Item 1. Consolidated Financial Statements

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Item 1. Consolidated Financial Statements

EXPEDIA GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except share and per share data)

(Unaudited)


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024

Revenue	$	4,412	$	4,060	$	11,186	$	10,507
Costs and expenses:
Cost of revenue (exclusive of depreciation and amortization shown separately below) (1)	376		388		1,110		1,108
Selling and marketing - direct	1,976		1,855		5,653		5,298
Selling and marketing - indirect (1)	211		197		623		580
Technology and content (1)	310		320		955		992
General and administrative (1)	186		229		563		595
Depreciation and amortization	225		211		667		626

Impairment of intangible assets	—		33		—		33
Legal reserves, occupancy tax and other	86		59		88		100
Restructuring and related reorganization charges(1)	6		6		76		72
Operating income	1,036		762		1,451		1,103
Other income (expense):
Interest income	69		67		197		185
Interest expense	(62)		(61)		(178)		(184)
Other, net	88		106		(133)		103
Total other income (expense), net	95		112		(114)		104
Income before income taxes	1,131		874		1,337		1,207
Provision for income taxes	(167)		(190)		(248)		(284)
Net income	964		684		1,089		923
Net (income) loss attributable to non-controlling interests	(5)		—		—		12
Net income attributable to Expedia Group, Inc.	$	959	$	684	$	1,089	$	935




Earnings per share attributable to Expedia Group, Inc. available to common stockholders:
Basic	$	7.76	$	5.28	$	8.63	$	7.07
Diluted	7.33		5.04		8.18		6.75
Shares used in computing earnings per share (000's):
Basic	123,699		129,758		126,246		132,393
Diluted	131,014		135,732		133,188		138,655


(1) Includes stock-based compensation as follows:
Cost of revenue	$	3	$	3	$	10	$	9
Selling and marketing	20		19		63		61
Technology and content	34		40		111		120
General and administrative	33		85		106		167
Restructuring and related reorganization charges	—		—		3		8

See accompanying notes.

EXPEDIA GROUP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In millions)

(Unaudited)


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Net income	$	964	$	684	$	1,089	$	923
Currency translation adjustments, net of tax(1)	(8)		33		47		16
Unrealized gains on available for sale securities, net of tax	1		—		1		—
Comprehensive income	957		717		1,137		939
Less: Comprehensive income (loss) attributable to non-controlling interests	5		4		10		(11)


Comprehensive income attributable to Expedia Group, Inc.	$	952	$	713	$	1,127	$	950

(1)Currency translation adjustments include tax benefit of approximately $2 million and $1 million for the three and nine months ended September 30, 2025 and tax expense of approximately $8 million for both of the three and nine months ended September 30, 2024.

See accompanying notes.

EXPEDIA GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(In millions, except number of shares, which are reflected in thousands, and par value)


	September 30, 2025		December 31, 2024
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	5,826	$	4,183
Restricted cash and cash equivalents	1,436		1,391
Short-term investments	344		300
Accounts receivable, net of allowance of $74 and $55	4,482		3,213
Income taxes receivable	40		39
Prepaid expenses and other current assets	722		689
Total current assets	12,850		9,815
Property and equipment, net	2,472		2,413
Operating lease right-of-use assets	302		305
Long-term investments and other assets	1,416		1,698
Deferred income taxes	397		496
Intangible assets, net	797		817
Goodwill	6,874		6,844
TOTAL ASSETS	$	25,108	$	22,388
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, merchant	$	2,082	$	2,031
Accounts payable, other	1,133		1,039
Deferred merchant bookings	11,140		8,517
Deferred revenue	164		164
Income taxes payable	63		51
Accrued expenses and other current liabilities	932		766
Current maturities of long-term debt	1,748		1,043
Total current liabilities	17,262		13,611
Long-term debt, excluding current maturities	4,468		5,223
Deferred income taxes	21		19
Operating lease liabilities	262		265
Other long-term liabilities	502		471
Commitments and contingencies

Stockholders’ equity:
Common stock: $.0001 par value; Authorized shares: 1,600,000	—		—
Shares issued: 290,577 and 287,509; Shares outstanding: 117,514 and 123,271
Class B common stock: $.0001 par value; Authorized shares: 400,000	—		—
Shares issued: 12,800 and 12,800; Shares outstanding: 5,523 and 5,523
Additional paid-in capital	16,449		16,043
Treasury stock - Common stock and Class B, at cost; Shares 180,339 and 171,515	(16,458)		(14,856)
Retained earnings (deficit)	1,540		602
Accumulated other comprehensive income (loss)	(194)		(232)
Total Expedia Group, Inc. stockholders’ equity	1,337		1,557
Non-redeemable non-controlling interests	1,256		1,242
Total stockholders’ equity	2,593		2,799
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	25,108	$	22,388

See accompanying notes.

EXPEDIA GROUP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(In millions, except share and per share data)

(Unaudited)


Three months ended September 30, 2024	Common stock			Class B common stock			Additional paid-in capital		Treasury stock - Common and Class B			Retained earnings (deficit)		Accumulated other comprehensive income (loss)		Non-redeemable non-controlling interest		Total
	Shares	Amount		Shares	Amount		Shares		Amount
Balance as of June 30, 2024	284,861,071	$	—	12,799,999	$	—	$	15,697	166,856,537	$	(14,204)	$	(381)	$	(223)	$	1,237	$	2,126
Net income												684				—		684
Other comprehensive income, net of taxes														29		4		33

Proceeds from exercise of equity instruments and employee stock purchase plans	1,575,912	—					29											29

Treasury stock activity related to vesting of equity instruments									475,109	(62)								(62)
Common stock repurchases									3,065,558	(407)								(407)

Other changes in ownership of non-controlling interests							(1)					—				3		2
Stock-based compensation expense							165											165
Other										(4)								(4)
Balance as of September 30. 2024	286,436,983	$	—	12,799,999	$	—	$	15,890	170,397,204	$	(14,677)	$	303	$	(194)	$	1,244	$	2,566


Nine Months Ended September 30, 2024	Common stock			Class B common stock			Additional paid-in capital		Treasury stock - Common and Class B			Retained earnings (deficit)		Accumulated other comprehensive income (loss)		Non-redeemable non-controlling interest		Total
	Shares	Amount		Shares	Amount		Shares		Amount
Balance as of December 31, 2023	282,148,576	$	—	12,799,999	$	—	$	15,398	157,902,985	$	(13,023)	$	(632)	$	(209)	$	1,252	$	2,786
Net income (loss)												935				(12)		923
Other comprehensive income, net of taxes														15		1		16

