Booking Holdings (BKNG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 8% year-over-year to $4.76 billion, exceeding guidance, driven by strong payment revenues, global diversification, and stable travel demand.

• Room nights reached 319 million, up 7% year-over-year, with gross bookings of $46.7 billion, and strong air ticket growth of 45%.

• Adjusted EBITDA was $1.1 billion, up 21% year-over-year and above guidance; free cash flow for Q1 was $3.2 billion, up 23% year-over-year.

• Net income declined to $333 million, impacted by mark-to-market, FX adjustments, higher interest expense, and one-time pension fund items.

• Strategic priorities advanced, including AI integration, alternative accommodations, Connected Trip vision, and organizational transformation.

Financial highlights

• Q1 revenue was $4.8 billion, up 8% year-over-year; adjusted EPS grew 22% to $24.81; GAAP EPS was $10.07, down 55%.

• Gross bookings rose 7% year-over-year to $46.7 billion; merchant gross bookings up 21%, agency gross bookings down 12.8%.

• Operating income increased to $1.06 billion; adjusted EBITDA margin (TTM) was 35.3%.

• Free cash flow in Q1 was $3.2 billion, benefiting from $1.9 billion in working capital changes.

• Cash, cash equivalents, and investments totaled $16.1 billion at quarter-end.

Outlook and guidance

• Q2 2025 guidance: room nights up 4–6%, gross bookings and revenue up 10–12%, adjusted EBITDA up 13–16% year-over-year.

• Full-year 2025: constant currency gross bookings and revenue expected to grow mid to high single digits; adjusted EPS growth in low- to mid-teens.

• Transformation Program expected to deliver $400–$450 million in annual run rate savings over three years, with restructuring costs estimated at about one times the expected annual savings.

• Guidance ranges widened due to uncertainty, especially for the second half of the year.

• Management remains focused on long-term growth and value delivery amid ongoing geopolitical and macroeconomic uncertainty.