Expedia Group, Inc.

Hello, everyone. Thank you for joining us and welcome to the Expedia Group Q4 2025 Financial Results webcast. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. To withdraw your question, press star 1 again. For opening remarks, I will now hand the call over to Rob Bevegni, VP of Investor Relations. Please go ahead.

Good afternoon, and welcome to Expedia Group's fourth quarter 2025 earnings call. I'm pleased to be joined on today's call by our CEO, Ariane Gorin, and our CFO, Scott Schengel. As a reminder, our commentary today will include references to certain non-GAAP measures. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are included in our earnings release. Unless otherwise stated, all growth rates are on a year-over-year basis, and any references to expenses exclude stock-based compensation. We will also be making forward-looking statements during the call. which are predictions, projections, and other statements about future events. These statements are based on current expectations and assumptions, which are subject to risks and uncertainties that are difficult to predict. Actual results could maturely differ due to factors discussed during this call and in our most recent forms 10-K, 10-Q, and other filings with the SEC. Except as required by law, we do not undertake any responsibilities to update these forward-looking statements. This call is being webcast on the investor relations section of our website, at ir.expedigroup.com. A replay will be archived on our site. A slide deck containing financial highlights has also been posted on our IR website. For today's call, Ariane will begin with a review of our fourth quarter results and update on our progress against our strategic priorities. Then Scott will provide additional details on our fourth quarter financial performance and guidance. After our prepared remarks, we will turn the call over to our operator to begin the Q&A portion of the call. And with that, let me turn the call over to Ariane.

Thank you, Rob, and thank you all for joining us today. We accelerated both bookings and revenue growth and expanded margins by over two points. We returned Vrbo and Hotels.com to growth while sustaining the performance of brand Expedia, B2B, and advertising. Looking ahead, we're well positioned to build on our momentum as we execute our strategy and capitalize on the opportunities created by AI. In the fourth quarter, we exceeded our expectations, growing bookings and revenue by 11% and expanding our margins by four points. Booked room nights were up 9%, including high single digits in the U.S. and low double digits in EMEA and the rest of the world. Consumer spending remained healthy, with longer booking windows and lengths of stay relative to 2024. Our B2B and advertising businesses had stellar quarters. We grew B2B bookings by 24% and advertising revenue by 19%. Our consumer brands bookings were up 5% overall and double digits outside the U.S. We grew loyalty members by mid-single digits with faster member growth in our silver tiers and above. And for the second consecutive quarter, all three core brands delivered year-over-year bookings growth, reflecting sharper brand positioning, product improvements, and ever better execution. Turning to our three strategic priorities, I'll begin with our first, delivering more value to travelers. On product, our sites and apps are 30% faster than they were a year ago. We've upgraded our checkout path and added new payment options, giving travelers more flexibility and making booking even easier. We're using AI to deliver more personalized experiences across all our brands. On brand Expedia, for example, Our refined recommendation models drove our best fourth quarter attach rates ever. This is a strong signal, as travelers who buy multiple products spend more and return more often. We also know how important it is to give travelers confidence throughout their journey, including when plans change. Our ability to meet this need is an important competitive advantage. Last quarter, we expanded VrboCare. strengthening Vrbo's differentiation and giving travelers peace of mind when booking their trips. Across our brands, we enhanced our help center and servicing capabilities so travelers can effortlessly modify their bookings or get support if things go wrong. This resulted in record traveler self-service levels. And for more complex issues that require a live agent, our advanced agent tools are contributing to materially reduced wait times, even during peak call periods. All of that translates into more satisfied travelers. On supply, we continue to broaden our inventory to give travelers more choice and better value. In the fourth quarter, we grew our lodging property count by more than 10% compared to 2024. We're sourcing more promotional rates, and partner funded promotions were over 30% of bookings in Q4, up more than 10 points from the third quarter. Nearly 70% more properties participated in our Black Friday sale than ever before. These trends demonstrate the strength of our flywheel as deeper partner participation increases traveler value and drives incremental demand back to our partners. Turning to our second priority, investing where we see the greatest opportunities for growth. B2B had another fantastic quarter with double-digit growth across all regions. We gained share with existing partners and benefited from increased marketing activity from some of our largest partners. We added new partners and had more active travel agents than any prior fourth quarter. We continue to invest in new lines of business, extending capabilities from our consumer business into B2B. Last quarter, we launched a Cancel for Any Reason assurance product. And in December, we announced our intent to acquire tickets. to broaden the activities we offer to our partners and their travelers. B2B is a great business and will continue to invest to drive future growth. On advertising, we re-accelerated revenue growth and finished the year with a record number of active partners. We continue to expand placements of new ad formats, and after launching video ads in our search results in early 2025, last quarter we introduced video ads on Expedia's homepage. We're a high return channel for our partners, and as we inject AI into both our ads and our ad targeting tools, our ads are becoming more relevant and performant. Finally, as GenAI changes how travelers do trip discovery, it opens up new growth opportunities for us. We're working with all the major platforms to capture traveler demand, ensuring our brands show up prominently in GenAI searches and function effectively with agentic browsers. We're experimenting aggressively and while volume is still small, every additional integration gives us data and learnings about how to better surface our brands and how consumer behaviors are evolving. These learnings coupled with insights from our own brands are in turn informing the development of AI experiences in our own products. And that's important because while third party AI experiences are a new way to attract travelers and turn them into loyal members, Our biggest long-term opportunity remains direct engagement. Today, two-thirds of our bookings come from travelers who begin their planning journey directly with our brands, and those direct bookings are growing faster than bookings from indirect channels. We're confident that our work to make our products even more personalized and intuitive, along with our work on supply, customer service, and loyalty, will deepen our competitive advantage. Moving to the third pillar of our strategy, driving operating efficiencies, and margin expansion. We expanded margins by nearly four points in the quarter, thanks to our continued operational discipline and volume leverage. I'm particularly pleased with the work we've done to get marketing leverage in our consumer brands. We've improved our targeting and measurement capabilities, reduced our least efficient spend, and reallocated dollars to where we see the highest incremental returns. We also continue to optimize our organizational structure for speed and effectiveness, ensuring we have the right skills and velocity to execute on our strategies. At the same time, we're deploying AI internally to give our teams superpowers and make our offerings to travelers and partners even more competitive. This is already delivering tangible benefits. Our product and tech teams are using AI to design and build products, improving quality while shortening cycle times. Our supply teams are leveraging AI to speed up inventory onboarding teams, and our service team is using AI to resolve traveler issues faster and more effectively. As we grow our business and increase our use of AI, we're keeping a close eye on costs, and we've been able to optimize our cloud spend through technology improvements and a more disciplined cloud operating model. In closing, I want to thank our teams for their hard work and our partners for their continued trust in us. We enter 2026, our 30th year as a company, well-positioned to extend our momentum. Looking ahead, we're confident in our strategy and our ability to execute to drive long-term value for all stakeholders. With that, I'll turn it over to Scott.