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August 8, 2025 • 4 min read
Expedia Group, the global travel technology giant behind brands like Expedia.com, Hotels.com, and Vrbo, just released its financial results for the second quarter of 2025. In this post, we'll dive into the numbers from the company's latest 10-Q filing to see how it's performing and what the data tells us about its strategy and the broader travel market.
The report reveals a story of steady growth in the core travel business, impressive strength in its business-to-business partnerships, and some volatility below the operating line that impacted the final net income figure.
Expedia's total revenue for the second quarter of 2025 reached $3.8 billion, a solid 6% increase compared to the $3.6 billion from the same period last year. This growth highlights the continued demand for travel.
A closer look reveals two key drivers:
To better understand how revenue is generated and where the money goes, the following chart breaks down the company's income statement for the quarter.
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In the highly competitive online travel market, acquiring customers is expensive. Expedia's largest expense, direct selling and marketing, rose 7% to $1.9 billion. This cost, which includes search engine marketing and advertising, now represents over half of the company's total revenue (50.7%). This is a necessary investment to stay visible against competitors like Booking.com and Google Flights.
On a positive note, the company showed efficiency in other areas. Technology and content expenses actually decreased by 2% to $325 million, suggesting that past investments in its platform are paying off through operational leverage.
This careful cost management allowed operating income to grow 8% to $485 million, a sign that the core business is running more profitably.
While operating income was up, the bottom-line figure, net income, tells a slightly different story. Net income attributable to Expedia Group for the quarter was $330 million, a decrease from the $386 million reported in Q2 2024.
What caused this divergence? The answer lies in the "Other, net" income line, which is separate from the company's main travel operations. This quarter, Expedia recorded a $102 million loss on minority equity investments. In contrast, the same period last year saw a $56 million gain from these investments. This swing of nearly $160 million is the primary reason for the drop in net income and highlights how non-operational financial activities can impact the final reported profit.
Expedia's Q2 2025 results paint a picture of a healthy and growing core business. The impressive growth in its B2B segment is a testament to its strategic focus, and the company is successfully managing its massive marketing budget to deliver a more profitable operation. While the headline net income figure was down due to investment volatility, the underlying travel business remains robust.
As the company continues to navigate a competitive landscape, its ability to leverage its technology platform, expand its partner network, and effectively deploy its marketing spend will be critical. Meanwhile, the company is also returning significant value to shareholders, having repurchased over $600 million in stock during the quarter, signaling management's confidence in the road ahead.
Last updated: August 8, 2025