On April 29, 2025, Booking Holdings Inc (BKNG, Financial) released its 8-K filing detailing its financial results for the first quarter of 2025. As the world's largest online travel agency by sales, Booking Holdings offers a wide range of travel-related services through its various platforms, including Booking.com, Agoda, OpenTable, Rentalcars.com, Kayak, and Momondo. The company primarily generates revenue through transaction fees on online bookings.

Key Financial Metrics and Analyst Estimates

Booking Holdings reported a revenue of $4.8 billion for Q1 2025, surpassing the analyst estimate of $4,586.49 million. However, the company's GAAP earnings per share (EPS) of $10.07 fell short of the estimated EPS of $15.81. The adjusted EPS, on the other hand, was $24.81, reflecting a 22% increase year-over-year.

Performance and Challenges

The company experienced a 7% growth in room nights and gross bookings compared to the first quarter of 2024, with gross bookings reaching $46.7 billion. Revenue also grew by 8% year-over-year. Despite these positive trends, Booking Holdings faced a significant decline in GAAP net income, which decreased by 57% to $0.3 billion. This decline was attributed to increased interest expenses and foreign currency transaction losses.

I am pleased to report a good start to 2025 where healthy growth of room nights and gross bookings in the first quarter benefited from our globally diversified business," said Glenn Fogel, Chief Executive Officer of Booking Holdings.

Financial Achievements and Industry Impact

Booking Holdings' adjusted EBITDA increased by 21% to $1.1 billion, demonstrating strong operational performance. The company's ability to generate free cash flow of $3.2 billion, a 23% increase from the previous year, highlights its robust cash-generating capabilities, which are crucial for sustaining growth and shareholder returns in the Travel & Leisure industry.

Income Statement and Balance Sheet Insights

The company's total operating expenses grew by 2%, which was slower than the 8% growth in revenue, indicating effective cost management. Marketing expenses accounted for 3.8% of gross bookings, slightly up from 3.7% in Q1 2024. On the balance sheet, Booking Holdings reported total assets of $27.191 billion, with cash and cash equivalents amounting to $15.578 billion.

Cash Flow and Shareholder Returns

Net cash provided by operating activities was $3.3 billion, a 21% increase year-over-year. The company actively returned capital to shareholders, repurchasing $1.8 billion of stock and declaring a cash dividend of $9.60 per share, payable on June 30, 2025.

Analysis and Conclusion

Booking Holdings Inc (BKNG, Financial) demonstrated strong revenue growth and cash flow generation in Q1 2025, despite challenges such as increased interest expenses and foreign currency losses impacting net income. The company's strategic focus on long-term growth and value delivery to partners and travelers positions it well in the competitive Travel & Leisure sector. However, the decline in GAAP EPS highlights the need for continued vigilance in managing financial risks and market uncertainties.

Explore the complete 8-K earnings release (here) from Booking Holdings Inc for further details.