marketing program are going to endure and give us a base to drive further efficiencies off going forward. We've also continued to make incremental progress on the rest of the cost structure, and I'd just point to the fact that overheads were flat year-over-year in the most recent quarter, even as revenue rose 14%. We're committed to continuing to drive our strategic pillar of operating efficiency and scaling out margins as we go forward. I think you'll see that reflected in the update that we made to the full year guide, where we took the EBITDA margin expansion range up to 150 to 175 basis points for the full year. Justin Post: Great. Thank you. Operator: Your next question comes from the line of Douglas Anmuth with JPMorgan. Douglas Anmuth, your line is open. Please go ahead. Douglas Anmuth: Great. Thanks much for taking the questions. I have two. Can you just talk about how some of your views just around geos have changed over the past few months? In particular, you mentioned Europe remains pressured, especially outbound. Also, what you're seeing with APAC, given some of the rebound there from the Middle East disruption. Then, Derek Andersen, if you could also just walk through some of those back half dynamics on margin expansion where you talked about moderation in Q3 and then stronger Q4. Thanks. Ariane Gorin: Sure. I'll take the first part. Then Derek Andersen can take the second one. Just in terms of the geo trends, the good news is we have a geographically balanced business. Certainly, our consumer business is two-thirds in the U.S., a third outside of the U.S., and our B2B business is really the inverse. We have supply that is able to respond to whatever the traveler demand is. Obviously, we're going to lean in more where we see the most demand. So where we see the greatest returns. My view is, what we've always seen is, over time, demand rebounds across the world. We'll take advantage when there's strength in one geo versus another. We have a long-term North Star with continuing to grow our business in the areas we're strongest, and then identifying some geographies where our consumer brands have relevance, but haven't yet, in our mind, gotten to our fair share. Derek Andersen: As it pertains to the go-forward margin side of things, number one, I would reiterate we remain committed to our strategic pillar of driving operating efficiency and expanding margins over time. In Q3 specifically, there are a few factors that will weigh on the margins in the very near term. One, as you mentioned, that we're going to lap some very substantial reductions in the cost structure from a year ago. That'll weigh a little bit on the margins in the near term. The other is we'd also made progress not just on marketing, but overheads there. We have some FX net headwinds that'll impact us in Q3 that are really a factor on the margin as well. That said, if you look at what I shared earlier about the update to the full year margin expansion guidance of 150-175 basis points, that implies that in Q4, at the midpoint, we'd be expanding by about 50 basis points there. That we'll see some of the pressures that are specific to Q3 ease there, but we'll also see the ongoing benefits of our efficiency initiatives continue to build over time. The margin expansion won't always be perfectly linear, but it is a very important part of the strategy and something that we're committed to continuing to drive out. Douglas Anmuth: Thank you both. Operator: Your next question comes from the line of Jed Kelly with Oppenheimer. Jed Kelly, your line is open. Please go ahead. Jed Kelly: Hey, great. Thanks for taking my question. Just circling back on B2B, getting a lot more investor comp questions just on competition. Can you just talk about where we are in the competitive landscape? Just on a follow-up on B2B, seems like that overhead expense increased a decent amount in the B2B segment. Was there anything there to call out? Thank you. Ariane Gorin: Sure. I'll talk about competition. As I said, it's a big target addressable market. If you think about the travel business, it's over $3 trillion. If you exclude hotel, airline direct, and the three big OTAs, there's still a lot of space there. For us, we just look at whether it's in offline retail, other online travel agents, loyalty programs, corporate travel agencies. Where are all of the places that people are looking for when they look to travel beyond our core consumer brands, how do we make sure that we're showing up well? I think competition forces you to be better, whether it's be better with having more service offerings, having better service levels, and the like. Our focus is just making sure that we've got a great value proposition. In fact, Derek Andersen can talk about it, but I assume some of the expense you're seeing is related to the build-out of our additional lines of business. Because that business today is very lodging-focused. We do sell other lines of business, but over time, we want to become that one-stop travel shop. Derek Andersen: Yes, Jed Kelly. First, in terms of the margin point, Ariane's exactly correct. There's investments going into the B2B segment to drive that one-stop shop and build out our lines of business. One aspect of that is that we had the digestion of Tiqets and that acquisition