Booking Holdings Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.88%.
Did BKNG Beat Earnings? Q1 2025 Results
Booking Holdings delivered a standout first quarter for 2025, with adjusted EPS of $24.81 beating the consensus estimate of $17.57 by 41.23%, while revenue of $4.76 billion topped expectations by 3.75% and grew 7.9% year over year. The driving force behind the beat was a combination of disciplined cost management and globally diversified travel demand, with total operating expenses rising just 2% against 8% revenue growth and adjusted EBITDA climbing 21% to $1.09 billion, expanding the adjusted EBITDA margin to 22.9% from 20.3% a year ago. Room nights reached 319 million, up 7% year over year, while airline tickets surged 44.8% to 16 million, reflecting broad-based momentum across the platform. Free cash flow hit $3.16 billion, up 23%, and the company repurchased $1.80 billion in stock during the quarter. CEO Glenn Fogel acknowledged near-term geopolitical and macroeconomic uncertainty, but pointed to ongoing transformation efforts, including a targeted $450 million in cost savings by end of 2027, as evidence of the company's commitment to long-term efficiency and reinvestment.
- Room nights grew 7% YoY to 319 million
- Gross bookings grew 7% (10% constant currency) to $46.7 billion
- Alternative accommodation room nights at Booking.com grew at a low double-digit percentage
- Constant currency ADRs increased 1%
- Airline tickets grew 44.8% YoY to 16 million
- Direct channel room night mix remained in the mid-fifties percentage on a trailing four-quarter basis
- Total operating expenses grew only 2% vs. 8% revenue growth
- Adjusted fixed operating expenses declined 3% YoY
- Adjusted EBITDA margin expanded to 22.9% from 20.3%
“I am pleased to report a good start to 2025 where healthy growth of room nights and gross bookings in the first quarter benefited from our globally diversified business.”
Booking Holdings CEO, on the earnings call
Forward Guidance & Outlook
While the company did not provide specific numerical guidance for upcoming quarters, CEO Glenn Fogel noted uncertainty around the near-term geopolitical and macroeconomic environment. The company remains focused on long-term strategic priorities, delivering value to supplier partners and travelers, and executing on its transformation program aimed at improving operating expense efficiency, increasing organizational agility, and freeing up resources for reinvestment.
BKNG YoY Financials
BKNG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.