Proceeds from exercise of equity instruments and employee stock purchase plans	4,288,407	—					77											77
Withholding taxes for stock options							(2)											(2)


Treasury stock activity related to vesting of equity instruments									1,294,581	(162)								(162)
Common stock repurchases									11,199,638	(1,479)								(1,479)

Other changes in ownership of non-controlling interests							1					—				3		4
Stock-based compensation expense							416											416
Other							—			(13)		—						(13)
Balance as of September 30, 2024	286,436,983	$	—	12,799,999	$	—	$	15,890	170,397,204	$	(14,677)	$	303	$	(194)	$	1,244	$	2,566

EXPEDIA GROUP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(In millions, except share and per share data)

(Unaudited)


Three months ended September 30, 2025	Common stock			Class B common stock			Additional paid-in capital		Treasury stock - Common and Class B			Retained earnings (deficit)		Accumulated other comprehensive income (loss)		Non-redeemable non-controlling interest		Total
	Shares	Amount		Shares	Amount		Shares		Amount
Balance as of June 30, 2025	289,349,500	$	—	12,799,999	$	—	$	16,317	177,657,257	$	(15,924)	$	630	$	(187)	$	1,250	$	2,086
Net income												959				5		964
Other comprehensive loss, net of taxes														(7)		—		(7)
Payment of dividends to stockholders (declared at $0.40 per share)												(49)						(49)
Proceeds from exercise of equity instruments and employee stock purchase plans	1,227,240	—					25											25
Withholding taxes for stock options							(6)											(6)
Treasury stock activity related to vesting of equity instruments									386,227	(80)								(80)
Common stock repurchases									2,295,477	(451)								(451)
Other changes in ownership of non-controlling interests							—									1		1
Stock-based compensation expense							113											113
Other							—			(3)								(3)
Balance as of September 30, 2025	290,576,740	$	—	12,799,999	$	—	$	16,449	180,338,961	$	(16,458)	$	1,540	$	(194)	$	1,256	$	2,593


Nine Months Ended September 30, 2025	Common stock			Class B common stock			Additional paid-in capital		Treasury stock - Common and Class B			Retained earnings (deficit)		Accumulated other comprehensive income (loss)		Non-redeemable non-controlling interest		Total
	Shares	Amount		Shares	Amount		Shares		Amount
Balance as of December 31, 2024	287,508,795	$	—	12,799,999	$	—	$	16,043	171,514,683	$	(14,856)	$	602	$	(232)	$	1,242	$	2,799
Net income												1,089				—		1,089
Other comprehensive income, net of taxes														38		10		48
Payment of dividends to stockholders (declared at $1.20 per share)												(151)						(151)
Proceeds from exercise of equity instruments and employee stock purchase plans	3,067,945	—					50											50
Withholding taxes for stock options							(6)											(6)
Treasury stock activity related to vesting of equity instruments									962,393	(185)								(185)
Common stock repurchases									7,861,885	(1,408)								(1,408)
Other changes in ownership of non-controlling interests							1									4		5
Stock-based compensation expense							361											361
Other							—			(9)								(9)
Balance as of September 30, 2025	290,576,740	$	—	12,799,999	$	—	$	16,449	180,338,961	$	(16,458)	$	1,540	$	(194)	$	1,256	$	2,593

See accompanying notes.

EXPEDIA GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)


	Nine months ended September 30,
	2025		2024
Operating activities:
Net income	$	1,089	$	923
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment, including internal-use software and website development	635		582
Amortization of intangible assets	32		44
Impairment of intangible assets	—		33
Amortization of stock-based compensation	293		365
Deferred income taxes	102		66
Foreign exchange (gain) loss on cash, restricted cash and short-term investments, net	(118)		—
Realized gain on foreign currency forwards, net	(163)		(21)
(Gain) loss on minority equity investments, net	125		(121)
Other, net	36		69
Changes in operating assets and liabilities:
Accounts receivable	(1,289)		(1,007)
Prepaid expenses and other assets	(28)		(19)
Accounts payable, merchant	50		(61)
Accounts payable, other, accrued expenses and other liabilities	234		235
Tax payable/receivable, net	9		109
Deferred merchant bookings	2,569		1,690
Net cash provided by operating activities	3,576		2,887
Investing activities:
Capital expenditures, including internal-use software and website development	(585)		(565)
Purchases of investments	(518)		(405)
Sales and maturities of investments	616		43
Other, net	155		26
Net cash used in investing activities	(332)		(901)
Financing activities:


Proceeds from issuance of long-term debt, net of issuance costs	985		—
Payment of long-term debt	(1,044)		—
Purchases of treasury stock	(1,603)		(1,641)
Payment of dividends to stockholders	(151)		—
Proceeds from exercise of equity awards and employee stock purchase plan	50		77
Other, net	16		(26)
Net cash used in financing activities	(1,747)		(1,590)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents	191		(11)
Net increase in cash, cash equivalents and restricted cash and cash equivalents	1,688		385
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period	5,574		5,661
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$	7,262	$	6,046
Supplemental cash flow information
Cash paid for interest	$	211	$	197
Income tax payments, net	135		97

See accompanying notes.

Notes to Consolidated Financial Statements

September 30, 2025

(Unaudited)

Note 1 – Basis of Presentation

These accompanying financial statements present Expedia Group, Inc.’s results of operations, financial position and cash flows on a consolidated basis. We refer to Expedia Group, Inc. and its subsidiaries collectively as “Expedia Group,” the “Company,” “us,” “we” and “our” in these consolidated financial statements. The unaudited consolidated financial statements include Expedia Group, Inc., our wholly-owned subsidiaries, and entities we control, or in which we have a variable interest and are the primary beneficiary of expected cash profits or losses. We record our investments in entities that we do not control, but over which we have the ability to exercise significant influence, using the equity method or at fair value. We have eliminated significant intercompany transactions and accounts.

We have prepared the accompanying unaudited consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial reporting. We have included all adjustments necessary for a fair presentation of the results of the interim period. These adjustments consist of normal recurring items. Our interim unaudited consolidated financial statements are not necessarily indicative of results that may be expected for any other interim period or for the full year. These interim unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2024 (“2024 Form 10-K”), previously filed with the Securities and Exchange Commission (“SEC”).

