Booking Holdings reported $49.7 billion in gross bookings for the third quarter of 2025

On October 28, 2025, Booking Holdings reported that its gross bookings grew 14% year-over-year to $49.7 billion during the third quarter of 2025. The travel platform operator, which manages Booking.com, Priceline, and other brands, attributed the performance to steady travel demand and increased adoption of its integrated booking features.

The Norwalk, Connecticut-based company reported that its revenue for the three months ended September 30, 2025, grew 13% to $9.0 billion compared to the third quarter of 2024. On a constant currency basis, gross bookings grew 10% and revenue grew 8%, reflecting a significant impact from foreign exchange fluctuations during the period.

What the data shows

The financial results published by Booking Holdings showed expansion across several key metrics during the third quarter of 2025. Room nights grew 8% compared to the third quarter of 2024, reaching 323 million. According to the company's financial tables, GAAP net income rose 9% year-over-year to $2.7 billion, up from $2,517 million in the third quarter of 2024. GAAP diluted earnings per share rose 14% to $84.41, compared to $74.34 in the prior-year period.

Adjusted earnings per share, which excludes certain non-operating items, grew 19% to $99.50. Adjusted EBITDA rose 15% to $4.2 billion, up from the prior-year quarter. However, cash flow metrics experienced a decline during the period. Both net cash provided by operating activities and free cash flow fell 40% to $1.4 billion for the three months ended September 30, 2025. On a year-to-date basis, net cash provided by operating activities rose 4% and free cash flow rose 6% compared to the first nine months of 2024.

The company's margins shifted during the quarter. The net income margin was 30.5%, representing a decline from 31.5% in the third quarter of 2024. Conversely, the adjusted EBITDA margin rose to 47.0%, up from 45.8% in the same period of the prior year. Total revenues of $9,008 million were driven primarily by merchant revenues, which grew to $6,131 million from $4,972 million in the third quarter of 2024. Agency revenues fell to $2,569 million from $2,753 million, while advertising and other revenues rose to $308 million from $269 million in the prior-year quarter.

How it was measured

The figures were compiled and reported by Booking Holdings in its unaudited consolidated financial statements for the period ended September 30, 2025. The company prepared these statements in accordance with accounting principles generally accepted in the United States of America (GAAP). To supplement these metrics, the company used non-GAAP financial measures, including adjusted net income, adjusted earnings per share, adjusted EBITDA, and free cash flow, which is defined as net cash provided by operating activities less capital expenditures.

Gross bookings, as defined by the company, is an operating and statistical metric that captures the total dollar value, generally inclusive of taxes and fees, of all travel services booked by customers, net of cancellations. Constant currency metrics were calculated by converting current-year results in currencies other than U.S. dollars using the corresponding prior-year period monthly average exchange rates. Corroborating industry data confirmed that the company's revenue rose 12.7% year-over-year to $9.01 billion, exceeding analyst forecasts, while the operating margin was 38.7%, representing a slight decrease from the previous year's operating margin of 39.8%.

Alternative accommodation performance

For short-term rental hosts and property managers, the performance of Booking.com's alternative accommodation sector was a key indicator of market health. Alternative accommodation room nights at Booking.com increased by about 10% during the third quarter of 2025 compared to the third quarter of 2024. This growth rate exceeded the platform's overall room night growth rate of 8%.

Average daily rates (ADRs) for accommodations on a constant currency basis rose by about 1% during the quarter. The company also reported that over the trailing four quarters, the mix of total room nights booked through the direct channel was a mid-fifties percentage and increased year-over-year, indicating that more customers were booking directly with the platform rather than through intermediaries.

The platform also expanded its ancillary offerings to support its Connected Trip initiative. According to industry reports, Booking.com integrated 150,000 attractions from FareHarbor in September 2025, adding walking tours, train rides, ziplining, and boat excursions to its platform. This integration aimed to encourage users to book multiple travel elements within a single transaction.

“We are pleased to report a strong third quarter, with 8% room night growth and double-digit gains in gross bookings and revenue, highlighting the strength of our platform, the discipline of our execution, and the momentum we’re building for the future,” said Glenn Fogel, Chief Executive Officer of Booking Holdings.

Operating expenses and the transformation program

The company's total operating expenses rose 15% to $5,525 million, growing faster than the 13% increase in revenue. This rise in expenses was driven by several factors, including a $457 million impairment charge related to KAYAK's goodwill and certain intangible assets. The impairment was primarily driven by a reduction in forecasted cash flows for KAYAK, reflecting its meta-search business being impacted by expected increases in customer acquisition costs.

