Expedia Group (EXPE) Q2'26 Earnings Review Strong Execution and B2B Momentum Drive Beat and Raise Quarter

Equity Research 6 August 2026 | 12:00AM EDT

Expedia Group (EXPE) Q2’26 Earnings Review: Strong Execution and B2B Momentum Drive Beat and Raise Quarter

EXPE 12m Price Target: $370.00 Price: $319.66 Upside: 15.7% BUY Eric Sheridan Expedia’s Q2’26 earnings report highlighted a number of themes: 1) | Goldman Sachs & Co. LLC key elements of business performance exceeded expectations with Aarshiya Sachdeva Q2 Gross Bookings, Revenue, and Adj. EBITDA all surpassing the high | Goldman Sachs & Co. LLC end of management guidance and GSe/Street estimates; 2) the B2B segment continues to be a compounding growth engine, delivering Achal Gupta | Goldman Sachs India SPL its 20th consecutive quarter of DD% growth; 3) significant Adj. EBITDA margin expansion (+196bps YoY) driven by cost efficiencies, consumer marketing leverage, and volume flow-through and raised Key Data _____________________________________ Market cap: $40.6bn full-year Adj. EBITDA margin outlook to +150-175bps YoY (up from Enterprise value: $42.6bn 3m ADTV: $427.5mn +100-125bps); 4) focus on strategic M&A and supply expansion to United States drive growth, with their announced intent to acquire CarTrawler and Americas Internet M&A Rank: 3 completed acquisition of Layla, in addition to becoming the first OTA GS Forecast __________________________________ to distribute Allegiant flights (achieving full coverage of U.S. 12/25 12/26E 12/27E 12/28E

commercial airlines); & 5) continued commitment to capital returns Revenue ($ mn) New Revenue ($ mn) Old 14,733.0 14,733.0 16,175.6 15,833.0 17,461.4 17,094.4 18,814.2 18,421.8 with ~$200m of share repurchases in the quarter. EBITDA ($ mn) 3,501.0 4,107.3 4,543.1 4,963.9 EBIT ($ mn) 1,871.0 2,830.9 3,136.9 3,489.1

Short-term, investor debates are likely to stay centered on two main EPS ($) New EPS ($) Old themes from the call - how the expected moderation in Q3 growth P/E (X) Dividend yield (%) 0.8 0.6 0.6 0.6 and margins (due to tougher comps, lapping prior cost actions, and Net debt/EBITDA (X) 0.2 0.5 0.2 (0.1) FX headwinds) will play out, and the long-term competitive 6/26 9/26E 12/26E 3/27E dynamics of AI and agentic commerce as emerging traffic channels. EPS ($) ) Over the long-term, we remain constructive in EXPE’s ability to GS Factor Profile ______________________________ execute on strategic initiatives, execute on Adj. EBITDA margin Growth

expansion & return capital to shareholders. That mixture (as Financial Returns execution continues to improve) should be supportive of a rising Multiple multiple to growth (vs. historical trends). We reiterate our Buy rating on the shares, adjust our 12-month PT from $330 to $370, and Integrated

update our operating estimates for this earnings result and Percentile 20th 40th 60th 80th 100th management commentary. EXPE relative to Americas Coverage

Q2’26 Positives & Negatives: EXPE relative to Americas Internet

Source: Company data, Goldman Sachs Research estimates. Positives: a) Q2 Gross Bookings and Revenue came in ahead of See disclosures for details. GSe/Street (Factset) estimates supported by healthy consumer

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Expedia Group (EXPE)

Expedia Group (EXPE) Balance Sheet ($ mn) _______________________________________ BUY Rating since Sep 12, 2021 12/25 12/26E 12/27E 12/28E Cash & cash equivalents 5,413.0 3,514.6 3,757.0 4,111.8 Accounts receivable 4,166.0 4,571.2 5,073.6 5,544.6 Inventory -- -- -- -- Ratios & Valuation __________________________________________ Other current assets 2,620.0 3,629.4 3,688.4 3,815.6 12/25 12/26E 12/27E 12/28E Total current assets 12,199.0 11,715.2 12,519.0 13,471.9 P/E (X) Net PP&E 2,743.0 2,656.1 2,554.5 2,457.8 EV/EBITDA (X) 7.3…