Booked room nights for the lodging business increased 7% for both the three and six months ended June 30, 2025, primarily driven by growth outside the U.S. Additionally, EG Advertising revenue grew 19% to $182 million and trivago Advertising revenue grew 28% to $98 million in the three months ended June 30, 2025, reflecting strong momentum across product offerings and new partnerships.

During the second quarter of 2025, the company completed the sale of its equity investment in Despegar.com, Corp. for $187 million in cash. This divestment resulted in recognizing gains of approximately $2 million within other, net, for the six months ended June 30, 2025, indicating a strategic portfolio optimization.

Expedia Group continues to mature its shared platform infrastructure, focusing on developing configurable technical capabilities and using standard architecture. This strategy, which includes the migration of core B2C brands like Hotels.com and Vrbo onto the unified infrastructure, aims to deliver more scalable services and greater operational efficiency.

Cost of revenue remained relatively consistent, increasing only 4% to $377 million in the three months ended June 30, 2025, while total revenue grew 6%, as ongoing initiatives drove transactional efficiencies, particularly in customer service. Technology and content expense decreased 2% to $325 million in the three months ended June 30, 2025, attributed to lower salary and personnel costs and optimized cloud spending.

Management expanded restructuring actions initially committed in February 2024, resulting in $70 million in restructuring and related reorganization charges for the six months ended June 30, 2025. These charges are primarily related to employee severance and benefits costs, with an additional $20 million expected in future periods.

During the first quarter of 2025, the Board of Directors approved the reinstatement of quarterly common stock dividends, with two payments of $0.40 per share totaling $102 million for the six months ended June 30, 2025. This decision, coupled with an additional $0.40 dividend declared for Q3 2025, reflects management's confidence in the company's financial health and commitment to shareholder returns.

The company noted 'weaker than expected travel demand in the U.S.' during Q1 2025 and 'continued pressure in domestic travel demand' in Q2 2025. Global macroeconomic and geopolitical pressures, including currency fluctuations and energy price volatility, are identified as contributing to an increasingly complex business environment for the travel industry.

Domestic and international taxing authorities are increasingly focused on new taxes and aggressive enforcement, with some jurisdictions requiring 'pay-to-play' for assessed taxes prior to contesting validity. While management believes it will be successful, any significant payment or litigation loss could negatively impact liquidity, as seen with the $71 million and $33 million paid for Italian VAT.

The online travel market remains highly competitive, with threats from AI-powered offerings, search engines prioritizing their own products, direct distribution efforts by airlines and lodging companies, and the growth of the 'sharing economy' led by players like Airbnb and Vrbo. This diverse competitive landscape necessitates continuous innovation and strategic responses.

The B2B segment experienced strong revenue growth and margin expansion, benefiting from increased lodging revenue and stronger international exposure, with revenue up 15% to $1,209 million in Q2 2025. Lodging room nights booked increased 7% in Q2 2025, primarily from growth outside the U.S., indicating effective market penetration in key growth areas despite competitive pressures.

Average Daily Rates (ADRs) booked for Expedia Group were flat in the second quarter of 2025, following decreases of 1% in 2024 and 2% in 2023. This trend is influenced by rising living costs, inflation, higher interest rates, and increased alternative accommodation inventory, as well as hotel chains aggressively pursuing direct bookings with lower rates.

Expedia Group leverages its unified technology, product, data engineering, and data science teams to build scalable services across its business units. This shared platform infrastructure, combined with a global lodging marketplace of over 3.5 million properties and Vrbo's leadership in alternative accommodations, provides a competitive edge in offering diverse travel solutions.

Total technology and content expense decreased 2% to $325 million in the three months ended June 30, 2025, and 4% to $645 million for the six months ended June 30, 2025, compared to the prior year periods. This reduction was primarily due to lower salary and personnel costs and successful initiatives to optimize cloud spending.

Cost of revenue increased modestly by 4% to $377 million in the three months ended June 30, 2025, while total revenue grew 6%. The percentage of revenue represented by cost of revenue decreased from 10.2% to 9.9% in the three months ended June 30, 2025, indicating that ongoing initiatives are effectively driving transactional efficiencies, particularly in customer service.

Direct selling and marketing costs increased 7% to $1,920 million in the three months ended June 30, 2025, primarily driven by higher B2B partner commissions to support revenue growth. While this increased the percentage of revenue allocated to direct S&M, it aligns with efforts to fuel top-line expansion in key segments.

Expedia Group has completed the migration of its core B2C brands, including Hotels.com (2022) and Vrbo (2023), onto a unified Brand Expedia technology front-end infrastructure. This initiative aims to deliver more scalable services, operate more efficiently, and provide a foundation for future innovation across business units.

Technology and content expense decreased 2% to $325 million in the three months ended June 30, 2025, primarily due to lower salary and personnel costs and initiatives to optimize cloud spending. This indicates a focus on efficient use of technology resources rather than a significant increase in absolute R&D investment.

The filing notes that 'technological developments in generative artificial intelligence (“AI”) tools is increasingly being used to create competing offerings, such as AI powered digital planning and assistance, further increasing competition.' While the company's own AI investments aren't detailed, this highlights a key industry trend impacting the competitive landscape.

In February 2025, Expedia Group issued $1 billion of 5.4% senior unsecured notes due 2035, with net proceeds of $985 million. Concurrently, the company early redeemed approximately $1 billion of 6.25% senior unsecured notes due 2025. This refinancing activity reduced interest expense for the six months ended June 30, 2025, and extended the maturity profile of its debt.

During the six months ended June 30, 2025, Expedia Group repurchased 5.6 million shares for approximately $957 million under its 2023 Share Repurchase Program. An additional $2.3 billion remains authorized, and subsequent to Q2, another 1.2 million shares were repurchased for $221 million, demonstrating ongoing commitment to returning capital to shareholders.

Capital expenditures, including internal-use software and website development, increased to $396 million for the six months ended June 30, 2025, from $371 million in the prior year period. Purchases of investments also significantly increased to $428 million from $69 million, indicating a strategic allocation of capital towards growth and portfolio management, partially offset by the sale of Despegar.com.

The 10-Q filing does not contain specific disclosures regarding new environmental commitments, progress on existing targets, or significant social responsibility initiatives. The focus of the document is primarily on financial performance, operations, and standard legal/governance disclosures.

Management, including the Chairman, CEO, and CFO, concluded that disclosure controls and procedures were effective as of the end of the period covered by this report. There were no material changes to internal control over financial reporting during the quarter ended June 30, 2025, indicating stable governance practices.

The filing includes certifications from the Chairman, Senior Executive, CEO, and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, affirming their responsibility for financial reporting and internal controls. This demonstrates adherence to key governance regulations.

The company observed 'weaker than expected travel demand in the U.S.' during the first quarter of 2025 and 'continued pressure in domestic travel demand' in the second quarter of 2025. Global macroeconomic and geopolitical pressures, including currency fluctuations and energy price volatility, are cited as creating an increasingly complex and uncertain environment for the travel industry.

Domestic and international taxing authorities are increasingly focused on new taxes, such as digital services taxes, and more aggressive enforcement of existing laws. The recent signing of the 'One Big Beautiful Bill Act' (OBBBA) in July 2025 introduces new U.S. tax provisions, requiring the company to evaluate potential impacts and elections.

The online travel market is highly competitive, with new entrants leveraging AI tools, search engines prioritizing their own products, and traditional suppliers pushing direct bookings. The 'sharing economy' continues to grow, and the lodging industry remains fragmented, requiring continuous adaptation to maintain competitive relevance.