Executive Summary

Q2 revenue of $631M grew 1% YoY and modestly beat S&P Global consensus ($629.1M*), while Adjusted EBITDA of $133M grew 4% YoY with 70 bps margin expansion to 21% . EPS was $0.03 vs Primary EPS consensus of ~$0.03*, effectively in line .
Management raised and narrowed FY25 guidance: revenue to $2.46–$2.515B (+2–4% YoY), Adjusted EBITDA to $505–$540M (+6–13% YoY), and FCF to $140–$160M, citing momentum and efficiency gains .
DOJ dismissed its litigation challenging the CWT deal; close now expected in Q3, enabling accelerated buybacks and positioning for ~$155M net synergies and expanded scale post-close .
Near-term narrative: slight top-line beat and in-line EPS with a clear positive catalyst path (CWT close, higher guidance, buybacks) offset by GAAP pressure (restructuring, taxes, FX) and softer April/APAC trends discussed on the call .

What Went Well and What Went Wrong

What Went Well

Margin execution: Adjusted EBITDA rose to $133M (+4% YoY) and margin expanded 70 bps to 21% on flat adjusted opex, underscoring cost discipline and operating leverage .
Commercial momentum: LTM Total New Wins Value held at $3.2B (SME $2.2B) and 95% retention, evidencing share gains and sticky customer base .
Strategic catalyst track: DOJ dismissal of CWT case clears the path to a Q3 close; management expects to “accelerate share repurchases” and is “incredibly excited about the growth prospects for the combined company” .
- CEO: “We delivered quarterly results ahead of expectations, raised our full-year guidance, reached a significant milestone on CWT and can now accelerate share repurchases…” .
- CFO: “Adjusted EBITDA margin expansion of 70 bps… we are ready to integrate CWT… and our balance sheet will maintain flexibility to… maximize shareholder value.” .

What Went Wrong

GAAP pressure: Operating income fell 21% to $34M and net income fell 48% to $15M due to restructuring charges, FX, and higher taxes, despite revenue growth .
Cash flow softer YoY: Net cash from ops declined 23% to $57M (Egencia working capital benefits in prior year; higher cash taxes), and FCF declined 45% to $27M .
Demand pockets: APAC decelerated, driven “primarily by Australia… timing of tariffs… and the mining vertical;” April was weak amid macro uncertainty (GDP revisions, tariff headlines), though May/June stabilized .

Financial Results

Headline metrics (oldest → newest)

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($M)	$591	$621	$631
Net Income ($M)	$(14)	$75	$15
Diluted EPS ($)	—	$0.16	$0.03
Adjusted EBITDA ($M)	$110	$141	$133
Adjusted EBITDA Margin (%)	19%	23%	21%
Net Cash from Ops ($M)	$65	$53	$57
Free Cash Flow ($M)	$33	$26	$27
Net Debt ($M)	$848	$832	$780

Vs. S&P Global consensus (Q2 2025)

Metric	Actual	Consensus	Surprise
Revenue ($M)	$631	$629.1*	+$1.9 (+0.3%)*
Primary EPS ($)	$0.03	$0.030*	≈ In-line*
EBITDA/Adj. EBITDA ($M)	Adj. EBITDA $133	EBITDA $132.8*	≈ In-line/slight beat*

Values marked with * retrieved from S&P Global.

Note: Company reports Adjusted EBITDA; S&P Global “EBITDA Consensus Mean” may not perfectly align with company Adjusted EBITDA.

Segment mix

Segment ($M)	Q4 2024	Q1 2025	Q2 2025
Travel Revenue	$456	$499	$507
Product & Professional Services Revenue	$135	$122	$124

KPIs and balance/coverage

KPI	Q4 2024	Q1 2025	Q2 2025
TTV ($M)	$6,896	$8,349	$7,891
Transaction Growth YoY	3%	3%	—%; WDA +1%
LTM New Wins Value ($B)	$2.8	$3.2	$3.2
LTM Retention (%)	97%	96%	95%
Net Debt / LTM Adj. EBITDA (x)	1.8x	1.7x	1.6x

Guidance Changes

Metric	Period	Previous Guidance (May 6, 2025)	Current Guidance (Aug 5, 2025)	Change
Revenue	FY 2025	$2.38B–$2.48B	$2.460B–$2.515B	Raised and narrowed
Adjusted EBITDA	FY 2025	$480M–$540M	$505M–$540M	Raised midpoint
Adjusted EBITDA Margin	FY 2025	20.2%–21.8%	20.5%–21.5%	Slightly revised band; higher mid
Free Cash Flow	FY 2025	$120M–$160M	$140M–$160M	Raised low end