Accounting Estimates

We use estimates and assumptions in the preparation of our interim unaudited consolidated financial statements in accordance with GAAP. Our estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of our interim unaudited consolidated financial statements. These estimates and assumptions also affect the reported amount of net income or loss during any period. Our actual financial results could differ significantly from these estimates. The significant estimates underlying our interim unaudited consolidated financial statements include revenue recognition; recoverability of current and long-lived assets, intangible assets and goodwill; income and transactional taxes, such as potential settlements related to occupancy and excise taxes; loss contingencies; deferred loyalty rewards; stock-based compensation; accounting for derivative instruments and provisions for credit losses, and chargebacks.

Reclassifications

We have reclassified prior period financial statements to conform to the current period presentation.

Seasonality

We generally experience seasonal fluctuations in the demand for our travel services. For example, traditional leisure travel bookings are generally the highest in the first three quarters as travelers plan and book their spring, summer and winter holiday travel. The number of bookings typically decreases in the fourth quarter. Since revenue for most of our travel services, including merchant and agency hotel, is recognized as the travel takes place rather than when it is booked, revenue typically lags bookings by several weeks for our hotel business and can be several months or more for our alternative accommodations business. Historically, Vrbo has seen seasonally stronger bookings in the first quarter of the year, with the relevant stays occurring during the peak summer travel months. The seasonal revenue impact is exacerbated with respect to income by the nature of our variable cost of revenue and direct sales and marketing costs, which we typically realize in closer alignment to booking volumes, and the more stable nature of our fixed costs. As a result on a consolidated basis, revenue and income are typically the lowest in the first quarter and highest in the third quarter.

Note 2 – Summary of Significant Accounting Policies

Recent Accounting Policies Not Yet Adopted

In December 2023, the Financial Accounting Standards Board (“FASB”) issued new guidance to improve its income tax disclosure requirements. Under the new guidance, public business entities must annually (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income (loss) by the applicable statutory income tax rate). The new guidance is effective for public business entities for annual periods beginning

Notes to Consolidated Financial Statements – (Continued)

after December 15, 2024. We will incorporate the new guidance in our tax disclosures in our consolidated financial statements for the current fiscal year ended December 31, 2025.

In November 2024, the FASB issued new guidance expanding disclosure requirements related to certain income statement expenses. The guidance requires tabular footnote disclosure of certain operating expenses disaggregated into categories, such as employee compensation, depreciation, and intangible asset amortization, included within each interim and annual income statement’s expense caption, as applicable. The effective date is for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. We are in the process of evaluating the impact of adopting this new guidance on our consolidated financial statement disclosures.

In September 2025, the FASB issued new guidance related to accounting for internal-use software, which updates the cost capitalization threshold for internal-use software development costs by removing all references to software project development stages and providing new guidance on how to evaluate whether the probable-to-complete recognition threshold has been met. The effective date is for annual periods beginning after December 15, 2027, and interim periods within those annual reporting periods. Early application is permitted as of the beginning of an annual reporting period and the transition method may be prospective, modified, or retrospective. We are in the process of evaluating the impact of adopting this new guidance on our consolidated financial statements and disclosures.

Significant Accounting Policies

Below are the significant accounting policies with interim disclosure requirements. For a comprehensive description of our accounting policies, refer to our 2024 Form 10-K.

Revenue

Prepaid Merchant Bookings. We classify payments made to suppliers in advance of Vrbo performance obligations as prepaid merchant bookings included within prepaid and other current assets. Prepaid merchant bookings was $320 million as of September 30, 2025 and $319 million as of December 31, 2024.

Deferred Merchant Bookings. We classify cash payments received in advance of our performance obligations as deferred merchant bookings. At December 31, 2024, $7.6 billion of advance cash payments was reported within deferred merchant bookings, $6.4 billion of which was recognized resulting in $948 million of revenue during the nine months ended September 30, 2025. At September 30, 2025, the related balance was $10.0 billion.

At December 31, 2024, $937 million of deferred loyalty rewards related to internally administered loyalty programs was reported within deferred merchant bookings, $730 million of which was recognized within revenue during the nine months ended September 30, 2025. At September 30, 2025, the related balance was $1.1 billion.

Deferred Revenue. At December 31, 2024, $164 million was recorded as deferred revenue, $121 million of which was recognized as revenue during the nine months ended September 30, 2025. At September 30, 2025, the related balance was $164 million.

Practical Expedients and Exemptions. We have used the portfolio approach to account for our loyalty points as the rewards programs share similar characteristics within each program in relation to the value provided to the traveler and their breakage patterns. Using this portfolio approach is not expected to differ materially from applying the guidance to individual contracts. However, we will continue to assess and refine, if necessary, how a portfolio within each rewards program is defined.

We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.

Cash, Restricted Cash, and Cash Equivalents

Our cash and cash equivalents include cash and liquid financial instruments, including money market funds and term deposit investments, with maturities of three months or less when purchased. Restricted cash includes cash and cash equivalents that is restricted through legal contracts, regulations or our intention to use the cash for a specific purpose. Our restricted cash primarily relates to certain traveler deposits and to a lesser extent collateral for office leases. The following table reconciles cash, cash equivalents and restricted cash and cash equivalents reported in our consolidated balance sheets to the total amount presented in our consolidated statements of cash flows:

Notes to Consolidated Financial Statements – (Continued)


	September 30, 2025		December 31, 2024
	(in millions)
Cash and cash equivalents	$	5,826	$	4,183
Restricted cash and cash equivalents	1,436		1,391

Total cash, cash equivalents and restricted cash and cash equivalents in the consolidated statements of cash flows	$	7,262	$	5,574

Accounts Receivable and Allowances

Accounts receivable are generally due within thirty days and are recorded net of an allowance for expected uncollectible amounts. We consider accounts outstanding longer than the contractual payment terms as past due. The risk characteristics we generally review when analyzing our accounts receivable pools primarily include the type of receivable (for example, credit card vs hotel collect), collection terms and historical or expected credit loss patterns. For each pool, we make estimates of expected credit losses for our allowance by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history continually updated for new collections data, the credit quality of our customers, current economic conditions, reasonable and supportable forecasts of future economic conditions and other factors that may affect our ability to collect from customers. The provision for estimated credit losses is recorded as cost of revenue in our consolidated statements of operations. During the nine months ended September 30, 2025, we recorded approximately $37 million of incremental allowance for expected uncollectible accounts, offset by $18 million of write-offs.

