Market Overview - U.S. stock futures showed volatility, with major indices mixed following a lower close on Thursday [1] - Investors are anticipating January's inflation data, with estimates suggesting core CPI may drop to 2.52%, aligning with pre-COVID averages [1] Treasury Yields - The 10-year Treasury bond yield is at 4.12%, while the two-year bond yield stands at 3.47% [2] - Market expectations indicate a 92.1% likelihood that the Federal Reserve will maintain current interest rates in March [2] Index Performance - Dow Jones decreased by 0.13%, S&P 500 increased by 0.02%, Nasdaq 100 rose by 0.13%, and Russell 2000 fell by 0.08% [3] Stocks in Focus - **Roku (ROKU)**: Long-term price trend remains strong, but short and medium-term trends are weak [3] - **Arista Networks (ANET)**: Strong price trend across short, medium, and long terms, with solid growth ranking [4] - **Tri Pointe Homes (TPH)**: Surged 25.79% after announcing an all-cash strategic combination with Sumitomo Forestry, maintaining a strong price trend [7] - **Expedia Group (EXPE)**: Dropped 4.97% after fourth-quarter earnings report, despite beating estimates; maintains a stronger long-term trend but weak short and medium-term trends [8] - **HIVE Digital Technologies**: Weaker price trend across all time frames [5] Economic Insights - Scott Wren from Wells Fargo maintains a positive outlook for the U.S. economy, raising the growth estimate to 2.9% [9] - Wren views market corrections as buying opportunities, emphasizing broadening performance beyond technology sectors [10][11] Upcoming Economic Data - Investors are focused on the release of January's consumer price index data scheduled for 8:30 a.m. ET [12] Commodities and Global Markets - Crude oil futures increased by 0.35% to approximately $63.06 per barrel [13] - Gold Spot price rose by 0.91% to around $4,966.59 per ounce [13] - Bitcoin traded 0.81% lower at $66,785.65 per coin [13] Corporate Earnings and Monetary Policy - Anticipation of a fourth consecutive year of record earnings for the S&P 500 [15] - Expectations for further Federal Reserve easing and rate cuts as the year progresses [15] - Preference for U.S. assets over international ones, particularly in sectors like Energy, Materials, and Industrials [15]

Core Insights - Expedia Group is adapting to the rise of artificial intelligence (AI) assistants and agentic commerce by integrating these technologies into its services and enhancing its own platforms to attract travelers directly [1][2] - CEO Ariane Gorin highlighted that generative AI is creating new growth opportunities for the company, as it collaborates with major platforms to ensure visibility in AI-driven searches [2][3] AI Integration and Strategy - The company is actively experimenting with AI capabilities, gathering data and insights to improve brand visibility and understand evolving consumer behaviors [7] - Expedia is recognized as one of the brands developing agentic AI capabilities for Amazon's Alexa+ virtual assistant, indicating its commitment to leveraging AI in travel planning [3] Consumer Behavior and Trust - A report indicated that nearly 25% of consumers are comfortable allowing an AI agent to plan their travel, which is significant given the complexity of travel transactions [8] - Trust is emphasized as a critical factor in the travel industry, with the company providing verified reviews and responsive customer support to enhance customer confidence [10][11] Customer Engagement and Loyalty - The company is focused on delivering value and building trust with customers, which includes enhancing its loyalty program and ensuring reliable support during travel disruptions [9][10][11]

Core Insights - The article highlights strong performance driven by sustained market strength and disciplined execution, resulting in 11% growth in bookings and revenue [1] Group 1: B2B Segment Performance - The B2B segment is identified as a primary growth engine, achieving a 24% increase through market share gains with existing partners and enhanced marketing activities from large-scale partners [1] Group 2: Consumer Brand Recovery - Recovery in consumer brands was achieved by refining brand positioning and improving site speed by 30%, which led to enhanced traveler conversion and marketing efficiency [1] Group 3: Strategic Supply Expansion - Strategic supply expansion focused on high-value inventory, with lodging property counts growing by over 10% and partner-funded promotions increasing to over 30% of bookings [1] Group 4: Operational Efficiency - Operational efficiency improved through the use of AI, which shortened product development cycles and accelerated inventory onboarding by 70% [1] Group 5: Marketing Strategy - Marketing leverage was achieved by reallocating spending from low-performing channels to high-incrementality areas, supported by refined measurement capabilities [1] Group 6: Competitive Advantage - Direct engagement remains a core competitive advantage, with two-thirds of bookings originating directly from Expedia's branded platforms [1]