in Q2, that would have weighed a little bit on the cost that you're seeing. The other is a little bit of the geography of the FX hedging and where that shows up in the P&L, you're seeing a little bit of that show up on that line item and impacting the margin as you pointed out. Hopefully that context helps. Jed Kelly: Thank you. Operator: Your next question comes from the line of Ken Gawrelski with Wells Fargo. Ken Gawrelski, your line is open. Please go ahead. Ken Gawrelski: Thank you very much. Two, if I may, please. First, could you maybe talk about your approach to the marketing landscape? There's been some changes on the search side, SEO has been called out from many companies in the consumer landscape. Could you just talk about what you're seeing there first, maybe? Then second, if I may, as you think about your second half outlook, maybe, I apologize if I may have missed this, but could you talk about your outlook for ADRs and maybe the environment we might be in as we think about the difference between bookings and nights growth? Thank you. Ariane Gorin: Sure. I'll take the first one, and then Derek Andersen can take the second one. When I think about organic traffic, and I'm going to bucket together SEO and AEO, for us, organic search traffic is stable to slightly up. Now, as I mentioned in my prepared remarks, AEO is one of our fastest-growing channels, and SEO has remained a bit soft, but it's stabilized over the last few quarters, and I think it's due to the great work that our team has done. A number of quarters ago, we organized a small team to look at organic across the board, AEO and SEO, and they've increased testing velocity, both technical and content. As I said, they've been doing more tests. They've been using AI across the board in order to improve our performance in that channel. Now that being said, as I said earlier, it's a fast-changing space. We're seeing algorithms and search page changes more prevalent and happening faster than they have in the past, which is why we're staying vigilant. We're monitoring, we're reacting to them. Today, we think we're getting at least our fair share, but organic is an important thing to us, so we're making sure that we're staying on top of it. Derek Andersen: In terms of the second half guidance on bookings and so on, we're assuming that the healthy demand trends that we have seen through Q2 and to begin Q3 here persist, and that's led by a particularly strong U.S. and domestic market. We do, of course, see an environment where the conflict in the Middle East is having some impacts. The sort of direct impacts in that region, our business there is relatively small, and so the impact is lighter. However, there are secondary impacts impacting jet fuel prices, which have an impact on airline prices and ticket prices. There are some secondary impacts, but the strength overall and the resiliency in the travel market and consumers continuing to prioritize travel has led to a relatively resilient environment. That informs our guide for Q3 and the updates we made to our full-year guidance. As it pertains to bookings and room nights specifically, we do have much tougher comps in the second half of the year, and so we've incorporated that into the guide for Q3 and the update that we've made for the full year. We do expect the growth rates to decelerate as we see those comps, although probably more so on the booking side, a little less so on the room night side, but we will face much tougher comps on both of those numbers. Ken Gawrelski: Thank you. Operator: Your next question comes from the line of Lloyd Walmsley with Mizuho. Lloyd, your line is now open. Please go ahead. Lloyd Walmsley: Thanks. Derek Andersen, great to be interacting with you again in a new forum. I wanted to just get your sense of anything that surprised you the most, or where do you see the most opportunity as you dive into a new business? Was the first one. Then, just a second one, as you all look at the AEO channel, it sounds like it's more meaningful for you all and growing faster than what some of your peers are seeing. Is there anything you can elaborate? Do you think it's a bigger consumer activity in the U.S., or you guys are just sort of approaching it in a unique way? Do you think it's likely to be meaningful anytime soon? Anything more you could help us understand would be great. Thanks. Ariane Gorin: Sure. Why don't I start with that one, then Derek Andersen can take your first question. Look, AEO is still a small channel. As I said, it's one of our fastest-growing channels. I believe we were early in organizing ourselves around it and understanding not only what visibility were we getting in prompts and answer and AI search, but also how do we make sure we're getting the right visibility. It's a combination of work we're doing in our brands, the brand value propositions, obviously a lot of technical work. What I find exciting about it is it's changing really quickly. It's figuring out how do we make sure our brands show up either completely organically? Are there opportunities with these connectors or micro apps, for example, in Claude and ChatGPT? It's fascinating to see there are some cases in which we can control a bit more what the interface is, where our brand shows up, and others where we