Expedia (EXPE) AI Stock Analysis

• Market Cap: $34.92B
• Dividend Yield: 0.56%
• Average Volume (3M): 2.49M
• Price to Earnings (P/E): 27.3
• Beta (1Y): 1.24
• Revenue Growth: 7.29%
• EPS Growth: 36.51%
• Country: US
• Employees: 16,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): 7.57
• Shares Outstanding: 117,009,060
• 10 Day Avg. Volume: 1,889,748
• 30 Day Avg. Volume: 2,492,350
• PEG Ratio: 0.28
• Price to Book (P/B): 15.73
• Price to Sales (P/S): 1.79
• P/FCF Ratio: 10.52
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 1.96
• Enterprise Value/Gross Profit: 2.18
• Enterprise Value/Ebitda: 10.08
• 1Y Price Target: $271.48
• Price Target Upside: -4.01% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 30
• EPS Forecast (FY): 15.33
• Revenue Forecast (FY): $14.59B

• Rating: 80 Outperform
• Price Target: $304.00 ▲(7.49% Upside)

Expedia's overall stock score is driven by strong earnings performance and positive technical indicators. The company's robust financial health and strategic initiatives, such as AI integration and B2B growth, support its resilience and growth prospects. Valuation is fair, though operational efficiency and leverage remain areas to watch.

Positive Factors

B2B Growth

Consistent B2B growth indicates strong demand and successful market penetration, enhancing long-term revenue stability and diversification.

AI Integration

AI integration enhances operational efficiency and customer engagement, providing a competitive edge and supporting sustainable growth.

Debt Reduction

Significant debt reduction improves financial flexibility and reduces risk, enhancing the company's ability to invest in growth opportunities.

Negative Factors

Operational Efficiency

Challenges in operational efficiency may limit margin expansion and profitability, affecting long-term financial performance.

Leverage Risks

Low equity ratio indicates reliance on debt, posing risks to financial stability and limiting strategic flexibility.

EBIT Margin Decline

Decreasing EBIT margin suggests rising operational costs, which could pressure profitability and impact long-term financial health.

Expedia Business Overview & Revenue Model

Company Description

Expedia Group, Inc. operates as an online travel company in the United States and internationally. The company operates through Retail, B2B, and trivago segments. Its brand portfolio include Brand Expedia, a full-service online travel brand with localized websites; Hotels.com for marketing and distributing lodging accommodations; Vrbo, an online marketplace for the alternative accommodations; Orbitz, Travelocity, and CheapTickets travel websites; ebookers, an online EMEA travel agent for travelers an array of travel options; Hotwire, which offers travel booking services; CarRentals.com, an online car rental booking service; Classic Vacations, a luxury travel specialist; and Expedia Cruise, a provider of advice for travelers booking cruises. The company's brand portfolio also comprise Expedia Partner Solutions, a business-to-business brand that provides travel and non-travel vertical, which includes corporate travel management, airlines, travel agents, online retailers and financial institutions; and Egencia that provides corporate travel management services. In addition, its brand portfolio consists of Trivago, a hotel metasearch website, which send referrals to online travel companies and travel service providers from hotel metasearch websites; and Expedia Group Media solutions. Further, the company provides online travel services through its Wotif.com, lastminute.com.au, travel.com.au, Wotif.co.nz, and lastminute.co.nz brands; loyalty programs; hotel accommodations and alternative accommodations; and advertising and media services. It serves leisure and corporate travelers. The company was formerly known as Expedia, Inc. and changed its name to Expedia Group, Inc. in March 2018. Expedia Group, Inc. was founded in 1996 and is headquartered in Seattle, Washington.

How the Company Makes Money

Expedia generates revenue primarily through the sale of travel services and products. The company earns money through several key revenue streams, including: 1) Merchant Model: Expedia sells travel products, such as hotel rooms and vacation packages, directly to customers, marking up the prices from the suppliers and keeping the difference as profit. 2) Agency Model: The company acts as an intermediary between travelers and service providers (like airlines and hotels), earning commissions on bookings made through its platforms. 3) Advertising Revenue: Expedia also generates income from advertising on its websites, leveraging its significant traffic to attract partners who wish to promote their services. 4) Subscription Services: Some of Expedia's brands offer subscription-based services, providing members with exclusive deals and discounts. Significant partnerships with airlines, hotel chains, and other travel service providers further enhance its earnings, as these relationships help secure competitive pricing and exclusive offers that attract customers.

