Expedia Group, Inc. 10-Q Summary: Q1 2026
Business Context and Reporting Period
This summary covers Expedia Group, Inc.'s (EXPE) Form 10-Q for the quarterly period ended March 31, 2026. Expedia Group operates as a global travel marketplace with reportable segments including B2C (Expedia.com, Hotels.com, Vrbo), B2B, and trivago. The company reported a net loss for the quarter, primarily driven by non-cash mark-to-market charges and restructuring costs, despite significant revenue growth.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| Revenue | $3,426 million | $2,988 million | +15% |
| Operating Income | $251 million | $(70) million | Turnaround |
| Net Loss (GAAP) | $(12) million | $(197) million | Improvement |
| Adjusted EBITDA | $542 million | $296 million | +83% |
| Cash from Operations | $3,931 million | $2,952 million | +33% |
| Total Debt | $4,470 million | $6,161 million | -27% |
| Cash & Equivalents | $5,540 million | $5,413 million | +2% |
Liquidity: As of March 31, 2026, the company held $5.54 billion in cash and cash equivalents and $2.25 billion in restricted cash. Total current assets were $14.15 billion against $19.36 billion in current liabilities, driven largely by deferred merchant bookings of $15.0 billion.
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 15% year-over-year, driven by a 14% increase in lodging revenue (higher room nights and ADRs) and a 47% surge in trivago advertising revenue. B2B revenue grew 25%.
- Operating Performance: Operating income improved from a $70 million loss in Q1 2025 to a $251 million profit in Q1 2026. This was aided by a $64 million credit in "Legal reserves, occupancy tax and other" due to the reversal of Canadian Digital Services Tax (DST) liabilities following legislative repeal.
- Debt Reduction: Total debt decreased significantly as the company repaid $750 million in 5.0% senior notes and settled $1.1 billion in convertible notes in February 2026.
- Restructuring: Restructuring charges increased to $56 million from $26 million in the prior year, related to ongoing organizational transformation.
Guidance, Outlook, and Risks
Management Commentary: Management highlighted sustained momentum in U.S. B2C bookings and strong global growth in B2B. The company is integrating AI to improve conversion and operational efficiency. A new $5 billion share repurchase program was authorized in May 2026, in addition to the remaining $870 million under the 2023 program.
Subsequent Events: In April 2026, Expedia issued $1 billion of 5.5% senior notes due in 2036. The company also declared a quarterly dividend of $0.48 per share.
Risks and Contingencies:
- Tax Litigation: The company faces ongoing IRS examinations for tax years 2011–2020 and disputes regarding occupancy taxes. While a $156 million settlement was reached with Italian tax authorities in late 2025, discussions continue for subsequent years.
- Market Volatility: Geopolitical pressures (Middle East, Mexico) and currency fluctuations remain risks to travel demand and financial results.
- Competition: Increased competition from search engines (Google), metasearch platforms, and direct distribution by airlines and hotels.
Investor Verification Checklist
- Canadian DST Reversal: Verify the sustainability of the $71 million tax credit from the Canadian DST repeal and assess remaining exposure to other occupancy tax litigation.
- Debt Refinancing: Confirm the terms and impact of the new $1 billion 5.5% notes issued in April 2026 on future interest expenses.
- Adjusted EBITDA Quality: Review the reconciliation of Adjusted EBITDA to Net Loss, noting the significant impact of non-cash items like mark-to-market losses on minority equity investments ($155 million).
- Share Repurchases: Monitor the execution of the new $5 billion repurchase program and its impact on cash reserves.
- Seasonality: Acknowledge that Q1 is typically the lowest revenue quarter; compare Q2 and Q3 results to validate the full-year growth trajectory.