can't. I think it's too early to declare anyone's getting a lot more versus less. I can just tell you that we have a team focused on it, and that it's not just the technology of it's also all the work we're doing on our brand value propositions, on making sure that we have great, full and complete content, and making sure that your travelers understand that when they come to Expedia or Hotels.com or Vrbo, they're going to get a complete shop. They're going to get a loyalty program. They're going to be able to have payments in all different currencies. Just it's really that full value proposition that we need to make sure comes through. Derek Andersen: Lloyd Walmsley, look, it's great to be engaged with you and your team again as well. Before joining Expedia, I'd say that I was really excited about what I saw and the opportunity in the travel market. The scale of the industry is immense, the total opportunity set is huge. For this business specifically, I was excited about the leading consumer brands in some of the most important markets in the world, and the opportunity for us to continue to grow beyond that. The B2B business as a leading B2B platform in the world as well. It gives the business a lot to work with. I spent a lot of time looking at how well the team has executed over the last couple of years and the results that they've been able to drive to build momentum in the business is really impressive. It was exciting coming in. I think that what's more exciting is that after a couple of months in the building and working with the team, most of what I hoped would be true on the way in the door has proven to be true. I'm particularly pleased with the quality of the team here and the consistent focus on operational execution. I think probably the last thing I'd mention is just that it's exciting how much of what lies ahead of us in terms of opportunity is something we can capture through our own execution and scaling this business efficiently. I'm excited to dig in with the team and capitalize on that. Lloyd Walmsley: All right. Thank you. Operator: Your next question comes from the line of Deepak Mathivanan with Cantor Fitzgerald. Deepak, your line is open. Please go ahead. Cameron: Thank you. This is Cameron on for Deepak Mathivanan. Just one quickly on B2C. Seems like there is some nice margin expansion there this quarter. Can you just give some more color on the drivers of margin expansion here? What does the runway look like into 2027? Ariane Gorin: As you rightly say, we had nice margin expansion. We grew our bookings 8% while leveraging marketing spend, which was only up 1%. That came from our fastest U.S. growth in 15 quarters and a healthy environment. I would say it came from really pulling on all of the levers of the marketplace, improvements in the product, whether that is recommendations, ranking, improvements all along the funnel. For example, optimizing the checkout in Vrbo. It came from growth in our supply footprint. As I said, the May sale was a record-breaking sale for us, making sure that travelers know that when they come, they are going to be able to find what they are looking for, driving attach in supply. The performance of our top tier loyalty members, so silver and above, did really well both in bookings and then also in retention. In marketing, as you saw, yes, we've had good marketing leverage. It's not just that measurement that allows us to better understand incrementality and returns. The team is also doing some really fantastic work around using technology to be more effective. They're developing these agentic systems to create personalized ads at scale, both using our technology and using third-party technology. I look at it and of course, I see all of the areas that we can do better, but I also see so much good work that the team is doing. I'm just really pleased to see that margin expansion. Operator: Your next question comes from the line of Mark Mahaney with Evercore ISI. Mark, your line is open. Please go ahead. Mark Mahaney: Two questions, please. One on advertising revenue. Just an update on the traction you're seeing there. I think over time you've been trying to thoughtfully roll out advertising revenue to more surfaces like Vrbo. Just an update on that. Secondly, I think you touched on it briefly, but the impact of World Cup in Q2 and Q3, was it material at all to Expedia? Thank you very much. Derek Andersen: Hi, Mark Mahaney. On the advertising business, growth was stable relative to Q1 and Q2. As we look at the future growth opportunities for the business, we see a lot of opportunity to sustain healthy growth there. Some of the drivers you pointed out, more geographical reach, extending our existing ad solutions into our B2B and Vrbo business lines. Also monetizing on more areas of our sites. On Vrbo specifically, it's very early there, but we are excited about the opportunity to build on that over time, but it's early. We got a new leader there also. This is a business that I personally am familiar with, so I'm excited to dig in with them and help build this out over time. To your question on the World Cup, as Ariane Gorin mentioned in prepared remarks, we did see bookings related to that come in late, and the impact of that on the quarter was relatively modest overall. We saw it show