Adjusted earnings per share increased 32% year-over-year, helped by a 5% lower average share count.
Adjusted EBITDA grew 28% year-over-year, driven by revenue outperformance and disciplined expense management.
Adjusted fixed operating expenses increased 11% year-over-year, impacted by performance-based compensation, cloud costs, and a legal settlement.
Alternative accommodations room nights grew 10%, outpacing core hotel business growth.
Booking Holdings reported strong Q2 2025 results with room nights reaching 309 million, an 8% year-over-year increase, exceeding prior expectations.
Free cash flow was $3.1 billion in the quarter, with ending cash and investments at $18.2 billion, up from $16.1 billion in Q1.
Gross bookings increased 13% year-over-year and revenue grew 16%, both above the high end of guidance.
Marketing expenses increased 10% year-over-year but were a source of leverage due to lower brand marketing and higher direct mix.
Share repurchases totaled $1.3 billion and dividends $300 million in the quarter.
Transformation program savings of $45 million were realized in-quarter, with $150 million expected in 2025 and total run rate savings of $350 million anticipated.
Adjusted free cash flow productivity for the quarter was 110%; returned $3.3 billion to shareholders.
Adjusted free cash flow productivity was 87%; returned $16 billion to shareholders including $10 billion in dividends and $6.5 billion in share repurchases.
Core earnings per share for the quarter were $1.48, up 6% versus prior year; core operating margin increased 150 basis points.
Core earnings per share were $6.83, up 4% for the year; core gross margin declined 40 basis points; core operating margin increased 50 basis points.
E-commerce sales increased 12%, representing 19% of total company sales.
Enterprise Markets were up 2%, led by Latin America with 4% organic sales growth.
Fiscal '25 organic sales grew 2%, with volume growth contributing 1 point and price/mix adding 1 point.
Focus Markets grew organic sales 2% for the year; North America up 2%, Europe Focus Markets up 3%.
Fourth quarter organic sales were 2%, with volume in line with prior year and pricing and mix each up 1%.
Greater China organic sales were down 5% for the year but grew 2% sequentially in the most recent quarter.
Nearly $2.7 billion of productivity improvements enabled increased investment in products, packaging, and brand communication.
Nine of 10 product categories grew organic sales for the year; Baby Care was down low singles.
Dafinchi
