📊 EXPE Key Takeaways
Is Expedia Group, Inc. (EXPE) a Good Investment?
Expedia exhibits strong operational cash generation ($3.7B FCF) and solid revenue growth (7.6% YoY), but this is severely undermined by a dangerously overleveraged balance sheet with 7.76x debt-to-equity and negative net profitability despite positive operating income. The company's thin equity base ($576M) combined with working capital stress (0.73x current ratio) creates significant financial fragility that could worsen in a travel downturn.
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.
Expedia Group, Inc. Key Strengths (EXPE)
- Strong free cash flow generation of $3.7B demonstrates underlying operational strength
- Positive 7.3% operating margin and 7.6% revenue growth indicate healthy core business
- Substantial cash position of $5.5B provides near-term liquidity buffer for debt service
- 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
- Extremely high leverage at 7.76x debt-to-equity with $4.5B long-term debt on only $576M equity creates distress risk
- Negative net profitability (-$6M net income, -1.0% ROE, -0.0% ROA) indicates company is not generating shareholder value
- Current ratio of 0.73x below 1.0 signals working capital stress and potential liquidity constraints in adverse conditions
- 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 refinancing ability relative to leverage levels
- Return to positive net profitability and movement in net margin percentage
- Maintenance of operating cash flow and operating margin amid potential travel demand softening
- 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 109.4% 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. shows some fundamental concerns 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 |
|---|---|---|---|
| Q1 2026 | $3.0B | -$6.0M | $-0.05 |
| 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 |
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 Grade of B from Claude (C) and ChatGPT (A) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are EXPE's key strengths?
Claude: Strong free cash flow generation of $3.7B demonstrates underlying operational strength. Positive 7.3% operating margin and 7.6% revenue growth indicate healthy core business. 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: Extremely high leverage at 7.76x debt-to-equity with $4.5B long-term debt on only $576M equity creates distress risk. Negative net profitability (-$6M net income, -1.0% ROE, -0.0% ROA) indicates company is not generating shareholder value. 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 $3.4B.
Does EXPE pay dividends?
Expedia Group, Inc. pays dividends, with $58.0M 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 $-0.05.
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 grade reflects both perspectives for balanced insights.
What is EXPE's fundamental grade?
Based on our AI fundamental analysis in June 2026, Expedia Group, Inc. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is EXPE stock overvalued or undervalued?
Valuation metrics for EXPE: ROE of -1.0% (sector avg: 18%), net margin of -0.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is EXPE's AI grade for 2026?
Our dual AI analysis gives Expedia Group, Inc. a combined B grade 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 $184.0M. FCF margin is 109.4%.
How does EXPE compare to other Transportation stocks?
Vs Transportation sector averages: Net margin -0.2% (avg: 10%), ROE -1.0% (avg: 18%), current ratio 0.73 (avg: 1).
Is Expedia Group, Inc. carrying too much debt?
EXPE has a debt-to-equity ratio of 7.76x, which is above the Transportation sector average of 1x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.