Note 3 – Fair Value Measurements

Financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2025 are classified using the fair value hierarchy in the table below:


	Total		Level 1		Level 2
	(In millions)
Assets
Cash equivalents:
Money market funds	$	196	$	196	$	—

Term deposits and certificates of deposit	161		—		161


U.S. agency securities	7				7
Commercial paper	58		—		58



Investments:
Equity investments	620		620		—
Corporate debt securities	409		—		409
U.S. treasury securities	32		—		32
Asset-backed securities	125		—		125
Term deposits and certificates of deposit	29		—		29
U.S. agency securities	17		—		17
Commercial paper	8		—		8
Total assets measured at fair value on a recurring basis	$	1,662	$	816	$	846

Liabilities
Derivatives:
Foreign currency forward contracts	$	22	$	—	$	22
Cross-currency interest rate swaps	12		—		12
Total liabilities measured at fair value on a recurring basis	$	34	$	—	$	34

Notes to Consolidated Financial Statements – (Continued)

Financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 are classified using the fair value hierarchy in the table below:


	Total		Level 1		Level 2
	(In millions)
Assets
Cash equivalents:
Money market funds	$	113	$	113	$	—
Term deposits and certificates of deposit	163		—		163
Commercial paper	2		—		2
Derivatives:

Cross-currency interest rate swaps	25		—		25
Investments:
Equity investments	895		895		—
Corporate debt securities	354		—		354
U.S. treasury securities	70		—		70
Asset-backed securities	62		—		62
Term deposits and certificates of deposit	3		—		3
U.S. agency securities	8		—		8
Non-U.S. government securities	3		—		3
Commercial paper	2		—		2
Total assets measured at fair value on a recurring basis	$	1,700	$	1,008	$	692

Liabilities
Derivatives:
Foreign currency forward contracts	$	2	$	—	$	2

We classify our cash equivalents and investments within Level 1 and Level 2 as we value our cash equivalents and investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Valuation of the foreign currency forward contracts is based on foreign currency exchange rates in active markets, a Level 2 input. Valuation of the cross-currency interest rate swaps is based on foreign currency exchange rates and the current interest rate curve, Level 2 inputs.

We hold term deposit investments with financial institutions. Term deposits with original maturities of less than three months are classified as cash equivalents. Those with remaining maturities of less than one year are classified within short-term investments and those with remaining maturities of greater than one year are classified within long-term investments and other assets.

As of September 30, 2025 and December 31, 2024, our cash and cash equivalents consisted primarily of term deposits, certificates of deposits, money market funds and commercial paper with maturities of three months or less and bank account balances.

We primarily invest in investment grade corporate debt securities, U.S. treasury securities, and asset-backed securities, most of which are classified as available-for-sale. As of September 30, 2025, we had $344 million of short-term and $276 million of long-term investments primarily classified as available-for-sale, which generally mature within five years. As of December 31, 2024, we had $300 million in short-term and $202 million of long-term available-for-sale investments. The amortized cost basis of the investments approximated their fair value with gross unrealized gains and gross unrealized losses of approximately $1 million during both the nine months ended September 30, 2025 and 2024. We review our available-for-sale securities on a regular basis for impairment. During both the nine months ended September 30, 2025 and 2024, we did not recognize an allowance for credit-related losses on any of our investments.

We use foreign currency forward contracts to economically hedge certain merchant revenue exposures, foreign denominated liabilities related to certain of our loyalty programs and our other foreign currency-denominated operating liabilities. As of September 30, 2025, we were party to outstanding forward contracts hedging our liability exposures with a total net notional value of $5.2 billion. We had a net forward liability of $22 million ($37 million gross forward liability) as of September 30, 2025 and $2 million ($42 million gross forward liability) as of December 31, 2024 recorded in accrued expenses and other current liabilities. We recorded $(56) million and $123 million in net gains (losses) from foreign currency forward contracts during the three months ended September 30, 2025 and 2024, as well as $144 million and $65 million during the nine

Notes to Consolidated Financial Statements – (Continued)

months ended September 30, 2025 and 2024.

From March 2022 to August 2025, we maintained two fixed-to-fixed cross-currency interest rate swaps with an aggregate notional amount of €300 million and maturity dates of February 2026 (the “2022 swaps”), which were designated as net investment hedges of Euro assets. In August 2025, the 2022 swaps were effectively closed out by entering into a swap with offsetting terms, and we de-designated the 2022 swaps and discontinued hedge accounting. Simultaneously Expedia Group entered into a new fixed-to-fixed cross-currency interest rate swap with a notional amount of €220 million and maturity date of February 2028 (the “2025 swap”). The 2025 swap was designated as a net investment hedge of Euro assets with the objective to protect the U.S. dollar value of our net investments in the Euro foreign operations due to movements in foreign currency. The fair value of the 2025 swaps was a $12 million liability as of September 30, 2025, recorded in accrued expenses and other current liabilities. The fair value of the 2022 swaps was an asset of $25 million as of December 31, 2024, recorded in long-term investments and other assets. The gain related to these swaps recognized in interest expense was $1 million and $4 million during the nine months ended September 30, 2025 and 2024.

At September 30, 2025 our equity investment represents our investment in Global Business Travel Group, Inc., a publicly traded company. We include this investment in long-term investments and other assets in our consolidated balance sheets. During the nine months ended September 30, 2025 and 2024, we recognized gains (losses) of approximately $(90) million and $93 million within other, net in our consolidated statements of operations related to the fair value changes of this investment.

During the first nine months of 2025, we completed the sale of our equity investment in Despegar.com, Corp. for $187 million in cash. During the nine months ended September 30, 2025 and 2024, we recognized gains of approximately $2 million and $28 million within other, net in our consolidated statements of operations for fair value changes up to the date of the sale in the current year.

Assets Measured at Fair Value on a Non-recurring Basis

Our non-financial assets, such as goodwill, intangible assets and property and equipment, are adjusted to fair value when an impairment charge is recognized or the underlying investment is sold. Such fair value measurements are based predominately on Level 3 inputs. We measure our minority investments that do not have readily determinable fair values at cost less impairment, adjusted by observable price changes with changes recorded within other, net on our consolidated statements of operations.

Intangible Assets. During the three and nine months ended September 30, 2024, we recognized intangible impairment charges of $33 million related to an indefinite-lived trade name within our trivago segment that resulted a decline in revenue in the current year as well as trivago’s share price decline reducing its total market capitalization relative to its assets. The indefinite-lived trade name asset, classified as a Level 3 measurement, was valued using the relief-from-royalty method, which includes unobservable inputs, including projected revenues, royalty rates and weighted average cost of capital.