Other operating expenses during the three months ended September 30, 2025, included marketing expenses of $2,340 million, up from $2,151 million in the third quarter of 2024. Marketing expense as a percentage of gross bookings was 4.7%, down from 5.0% in the prior-year quarter. Sales and other expenses rose to $1,022 million from $872 million, while personnel expenses increased to $945 million from $868 million. Personnel expenses included stock-based compensation of $150 million. General and administrative expenses fell to $254 million from $575 million, and information technology expenses rose to $242 million from $194 million. Depreciation and amortization expenses rose to $160 million from $155 million.

The company also recorded transformation costs of $105 million during the quarter. Due to stronger-than-expected early results from its Transformation Program, Booking Holdings raised its expectation for the ultimate annual run-rate savings to a range of $500 to $550 million, up from its previous guidance of $400 to $450 million, compared to its 2024 expense base.

Capital structure and shareholder returns

Booking Holdings continued its active return of capital to shareholders during the quarter. The company repurchased $0.7 billion of stock during the three months ended September 30, 2025. As of September 30, 2025, the total remaining stock repurchase authorization was $23.9 billion. Additionally, the company's Board of Directors declared a cash dividend of $9.60 per share, payable on December 31, 2025, to stockholders of record as of the close of business on December 5, 2025.

The company's balance sheet as of September 30, 2025, showed cash and cash equivalents of $16,509 million, compared to $16,164 million on December 31, 2024. Total current assets were $21,703 million, while total assets stood at $28,752 million. On the liabilities side, accounts payable rose to $4,025 million from $3,824 million on December 31, 2024. Accrued expenses and other current liabilities fell to $4,958 million from $6,047 million. Deferred merchant bookings, which represent cash received from customers before travel occurs, rose to $6,283 million from $4,031 million. Short-term debt fell to $999 million from $1,745 million, while long-term debt rose to $15,997 million from $14,853 million. Total liabilities were $33,488 million, resulting in a total stockholders' deficit of $4,736 million, compared to a deficit of $4,020 million at the end of 2024.

Future outlook and demand trends

Looking ahead, Booking Holdings provided guidance for the fourth quarter and full year of 2025, reflecting steady travel demand trends despite macroeconomic and geopolitical uncertainty. For the fourth quarter of 2025, the company expected room nights growth of 4% to 6% and gross bookings growth of 11% to 13%, or 6% to 8% on a constant currency basis. Fourth-quarter revenue growth was expected to be 10% to 12%, or 5% to 7% on a constant currency basis, including a foreign currency benefit of about 5%. Adjusted EBITDA for the fourth quarter was projected to be between $2.0 billion and $2.1 billion, representing growth of 8% to 14%.

For the full year of 2025, the company expected room nights growth of about 7% and gross bookings growth of about 11% to 12%, or about 8% to 9% on a constant currency basis. Full-year revenue growth was projected to be about 12%, or about 9% on a constant currency basis, with a currency benefit of about 3%. Full-year adjusted EBITDA growth was expected to be about 17% to 18%.

What the numbers did not reveal

While the financial results provided a comprehensive view of Booking Holdings' corporate performance, they left several key operational details undisclosed. The company did not publish the exact number of room nights booked specifically within the alternative accommodation segment, stating only that they grew by about 10%. This omission makes it difficult for short-term rental operators to compare their individual volume growth directly against the platform's inventory performance.

Additionally, the report did not break down alternative accommodation performance by geographic region. While the company noted steady travel demand trends, it did not specify whether this demand was concentrated in North America, Europe, or other global markets. This lack of regional specificity limits the utility of the data for localized hosts and property managers who rely on regional demand trends to set pricing and marketing strategies.

Finally, the company did not provide a reconciliation between its forward-looking adjusted EBITDA and GAAP net income. The company stated that it could not forecast certain reconciling items without unreasonable effort due to their unpredictable nature. Consequently, investors were left without a clear projection of GAAP net income for the fourth quarter or full year of 2025.

What to take from it

The financial results from the third quarter of 2025 offer several key lessons for short-term rental hosts, property managers, and industry investors looking to benchmark their performance.

• Monitor the gap between volume growth and pricing growth. The platform's 10% alternative accommodation volume growth contrasted with a modest 1% increase in average daily rates, suggesting that inventory expansion, rather than rate hikes, drove performance.
• Watch direct booking channel trends. The year-over-year increase in Booking Holdings' direct channel mix to a mid-fifties percentage highlights the growing importance of direct customer relationships and loyalty programs like Genius.
• Track platform operating expenses. When platform operating expenses grow faster than revenues, as they did at 15% versus 13% this quarter, it often signals rising customer acquisition costs that could eventually pressure host commission structures or fee policies.