AI Takeaway
Expedia Group delivered strong Q1 2026 results with revenue surging 14.7% YoY to $3.43B and operating income swinging to a $251M profit from a $70M loss, though net income remained slightly negative at -$6M due to below-the-line charges.
Revenue
$3.43B
++14.66% YoY
EPS (Basic)
$-0.05
++96.79% YoY
Operating Income
$251M
++458.57% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 14.7% year-over-year to $3.43B in Q1 2026, up from $2.99B in Q1 2025, reflecting robust demand recovery and continued momentum across Expedia's travel booking platforms.
Source: Source: 10-Q Income Statement
Operating income swung from a -$70M loss in Q1 2025 to a $251M profit in Q1 2026, representing a 458.6% improvement and an operating margin expansion of approximately 970 basis points to 7.3%.
Source: Source: 10-Q Income Statement
Operating cash flow surged 33.2% YoY to $3.93B, significantly outpacing revenue growth and demonstrating strong cash conversion, while free cash flow (operating cash flow minus investing cash flow of -$440M) came in at approximately $3.49B.
Source: Source: 10-Q Cash Flow Statement
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Upgrade to unlockStockholders' equity fell 46.3% YoY to just $576M, driven in part by aggressive share repurchases reducing book value. If this trend continues, Expedia could approach negative equity territory, which may concern lenders and counterparties.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockReported EPS of $1.95 versus the $1.41 analyst consensus — a +38.4% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $3.43B | $2.99B | +14.66% |
Operating Income | $251M | $-70M | +458.57% |
Net Income | $-6M | $-200M | +97.00% |
EPS (Basic) | $-0.05 | $-1.56 | +96.79% |
EPS (Diluted) | $-0.05 | $-1.56 | +96.79% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $26.46B | $26.11B | +1.32% |
Current Assets | $14.15B | $13.59B | +4.17% |
Current Liabilities | $19.36B | $18.57B | +4.25% |
Stockholders' Equity | $576M | $1.07B | -46.27% |
Cash & Equivalents | $5.54B | $5.71B | -3.06% |
Long-Term Debt | $4.47B | $6.21B | -28.03% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $3.93B | $2.95B | +33.16% |
Investing Cash Flow | $-440M | $-384M | -14.58% |
Financing Cash Flow | $-2.65B | $-469M | -465.03% |
Share Buybacks | $788M | $384M | +105.21% |
D&A | $228M | $219M | +4.11% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 7.3% | -2.3% | +9.67% |
Net Margin | -0.2% | — | — |
ROE | -1.0% | — | — |
ROA | -0.0% | — | — |
Current Ratio | $0.731 | — | — |
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Expedia's Q1 2026 results showed strong operational improvement, with revenue of $3.43B (+14.7% YoY) and operating income of $251M versus a -$70M loss a year ago. However, net income remained slightly negative at -$6M and EPS came in at -$0.05, so whether it beat consensus estimates depends on what analysts had modeled for the quarter.
The headline takeaways are a 14.7% revenue surge to $3.43B, a dramatic operating income turnaround to $251M from -$70M, and operating cash flow jumping 33% to $3.93B. The company also aggressively returned capital via $788M in buybacks and reduced long-term debt by 28% to $4.47B.
Expedia's revenue grew 14.7% year-over-year to $3.43B in Q1 2026, compared to $2.99B in Q1 2025, driven by continued strong travel demand across its booking platforms. This revenue growth also translated into meaningful operating leverage, with operating margin expanding nearly 970 basis points to 7.3%.
Expedia's financial health shows a mixed picture: operating performance is improving strongly, but the balance sheet carries risks including a current ratio of 0.73 (below 1.0), stockholders' equity of only $576M (down 46% YoY), and a debt-to-equity ratio of approximately 7.8x. On the positive side, the company holds $5.54B in cash and generated $3.93B in operating cash flow.
Despite $251M in operating income, Expedia's net income was -$6M in Q1 2026, suggesting approximately $257M in below-the-line costs such as interest expense on its $4.47B long-term debt, taxes, and other non-operating items. This is a significant improvement from -$200M in Q1 2025, and the company appears close to achieving sustained net profitability.