Minority Investments without Readily Determinable Fair Values. As of September 30, 2025 and December 31, 2024, the carrying values of our minority investments without readily determinable fair values totaled $256 million and $293 million. During the nine months ended September 30, 2025, we recorded $37 million of losses related to a minority investment, resulting from a valuation using an option pricing model that utilized judgmental inputs such as discounts for lack of marketability and estimated exit event timing. During the nine months ended September 30, 2024, we sold a minority investment for $15 million and recognized an immaterial gain on the transaction. As of September 30, 2025, total cumulative adjustments made to the initial cost basis of these investments included $164 million in unrealized downward adjustments (including impairments).

Notes to Consolidated Financial Statements – (Continued)

Note 4 – Debt

The following table sets forth our outstanding debt:


	September 30, 2025		December 31, 2024
	(In millions)
6.25% senior notes due 2025	$	—	$	1,043
5.0% senior notes due 2026	750		749
0% convertible senior notes due 2026	998		996
4.625% senior notes due 2027	748		747
3.8% senior notes due 2028	997		997
3.25% senior notes due 2030	1,242		1,240
2.95% senior notes due 2031	495		494
5.4% senior notes due 2035	986		—
Total debt(1)	6,216		6,266
Current maturities of long-term debt	(1,748)		(1,043)
Long-term debt, excluding current maturities	$	4,468	$	5,223

(1)Net of applicable discounts and debt issuance costs.

Senior and Convertible Notes

Redemption of 6.25% Notes. In February 2025, we early redeemed all of our approximately $1 billion senior unsecured notes that bore interest at 6.25% and were due in May 2025 (the “6.25% Notes”), which resulted in the recognition of an immaterial loss on debt extinguishment from the write-off of debt issuance costs during the first quarter of 2025. The redemption price for the 6.25% Notes was 100% of the aggregate principal amount thereof plus accrued and unpaid interest thereon through the redemption date of $18 million.

February 2025 Senior Notes Issuance. In February 2025, we issued $1 billion of registered senior unsecured notes bear interest at 5.4% and are due in February 2035 (the “5.4% Notes”). The 5.4% Notes were issued at a price of 99.316% of the aggregate principal amount. Interest is payable semi-annually in arrears in February and August of each year, beginning August 15, 2025. At any time prior to November 15, 2034, we may redeem some or all of the 5.4% Notes by paying a “make-whole” premium plus accrued and unpaid interest, if any. On or after November 15, 2034, we may redeem some or all of the 5.4% Notes at par plus accrued and unpaid interest, if any. The net proceeds from the issuance of the 5.4% Notes were approximately $985 million after deducting the discount and debt issuance costs.

For additional information about our $1 billion aggregate principal amount of unsecured 0% convertible senior notes due 2026 (the “Convertible Notes”) and our other outstanding senior notes (collectively the “Senior Notes”), see Note 7 – Debt of the Notes to Consolidated Financial Statements in our 2024 Form 10-K.

All of our outstanding Senior Notes are senior unsecured obligations issued by Expedia Group and guaranteed by certain domestic Expedia Group subsidiaries. The Senior Notes rank equally in right of payment with all of the existing and any future unsecured and unsubordinated obligations of Expedia Group and the guarantor subsidiaries. In addition, the Senior Notes include covenants that limit our ability to (i) create certain liens, (ii) enter into sale/leaseback transactions and (iii) merge or consolidate with or into another entity or transfer substantially all of our assets. The Senior Notes are redeemable in whole or in part, at the option of the holders thereof, upon the occurrence of certain change of control triggering events at a purchase price in cash equal to 101% of the principal plus accrued and unpaid interest. Accrued interest related to the Senior Notes was $27 million and $73 million as of September 30, 2025 and December 31, 2024.

Estimated Fair Value. The total estimated fair value of our Senior Notes was approximately $5.2 billion and $5.1 billion as of September 30, 2025 and December 31, 2024. Additionally, the estimated fair value of the Convertible Notes was approximately $1,018 million and $997 million as of September 30, 2025 and December 31, 2024. The fair value was determined based on quoted market prices in less active markets and is categorized accordingly as Level 2 in the fair value hierarchy.

Credit Facility

As of September 30, 2025, Expedia Group maintained a $2.5 billion revolving credit facility that matures in April 2027. As of September 30, 2025 and December 31, 2024, we had no revolving credit facility borrowings outstanding. Loans under the revolving credit facility bear interest at a rate equal to an index rate plus a margin (a) in the case of term benchmark loans, ranging from 1.00% to 1.75% per annum, depending on Expedia Group’s credit ratings, and (b) in the case of base rate loans,

Notes to Consolidated Financial Statements – (Continued)

ranging from 0.00% to 0.75% per annum, depending on Expedia Group’s credit ratings. A fee is payable quarterly in respect of undrawn commitments under the revolving credit facility at a rate ranging from 0.10% to 0.25% per annum, depending on Expedia Group’s credit ratings. The terms of the revolving credit facility require Expedia Group to not exceed a specified maximum consolidated leverage ratio as of the end of each fiscal quarter.

The revolving credit facility has a $120 million letter of credit (“LOC”) sublimit, and the amount of LOCs issued under the facility reduced the credit amount available. Outstanding stand-by LOCs issued under the facility were $43 million and $45 million as of September 30, 2025 and December 31, 2024, respectively.

Note 5 – Stockholders’ Equity

Dividends on our Common Stock

During the first quarter of 2025, the Board of Directors approved the reinstatement of quarterly common stock dividends. The Executive Committee, acting on behalf of the Board of Directors, declared and we paid the following dividends during the period presented:


Declaration Date	Dividend Per Share		Record Date	Total Amount (in millions)		Payment Date
Nine Months Ended September 30, 2025
February 4, 2025	$	0.40	March 6, 2025	$	51	March 27, 2025
May 7, 2025	$	0.40	May 29, 2025	$	51	June 18, 2025
August 7, 2025	$	0.40	August 28, 2025	$	49	September 18, 2025

In addition, in November 2025, the Executive Committee, acting on behalf of the Board of Directors, declared a quarterly cash dividend of $0.40 per share of outstanding common stock payable on December 11, 2025 to stockholders of record as of the close of business on November 19, 2025. Future declarations of dividends are subject to final determination by our Board of Directors.

Treasury Stock

As of September 30, 2025, the Company’s treasury stock was comprised of approximately 173.0 million shares of common stock and 7.3 million Class B shares. As of December 31, 2024, the Company’s treasury stock was comprised of approximately 164.2 million shares of common stock and 7.3 million Class B shares.

