EXPE · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

Expedia Group, Inc. · 2026-11-05 · Importance 40 · Surprise 56

The effective tax rate was 20.3% in the third quarter of 2026, up from 14.7% in the third quarter of 2025. For the first nine months, the rate increased to 19.3% from 18.5%. Expedia attributed the changes in both comparisons primarily to a change in unrecognized tax benefits recorded in the third quarter of 2025 in connection with a U.S. federal income tax audit. The company estimates the IRS’s proposed adjustments for 2011–2018 would result in federal income tax of approximately $988 million to $1.224 billion, before interest, and says it will contest them through administrative procedures.

Key facts

• Expedia Group’s effective tax rate was 20.3% for Q3 2026 versus 14.7% for Q3 2025, and 19.3% for the first nine months of 2026 versus 18.5% for the first nine months of 2025; changes primarily reflected a change in unrecognized tax benefits recorded in Q3 2025 in connection with a U.S. federal income-tax audit. source