Expedia Group, Inc. (EXPE) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that Expedia Group, Inc. surfaced in its latest filing.

• Hurricanes Helene and Milton negatively impacted financial results for the third and fourth fiscal quarters of 2024, respectively.2024
• The COVID-19 pandemic severely restricted economic activity and had an unprecedented negative impact on the global travel industry, causing pressure on working capital, cash flow, and liquidity.
• War in Ukraine and the Israel-Hamas war can impact travel behaviors.
• The company has been subject to fraudulent impersonation schemes involving external actors impersonating its business and customer support operations via fake phone numbers and links in search results.
• The company has migrated key portions of its platform functionality to Amazon Web Services (AWS). Platform availability now depends on AWS, and AWS infrastructure incidents have occurred a number of times in the recent past.
• The company is engaged in a multi-year effort beginning in 2020 to migrate products, data storage and processing to new technology platforms and increase reliance on public cloud computing services, primarily AWS.2020
• The General Data Protection Regulation (GDPR) went into effect in the European Union in May 2018.May 2018
• Twenty U.S. states have passed comprehensive privacy legislation.
• The Federal Trade Commission Rule on Unfair or Deceptive Fees, effective May 2025, relating to price display for accommodation and live events.May 2025
• The EU Short-Term Rental Law effective May 2026 requires registration numbers for all EU alternative accommodations where a registration system exists.May 2026
• In 2020, the Australian Competition and Consumer Commission held that aspects of trivago subsidiary's accommodation offering on its Australian website breached Australian Consumer Law.2020
• Expedia Group companies have been involved in investigations by national competition authorities related to whether parity clauses in contracts with accommodation providers are anti-competitive.
• Taxing authorities have made inquiries, filed lawsuits, and levied assessments asserting the company is required to collect and remit state and local sales or use taxes, value added taxes, or other transactional taxes related to its travel facilitation services.
• As of December 31, 2025, the company has $6.3 billion face value of long-term indebtedness and a revolving credit facility of $2.5 billion essentially untapped.December 31, 2025
• Mr. Diller may be deemed to beneficially own 100% of Class B common stock, representing approximately 32% of total voting power as of December 31, 2025.December 31, 2025
• Recent leadership transitions may cause business disruption.
• The company depends on Barry Diller, Chairman and Senior Executive, and Ariane Gorin, CEO, whose loss could seriously harm the business.
• Failure to meet or exceed forward-looking guidance the company has given.
• Announcements relating to development or implementation of AI technologies.
• The legal proceedings described in Part I. Item 3. Legal Proceedings.