Image Source: Booking Holdings
By Brian Nelson, CFA
On October 28, Booking Holdings (BKNG) reported better than expected third quarter results with both revenue and non-GAAP earnings per share exceeding the consensus forecast. Revenue grew 13% compared to the third quarter of 2024, or 8% on a constant currency basis. Room nights increased 8% compared to the third quarter of 2024, while gross bookings advanced 14% compared to the same period a year ago, or 10% on a constant currency basis. Adjusted earnings per share and adjusted EBITDA expanded 19% and 15% year-over-year, respectively.
Management had the following to say about the results:
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. Through the Connected Trip, where more customers are choosing to book multiple travel elements with us, deeper engagement through our Genius loyalty program, and our innovations in GenAI, we are building offerings that enhance our value proposition for both customers and suppliers.
Booking Holdings’ net cash provided by operations was $7.9 billion through the first nine months of the year, while it spent $249 million in property and equipment, resulting in free cash flow of $7.67 billion, or 37.3% of total revenue. Cash, cash equivalents and long-term investments were $17.2 billion at the end of the quarter, while total debt was $17 billion. Booking Holdings repurchased $0.7 billion of stock in the quarter and had $23.9 billion in remaining authorization at the end of the quarter. It pays a quarterly cash dividend of $9.60 per share.
Looking to the fourth quarter of 2025, Booking Holdings expects revenue growth in the range of 10%-12% (5%-7% in constant currency), with room nights growth of 4%-6% and gross bookings growth of 11%-13%. Constant currency gross bookings growth is targeted in the range of 6%-8%. Adjusted EBITDA is expected in the range of $2.0-$2.1 billion, reflecting 8%-14% growth. Looking to all of full year 2025, revenue growth is expected to be about 12% (9% in constant currency), with adjusted EBITDA growth of about 17%-18%. We continue to like Booking Holdings as an idea in the newsletter portfolios.
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Brian Nelson owns shares in SPY, SCHG, QQQ, QQQM, DIA, VOT, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, QQQM, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, RSP, SCHG, QQQ, QQQM, and VOO. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
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