The photon spectrum in B→Xsγ decay, where Xsis any strange hadronic state, is studied using a data sample of (382.8±4.2)×106 e+e-→Υ(4S)→BB events collected by the BABAR experiment at the PEP-II collider. The spectrum is used to measure the branching fraction B(B→Xsγ)=(3. 21±0.15±0.29±0.08)×10-4 and the first, second, and third moments YEγŸ ;=2.267±0. 019±0.032±0.003 GeV, Y(Eγ-YEγŸ) 2Ÿ=0.0484±0.0053±0.0077±0.0005 GeV2, and Y(Eγ-YEγŸ) 3Ÿ=-0.0048±0. 0011±0.0011±0.0004 GeV3, for the range Eγ>1.8 GeV, where Eγis the photon energy in the B-meson rest frame. Results are also presented for narrower Eγranges. In addition, the direct CP asymmetry ACP(B→Xs+dγ) is measured to be 0.057±0.063. The spectrum itself is also unfolded to the B-meson rest frame; that is the frame in which theoretical predictions for its shape are made. © 2012 American Physical Society.