📊 EXPE Key Takeaways
Is EXPE a Good Investment? Thesis Analysis
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.
Why Buy 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
EXPE Investment Risks to Consider
- 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
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
EXPE Financial Metrics
💡 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 Profitability Ratios
EXPE vs Default Sector
How Expedia Group, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is EXPE Overvalued or Undervalued?
Based on fundamental analysis, Expedia Group, Inc. has mixed fundamental signals relative to the Default 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.
EXPE Balance Sheet & Liquidity
EXPE 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
EXPE Quarterly 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.
EXPE Capital Allocation
EXPE SEC 10-K & 10-Q Filing 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 an AI rating of BUY with 72% 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.
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.
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 March 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: 15%), net margin of 8.8% (sector avg: 12%). 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 Default stocks?
Vs Default sector averages: Net margin 8.8% (avg: 12%), ROE 100.8% (avg: 15%), current ratio 0.73 (avg: 1.8).