Core Insights - Expedia reported $3.55 billion in revenue for Q4 2025, marking an 11.4% year-over-year increase and exceeding the Zacks Consensus Estimate by 4.22% [1] - The company's EPS for the same period was $3.78, up from $2.39 a year ago, representing a surprise of 9.29% over the consensus estimate [1] Financial Performance Metrics - Gross bookings totaled $27 billion, surpassing the estimated $26.07 billion [4] - Booked room nights were 94, exceeding the average estimate of 92 [4] - Merchant gross bookings reached $16.49 billion, compared to the $15.39 billion estimate [4] - Agency gross bookings were $10.52 billion, slightly below the estimated $10.86 billion [4] - Revenue from non-U.S. points of sale was $1.51 billion, above the $1.48 billion estimate, reflecting a 17.3% year-over-year increase [4] - U.S. points of sale revenue was $2.04 billion, exceeding the $1.98 billion estimate, with a 7.4% year-over-year change [4] - B2B revenue was $1.29 billion, surpassing the $1.2 billion estimate, showing a 24.2% year-over-year increase [4] - B2C revenue reached $2.16 billion, slightly above the $2.12 billion estimate, with a 3.9% year-over-year change [4] - Revenue from Expedia Group (excluding Trivago) was $3.45 billion, exceeding the $3.35 billion estimate, reflecting a 10.7% year-over-year increase [4] - Trivago revenue was $97 million, surpassing the $81.97 million estimate, with a 47% year-over-year increase [4] - Revenue by service type for lodging was $2.82 billion, exceeding the $2.7 billion estimate, with a 10.9% year-over-year increase [4] - Revenue from other services was $329 million, below the $403.98 million estimate, reflecting an 8.9% year-over-year change [4] Stock Performance - Expedia's shares have returned -19.7% over the past month, compared to the S&P 500 composite's -0.3% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Viewpoint - Expedia reported quarterly earnings of $3.78 per share, exceeding the Zacks Consensus Estimate of $3.46 per share, and showing a significant increase from $2.39 per share a year ago, indicating strong financial performance [1] Financial Performance - The company achieved revenues of $3.55 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 4.22% and up from $3.18 billion year-over-year [2] - Over the last four quarters, Expedia has exceeded consensus EPS estimates three times and has also topped revenue estimates three times [2] Stock Performance - Expedia shares have declined approximately 17.6% since the beginning of the year, contrasting with the S&P 500's gain of 1.4% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.86 on revenues of $3.28 billion, while for the current fiscal year, it is $18.69 on revenues of $15.62 billion [7] - The estimate revisions trend for Expedia was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6] Industry Context - The Internet - Commerce industry, to which Expedia belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Risks - The company is exposed to various counterparty risks, including significant bank deposits and investments, which could lead to financial losses if counterparties fail to perform [114]. - The company is at risk of significant financial losses if counterparties, including financial institutions, default on obligations, particularly during economic downturns [115]. - The company may face significant penalties or legal liability for non-compliance with privacy regulations, which are increasingly complex and subject to change [131]. - The company may face increased audit activity and assessments from taxing authorities, which could lead to additional tax liabilities [149]. - The company’s liquidity may be constrained due to factors beyond its control, impacting its ability to meet obligations [158]. - The company’s tax liabilities may be adversely affected by changes in tax policy or legislative initiatives, potentially impacting its financial position [150]. - The company is subject to evolving regulatory scrutiny, which may affect its business practices and online commerce [146]. - The company is currently involved in various legal proceedings that may result in substantial payments, adversely affecting its financial condition [154]. Regulatory and Compliance Risks - The company is subject to evolving regulatory risks in the alternative accommodations business, which could limit property listings and impose significant compliance costs [133]. - New laws and regulations regarding online commerce and privacy could impose compliance burdens and impact the company's profitability and competitiveness [141]. - The incorporation of third-party AI technology in products and services presents risks that could adversely affect the company's business and reputation [123]. - The company has experienced instances of fraudulent activities related to properties listed on its platform, which could harm its reputation and revenue [138]. - System interruptions and cybersecurity