Key Highlights

  • Gross bookings rose 11% to USD 34.0 billion in the third quarter, with B2B up 19% to USD 11.1 billion and B2C up 7% to USD 22.9 billion.
  • Revenue rose 12% to USD 4.94 billion, adjusted EBITDA rose 17% to USD 1.69 billion at a 34.2% margin, and Diluted Earnings per Share rose 15% to USD 8.42.
  • Fourth-quarter gross bookings are guided to USD 27.9 billion to USD 28.4 billion, up 3.3% to 5.2%, a sharp slowdown from the 11% third-quarter pace.
  • Full-year gross bookings guidance rose to USD 131.4 billion to USD 131.9 billion from USD 129.5 billion to USD 130.8 billion; one wrap showed shares down nearly 13%, unconfirmed against a close.

A Strong Third Quarter

Expedia Group (NASDAQ:EXPE) released third-quarter results on November 4, 2026. Gross bookings of USD 34.0 billion rose 11%, Revenue of USD 4.94 billion rose 12%, and Net Income attributable to the company rose 7% to USD 1.03 billion. Published coverage says bookings came in 4% above consensus and EBITDA 9% ahead. Free Cash Flow was negative USD 1.40 billion against negative USD 686 million a year earlier. The company repurchased about 2 million shares for USD 576 million and ended September with USD 5.04 billion of cash and equivalents. B2B gross bookings were about one third of the total (calculated). Adjusted EBITDA Margin expanded 135 basis points to 34.2%.

Why the Fourth-Quarter Guide Weighed on the Stock

Fourth-quarter revenue is guided to USD 3.69 billion to USD 3.75 billion, up 4.0% to 5.7%, with adjusted EBITDA of USD 830 million to USD 880 million. Growth of 3.3% to 5.2% in bookings compares with 11% in the third quarter, a slowdown of roughly six to eight points (calculated). One wrap says moderating travel Demand and higher Investment weighed on the outlook, a reading not confirmed in the release. The full-year outlook still rose: revenue to USD 16.37 billion to USD 16.43 billion, and margin expansion to 1.8 to 2.0 points. Previously, gross bookings were guided to USD 129.5 billion to USD 130.8 billion, and margin expansion to 1.5 to 1.75 points.

Reading the Share Reaction and Remaining Risks

A single evening wrap listed the stock down nearly 13%, while the topic sources described only a slip, so the size of the move should be treated as approximate. Expedia Group (NASDAQ:EXPE) has a Business weighted toward B2C, which grew 7%, while B2B is expanding faster at 19%. Risks include softening demand, higher spending, wider negative free cash flow and the dependence of full-year results on the final quarter. Investors will watch whether bookings growth in the fourth quarter lands inside the USD 27.9 billion to USD 28.4 billion range. Gross bookings, revenue and EBITDA all rose by double digits, so the reaction concerned the pace ahead, not the quarter just reported.

Where Things Stand

Expedia Group (NASDAQ:EXPE) fell because the fourth-quarter outlook pointed to bookings growth of 3.3% to 5.2%, well below the 11% pace of the third quarter, even though the quarter beat and full-year guidance rose. Margins were strong at 34.2%, but investors typically price the next quarter, and negative free cash flow of USD 1.40 billion was wider than a year earlier and the release extract did not explain it. Next markers are fourth-quarter bookings, the margin path and any change to B2C trends.