Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Booking Holdings Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income	5,404)	5,882)	4,289)	3,058)	1,165)
Depreciation and amortization	623)	591)	504)	451)	421)
Provision for expected credit losses and chargebacks	416)	412)	330)	232)	109)
Deferred income taxes	(516)	98)	(478)	(257)	(445)
Net (gains) losses on equity securities	(46)	(63)	131)	963)	569)
Stock-based compensation expense	617)	599)	530)	404)	376)
Operating lease amortization	145)	160)	161)	156)	178)
Unrealized foreign currency transaction (gains) losses related to Euro-denominated debt	1,428)	(526)	163)	(46)	(135)
Impairment	457)	—)	—)	—)	—)
Amortization of debt discount and change in fair value of the conversion option related to the convertible senior notes	360)	796)	—)	—)	—)
Loss on early extinguishment of debt	—)	—)	—)	—)	242)
Gain on sale and leaseback transaction	—)	—)	—)	(240)	—)
Other	(14)	7)	5)	38)	71)
Accounts receivable	(730)	(506)	(1,330)	(1,228)	(1,002)
Prepaid expenses and other current assets	100)	(12)	155)	(217)	6)
Deferred merchant bookings and other current liabilities	796)	1,361)	2,742)	3,718)	1,539)
Other	369)	(476)	142)	(478)	(274)
Changes in assets and liabilities	535)	367)	1,709)	1,795)	269)
Adjustments to reconcile net income to net cash provided by operating activities	4,005)	2,441)	3,055)	3,496)	1,655)
Net cash provided by operating activities	9,409)	8,323)	7,344)	6,554)	2,820)
Purchase of investments	—)	(33)	(12)	(768)	(17)
Proceeds from sale and maturity of investments	—)	590)	1,840)	32)	508)
Additions to property and equipment	(322)	(429)	(345)	(368)	(304)
Acquisitions, net of cash acquired	—)	—)	—)	—)	(1,185)
Proceeds from sale and leaseback transaction	—)	—)	—)	601)	—)
Other investing activities	9)	1)	3)	(15)	—)
Net cash (used in) provided by investing activities	(313)	129)	1,486)	(518)	(998)
Proceeds from the issuance of long-term debt	3,681)	4,836)	1,893)	3,621)	2,015)
Payments on maturity, redemption, and conversion of debt	(4,970)	(1,312)	(500)	(1,880)	(3,068)
Payments for repurchase of common stock	(6,440)	(6,509)	(10,377)	(6,621)	(163)
Dividends paid	(1,248)	(1,174)	—)	—)	—)
Proceeds from exercise of stock options	15)	14)	134)	7)	5)
Other financing activities	47)	(59)	(59)	(24)	(28)
Net cash used in financing activities	(8,915)	(4,204)	(8,909)	(4,897)	(1,239)
Effect of exchange rate changes on cash and cash equivalents and restricted cash and cash equivalents	895)	(190)	(37)	(40)	(13)
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents	1,076)	4,058)	(116)	1,099)	570)
Cash and cash equivalents and restricted cash and cash equivalents, beginning of period	16,193)	12,135)	12,251)	11,152)	10,582)
Cash and cash equivalents and restricted cash and cash equivalents, end of period	17,269)	16,193)	12,135)	12,251)	11,152)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The company demonstrates a consistent increase in net income over the observed period, rising from US$1,165 million in 2021 to US$5,882 million in 2024 before decreasing slightly to US$5,404 million in 2025. Operating cash flow follows a similar upward trajectory, growing from US$2,820 million in 2021 to US$9,409 million in 2025. However, financing activities consistently represent a significant cash outflow, primarily driven by stock repurchases and debt repayments.

Operating Activities: Net cash provided by operating activities exhibits a strong positive trend, increasing year over year until 2025. This growth is largely attributable to the increasing net income, coupled with adjustments for non-cash items like depreciation, amortization, stock-based compensation, and changes in working capital. Significant fluctuations are observed in deferred merchant bookings and other current liabilities, impacting cash flow. The unrealized foreign currency transaction gains/losses also introduce volatility, with a substantial gain in 2025.
Investing Activities: Investing activities show considerable variability. 2022 experienced a substantial cash outflow due to the purchase of investments. 2023, however, saw a significant inflow from the proceeds of sale and maturity of investments. Additions to property and equipment remain relatively consistent as a cash outflow. Acquisitions represent a large outflow in 2021, with no similar activity in subsequent years.
Financing Activities: Financing activities are characterized by substantial cash outflows, primarily due to payments for the repurchase of common stock. These repurchases are the dominant factor driving the negative cash flow from financing, particularly in 2022, 2023, and 2024. Proceeds from the issuance of long-term debt provide inflows, but these are often offset by payments on maturing debt. Dividends paid begin in 2024 and increase in 2025.
Working Capital: Changes in accounts receivable and deferred merchant bookings and other current liabilities have a notable impact on operating cash flow. Accounts receivable consistently represent a cash outflow, while deferred merchant bookings initially contribute significantly to cash inflow but decrease over time. Prepaid expenses and other current assets show fluctuations, but generally have a smaller impact on overall cash flow.
Non-Recurring Items: Several non-recurring items influence the cash flow statement. A loss on early extinguishment of debt occurred in 2021, while a gain on sale and leaseback transaction occurred in 2022. Amortization of debt discount and change in fair value of the conversion option related to the convertible senior notes are significant outflows in 2024 and 2025. Impairment charges are only present in 2025.

Overall, the company generates substantial cash flow from operations, which is partially offset by significant investments in stock repurchases and debt management. The fluctuations in investing activities and the impact of non-recurring items contribute to the overall complexity of the cash flow statement. The increasing net income and operating cash flow suggest strong underlying business performance, while the financing activities indicate a focus on returning capital to shareholders and managing the capital structure.

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Booking Holdings Inc. (NASDAQ:BKNG)

Cash Flow Statement