Assumptions reiterated: flat transaction growth at midpoint in prior update; increased cost actions (~$110M), continuing investment, neutral FX .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24, Q1’25)	Current Period (Q2’25)	Trend
Macro & Transactions	FY25 guide initially called for 5–7% CC revenue growth; later updated amid softer environment; flat transaction growth at FY midpoint .	April softness amid macro uncertainty (GDP revisions, tariff headlines); stabilization in May/June; July trends improving; H2 transaction growth midpoint 2% (range 0–4%) .	Improving into Q3, but macro-sensitive.
Regional trends (APAC)	2024: global growth; no specific APAC caution called out in Q4 print .	APAC deceleration “primarily driven by Australia… timing of tariffs… mining vertical” .	Mixed; APAC near-term headwind.
Cost actions & productivity	2024/early-2025: margin expansion focus; cost actions rising to ~$110M for FY25 .	70 bps margin expansion; “progress” in traveler care/operations and enterprise efficiency; focus on delivery of $110M cost saves .	Continuing execution; margin support.
Seasonality & Q3 setup	FY cadence noted historically; FY25 initial guide stressed execution .	“September is 40% of our Q3 volumes,” making post–Labor Day demand pivotal .	Normal seasonal skew; visibility hinges on September.
M&A: CWT	Q4: strategic M&A as lever; FY25 outlook included M&A costs .	DOJ dismissal; Q3 close expected; integration readiness and synergy capture plan reiterated .	Clearer path to close; near-term catalyst.
Capital returns	$300M buyback authorized; 8M shares repurchased previously .	“Accelerate share repurchases” post-DOJ dismissal; balance sheet flexibility maintained .	More active repurchases expected.

Management Commentary

CEO Paul Abbott: “We delivered quarterly results ahead of expectations, raised our full-year guidance, reached a significant milestone on CWT and can now accelerate share repurchases to underscore our confidence in the business” .
CFO Karen Williams: “Adjusted EBITDA margin expansion of 70 basis points year over year to reach 21%, while continuing to invest in attractive opportunities for long-term growth… ready to integrate CWT after the expected close in the third quarter” .
On monthly cadence and macro: April was the weak point amid macro uncertainty (GDP revisions, new tariffs); stabilization in May/June; July trends “encouraging,” with September a critical month for Q3 .
On regional dynamics: APAC deceleration driven by Australia, tariff timing, and mining vertical specifics .

Q&A Highlights

Demand trajectory: July trends improved; H2 transaction growth midpoint 2% (0–4% range); Q3 heavily dependent on September, which represents ~40% of quarterly volume .
Regional headwinds: APAC softness centered in Australia, tied to tariff timing and mining sector dynamics .
Cost efficiency: Management reiterated progress toward ~$110M cost savings via productivity and service operations (traveler care), helping protect margins in choppy conditions .
Macro framing: April’s weakness linked to macro uncertainty; not necessarily “recoverable,” but momentum improved in May/June .

Estimates Context

S&P Global consensus for Q2 2025 revenue was ~$629.1M vs actual $631M (beat). Primary EPS consensus was ~$0.030 vs actual $0.03 (in line). EBITDA consensus was ~$132.8M; company reported Adjusted EBITDA of $133M (in line/slight beat). Values retrieved from S&P Global.*
Implications: Modest top-line beat and in-line profitability against consensus, coupled with a guidance raise, should prompt incremental upward adjustments to FY25 revenue and Adjusted EBITDA models at the midpoint. Watch for modeling alignment between consensus EBITDA and company-reported Adjusted EBITDA.

Key Takeaways for Investors

Execution on margins continues to differentiate: 70 bps YoY margin expansion with flat adjusted opex shows strong cost control and operating leverage even on modest revenue growth .
The narrative improved into Q3: July better, with seasonality emphasizing September; guidance raised and narrowed, signaling confidence in H2 .
CWT is a visible near-term catalyst: DOJ dismissal de-risks close, with ~$155M net synergies and planned accelerated buybacks likely supporting sentiment and multiple expansion .
GAAP noise vs non-GAAP trend: Restructuring, taxes, and FX weighed on GAAP net income, but underlying profitability (Adjusted EBITDA) improved—focus models on adjusted metrics for run-rate .
Balance sheet and cash: Leverage improved to 1.6x Net Debt/LTM Adj. EBITDA; FCF guide raised at the low end, providing capacity for buybacks and integration flexibility .
Watch APAC/Australia and tariff impacts: Region-specific headwinds remain a monitoring point for H2 transaction growth .
Post-close integration: Execution on CWT synergies, customer retention, and cross-sell will be central to medium-term upside; integration discipline and cost synergy timing are the key proof points .

Footnote: Values marked with * are retrieved from S&P Global consensus and may reflect differing definitions (e.g., EBITDA vs company Adjusted EBITDA).

Global Business Travel Group, Inc. (GBTG)·Q2 2025 Earnings Summary