Expedia Group (EXPE) raised its full-year 2026 outlook for a second consecutive quarter after third-quarter results again exceeded the high end of its prior guidance, even as year-over-year growth in bookings, revenue and Adjusted EBITDA slowed from the second quarter.

The global travel marketplace reported third-quarter gross bookings of $34.01 billion, up 11% from a year earlier, after 12% growth in the second quarter and 13% in the first. Revenue was $4.94 billion, up 12% after 14% growth in the second quarter. Adjusted EBITDA was $1.69 billion, up 17%, with 135 basis points of margin expansion. GAAP net income attributable to Expedia Group was $1.03 billion, or $8.42 a share.

Chief executive Ariane Gorin said the company exceeded the high end of guidance, citing resilient travel demand and strong execution.

B2B remained the faster engine. B2B gross bookings grew 19% to $11.15 billion and B2B revenue grew 23% to $1.71 billion, matching the second-quarter revenue rate. B2C gross bookings grew 7% to $22.86 billion and B2C revenue grew 6% to $3.07 billion. Other revenue, which includes trivago, rose 20% to $165 million.

Lodging gross bookings grew 10% to $24.88 billion. Booked room nights rose 7% to 115.7 million, a faster pace than the 6% increase in each of the first two quarters. Average daily rate booked was $215.00. Merchant gross bookings grew 15% to $21.65 billion; agency bookings grew 4% to $12.36 billion. Non-lodging bookings grew 14% to $9.13 billion. Booked air tickets fell 6% to 13.6 million.

Lodging revenue rose 11% to $3.99 billion. U.S. points of sale contributed $2.85 billion of revenue and non-U.S. points of sale $2.09 billion, each up 12%. Advertising and media revenue from Expedia Group brands was $206 million; trivago advertising revenue was $165 million. Other revenue, primarily insurance, car rental, destination services and cruise, rose 28% to $483 million. Air revenue was $93 million.

Revenue margin was 14.5% of gross bookings. Adjusted EBITDA margin was 34.2%. B2C Adjusted EBITDA was $1.33 billion, with a 43.5% margin. B2B Adjusted EBITDA was $470 million, with a 27.5% margin. Other Adjusted EBITDA was a $112 million loss. Operating income was $1.33 billion. Diluted GAAP earnings per share rose 15%. Adjusted EPS was $9.39.

Net cash used in operating activities was $1.16 billion in the quarter, and free cash flow was a $1.40 billion outflow. The company repurchased about 2 million shares for $576 million, after buying about 880 thousand shares for $200 million in the second quarter. It paid a $0.48 quarterly dividend on September 17 and declared another $0.48 dividend payable December 10.

For the fourth quarter, Expedia Group guides to gross bookings of $27.9 billion to $28.4 billion, revenue of $3.69 billion to $3.75 billion, and Adjusted EBITDA of $830 million to $880 million. Full-year 2026 guidance now calls for gross bookings of $131.4 billion to $131.9 billion, up 10%, revenue of $16.37 billion to $16.43 billion, up 11% to 12%, and Adjusted EBITDA margin expansion of 1.8 to 2.0 points.