up more in ADRs than we did in room nights, and the impact of the quarter overall from a bookings perspective was modest. Mark Mahaney: Okay. Thank you, Derek Andersen. Operator: Your next question comes from the line of Kevin Kopelman with TD Cowen. Kevin, your line is open. Kevin Kopelman: Thanks a lot. Could you just give us some more color on how you've seen U.S. and Mexico trips progress as we've gotten further away from the security incident that you called out last quarter? Thanks. Ariane Gorin: Yeah. I would say we've seen a normalization. Yeah. We've seen a normalization. Kevin Kopelman: Okay, great. Could you just touch on B2B sales and marketing? It looks like that ticked down year-over-year for the first time since you started disclosing that. What are the key drivers there, and how are you thinking about the second half? Thanks. Derek Andersen: Sure. On B2B margins, first, we're really pleased with what we're seeing in the growth on that business. In the very immediate term, the big drivers on B2B margins include partner mix and the pace of our own investments in the long-term growth of that business. On partner mix, we've continued to see strong partner promotional activity. We saw that in Q1. It persisted throughout Q2. That's a big driver, is that some of our larger partners are active in that space. In addition, we are prioritizing the growth of that business long term, given how significant the opportunity is. We're investing in building out and/or acquiring, in the case of Tiqets, new lines of business to support our one-stop travel shop, enhancing our product capabilities to better support our existing partners, and also in our partnership and sales to grow our partner base. We have over 70,000 partners today, looking to grow that and through lines of business to deepen our partnerships and business over time. That's shaping the drivers of the business in the near term, both from a mix and margin perspective. Hopefully that gives some context. I would just reiterate, we can invest and continue to make progress on margins. If you think about our strategic pillar around efficiency and margin expansion, we're committed to that and are driving that across the business. Kevin Kopelman: Thank you. Operator: Your next question comes from the line of Naved Khan with B. Riley Securities. Naved Khan, your line is open. Please go ahead. Naved Khan: Great. Thanks a lot. Two questions from me. One, Ariane Gorin, as you mentioned, you're seeing good attach rates in Expedia. Maybe just talk about what are the products that are seeing the most attach rates, where you're seeing the most success. The second question I had is just around the Uber partnership. Any early read or any color you can share in terms of how that's rolling out, and what are you contemplating in your guidance in terms of contribution from this new partnership? Thank you. Ariane Gorin: Sure. I'll take the second one first because it's going to be quick, which is we don't comment on individual partners. I'm not going to comment, and it's not going to be material to our guidance. On the first point on attach, it really depends on does the trip start with a flight, in which case we're more likely to attach a lodging, a hotel, or a vacation rental or a car? Does it start with a hotel, in which case we might attach a car or insurance? Actually, part of what's behind the record attach rates is the personalization we're able to drive by understanding what is the next best thing to recommend to a traveler. As I said, if they've taken a flight, they've already booked a flight and it's in a certain destination, we might know, okay, actually, the next best thing to propose is a hotel, and it's one of these three properties. It can be based on the trip and information we have on the trip, or it can be based on what we know about that traveler. The team has really been honing in and optimizing those recommendations. In addition, they've done a great job really optimizing the UX and the design, figuring out where is it that we put the attach messaging, where is it in the app, where is it in the post-sale communications. It's really a combination of all of the above. Naved Khan: Maybe just to kind of drill into that, what kind of runway do you see ahead in terms of continuing to drive attach rates higher? Where are we in the innings? Ariane Gorin: Yeah. I would say there's still quite a bit of runway. We have good stats that tell us of people who book one trip element with us, how likely are they to have another trip element somewhere else. Without going into what exactly those numbers are, I can tell you I certainly see additional runway to have more multi-item trips, even if I believe right now we're best in class, but there's still upside ahead of us. Naved Khan: Thanks, Ariane Gorin. Operator: We have reached the end of the Q&A session. I will now turn the call back to Ariane Gorin for closing remarks. Ariane Gorin: Well, thank you all for joining our call. Thank you for your questions. As you saw, we delivered strong results ahead of our expectations as consumers continue to prioritize travel. As we look ahead, we remain confident in our strategy and our ability to execute and drive long-term value for travelers, partners, and shareholders. Finally, a big thank you again to our team. Operator: This concludes today's call. You may now disconnect your lines. Have a nice day. 