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TripAdvisor, Inc. (TRIP)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 delivered in-line revenue and a clear EPS beat: revenue was $0.529B (+7% y/y), non-GAAP EPS $0.46 vs S&P Global consensus $0.43*, and adjusted EBITDA $107M (20.2% margin), exceeding internal expectations on better marketplace efficiencies .
  • Mix continues shifting toward experiences and dining: Viator grew 11% y/y to $270M with bookings +15% and GBV ~$1.3B; TheFork grew 28% y/y to $54M with EBITDA margin 16% .
  • Brand Tripadvisor remains pressured (revenue -3% y/y), with persistent free-traffic headwinds offset by paid channel optimization and product improvements; adjusted EBITDA margin diluted to 27% from 33% y/y on higher paid mix .
  • Outlook: Q3 guide calls for 4–6% revenue growth and 19–21% adj. EBITDA margin; FY25 guidance maintained at 5–7% revenue growth and 16–18% adj. EBITDA margin; management expects Viator revenue growth to reaccelerate in Q4 .
  • Capital and shareholder return: cash and equivalents ~$1.2B; repurchased ~2.8M shares for $40M (avg. $14.22) with $160M remaining authorization; completed LTRIP merger and retired ~53.1M treasury shares in April, simplifying capital structure .

What Went Well and What Went Wrong

  • What Went Well

    • Experiences momentum: Viator bookings +15% with adj. EBITDA up to $32M (11.9% margin) from $10M; TheFork revenue +28% and margin to 16.2% on operating leverage .
    • Profitability beat: consolidated adjusted EBITDA $107M (20.2% margin) exceeded expectations, driven by marketplace efficiencies, especially at Viator .
    • Strategic coordination and AI: management highlighted early gains from coordinated marketing and product tests between Tripadvisor and Viator, and ongoing AI-led improvements to search, recommendations, and app experiences (“AI embedded at our core”) .

  • What Went Wrong

    • Brand Tripadvisor headwinds: segment revenue -3% y/y to $242M; media & advertising -13% y/y amid traffic and ad market softness; experiences & dining within Brand -7% y/y .
    • Mix and channel pressure: Brand margins compressed as paid channels took greater share vs free traffic; management acknowledged persistent free-traffic headwinds .
    • Revenue growth deceleration dynamics at Viator near term: revenue growth trailed bookings growth given higher 3P merchant mix (lower ABV and implied take rate) and June bookings softness (with July improvement; reacceleration expected in Q4) .

Financial Results

Consolidated P&L snapshot (GAAP unless noted)

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Billions)$0.411 $0.398 $0.529
GAAP Net Income ($USD Millions)$2 -$11 $36
GAAP Diluted EPS ($)$0.01 -$0.08 $0.28
Non-GAAP Diluted EPS ($)$0.30 $0.14 $0.46
Adjusted EBITDA ($USD Millions)$73 $44 $107
Adjusted EBITDA Margin (%)18% 11.0% 20.2%

Q2 2025 vs S&P Global consensus

MetricActualConsensusΔ
Revenue ($USD Billions)$0.529 $0.530*In line*
Primary EPS (Non-GAAP) ($)$0.46 $0.426*+$0.034 (beat)*

Values marked with * were retrieved from S&P Global.

Operating expense mix – Q2 2025

OpEx Line$ (M)% of Rev
Cost of sales$427.9%
Marketing$21841.1%
Personnel$14928.2%
Technology$254.7%
G&A$132.5%

Segment revenue and profitability

SegmentQ2 2024 Rev ($M)Q2 2025 Rev ($M)y/yQ2 2024 Adj. EBITDA ($M)Q2 2025 Adj. EBITDA ($M)
Brand Tripadvisor$250 $242 -3% $84 $66
Viator$244 $270 11% $10 $32
TheFork$42 $54 28% $3 $9
Intersegment elim.$(39) $(37) (6%) ——

KPIs and sub-segment details

KPIQ2 2025y/y
Viator experience bookings (units)~6.2M +~15%
Viator GBV ($B)~$1.3 +~13%
Branded Hotels revenue (Brand) ($M)$152 +1%
Media & Advertising (Brand) ($M)$36 -13%
Experiences & Dining (Brand) ($M)$45 -7%
TheFork total bookingsn/a+~9%

Cash flow and capital

  • Operating cash flow: $202M; Free cash flow: $177M in Q2 (boosted by lapping 2024 IRS settlement cash outflow) .
  • Cash & equivalents: ~$1.2B at June 30, 2025 .
  • Share repurchases: ~2.8M shares at $14.22, totaling $40M; $160M authorization remaining .
  • Leverage/liquidity: Term Loan B $350M raised in Q1 to address 2026 converts; plan to repay before maturity .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated Revenue GrowthQ3 2025—4%–6%New
Consolidated Adj. EBITDA MarginQ3 2025—19%–21%New
Viator Bookings GrowthQ3 2025—16%–18%New
Viator Revenue GrowthQ3 2025—High single digitsNew
Viator Adj. EBITDA MarginQ3 2025—~14%–16%New
Brand Tripadvisor RevenueQ3 2025—~-3% to -4%New
Brand Tripadvisor Adj. EBITDA MarginQ3 2025—~22%–24%New
TheFork Revenue GrowthQ3 2025—~25%–27% (incl. ~8 pts FX)New
TheFork Adj. EBITDA MarginQ3 2025—Improve to high teensNew
Consolidated Revenue GrowthFY 20255%–7% (Feb Q4 call) 5%–7%Maintained
Consolidated Adj. EBITDA MarginFY 202516%–18% (Feb Q4 call) 16%–18%Maintained

