📊 EXPE Key Takeaways
Is Expedia Group, Inc. (EXPE) a Good Investment?
Expedia demonstrates solid operational performance with 7.6% revenue growth, strong profitability (12.7% operating margin, 8.8% net margin), and exceptional free cash flow generation ($3.1B, 21.1% margin). However, significant leverage (4.8x Debt/Equity) and weak liquidity (0.73x current ratio) present financial stability concerns that temper the otherwise healthy operational fundamentals.
Expedia shows solid fundamental quality through healthy revenue growth, double-digit operating margins, and very strong free cash flow generation. The business appears operationally resilient, but flat net income, weak liquidity, and elevated leverage keep the outlook from being more aggressive.
Why Buy Expedia Group, Inc. Stock? EXPE Key Strengths
- Strong free cash flow generation ($3.1B, 21.1% FCF margin) demonstrating capital-efficient operations
- Excellent interest coverage ratio (30.2x) indicating strong ability to service debt obligations
- Solid revenue growth (7.6% YoY) with expanding operating income in a competitive travel services market
- Exceptional ROE (100.8%) reflecting efficient use of shareholder capital despite leverage
- Revenue grew 7.6% year over year while maintaining a 12.7% operating margin
- Free cash flow is strong at $3.11B, equal to a robust 21.1% FCF margin
- Cash generation and interest coverage of 30.2x support debt servicing capacity
EXPE Stock Risks: Expedia Group, Inc. Investment Risks
- High financial leverage (4.8x Debt/Equity) with $6.2B long-term debt against only $1.3B equity creates refinancing risk
- Weak liquidity position (0.73x current ratio) raises concerns about short-term obligations coverage
- Modest net income decline (-0.5% YoY) despite revenue growth suggests margin pressure or operational challenges
- Net margin of 8.8% provides limited cushion for adverse market conditions or competitive pressures
- Current and quick ratios of 0.73x indicate limited short-term balance sheet flexibility
- Debt-to-equity of 4.80x is high and equity is relatively thin at $1.28B
- Net income declined 0.5% year over year, suggesting earnings growth is lagging revenue growth
Key Metrics to Watch
- Debt reduction trajectory and Debt/Equity ratio trend to improve financial leverage
- Liquidity metrics (current ratio, cash position) to ensure operational flexibility
- Operating margin sustainability amid pricing competition and cost inflation
- Free cash flow conversion rate relative to revenue growth to validate capital efficiency
- Free cash flow conversion and operating cash flow trend
- Leverage and liquidity, especially debt levels versus cash and current ratio
Expedia Group, Inc. (EXPE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 21.1% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
EXPE Profit Margin, ROE & Profitability Analysis
EXPE vs Transportation Sector: How Expedia Group, Inc. Compares
How Expedia Group, Inc. compares to Transportation sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Expedia Group, Inc. Stock Overvalued? EXPE Valuation Analysis 2026
Based on fundamental analysis, Expedia Group, Inc. has mixed fundamental signals relative to the Transportation sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Expedia Group, Inc. Balance Sheet: EXPE Debt, Cash & Liquidity
EXPE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Expedia Group, Inc.'s revenue has grown significantly by 22% over the 5-year period, indicating strong business expansion. The most recent EPS of $5.31 reflects profitable operations.
EXPE Revenue Growth, EPS Growth & YoY Performance
EXPE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $4.1B | $684.0M | $5.04 |
| Q2 2025 | $3.6B | $130.0M | $0.96 |
| Q1 2025 | $2.9B | -$135.0M | $-0.99 |
| Q3 2024 | $3.9B | $425.0M | $2.87 |
| Q2 2024 | $3.4B | $240.0M | $1.55 |
| Q1 2024 | $2.7B | -$135.0M | $-0.95 |
| Q3 2023 | $3.6B | $175.0M | $1.08 |
| Q2 2023 | $3.2B | -$185.0M | $-1.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Expedia Group, Inc. Dividends, Buybacks & Capital Allocation
EXPE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Expedia Group, Inc. (CIK: 0001324424)
📋 Recent SEC Filings
❓ Frequently Asked Questions about EXPE
What is the AI rating for EXPE?
Expedia Group, Inc. (EXPE) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EXPE's key strengths?
Claude: Strong free cash flow generation ($3.1B, 21.1% FCF margin) demonstrating capital-efficient operations. Excellent interest coverage ratio (30.2x) indicating strong ability to service debt obligations. ChatGPT: Revenue grew 7.6% year over year while maintaining a 12.7% operating margin. Free cash flow is strong at $3.11B, equal to a robust 21.1% FCF margin.
What are the risks of investing in EXPE?
Claude: High financial leverage (4.8x Debt/Equity) with $6.2B long-term debt against only $1.3B equity creates refinancing risk. Weak liquidity position (0.73x current ratio) raises concerns about short-term obligations coverage. ChatGPT: Current and quick ratios of 0.73x indicate limited short-term balance sheet flexibility. Debt-to-equity of 4.80x is high and equity is relatively thin at $1.28B.
What is EXPE's revenue and growth?
Expedia Group, Inc. reported revenue of $14.7B.
Does EXPE pay dividends?
Expedia Group, Inc. pays dividends, with $200.0M distributed to shareholders in the trailing twelve months.
Where can I find EXPE SEC filings?
Official SEC filings for Expedia Group, Inc. (CIK: 0001324424) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is EXPE's EPS?
Expedia Group, Inc. has a diluted EPS of $9.81.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is EXPE a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Expedia Group, Inc. has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is EXPE stock overvalued or undervalued?
Valuation metrics for EXPE: ROE of 100.8% (sector avg: 18%), net margin of 8.8% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy EXPE stock in 2026?
Our dual AI analysis gives Expedia Group, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is EXPE's free cash flow?
Expedia Group, Inc.'s operating cash flow is $3.9B, with capital expenditures of $770.0M. FCF margin is 21.1%.
How does EXPE compare to other Transportation stocks?
Vs Transportation sector averages: Net margin 8.8% (avg: 10%), ROE 100.8% (avg: 18%), current ratio 0.73 (avg: 1).
Is Expedia Group, Inc. carrying too much debt?
EXPE has a debt-to-equity ratio of 4.80x, which is above the Transportation sector average of 1x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.
Why is EXPE's return on equity (ROE) so high?
Expedia Group, Inc. has a return on equity of 100.8%, significantly above the Transportation sector average of 18%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 8.8% net margin.