Share Repurchase Programs. In 2023, the Executive Committee of the Board of Directors, pursuant to a delegation of authority from the Board, authorized a program to repurchase up to $5 billion of our common stock (“2023 Share Repurchase Program”). During the nine months ended September 30, 2025, we repurchased, through open market transactions, 7.9 million shares under the 2023 Share Repurchase Program for a total cost of $1.4 billion, excluding transaction costs and excise tax due under the Inflation Reduction Act of 2022, representing an average repurchase price of $179.05 per share. As of September 30, 2025, $1.8 billion remains authorized for repurchase under the 2023 Share Repurchase Program. Our 2023 Share Repurchase Program does not have fixed expiration dates and does not obligate the Company to acquire any specific number of shares. Under the program, shares may be repurchased in the open market or in privately negotiated transactions. The timing, manner, price and amount of any repurchases will be subject to the discretion of the Company and depend on a variety of factors, including the market price of Expedia Group’s common stock, general market and economic conditions, regulatory requirements and other business considerations. Subsequent to the end of the third quarter of 2025, we repurchased an additional 0.8 million shares for a total cost of $181 million, excluding transaction costs and excise tax, representing an average purchase price of $217.98 per share.

Accumulated Other Comprehensive Income (Loss)

The balance of AOCI as of September 30, 2025 and December 31, 2024 was comprised of foreign currency translation adjustments. These translation adjustments include foreign currency transaction losses as of September 30, 2025 of $9 million ($12 million before tax) and foreign currency transaction gains of $19 million ($25 million before tax) as of December 31, 2024 associated with our cross-currency interest rate swaps as described in Note 3 – Fair Value Measurements. Additionally, translation adjustments include foreign currency transaction losses of $7 million ($10 million before tax) as of both September 30, 2025 and December 31, 2024 associated with previously settled Euro-denominated notes that were designated as net investment hedges.

Notes to Consolidated Financial Statements – (Continued)

Note 6 – Earnings Per Share

The following table represents our basic and diluted earnings per share:


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
	(In millions, except share and per share data)
Net income attributable to Expedia Group, Inc.	$	959	$	684	$	1,089	$	935



Earnings per share attributable to Expedia Group, Inc. available to common stockholders:
Basic	$	7.76	$	5.28	$	8.63	$	7.07
Diluted	7.33		5.04		8.18		6.75
Weighted average number of shares outstanding (000's):
Basic	123,699		129,758		126,246		132,393
Dilutive effect of:
Convertible Notes	3,942		3,921		3,933		3,921
Stock-based awards	3,373		2,053		3,009		2,341
Diluted	131,014		135,732		133,188		138,655

Basic earnings per share is calculated using our weighted-average outstanding common shares. The earnings per share amounts are the same for common stock and Class B common stock because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation.

Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards and common stock warrants as determined under the treasury stock method and of our Convertible Notes using the if-converted method. In periods when we recognize a net loss, we exclude the impact of outstanding stock awards and the potential share settlement impact related to our Convertible Notes from the diluted loss per share calculation as their inclusion would have an antidilutive effect. For the three and nine months ended September 30, 2025, less than 1 million of outstanding stock awards have been excluded from the calculations of diluted earnings per share attributable to common stockholders because their effect would have been antidilutive. For the three and nine months ended September 30, 2024, approximately 3 million of outstanding stock awards were excluded.

Note 7 - Restructuring and Related Reorganization Charges

In February 2024, we committed to restructuring actions to recalibrate resources as most of the Company’s organizational and technological transformation is now completed, which have resulted in headcount reductions. During the first nine months of 2025, we made the decision to expand these actions. As a result, we recognized $76 million and $72 million in restructuring and related reorganization charges during the nine months ended September 30, 2025 and 2024. The charges were predominately related to employee severance and benefit costs and approximately $9 million was included in accrued expenses and other current liabilities on our consolidated balance sheet as of September 30, 2025. Based on current plans which are subject to change, we expect approximately $15 million in additional reorganization charges. These costs could be higher or lower should we make additional decisions in future periods that impact our reorganization efforts.

Note 8 – Income Taxes

Our tax provision for interim periods is determined using an estimate of our annual effective tax rate. We record any changes affecting the estimated annual effective tax rate in the interim period in which the change occurs, including discrete items.

For the three months ended September 30, 2025, the effective tax rate was 14.7%, compared to 21.7% for the three months ended September 30, 2024. For the nine months ended September 30, 2025, the effective tax rate was 18.5%, compared to 23.5% for the nine months ended September 30, 2024. The change in the effective tax rates for the three-month and nine-month periods was primarily due to a change in unrecognized tax benefits recorded in connection with a U.S. federal income tax audit.

We are subject to taxation in the United States and foreign jurisdictions. Our income tax filings are regularly examined by federal, state, and foreign tax authorities. For tax years 2011 to 2013 and 2014 to 2016, the Internal Revenue Service (“IRS”) issued final adjustments related to transfer pricing with our foreign subsidiaries. The 2011 to 2013 adjustments would result in federal income tax of approximately $244 million, subject to interest. The 2014 to 2016 adjustments would result in federal

Notes to Consolidated Financial Statements – (Continued)

income tax of approximately $431 million, subject to interest. We do not agree with these adjustments and will continue to vigorously defend our position through administrative procedures. We are also under examination by the IRS for tax years 2017 to 2020.

Note 9 – Commitments and Contingencies

Legal Proceedings

In the ordinary course of business, we are a party to various lawsuits. Management does not expect these lawsuits to have a material impact on the liquidity, results of operations, or financial condition of Expedia Group. We also evaluate other potential contingent matters, including value-added tax, excise tax, sales tax, transient occupancy or accommodation tax and similar matters. We do not believe that the aggregate amount of liability that could be reasonably possible with respect to these matters would have a material adverse effect on our financial results; however, litigation is inherently uncertain and the actual losses incurred in the event that our legal proceedings were to result in unfavorable outcomes could have a material adverse effect on our business and financial performance.

Litigation Relating to Occupancy Taxes. We currently have two active lawsuits involving hotel occupancy taxes and we continue to defend against the claims made in them vigorously. With respect to the principal claims in these and previous similar matters, we believe that the statutes or ordinances at issue do not apply to us or the services we provide and, therefore, that we do not owe the taxes that are claimed to be owed. We believe that the statutes or ordinances at issue generally impose occupancy and other taxes on entities that own, operate or control hotels (or similar businesses) or furnish or provide hotel rooms or similar accommodations. We have established reserves for the potential settlement of issues related to hotel occupancy and other taxes, consistent with applicable accounting principles and in light of all current facts and circumstances, which were not material as of both September 30, 2025 and December 31, 2024. Our settlement reserves are based on our best estimate of probable losses and the ultimate resolution of these contingencies may be greater or less than the liabilities recorded. An estimate for a reasonably possible loss or range of loss in excess of the amounts reserved cannot be made. Changes to the settlement reserves are included within legal reserves, occupancy tax and other in the consolidated statements of operations.