Notes: Management expects Viator revenue growth to reaccelerate in Q4; H2 coordination across Trip/Viator to be consolidated EBITDA neutral while shifting profit between segments .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
AI/technology initiativesEmphasis on data/AI to improve guidance, app, and partnerships (Perplexity/OpenAI); AI as tailwind; building AI-native product and ops . Q1 release focused on stable trends and execution; restructuring to fund priorities .Expanded detail: AI powering search/discovery at Tripadvisor; improving Viator sort and conversion; conversational AI at TheFork; early productivity gains in moderation/support .Broadening deployment; more concrete product impacts.
Free traffic vs paid mixQ4: Hotel Meta variability; focus on paid efficiency and app/membership to drive direct . Q1: marketing 43.1% of revenue; Brand revenue -8% y/y .Persistent free-traffic headwinds at Brand; deleverage from paid mix; but pricing healthy and conversion improvements ongoing .Headwind persists; mitigation via product and paid optimization.
Experiences category focusQ4: Experiences as “center of gravity”; Viator supply and app-led growth; B2B ramp .Viator bookings +15%, EBITDA tripled; coordinated Trip/Viator tests delivering gains; plan to reaccelerate revenue in Q4 .Execution momentum; structural coordination increasing.
Regional trendsQ4: ROW strengthening; Viator strong in Europe; FX headwinds explained .Stable North America; accelerating Europe at Viator; 3P channels largely ex-NA .Europe improving; diversified demand channels.
Regulatory/legalFY24 impacted by IRS settlement cash flows; prior indirect tax items; Q1 noted restructuring charges and merger .Favorable update on regulatory matter lowered G&A %; merger completed with LTRIP and share retirement .Less drag; capital structure simplified.
App, membership, engagementQ4: app and membership to drive direct, cross-category booking; hotel commerce in app . Q1: steady progress; Brand revenue down on legacy pressure .Detailed app relaunch and rewards; “AI-native” experience; early ROAS-positive campaign; ARPU growth and direct bookings rising .Strengthening engagement flywheel.

Management Commentary

  • “We’re better positioned than anyone to win in experiences… with AI embedded at our core.” — Matt Goldberg, CEO .
  • “Adjusted EBITDA… exceeded expectations, primarily due to more favorable marketing efficiencies at Viator.” — Mike Noonan, CFO .
  • “We will continue to make investment decisions that… benefit our combined experience revenue growth… neutral on a consolidated adjusted EBITDA basis.” — Mike Noonan on H2 coordination .
  • “App users and members using the app are both growing… adding a rewards program… and in-app hotel bookings with good conversion.” — Matt Goldberg on app strategy .

Q&A Highlights

  • Brand free-traffic headwinds and stabilization outlook: Management acknowledged persistence and is prioritizing efficiencies and coordinated execution; too early to call 2026 stabilization, but planning is underway .
  • Viator channel mix and Q4 reacceleration: 3P merchant channels are immediately profitable, incremental, and often ex-NA; bookings softness in June improved in July; expecting Q4 revenue reacceleration .
  • App/membership monetization: Significant app revamp with AI trip builder and rewards; rollout in US with plans to expand; early marketing shows strong ROAS .
  • FY guide unchanged: Puts/takes include Brand free-traffic pressure vs strong Viator bookings; FX and cancellation dynamics embedded in outlook .

Estimates Context

  • Q2 2025 vs S&P Global consensus: Revenue $0.529B vs $0.530B* (in line); Non-GAAP EPS $0.46 vs $0.43* (beat). Primary EPS estimate count: 14; Revenue estimate count: 15.*
  • Historical comparison: TRIP also beat S&P revenue and EPS in Q4 2024 and Q1 2025; Q1 revenue $0.398B vs $0.388B*, EPS $0.14 vs $0.051*; Q4 revenue $0.411B vs $0.400B*, EPS $0.30 vs $0.213*.*
  • Forward color: Q3 guided to 4–6% revenue growth; S&P shows Q4 2025 revenue estimate ~$0.412B*; management expects Viator growth to reaccelerate in Q4 .

Values marked with * were retrieved from S&P Global.

Key Takeaways for Investors

  • Experiences-led mix shift is intact and accelerating; Q2 showed healthy bookings growth and margin expansion at Viator, with TheFork delivering strong growth and leverage .
  • Brand Tripadvisor remains the swing factor; free traffic headwinds persist, but paid channel optimization, app, and membership investments are showing early positive signals and should improve unit economics over time .
  • H2 strategy: Expect profitability mix shifts between brands but consolidated EBITDA neutrality; Viator revenue growth should reaccelerate in Q4, while Q3 margins guide to 19–21% .
  • Balance sheet/capital return: ~$1.2B cash offers flexibility to repurchase shares and address 2026 converts; recent LTRIP merger and share retirement simplify governance and share count mechanics .
  • Near-term trading setup: EPS beats, maintained FY guide, and an H2 reacceleration narrative in experiences are supportive; watch Brand free-traffic trends, 3P mix implications for Viator take rates, and FX/cancel dynamics .
  • Medium-term thesis: Coordinated Trip/Viator execution and AI-driven product improvements can expand margins at scale; Brand stabilization plus experiences leadership underpins multi-year revenue and EBITDA growth targets (FY25 maintained; 2026 inflection reiterated previously) .