EXPE · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

Expedia Group, Inc. · 2026-08-06 · Importance 25 · Surprise 32

Cost of revenue increased $26 million in the second quarter and $46 million in the first six months of 2026 compared with the prior-year periods. Cost of revenue declined as a percentage of revenue to 9.3% in the quarter from 9.9% and to 10.1% year to date from 10.8%. The improvement was driven by continued payment-processing efficiencies despite higher transaction, support, cloud, and related operating costs. Revenue margin increased to 12.7% from 12.4% in the quarter and to 11.1% from 10.9% year to date, with B2B revenue margin rising to 13.9% from 13.7% in the quarter and to 12.5% from 12.2% year to date.

Key facts

• Total revenue margin for the three months ended June 30, 2026 was 12.7% compared to 12.4% for the three months ended June 30, 2025. source
• Total cost of revenue as a percentage of revenue for the three months ended June 30, 2026 was 9.3% compared to 9.9% for the three months ended June 30, 2025. source
• Cost of revenue increased $26 million and $46 million during the three and six months ended June 30, 2026 compared to the same periods in 2025. source