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Expedia Group EXPE reported second-quarter 2026 adjusted earnings of $5.76 per share, up 36% year over year. The figure surpassed the Zacks Consensus Estimate by 5.69%.Revenues increased 14% year over year to $4.32 billion and beat the consensus mark by 3.13%. Sustained B2B momentum, stronger consumer-brand performance and disciplined cost management drove the results. In the second quarter, total gross bookings climbed 12% year over year to $33.93 billion. Lodging gross bookings increased 11% to $24.60 billion, while non-lodging gross bookings advanced 12% to $9.33 billion.Merchant gross bookings grew 14% to $20.61 billion, outpacing an 8% increase in agency gross bookings to $13.32 billion. Average daily rate booked rose 5% to $220.60, partly supporting the higher booking value. Booked air tickets, however, declined 5% to 14.2 million. Booked room nights rose 6% to 111.5 million. Expedia Group, Inc. price-consensus-eps-surprise-chart | Expedia Group, Inc. Quote In the second quarter, B2B revenues surged 23% year over year to $1.49 billion, supported by double-digit growth across all regions and elevated marketing activity from some large partners. B2B gross bookings increased 21% to $10.74 billion.B2C revenues rose 8% to $2.68 billion, while gross bookings increased 8% to $23.19 billion. Management noted that the consumer business benefited from sustained U.S. momentum, with the market growing at its strongest pace in 15 quarters. Second-quarter adjusted EBITDA increased 23% year over year to $1.12 billion. The adjusted EBITDA margin expanded 196 basis points to 25.9%, reflecting disciplined cost management, favorable revenue mix and marketing leverage.B2C adjusted EBITDA rose 22% to $889 million, with margin expanding 380 basis points to 33.2%. B2B adjusted EBITDA increased 12% to $369 million, though margin contracted 258 basis points to 24.8% because of partner mix and acquisition consolidation. In the reported quarter, adjusted cost of revenues increased 7% to $399 million but declined 61 basis points as a percentage of revenues to 9.2%. The improvement reflected continued efficiencies in payments.Direct selling and marketing expenses rose 10% to $2.12 billion. B2C direct marketing costs increased only 1% to $1.10 billion and declined 31 basis points as a percentage of B2C gross bookings to 4.7%, indicating improved returns across marketing channels. As of June 30, 2026, cash and cash equivalents and short-term investments were $7.13 billion, up from $5.79 billion as of March 31, 2026.Long-term debt was $5.46 billion as of June 30, 2026, up from $4.47 billion as of March 31, 2026.The company repurchased approximately 880,000 shares for $200 million during the quarter. Through the first six months of 2026, purchases of treasury stock totaled $1.06 billion.Expedia Group also declared a quarterly cash dividend of 48 cents per share, payable Sept. 17, 2026.Net cash provided by operating activities rose 32% to $1.48 billion in the quarter. Free cash flow grew 39% to $1.28 billion, underscoring the company’s ability to convert improved operating performance into cash. For the third quarter of 2026, Expedia Group expects gross bookings between $32.2 billion and $32.8 billion, representing growth of 5-7%. Revenues are projected in the range of $4.65 billion to $4.75 billion, implying growth of 5-8%.Adjusted EBITDA is expected between $1.51 billion and $1.56 billion. The outlook factors in slower top-line growth than in the second quarter, while maintaining a strong level of adjusted profitability.Expedia Group raised its 2026 gross bookings forecast to $129.5-$130.8 billion from $127-$129 billion. The revised range represents projected growth of 8-9%, compared with the prior expectation of 6-8%.The company now anticipates revenues of $16.05-$16.22 billion, up from its earlier range of $15.6-$16 billion. Adjusted EBITDA margin expansion is expected to reach 1.5-1.75 percentage points, compared with the prior outlook of 1-1.25 points. Expedia Group currently carries a Zacks Rank #3 (Hold).Take-Two Interactive TTWO, Newsmax Inc. NMAX and American Public Education APEI are some better-ranked stocks that investors can consider in the broader Consumer Discretionary sector.Take-Two Interactive sports a Zacks Rank #1 (Strong Buy), while Newsmax and American Public Education carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Take-Two Interactive is scheduled to report its first-quarter fiscal 2027 results on Aug. 7, 2026. Meanwhile, Newsmax is set to announce its second-quarter 2026 earnings on Aug. 13, followed by American Public Education, which will report its second-quarter 2026 results on Aug. 10. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report American Public Education, Inc. (APEI) : Free Stock Analysis Report Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report Newsmax Inc. (NMAX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Expedia Group, Inc.? Here are five stocks we like better. Expedia exceeded expectations in Q2, with gross bookings up 12%, revenue up 14% and adjusted EBITDA up 23%. Room nights increased 6%, while adjusted EBITDA reached $1.1 billion and free cash flow totaled $4.5 billion over the trailing 12 months. Growth remained broad but uneven: U.S. consumer bookings rose 8% and B2B delivered its 20th consecutive quarter of double-digit growth, while Europe faced macroeconomic and air-capacity pressures. Expedia also cited improving marketing efficiency and early conversion benefits from AI-powered search and personalization tools. The company raised its full-year outlook to $129.5 billion–$130.8 billion in gross bookings, $16.05 billion–$16.22 billion in revenue and 150–175 basis points of adjusted EBITDA margin expansion. Expedia repurchased about $200 million of shares during the quarter and $900 million year to date. Uber's Annual Product Showcase Reveals It Is Coming for Airbnb and Booking Expedia Group (NASDAQ:EXPE) reported second-quarter results above the high end of its outlook, citing healthy consumer travel demand, continued momentum in its business-to-business segment and improved marketing efficiency. The company also raised its full-year guidance for gross bookings, revenue and adjusted EBITDA margin expansion. CEO Ariane Gorin said gross bookings rose 12% year over year, revenue increased 14%, and adjusted EBITDA grew 23%. The company has exceeded the high end of its top- and bottom-line expectations for five consecutive quarters, she said. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Affirm: A Solid Footing or More Volatility Ahead? “Consumers continued to prioritize travel with longer lengths of stay and longer booking windows, even as air ticket and hotel prices rose,” Gorin said. She added that the World Cup created modest incremental demand late in the quarter, with many bookings occurring after the tournament began. Total booked room nights increased 6% during the second quarter. Growth was in the mid-single digits in the U.S., low single digits in Europe, the Middle East and Africa, and low double digits in the rest of the world. → 3 Drone Stocks That Should Soar After the Summer Slump MarketBeat Week in Review – 03/23 - 03/27 Gorin described the U.S. consumer environment as healthy, with Expedia’s consumer bookings increasing 8% and U.S. growth reaching its fastest pace in 15 quarters. Active loyalty members rose by a low-single-digit percentage, with faster growth among higher-tier members. Europe remained pressured, especially for outbound travel, as macroeconomic headwinds and reduced air capacity weighed on demand. Asia-Pacific rebounded from disruption connected to the Middle East, according to Gorin. She also said U.S.-Mexico travel had normalized following a security incident discussed during the prior quarter. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure The company’s B2B operation posted its 20th consecutive quarter of double-digit growth. Gorin said Expedia continues to pursue a strategy of becoming a “one-stop travel shop” for partners, providing supply, technology and servicing across travel categories. To support that effort, Expedia previously announced its intent to acquire B2B car rental and insurance platform CarTrawler. CFO Derek Andersen said the company’s earlier acquisition of Tiqets contributed to B2B expenses during the quarter as Expedia integrates the business and builds out additional lines of business. Andersen said second-quarter gross bookings growth was driven primarily by 6% room-night growth and a 5% increase in average daily rates on an FX-neutral basis. Foreign exchange contributed nearly half a percentage point to gross bookings growth and four percentage points to revenue growth. Adjusted EBITDA was $1.1 billion, representing a 25.9% margin. Adjusted EBITDA margin improved by nearly two percentage points from the prior year. Adjusted earnings per share rose 36% year over year. Trailing 12-month free cash flow reached $4.5 billion. The margin improvement reflected cost efficiencies, marketing leverage and higher volumes, Andersen said. He noted that overhead costs were flat year over year despite a 14% increase in revenue. During the quarter, Expedia repurchased approximately 880,000 shares for $200 million, or an average price of $226 per share. Year-to-date share repurchases totaled $900 million. Andersen said the company’s capital-allocation priorities remain organic investment, disciplined mergers and acquisitions, dividends and opportunistic share repurchases. Gorin highlighted product and operational initiatives involving artificial intelligence. Expedia launched natural-language search on the Vrbo homepage and updated tools including Property Expert and AI Compare in its hotel-shopping flow. She said AI-driven recommendations, rankings and personalization are producing immediate conversion benefits. Conversational tools that are not yet driving conversion are providing more information about traveler intent, according to Gorin. She said these experiences can generate more than 60% additional information about traveler intent, which Expedia expects could support deeper customer engagement over time. The company is also investing in AI-based search and social channels. Gorin said answer engine optimization, or AEO, is among Expedia’s fastest-growing channels, although it remains small. Traditional search engine optimization has been soft but has stabilized in recent quarters, she