# Booking Holdings (BKNG) Q2 2025 Financial Results Summary
Booking Holdings Inc. (NASDAQ: BKNG) released its second quarter 2025 financial results on July 29, 2025. Below is a summary of the key metrics highlighted in the report:
## Q2 2025 Financial Highlights
– **Room Nights**: 309 million, an **8% increase** compared to Q2 2024.
– **Gross Bookings**: $46.7 billion, a **13% increase** year-over-year, or **9% increase** on a constant currency basis.
– **Revenue**: $6.8 billion, reflecting a **16% increase** from the same quarter last year, or a **12% increase** based on constant currency.
### Profit Metrics
– **GAAP Net Income**: $895 million, a **41% decrease** year-over-year.
– **GAAP EPS**: $27.43, down **38%** from Q2 2024.
– **Adjusted EPS**: $55.40, representing a **32% increase** year-over-year.
– **Adjusted EBITDA**: $2.4 billion, **28% growth** compared to Q2 2024.
### Cash Flow
– **Net Cash Provided by Operating Activities**: $3.2 billion, an increase of **27%** year-over-year.
– **Free Cash Flow**: $3.1 billion, which is a **32% increase** compared to the same quarter last year.
### Dividends and Share Repurchases
– The Board declared a **cash dividend of $9.60 per share**, payable on September 30, 2025, to stockholders of record as of September 5, 2025.
– During the quarter, the company repurchased **$1.3 billion** of stock, with a remaining authorization of **$24.6 billion** for further buybacks.
### Margins
– **Net Income Margin**: 13.2%, down from **26.0%** in Q2 2024.
– **Adjusted EBITDA Margin**: 35.6%, increased from **32.4%** the previous year.
### Operating Expenses
– **Total Operating Expenses**: Increased by **14%**, slower than the **16% growth** in revenue.
– **Adjusted Fixed Operating Expenses**: Increased by **11%** mainly due to unfavorable foreign exchange impacts, higher performance-based compensation accruals, and rising cloud computing costs.
### Marketing Metrics
– **Marketing Expense as a Percentage of Gross Bookings**: 4.6%, slightly down from **4.7%** in Q2 2024.
– Approximately **mid-fifties percentage** of room nights were booked via the direct channels, which showed **year-over-year improvement**.
### Performance and Outlook
– The company reached a milestone with **Connected Trip transactions** growing over **30%** year-over-year.
– Interest in booking multiple travel verticals continues to grow, with flight ticket bookings alone up by **44%**.
### Guidance
For Q3 2025 and full-year 2025, Booking Holdings provided the following outlook:
– **Room Nights Growth**: Anticipated between **3.5% to 5.5%**.
– **Gross Bookings Growth**: Expected between **8% to 10%**, with constant currency gross bookings growth projected to be **4% to 6%**.
– **Revenue Growth**: Expected to be in the range of **7% to 9%**, with a constant currency revenue growth forecasted to be around **3% to 5%**.
– **Adjusted EBITDA**: Projected to be between **$3.9 billion to $4.0 billion**, signifying a growth of **6% to 9%** year-over-year.
Booking Holdings’ strong results reflect its ongoing success in the travel sector, despite the challenges posed by geopolitical uncertainties and potential shifts in consumer behavior. The company remains focused on strategic initiatives to sustain its growth trajectory.
Here are the extracted tables from the press release:
### Unaudited Consolidated Statements of Operations (In millions, except share and per share data)
| Three Months Ended June 30 | 2025 | 2024 |
|---|---|---|
| Merchant revenues | $ 4,457 | $ 3,446 |
| Agency revenues | 2,044 | 2,144 |
| Advertising and other revenues | 297 | 269 |
| Total revenues | 6,798 | 5,859 |
| Operating expenses: | ||
| Marketing expenses | 2,139 | 1,939 |
| Sales and other expenses | 899 | 820 |
| Personnel, including stock-based compensation of $154, $140, $296, and $284, respectively | 896 | 807 |
| General and administrative | 199 | 112 |
| Information technology | 219 | 183 |
| Depreciation and amortization | 158 | 142 |
| Transformation costs | 38 | — |
| Total operating expenses | 4,548 | 4,003 |
| Operating income | 2,250 | 1,856 |
| Interest expense | (418) | (264) |
| Interest and dividend income | 234 | 293 |
| Other income (expense), net | (962) | 37 |
| Income before income taxes | 1,104 | 1,922 |
| Income tax expense | 209 | 401 |
| Net income | $ 895 | $ 1,521 |
| Net income applicable to common stockholders per basic common share | $ 27.54 | $ 44.94 |
| Weighted-average number of basic common shares outstanding (in 000’s) | 32,494 | 33,839 |
| Net income applicable to common stockholders per diluted common share | $ 27.43 | $ 44.38 |
| Weighted-average number of diluted common shares outstanding (in 000’s) | 32,619 | 34,267 |
### Condensed Consolidated Balance Sheets (In millions, except share and per share data)
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 17,595 | $ 16,164 |
| Accounts receivable, net (Allowance for expected credit losses of $145 and $146, respectively) | 4,370 | 3,199 |
| Prepaid expenses, net | 626 | 587 |
| Other current assets | 672 | 541 |
| Total current assets | 23,263 | 20,491 |
| Property and equipment, net | 848 | 832 |
| Operating lease assets | 593 | 559 |
| Intangible assets, net | 1,291 | 1,382 |
| Goodwill | 2,855 | 2,799 |
| Long-term investments | 559 | 536 |
| Other assets, net | 1,275 | 1,109 |
| Total assets | $ 30,684 | $ 27,708 |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||
| Current liabilities: | ||
| Accounts payable | $ 4,280 | $ 3,824 |
| Accrued expenses and other current liabilities | 4,208 | 6,047 |
| Deferred merchant bookings | 9,149 | 4,031 |
| Short-term debt | 999 | 1,745 |
| Total current liabilities | 18,636 | 15,647 |
| Deferred income taxes | 36 | 289 |
| Operating lease liabilities | 517 | 483 |
| Long-term U.S. transition tax liability | — | 257 |
| Other long-term liabilities | 679 | 199 |
| Long-term debt | 17,473 | 14,853 |
| Total liabilities | 37,341 | 31,728 |
| Commitments and contingencies | ||
| Stockholders’ deficit: | ||
| Common stock, $0.008 par value, Authorized shares: 1,000,000,000 Issued shares: 64,509,961 and 64,276,130, respectively | 1 | |
| Treasury stock: 32,087,882 and 31,329,265 shares, respectively | (51,502) | (47,877) |
| Additional paid-in capital | 8,028 | 7,707 |
| Retained earnings | 37,119 | 36,525 |
| Accumulated other comprehensive loss | (303) | (375) |
| Total stockholders’ deficit | (6,657) | (4,020) |
| Total liabilities and stockholders’ deficit | $ 30,684 | $ 27,708 |
