Expedia Group (EXPE) saw its shares tumble 6.09% in after-hours trading on Thursday following the release of its first-quarter 2025 financial results. The online travel giant's stock decline was primarily driven by a revenue miss and concerns over weakening travel demand in the United States.

For the quarter ended March 31, Expedia reported revenue of $2.99 billion, falling short of analysts' expectations of $3.01 billion. This miss highlights potential headwinds in the U.S. travel market, which accounts for approximately two-thirds of Expedia's business. Despite the top-line disappointment, the company managed to beat earnings estimates, posting adjusted earnings per share of $0.40, compared to the $0.35 forecast by analysts.

Expedia's CEO Ariane Gorin warned that the weak demand trends observed in Q1 are continuing into the current quarter. This outlook has raised concerns among investors about the overall health of the travel sector and potential shifts in consumer discretionary spending. The company reported total gross bookings of $31.45 billion for Q1, up 4% year-over-year, while booked room nights increased by 6% to 107.7 million. However, these modest gains were overshadowed by the revenue shortfall and cautious forward-looking statements. As the travel industry faces economic uncertainties, Expedia's performance in the coming quarters will be closely watched as a barometer for the sector's resilience and ability to navigate potential headwinds in consumer spending patterns.