Pay-to-Play. Certain jurisdictions may assert that we are required to pay any assessed taxes prior to being allowed to contest or litigate the applicability of the ordinances. This prepayment of contested taxes is referred to as “pay-to-play.” Payment of these amounts is not an admission that we believe we are subject to such taxes and, even when such payments are made, we continue to defend our position vigorously. If we prevail in the litigation, for which a pay-to-play payment was made, the jurisdiction collecting the payment will be required to repay such amounts and also may be required to pay interest.

We are in various stages of inquiry or audit with various tax authorities, some of which may impose a pay-to-play requirement to challenge an adverse inquiry or audit result in court.

Matters Relating to International VAT. We are in various stages of inquiry or audit in multiple European Union jurisdictions regarding the application of VAT to our European Union related transactions. While we believe we comply with applicable VAT laws, rules and regulations in the relevant jurisdictions, the tax authorities may determine that we owe additional taxes.

During the third quarter of 2024, we entered into discussions with Italian tax authorities to resolve matters raised in an audit of the 2016 to 2022 tax years regarding the Company’s purported Italian VAT obligations. In 2024, we recorded a reserve for the potential settlement of these matters, consistent with applicable accounting principles and in light of facts and circumstances at that time, in the amount of $107 million. While we continue to believe Expedia Group is compliant with Italian tax laws, in November 2024, we reached an agreement with the Italian tax authorities and paid $71 million for tax years 2016 to 2022. During the third quarter of 2025, we also reached an agreement with the Italian tax authorities related to tax years 2023 and 2024 and paid $33 million.

In certain jurisdictions, including the United Kingdom and Italy, we may be required to “pay-to-play” any VAT assessment prior to contesting its validity. While we believe that we will be successful based on the merits of our positions with regard to audits in pay-to-play jurisdictions, it is nevertheless reasonably possible that we could be required to pay any assessed amounts in order to contest or litigate the applicability of any assessments and an estimate for a reasonably possible amount of any such payments cannot be made.

International Withholding Tax. In July 2025, the Guardia di Finanza (“GdF”) of Milan issued a tax audit report to Expedia Group, proposing an amount of unpaid withholding tax to the Italian Tax Authorities (“ITA”) of 150 million Euros ($175 million), excluding penalties and interest, for the years 2017 through 2023. The GdF’s tax audit report purports the Company had an obligation under a 2017 law to withhold and remit 21% income tax from certain short-term rental partners in Italy. In the third quarter of 2025, we entered into discussions with the ITA to resolve this matter. While no tax assessment has been issued and we believe that Expedia Group has been in compliance with Italian tax laws, we recorded a reserve for the

Notes to Consolidated Financial Statements – (Continued)

potential settlement of this matter, consistent with applicable accounting principles and in light of all current facts and circumstances, in the amount of $90 million as of September 30, 2025 within legal reserves, occupancy tax and other in the consolidated statements of operations. Our settlement reserve is based on our reasonable estimate, and the ultimate resolution of the contingency may be greater than the liability recorded.

In the event we ultimately decide not to settle and instead decide to challenge any assessment in court, we may be required to satisfy a pay-to-play requirement.

Note 10 – Segment Information

We have the following reportable segments: B2C, B2B, and trivago. Our B2C segment provides a full range of travel and advertising services to our worldwide customers through a variety of consumer brands including: Expedia.com, Hotels.com, Vrbo, Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com and CarRentals.com. Our B2B segment fuels a wide range of travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management and financial institutions, who leverage our leading travel technology and tap into our diverse supply to augment their offerings and market Expedia Group rates and availabilities to their travelers. Our trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its hotel metasearch websites. trivago is a separately listed company on the Nasdaq Global Select Market and is therefore required to separately report its own financial results, which may differ from the segment information included herein.

Our chief operating decision makers ("CODMs") are our Chief Executive Officer and our Chairman. We determined our operating segments based on how our chief operating decision makers manage our business, make operating decisions and evaluate operating performance. Our primary operating metric is Adjusted EBITDA. Adjusted EBITDA for our B2C and B2B segments includes allocations of certain expenses, primarily related to our global travel supply organization and the majority of costs from our product and technology platform, as well as facility costs and the realized foreign currency gains or losses related to the forward contracts hedging a component of our net merchant lodging revenue. We base the allocations primarily on transaction volumes and other usage metrics. We do not allocate certain shared expenses such as accounting, human resources, certain information technology and legal to our reportable segments. We include these expenses in Corporate and Eliminations. Our allocation methodology is periodically evaluated and may change.

Our CODMs use Adjusted EBITDA to allocate resources for each segment predominantly in the annual budget and forecasting process. The CODMs consider budget-to-actual variances on a monthly basis using Adjusted EBITDA when making decisions about allocating capital and personnel to the segments. The CODMs also use Adjusted EBITDA to assess the performance for each segment and in the compensation of certain employees.

Our segment disclosure includes intersegment revenues, which primarily consist of advertising and media services provided by our trivago segment to our B2C segment. These intersegment transactions are recorded by each segment at amounts that approximate fair value as if the transactions were between third parties, and therefore, impact segment performance. However, the revenue and corresponding expense are eliminated in consolidation. The elimination of such intersegment transactions is included within Corporate and Eliminations in the table below.

Corporate and Eliminations also includes unallocated corporate functions and expenses. In addition, we record amortization of intangible assets and any related impairment, as well as stock-based compensation expense, restructuring and related reorganization charges, legal reserves, occupancy tax and other, and other items excluded from segment operating performance in Corporate and Eliminations. Such amounts are detailed in our segment reconciliation below.

The following tables present our segment information for the three and nine months ended September 30, 2025 and 2024. As a significant portion of our property and equipment is not allocated to our operating segments and depreciation is not included in our segment measure, we do not report the assets by segment as it would not be meaningful. We do not regularly provide such information to our chief operating decision makers.

