EXPE · 10-Q · 2026Q3 · Full report

Operating Expense Trends

Expedia Group, Inc. · 2026-11-05 · Importance 25 · Surprise 6

Direct selling and marketing expense increased $208 million in the third quarter and $506 million in the first nine months of 2026, primarily because of higher B2B partner commissions; lower B2C marketing spend partially offset the increases. Direct selling and marketing fell as a share of revenue, from 44.8% to 44.2% for the quarter and from 50.5% to 48.6% year to date. Technology and content expense rose $24 million in the quarter and $28 million year to date, mainly due to higher licensing, maintenance, and cloud costs; lower personnel costs from prior cost-saving initiatives partly offset the year-to-date increase. General and administrative expense increased in both periods, primarily because of higher stock-based compensation.

Key facts

• Direct selling and marketing costs increased $208 million and $506 million during the three and nine months ended September 30, 2026, respectively, primarily due to increased B2B partner commissions, partly offset by lower B2C marketing spend and current-year marketing leverage. source
• Cost of revenue increased $43 million and $89 million during the three and nine months ended September 30, 2026, respectively, compared with the same periods in 2025, to support revenue growth. source
• Technology and content expense increased $24 million and $28 million during the three and nine months ended September 30, 2026, respectively, primarily due to higher license, maintenance and cloud costs; year-to-date increases were partly offset by lower personnel costs from previously announced cost-saving initiatives. source
• Cost of revenue as a percentage of revenue decreased year to date, driven by efficiencies in servicing and cloud costs. source
• General and administrative expense increased in the three and nine months ended September 30, 2026, primarily due to higher stock-based compensation. source
• Depreciation increased $19 million in the nine months ended September 30, 2026, primarily because of increased capitalized website-development costs. source
• Amortization of intangible assets decreased in the three and nine months ended September 30, 2026, primarily because amortization of certain intangible assets was completed. source
• Indirect selling and marketing costs remained relatively consistent in the three and nine months ended September 30, 2026, compared with the same periods in 2025. source