Expedia Financial Statement Overview

Summary

Expedia demonstrates strong financial health with solid profitability and improved leverage. The company shows resilience in revenue growth and cash flow generation, although operational efficiency could be enhanced. Potential risks include leverage and operational cost management.

Income Statement

Expedia's income statement shows strong profitability with a high gross profit margin of 89.94% and a net profit margin of 9.66% for TTM. Revenue growth is steady at 2.51% TTM, indicating resilience in the travel sector. However, the EBIT margin has decreased to 5.00% TTM, suggesting increased operational costs.

Balance Sheet

The balance sheet reflects a significant reduction in debt, with a debt-to-equity ratio improving to 1.50 TTM from 4.19 in 2024. Return on equity is robust at 115.62% TTM, indicating efficient use of equity. However, the equity ratio remains low, suggesting potential leverage risks.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 39.85% TTM, highlighting improved cash generation. The operating cash flow to net income ratio is stable, but the free cash flow to net income ratio is slightly below 1, indicating room for improvement in cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.37B	13.69B	12.84B	11.67B	8.60B	5.20B
Gross Profit	12.93B	12.25B	11.27B	10.01B	7.08B	3.52B
EBITDA	2.79B	2.63B	2.07B	1.61B	1.13B	-1.90B
Net Income	1.39B	1.23B	797.00M	352.00M	12.00M	-2.61B
Balance Sheet
Total Assets	25.11B	22.39B	21.64B	21.56B	21.55B	18.69B
Cash, Cash Equivalents and Short-Term Investments	7.61B	4.48B	4.25B	4.14B	4.31B	3.39B
Total Debt	6.48B	6.53B	6.57B	6.55B	8.81B	8.73B
Total Liabilities	22.52B	19.59B	18.86B	17.83B	18.00B	14.66B
Stockholders Equity	1.34B	1.56B	1.53B	2.28B	2.06B	2.53B
Cash Flow
Free Cash Flow	3.58B	2.33B	1.84B	2.78B	3.08B	-4.63B
Operating Cash Flow	3.77B	3.08B	2.69B	3.44B	3.75B	-3.83B
Investing Cash Flow	-693.00M	-1.26B	-800.00M	-580.00M	-931.00M	-263.00M
Financing Cash Flow	-1.90B	-1.75B	-2.10B	-2.62B	-973.00M	4.08B

Expedia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 282.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXPE, the sentiment is Positive. The current price of 282.82 is above the 20-day moving average (MA) of 262.80, above the 50-day MA of 242.51, and above the 200-day MA of 196.44, indicating a bullish trend. The MACD of 11.11 indicates Negative momentum. The RSI at 65.93 is Neutral, neither overbought nor oversold. The STOCH value of 82.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EXPE.

Expedia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPE	80 Outperform	$34.92B	27.27	104.40%	0.56%	7.29%	36.51%
ABNB	71 Outperform	$81.26B	31.65	30.78%	―	10.56%	47.16%
TCOM	71 Outperform	$46.72B	11.38	19.96%	0.39%	17.34%	91.51%
TRIP	67 Neutral	$1.75B	22.83	9.57%	―	4.24%	159.81%
MMYT	65 Neutral	$8.16B	126.89	16.66%	―	14.55%	-68.46%
BKNG	63 Neutral	$175.25B	35.34	―	0.72%	12.96%	3.66%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Expedia Corporate Events

Expedia Fixes Cash Settlement for Convertible Notes

On November 12, 2025, Expedia Group, Inc. announced its decision to irrevocably fix the Settlement Method to Cash Settlement for its 0.00% Convertible Notes due 2026. This decision impacts all conversions of Notes with a Conversion Date on and after November 12, 2025, which will now be settled by payment in cash, potentially affecting the company’s financial operations and stakeholders involved in these notes.

Expedia Reports Strong Q3 2025 Financial Results

Expedia Group announced its third-quarter 2025 financial results, reporting a 12% increase in bookings and a 9% rise in revenue compared to the previous year. The company experienced significant growth in its B2B segment, with a 26% increase, and a 7% rise in consumer bookings. The company also repurchased $451 million of shares and declared a quarterly dividend of $0.40 per share. These results reflect improved demand and strategic execution, positioning Expedia for continued growth and value creation for stakeholders.