risks could impair the company's ability to process transactions and maintain service quality, potentially damaging its reputation [126]. Technology and Cybersecurity - The company has undertaken a multi-year effort to migrate to new technology platforms and increase utilization of public cloud computing services, primarily AWS, which may be more costly and time-consuming than anticipated [122]. - The company's cybersecurity risk management program is based on industry standards, including the NIST Cybersecurity Framework and PCI DSS, to assess and manage cybersecurity threats [176]. - No cybersecurity incidents have materially affected the company's business strategy or financial condition to date, although future incidents could pose risks [179]. - The company has appointed Hilik Kotler as Senior Vice President and Chief Information Security Officer, bringing over 20 years of cybersecurity experience [184]. Financial Performance - Total gross bookings increased by 8% in 2025 compared to 2024, reaching $119,590 million, driven by a 20% increase in B2B bookings [256]. - Total revenue rose by 8% in 2025 to $14,733 million, with B2B revenue growing 18% to $4,842 million [260]. - Lodging revenue increased by 7% in 2025 to $11,752 million, primarily due to an increase in booked room nights [261]. - Advertising revenue from EG increased by 19% to $758 million, while trivago advertising revenue surged by 33% to $417 million [261]. - Operating income for 2025 was $1,871 million, a 42% increase from $1,319 million in 2024, representing 12.7% of revenue [277]. - Total Adjusted EBITDA for 2025 reached $3,501 million, up 19% from $2,934 million in 2024, with B2C segment contributing $2,798 million, a 15% increase [278]. Shareholder Returns - In 2025, Expedia Group declared quarterly dividends of $0.40 per share, totaling $51 million for each of the first three quarters and $49 million for the fourth quarter [198]. - A quarterly cash dividend of $0.48 per share was declared in February 2026, payable on March 26, 2026 [199]. - The 2023 Share Repurchase Program allows for the repurchase of up to $5 billion of common stock, with 1,136 thousand shares repurchased in Q4 2025 [202]. - The company reinstated quarterly common stock dividends in 2025, paying $1.60 per share, with a subsequent dividend of $0.48 declared for March 2026 [304]. Debt and Financing - The company has outstanding long-term indebtedness of $6.3 billion as of December 31, 2025, with an untapped revolving credit facility of $2.5 billion [161]. - As of December 31, 2025, the company had total debt of $6.3 billion, with future interest payments estimated at approximately $960 million [315]. - The company maintains a revolving credit facility of $2.5 billion, with no borrowings outstanding as of December 31, 2025 [318]. - In February 2025, the company issued $1 billion of 5.40% senior unsecured notes due in February 2035 for general corporate purposes [293]. - The company redeemed approximately $1 billion of 6.25% senior unsecured notes in February 2025, resulting in an immaterial loss on debt extinguishment [294]. Market and Economic Conditions - The stock price of the company is highly volatile, subject to fluctuations due to market conditions and investor confidence, which may deter certain investors [173]. - The company experienced weaker travel demand in the U.S. during the first half of 2025, with improvements noted in the second half [210]. - Seasonal fluctuations in travel service demand typically result in the highest bookings during the first three quarters, with the lowest revenue and income in the first quarter and the highest in the third quarter [227]. - The B2B segment, international operations, and advertising business may influence future seasonality trends [228]. Environmental and Governance Risks - The company may incur additional costs and risks related to its environmental, social, and governance (ESG) responsibilities, impacting its reputation and financial results [169]. - The company faces potential adverse impacts from climate change, including disruptions to operations and shifts in consumer preferences, which could significantly affect business in the short, medium, and long term [171]. Legal Proceedings - The company is involved in various legal proceedings, including lawsuits related to tax assessments and compliance with local regulations, which may impact financial results [188]. - Ongoing litigation includes claims from local governments in South Carolina against HomeAway for alleged tax violations, with no trial date set [190]. - The company is defending against multiple complaints related to the Helms-Burton Act, with several cases still active [194]. - The company successfully dismissed claims from Paris City Hall regarding compliance with supplier booking data regulations, with the appellate court affirming the dismissal [195]. - The company has reached a settlement in a lawsuit with Jasper County Development District 1, concluding the matter [189].