Notes to Consolidated Financial Statements – (Continued)


	Three months ended September 30, 2025
	B2C		B2B		trivago		Corporate & Eliminations		Total
	(In millions)
Third-party revenue	$	2,883	$	1,392	$	137	$	—	$	4,412
Intersegment revenue	—		—		57		(57)		—
Revenue	$	2,883	$	1,392	$	194	$	(57)	$	4,412
Less: (1)
Cost of revenue	347		18		6
Selling and marketing - direct	1,032		855		146		(57)
Other segment items (2)	330		117		25		144
Adjusted EBITDA	$	1,174	$	402	$	17	$	(144)	$	1,449
Depreciation	(135)		(49)		(2)		(29)		(215)
Amortization of intangible assets	—		—		—		(10)		(10)


Stock-based compensation	—		—		—		(90)		(90)
Legal reserves, occupancy tax and other	—		—		—		(86)		(86)
Restructuring and related reorganization charges, excluding stock-based compensation	—		—		—		(6)		(6)
Realized (gain) loss on revenue hedges	6		(12)		—		—		(6)
Operating income (loss)	$	1,045	$	341	$	15	$	(365)	1,036
Other expense, net									95
Income before income taxes									1,131
Provision for income taxes									(167)
Net income									964
Net loss attributable to non-controlling interests									(5)
Net income attributable to Expedia Group, Inc.									$	959

Notes to Consolidated Financial Statements – (Continued)


	Three months ended September 30, 2024
	B2C		B2B		trivago		Corporate & Eliminations		Total
	(In millions)
Third-party revenue	$	2,780	$	1,178	$	102	$	—	$	4,060
Intersegment revenue	—		—		58		(58)		—
Revenue	$	2,780	$	1,178	$	160	$	(58)	$	4,060
Less: (1)
Cost of revenue	359		21		5
Selling and marketing - direct	1,072		721		120		(58)
Other segment items (2)	321		98		21		130
Adjusted EBITDA	$	1,028	$	338	$	14	$	(130)	$	1,250
Depreciation	(133)		(37)		(1)		(26)		(197)
Amortization of intangible assets	—		—		—		(14)		(14)

Impairment of intangible assets	—		—		—		(33)		(33)
Stock-based compensation	—		—		—		(147)		(147)
Legal reserves, occupancy tax and other	—		—		—		(59)		(59)
Restructuring and related reorganization charges, excluding stock-based compensation	—		—		—		(6)		(6)
Realized (gain) loss on revenue hedges	(16)		(16)		—		—		(32)
Operating income (loss)	$	879	$	285	$	13	$	(415)	762
Other income, net									112
Income before income taxes									874
Provision for income taxes									(190)
Net income									684
Net loss attributable to non-controlling interests									—
Net income attributable to Expedia Group, Inc.									$	684

Notes to Consolidated Financial Statements – (Continued)


	Nine months ended September 30, 2025
	B2C		B2B		trivago		Corporate & Eliminations		Total
	(In millions)
Third-party revenue	$	7,318	$	3,548	$	320	$	—	$	11,186
Intersegment revenue	—		—		163		(163)		—
Revenue	$	7,318	$	3,548	$	483	$	(163)	$	11,186
Less: (1)
Cost of revenue	999		84		14		—
Selling and marketing - direct	3,239		2,184		393		(163)
Other segment items (2)	961		331		70		421
Adjusted EBITDA	$	2,119	$	949	$	6	$	(421)	$	2,653
Depreciation	(408)		(138)		(4)		(85)		(635)
Amortization of intangible assets	—		—		—		(32)		(32)


Stock-based compensation	—		—		—		(293)		(293)
Legal reserves, occupancy tax and other	—		—		—		(88)		(88)
Restructuring and related reorganization charges, excluding stock-based compensation	—		—		—		(73)		(73)
Realized (gain) loss on revenue hedges	(31)		(50)		—		—		(81)
Operating income (loss)	$	1,680	$	761	$	2	$	(992)	1,451
Other expense, net									(114)
Income before income taxes									1,337
Provision for income taxes									(248)
Net income									1,089
Net loss attributable to non-controlling interests									—
Net income attributable to Expedia Group, Inc.									$	1,089

Notes to Consolidated Financial Statements – (Continued)


	Nine months ended September 30, 2024
	B2C		B2B		trivago		Corporate & Eliminations		Total
	(In millions)
Third-party revenue	$	7,198	$	3,060	$	249	$	—	$	10,507
Intersegment revenue	—		—		149		(149)		—
Revenue	$	7,198	$	3,060	$	398	$	(149)	$	10,507
Less: (1)
Cost of revenue	997		87		13
Selling and marketing - direct	3,269		1,859		319		(149)
Other segment items (2)	1,035		341		66		379
Adjusted EBITDA	$	1,897	$	773	$	—	$	(379)	$	2,291
Depreciation	(395)		(104)		(4)		(79)		(582)
Amortization of intangible assets	—		—		—		(44)		(44)

Impairment of intangible assets	—		—		—		(33)		(33)
Stock-based compensation	—		—		—		(365)		(365)
Legal reserves, occupancy tax and other	—		—		—		(100)		(100)
Restructuring and related reorganization charges, excluding stock-based compensation	—		—		—		(64)		(64)
Realized (gain) loss on revenue hedges	5		(5)		—		—		—
Operating income (loss)	$	1,507	$	664	$	(4)	$	(1,064)	1,103
Other expense, net									104
Income before income taxes									1,207
Provision for income taxes									(284)
Net income									923
Net loss attributable to non-controlling interests									12
Net income attributable to Expedia Group, Inc.									$	935

(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODMs, exclusive of stock-based compensation. Intersegment expenses are included within the amounts shown.

(2) Other segment items for each reportable segment primarily includes selling and marketing - indirect, technology and content and general and administrative expenses as well as the realized foreign currency gains or losses related to the forward contracts hedging a component of our net merchant lodging revenue for our B2C and B2B segments.

Notes to Consolidated Financial Statements – (Continued)

Revenue by Business Model and Service Type

The following table presents revenue by business model and service type:


	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
	(in millions)
Business Model:
Merchant	$	3,096	$	2,805	$	7,766	$	7,228
Agency	955		953		2,459		2,469
Advertising, media and other	361		302		961		810
Total revenue	$	4,412	$	4,060	$	11,186	$	10,507
Service Type:
Lodging	$	3,604	$	3,317	$	8,933	$	8,407
Air	101		104		313		330
EG Advertising(1)	194		167		550		464
trivago Advertising	137		102		320		249
Other(2)	376		370		1,070		1,057
Total revenue	$	4,412	$	4,060	$	11,186	$	10,507

(1)Includes Expedia Group (“EG”) Advertising, which is responsible for generating advertising revenue on our global online travel brands.

(2)Other includes revenue from insurance, car rental, activities and cruise revenue, among other revenue streams, none of which are individually material.

Our B2C and B2B segments generate revenue from the merchant, agency and advertising, media and other business models as well as all service types. trivago segment revenue is generated through advertising and media.

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