EXPE · 10-Q · 2026Q2 · Full report

Operating Expense Trends

Expedia Group, Inc. · 2026-08-06 · Importance 42 · Surprise 40

Direct selling and marketing expense increased $199 million in the second quarter and $298 million in the first six months of 2026, primarily because of higher B2B partner commissions supporting revenue growth. B2C marketing spending declined year to date because of significant marketing leverage, and direct selling and marketing fell to 49.1% of quarterly revenue from 50.7% and 51.4% year to date from 54.3%. Technology and content expense remained relatively consistent as higher licensing, maintenance, and cloud costs were offset by lower personnel costs from prior cost-saving initiatives. General and administrative expense increased in both periods primarily because of higher stock-based compensation, with additional year-to-date pressure from charitable contributions.

Key facts

• Selling and marketing - direct for the three months ended June 30, 2026 was $2,119 million compared to $1,920 million for the three months ended June 30, 2025, an increase of $199 million. source
• Selling and marketing - direct as a percentage of revenue for the three months ended June 30, 2026 was 49.1% compared to 50.7% for the three months ended June 30, 2025. source
• Technology and content expense as a percentage of revenue for the three months ended June 30, 2026 was 7.5% compared to 8.6% for the three months ended June 30, 2025. source
• Technology and content expense remained relatively consistent during the three and six months ended June 30, 2026 compared to the same periods in 2025 as higher license and maintenance costs and cloud costs were mostly offset by lower personnel costs in connection with previously announced cost saving initiatives. source
• General and administrative expense as a percentage of revenue for the three months ended June 30, 2026 was 4.7% compared to 5.2% for the three months ended June 30, 2025. source
• General and administrative expense increased during the three and six months ended June 30, 2026 compared to the same periods in 2025, primarily due to higher stock-based compensation and higher miscellaneous items, including charitable contributions. source
• Depreciation increased $5 million and $18 million during the three and six months ended June 30, 2026 compared to the same periods in 2025, primarily as a result of increased capitalized website development costs. source