Financial Data and Key Metrics Changes - In Q4 2025, the company reported gross bookings of $27 billion and revenue of $3.5 billion, both reflecting an 11% year-over-year growth [15][16] - Adjusted EBITDA for Q4 was $848 million, with a margin of 24%, representing nearly four points of margin expansion [19] - Adjusted EPS grew 58% to $3.78, driven by share repurchases and a lower tax rate [19] Business Line Data and Key Metrics Changes - B2C gross bookings reached $18.3 billion, growing 5%, while B2C revenue was $2.2 billion, up 4% [16] - B2B gross bookings surged 24% to $8.7 billion, with revenue also increasing by 24% to $1.3 billion [17] - Booked room nights increased by 9%, with strong performance in the U.S. and EMEA regions [15][16] Market Data and Key Metrics Changes - The company experienced high single-digit growth in the U.S. and low double-digit growth in EMEA and the rest of the world [5] - Consumer spending remained robust, with longer booking windows and lengths of stay compared to 2024 [5] - The company noted a slowdown in growth in the rest of the world due to geopolitical issues in Asia [15] Company Strategy and Development Direction - The company aims to enhance traveler value through improved product offerings, faster site performance, and personalized experiences using AI [6][10] - Strategic priorities include investing in growth opportunities, particularly in B2B and advertising, while maintaining operational efficiencies [8][11] - The company is focused on expanding its inventory and enhancing customer service capabilities to drive satisfaction and loyalty [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and ability to execute, anticipating continued growth and margin expansion in 2026 [14][24] - The company is cautious about macroeconomic uncertainties but expects strong bookings momentum entering Q1 2026 [21][22] - Management highlighted the importance of AI in capturing traveler demand and enhancing product offerings [10][71] Other Important Information - The company ended Q4 with $5.7 billion in unrestricted cash and short-term investments, maintaining a commitment to return capital to shareholders [19][21] - A quarterly dividend increase of 20% to $0.48 per share was announced [21] Q&A Session Summary Question: Enhancements in Travel Planning Process - Management emphasized the importance of personalized marketing and product features to capture travelers earlier in the planning process [26][27] Question: B2C Marketing Leverage - Management discussed achieving about 50 basis points of leverage in B2C marketing through improved targeting and efficiency [30][31] Question: Competitive Positioning of Consumer Brands - Management expressed confidence in the positioning of their brands, highlighting recent improvements and growth potential [36][38] Question: Margin Trajectory Outlook - Management indicated confidence in future margin expansion driven by effective execution and growth in B2C and B2B segments [41][43] Question: Supply Growth and Market Dynamics - Management noted a 10% growth in lodging properties and emphasized ongoing efforts to enhance supply and partnerships [49][51] Question: Traffic Changes from Google AI Features - Management reported no material changes in traffic but is actively experimenting with AI to enhance visibility and conversion [55][57] Question: B2B Growth Drivers and Margin Outlook - Management highlighted strong double-digit growth in B2B and ongoing investments that may temporarily pressure margins [64][66]

Expedia Group (NasdaqGS:EXPE) Q4 2025 Earnings call February 12, 2026 04:30 PM ET Company ParticipantsAriane Gorin - CEOEric Sheridan - Managing DirectorLee Horowitz - Co-Head of Internet Equity ResearchMark Mahaney - Senior Managing DirectorNaved Khan - Managing DirectorRob Bevegni - VP of Investor RelationsScott Schenkel - CFOConference Call ParticipantsConor Cunningham - Director and Travel and Transports AnalystDeepak Mathivanan - Senior Equity Research AnalystJed Kelly - Managing Director and Equity Re ...

