EXPENEUTRAL

EXPE Gross Margin Analysis

90.7%

Updated 33h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue a company keeps after paying the direct costs of providing its services, so a gross margin of 89.0% means Expedia retains 89 cents from every dollar of bookings revenue before other expenses.

Sector Performance

99th percentile

EXPE

90.7%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

89.0%(Jul 2026)

↑ Improving

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Deep Analysis

This is far above the sector median of 44.6%, placing Expedia in the 99th percentile among sector peers, which signals an exceptionally cost-efficient core business model. Trend data are not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and the last 8 quarters show no trend direction. Without a trend, the high margin cannot be confirmed as stable or improving, so it offers a strong level signal but no momentum evidence. This combination implies limited near-term risk from margin compression, but also no clear opportunity from margin expansion given the unknown trajectory. The 89.0% gross margin supports a NEUTRAL verdict: the exceptional level justifies a positive view on profitability, yet the missing trend and neutral overall assessment temper any stronger conclusion.

Frequently Asked Questions

What does the Gross Margin tell investors about EXPE?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are EXPE's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.