said, while organic traffic overall was stable to slightly higher. Expedia recently acquired Layla, an AI conversational planning app, and has expanded work with AI platforms including ChatGPT and Google services. The company also deployed an agentic voice solution on Vrbo for partner inquiries, with early results showing faster resolutions and lower contact propensity, Gorin said. On supply, Expedia became the first online travel agency to distribute Allegiant flights in July, giving it full coverage of U.S. commercial airlines, according to Gorin. More than 40% of Vrbo bookings included supplier-funded offers during the quarter, while the company’s May sale generated more than $1 billion in bookings for participating properties. For the third quarter, Expedia expects gross bookings of $32.2 billion to $32.8 billion, representing year-over-year growth of approximately 5% to 7%. The company expects revenue of $4.65 billion to $4.75 billion, up about 5% to 8%, and adjusted EBITDA of $1.51 billion to $1.56 billion. The company expects bookings and room-night growth to moderate from the second quarter as it faces tougher comparisons from the second half of the prior year. Its third-quarter outlook assumes an approximately one-point foreign-exchange headwind to bookings growth and an approximately one-point benefit to revenue growth. For the full year, Expedia raised its outlook to gross bookings of $129.5 billion to $130.8 billion, representing 8% to 9% growth, and revenue of $16.05 billion to $16.22 billion, representing 9% to 10% growth. The company now expects adjusted EBITDA margin expansion of 150 to 175 basis points from the prior year. Andersen said margin expansion is expected to moderate in the third quarter due to tougher comparisons against prior-year cost actions, B2B investments and unfavorable net foreign-exchange effects. He said the pace of expansion should improve in the fourth quarter as some of those pressures ease and efficiency initiatives continue. Expedia Group (NASDAQ: EXPE) is a global travel technology company that operates an online marketplace connecting consumers, travel suppliers and third‑party partners. The company's platform enables search, comparison and booking of travel products and services, including hotels, airline tickets, vacation rentals, car rentals, cruises and packaged travel. Its portfolio comprises consumer-facing travel brands as well as corporate travel solutions and technology services that serve both leisure and business travelers. Key offerings include consumer booking platforms and mobile apps that aggregate inventory from hotels, vacation rental managers, airlines and car rental companies, alongside ancillary travel services such as trip insurance and activities. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Expedia Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Expedia (EXPE) reported $4.32 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 14%. EPS of $5.76 for the same period compares to $4.24 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $4.18 billion, representing a surprise of +3.13%. The company delivered an EPS surprise of +5.69%, with the consensus EPS estimate being $5.45. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Expedia performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Gross bookings - Agency: $13.32 billion compared to the $13.15 billion average estimate based on six analysts. Gross bookings - Total: $33.93 billion versus $33.05 billion estimated by six analysts on average. Gross bookings - Merchant: $20.61 billion compared to the $19.9 billion average estimate based on six analysts. Gross bookings by product - Lodging: $24.6 billion compared to the $23.96 billion average estimate based on six analysts. Revenue- Non-U.S. points of sale: $1.75 billion compared to the $1.75 billion average estimate based on two analysts. The reported number represents a change of +17.7% year over year. Revenue- U.S. points of sale: $2.57 billion versus the two-analyst average estimate of $2.43 billion. The reported number represents a year-over-year change of +11.6%. Revenue- Expedia Group (excluding trivago): $4.17 billion compared to the $4.05 billion average estimate based on five analysts. The reported number represents a change of +13.1% year over year. Revenue- B2B: $1.49 billion compared to the $1.42 billion average estimate based on five analysts. The reported number represents a change of +23.5% year over year. Revenue- B2C: $2.68 billion compared to the $2.63 billion average estimate based on five analysts. The reported number represents a change of +8% year over year. Revenue by Service Type- Lodging: $3.43 billion versus the four-analyst average estimate of $3.34 billion. The reported number represents a year-over-year change of +12.8%. Revenue- Trivago: $145 million versus the four-analyst average estimate of $125.37 million. The reported number represents a year-over-year change of +48%. Revenue by Service Type- Other: $444 million versus $432.28 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +23% change. View all Key Company Metrics for Expedia here>>> Shares of Expedia have returned +15.6% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Expedia Group, Inc. (EXPE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research