Shares of Expedia Group (EXPE) tumbled 5.20% in after-hours trading on Thursday following the release of its first-quarter 2025 financial results. The online travel platform's revenue fell short of analysts' expectations, overshadowing an earnings beat and raising concerns about weakening travel demand in the United States.

Expedia reported revenue of $2.99 billion for the quarter, missing the consensus estimate of $3.01 billion. This shortfall appears to be the primary driver behind the stock's decline, as it signals potential headwinds in the U.S. travel market. Despite the revenue miss, the company managed to surpass earnings expectations, reporting adjusted earnings per share of $0.40, compared to analysts' forecast of $0.35.

The mixed results highlight the challenges facing the travel industry amid economic uncertainties and shifting consumer spending patterns. While Expedia's bottom line showed resilience with an expansion in EBITDA margin and better-than-expected adjusted net income of $53 million, the top-line miss suggests that the company may be grappling with softening travel demand, particularly in its home market. Investors will likely be closely monitoring Expedia's performance in the coming quarters to gauge the overall health of the travel sector and the company's ability to navigate potential headwinds in consumer discretionary spending.