Financial Data and Key Metrics Changes - In Q4 2025, Expedia Group reported an 11% increase in bookings and revenue, with EBITDA margin expansion of nearly 4 points [14][20] - Gross bookings reached $27 billion, while revenue was $3.5 billion, with foreign exchange contributing slightly over 1 point to bookings growth and about 2 points to revenue [16][20] - Adjusted EBITDA for Q4 was $848 million, with a margin of 24%, reflecting revenue growth and expense leverage [19] Business Line Data and Key Metrics Changes - B2C gross bookings grew 5% to $18.3 billion, while B2C revenue increased 4% [16] - B2B gross bookings surged 24% to $8.7 billion, with revenue also growing 24% to $1.3 billion [17] - B2C EBITDA margins improved to 31.5%, up approximately 6 points from the previous year, driven by marketing leverage [16] Market Data and Key Metrics Changes - Booked room nights increased by 9%, with high single-digit growth in the U.S. and low double-digit growth in EMEA and the rest of the world [4][15] - Consumer spending remained robust, with longer booking windows and lengths of stay compared to 2024 [4] - The B2B segment experienced double-digit growth across all regions, indicating strong market demand [8] Company Strategy and Development Direction - The company aims to enhance traveler value through improved product offerings, faster site performance, and personalized experiences using AI [5][10] - Investments are being made in new lines of business, including the acquisition of Tiqets to broaden offerings for partners and travelers [9] - The strategy includes driving operational efficiencies and margin expansion, with a focus on optimizing marketing spend and leveraging AI for better targeting [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and ability to execute, anticipating continued growth and margin expansion in 2026 [13][24] - The company is cautious about macroeconomic uncertainties but expects strong bookings momentum entering Q1 2026 [20][21] - Management highlighted the importance of maintaining a competitive edge through enhanced customer service and loyalty programs [84] Other Important Information - The company ended Q4 with $5.7 billion in unrestricted cash and short-term investments, maintaining a commitment to return capital to shareholders [20] - A quarterly dividend increase of 20% to $0.48 per share was announced [20] Q&A Session Summary Question: Enhancements in Travel Planning Process - Management emphasized the importance of personalized marketing and product features to capture travelers earlier in the planning process [26][27] Question: B2C Marketing Leverage - Management discussed achieving about 50 basis points of leverage in B2C marketing through improved efficiency and targeting [30][31] Question: Competitive Positioning of Consumer Brands - Management expressed confidence in the positioning of their brands, highlighting improvements in supply and marketing effectiveness [36][38] Question: Margin Trajectory Outlook - Management indicated confidence in future margin expansion driven by effective execution and growth in B2C and B2B segments [42][44] Question: Supply Growth Dynamics - Management confirmed that supply growth benefits both B2C and B2B segments, with ongoing efforts to onboard properties more efficiently [49][51] Question: Traffic Changes from Google AI Features - Management noted no material changes in traffic from Google but sees opportunities in AI search to better target travelers [55][56] Question: B2B Growth Drivers - Management highlighted strong double-digit growth in B2B, driven by deeper partner relationships and innovative product offerings [62][65] Question: Alternative Lodging Uptake - Management reported growth in alternative lodging on Brand Expedia, indicating ongoing efforts to enhance the user experience [78] Question: CapEx for 2026 - Management expects CapEx to remain roughly in line with previous years, indicating no significant changes [79]