Executive Summary

Q3 2025 revenue was $553M (+4% YoY) with GAAP diluted EPS $0.43 and non‑GAAP diluted EPS $0.65; Adjusted EBITDA was $123M (22.2% margin) .
Versus S&P Global consensus, non‑GAAP EPS beat ($0.65 vs $0.55*) while revenue modestly missed ($553M vs $562.6M*); S&P EBITDA consensus was below the company’s reported Adjusted EBITDA (S&P “EBITDA” $94M* vs company “Adjusted EBITDA” $123M) — note definitional differences*.
Management announced an operating model reset to unify experiences across Tripadvisor and Viator and expects at least $85M in annualized gross cost savings (majority realized in 2026, fully by 2027); restructuring charges of ~$35–$40M are expected, largely in Q4 2025 .
FY25 revenue growth guidance lowered to 3%–4% from 5%–7%, Adjusted EBITDA margin maintained at 16%–18%; Q4 outlook: consolidated revenue approximately flat YoY, Adjusted EBITDA margin ~11%–13% .

What Went Well and What Went Wrong

What Went Well

Viator growth and profitability: revenue $294M (+9% YoY), experiences bookings ~6.6M (+18% YoY), GBV ~$1.3B (+15% YoY); Adjusted EBITDA $50M (16.8% margin) reflecting marketing efficiency and repeat bookings strength .
TheFork outperformance: revenue $63M (+28% YoY; +20% cc) and Adjusted EBITDA $14M (21.9% margin), with growing B2B subscription mix and product innovation (AI booking assistant) .
Clear strategic pivot to an experiences‑led and AI‑enabled operating model: “The shift in our operating model…positions Tripadvisor Group as an experiences‑led and AI‑enabled company.” — CEO Matt Goldberg ; “We will be launching an annualized gross cost savings program of $85M…” — CFO Mike Noonan .

What Went Wrong

Brand Tripadvisor pressure: revenue $235M (‑8% YoY), segment Adjusted EBITDA $59M (25.3% margin vs 33.9% last year), with accelerating traffic headwinds in free channels impacting branded hotels (‑5% YoY) and media (‑11% YoY) .
Consolidated marketing deleverage: marketing expense was $227M (41.1% of revenue), +150 bps YoY, driven by Brand Tripadvisor mixing to paid amid traffic headwinds .
FY revenue guide lowered: management now expects FY25 consolidated revenue growth of 3%–4% (from 5%–7% previously), citing persistent traffic headwinds while maintaining margin guidance .

Financial Results

Consolidated Results and Estimate Comparison

Metric	Q1 2025	Q2 2025	Q3 2025	Q3 2025 Consensus	vs Consensus
Revenue ($M)	$398	$529	$553	$562.6*	Miss (~$9.6M)*
GAAP Diluted EPS ($)	$(0.08)	$0.28	$0.43	—	—
Non‑GAAP Diluted EPS ($)	$0.14	$0.46	$0.65	$0.55*	Beat ($0.10)*
Adjusted EBITDA ($M)	$44	$107	$123	—	—
Adjusted EBITDA Margin (%)	11.0%	20.2%	22.2%	—	—
Cash from Operations ($M)	$102	$202	$45	—	—
Free Cash Flow ($M, Non‑GAAP)	$83	$177	$26	—	—
EBITDA (S&P Global definition, $M)	—	—	$94*	$115.5*	Miss (~$21.5M)*

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

Year-over-Year Comparison (Q3 2025 vs Q3 2024)

Metric	Q3 2024	Q3 2025	YoY Change
Revenue ($M)	$532	$553	+4%
GAAP Diluted EPS ($)	$0.27	$0.43	+59%
Non‑GAAP Diluted EPS ($)	$0.50	$0.65	+30%
Adjusted EBITDA ($M)	$122	$123	~0%

Segment Breakdown

Segment	Q1 2025 Revenue ($M)	Q2 2025 Revenue ($M)	Q3 2025 Revenue ($M)	Q1 2025 Adj. EBITDA ($M)	Q2 2025 Adj. EBITDA ($M)	Q3 2025 Adj. EBITDA ($M)
Brand Tripadvisor	$219	$242	$235	$64.9	$65.9	$59.2
Viator	$156	$270	$294	$(17.6)	$32.3	$49.5
TheFork	$46	$54	$63	$(3.5)	$8.8	$13.8
Intersegment Eliminations	$(23)	$(37)	$(39)	—	—	—

KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
Viator Experiences Bookings (M, YoY %)	5.0 (+15%)	~6.2 (+15%)	~6.6 (+18%)
Viator GBV ($B, YoY %)	~$1.1 (+10%)	~$1.3 (+13%)	~$1.3 (+15%)
Viator Adj. EBITDA Margin (%)	(11.3%)	11.9%	16.8%
TheFork Total Bookings (YoY %)	+5%	+9%	+11%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated Revenue Growth	FY 2025	5%–7%	3%–4%	Lowered
Consolidated Adj. EBITDA Margin	FY 2025	16%–18%	16%–18%	Maintained
Consolidated Revenue	Q4 2025	—	~Flat YoY	New
Consolidated Adj. EBITDA Margin	Q4 2025	—	~11%–13%	New
Viator Bookings Growth	Q4 2025	—	~16%–18%	New
Viator Adj. EBITDA Margin	Q4 2025	—	~100 bps lower YoY due to prior one‑time credit; +~200 bps ex one‑time	Clarified
Brand Tripadvisor Revenue	Q4 2025	—	Low‑teens decline	New
TheFork Revenue Growth	Q4 2025	—	Mid‑teens; ~10 pp currency benefit	New
Gross Cost Savings (Annualized)	Program (2026–2027)	—	≥$85M; majority in 2026; fully by 2027	New
Restructuring Charges	Q4 2025–2026	—	~$35–$40M, primarily Q4 2025	New
Q4 Adj. EBITDA Benefit from Savings	Q4 2025	—	~+$10M	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Experiences strategy	Q2: Deepening coordination across TripAdvisor and Viator in marketing/product/supply; early tests improved efficiency and conversion . Q1 release emphasized marketplace growth .	Formal operating model reset; unify experiences under one team; resegmentation to Experiences/Hotels & Other/TheFork .	Accelerating
AI initiatives	Q2: AI embedded across products (TripAdvisor search, Viator relevance, TheFork conversational AI) and enterprise productivity; partnerships with emerging AI platforms .	“AI‑native” approach; imminent AI planning MVP in Q4; TripAdvisor & TheFork ChatGPT apps; multiple licensing deals; focus on agentic/multimodal AI .	Accelerating
Brand Tripadvisor headwinds	Q2: Free traffic headwinds persisted; hotel meta pricing strong but offset by traffic declines .	Traffic headwinds accelerated; revenue fell 8%; media ‑11%; managed for margin not low‑margin growth .	Worsening
Viator profitability & repeat	Q2: Margin improvement via more efficient marketing and repeat/app growth .	Margin +550 bps YoY; direct and repeat bookings scaling; 3P bookings carry attractive profitability and no marketing spend .	Improving
TheFork B2B & partnerships	Q2: B2B revenue >2x; Vodafone & Mastercard partnerships .	Continued B2B mix shift; AI booking assistant; consideration of portfolio options while executing .	Improving
Capital allocation	Q2: $40M buybacks at $14.22/share; $160M authorization remaining .	Plan to restart programmatic repurchases in Q4, subject to macro; ~$160M authorization remaining .	Resuming
Segment reporting	—	Reorg to Experiences, Hotels & Other, TheFork; eliminates certain intersegment eliminations .	Updating

Management Commentary

“Our portfolio mix is now anchored in high‑growth marketplaces, which now represent nearly 60% of our revenue and 30% of our profit over the last twelve months.” — CEO Matt Goldberg .
“We will be launching an annualized gross cost savings program of $85 million in Q4…executed throughout 2026 and…fully realized by 2027.” — CFO Mike Noonan .
“Tripadvisor is already among the most cited sources by LLMs…number eight overall and the only travel company in the top 20…We will…shift our focus from AI‑powered features to a fully AI‑native approach.” — CEO Matt Goldberg .
“At Brand Tripadvisor…we experienced stronger‑than‑anticipated traffic headwinds that accelerated throughout the quarter, negatively affecting both free and paid channels.” — CFO Mike Noonan .
“Together with Tripadvisor, [Viator] is the category’s largest, most trusted, and most profitable platform…We believe we can accelerate off [GBV $4.6B and 17% items growth LTM].” — CEO Matt Goldberg .

Q&A Highlights

Growth vs margin in Experiences: Management believes the new operating model allows both re‑accelerated growth and margin expansion; leadership claim on scale (400k experiences, 65k operators) and trust, with GBV $4.6B LTM and items growth 17% .
New user and geo expansion: Disciplined new user acquisition ROI; leverage TripAdvisor’s strong European brand/traffic to grow efficiently in new markets .
Go‑to‑market brand positioning: Both Tripadvisor and Viator will operate; leading brand may vary by market/category with increased cross‑sell from hotels/restaurants into experiences .
Legacy meta approach: Maintain product quality but deprioritize incremental investment given SEO headwinds; manage for profitability .
Share repurchases: Expect to restart open‑market repurchases in Q4 under programmatic approach, $160M authorization remaining .

Estimates Context

Q3 2025 primary EPS: Actual $0.65 vs consensus $0.55 — beat*.
Q3 2025 revenue: Actual $553M vs consensus $562.6M — slight miss*.
Q3 2025 EBITDA (S&P Global definition): Actual $94M vs consensus $115.5M — miss; note company reports Adjusted EBITDA of $123M (definitions differ) *.
Target price consensus mean: $17.63*.
EPS and revenue estimate counts: 14 for both*.
Values retrieved from S&P Global.

Implications: Expect consensus to reflect lowered FY revenue growth (3%–4%) and Q4 segment dynamics (Brand Tripadvisor declines, Experiences acceleration); margin expectations likely stable given maintained FY margin guidance .

Key Takeaways for Investors

The narrative pivot is decisive: unified experiences operating model, resegmentation, and AI‑native strategy should be the principal multiple drivers into 2026; near‑term costs are a setup for medium‑term growth and margin leverage .
Experiences is compounding: bookings +18%, GBV +15%, margin +550 bps YoY; mix shift to direct/repeat and 3P merchant (no marketing spend) strengthens unit economics .
Brand Tripadvisor headwinds remain the key drag: anticipate continued revenue pressure and Q4 margin step‑down; focus is profitability over low‑margin growth .
FY guide reset lowers top‑line expectations but preserves margin; Q4 flat revenue and 11%–13% margin with ~$10M savings benefit — watch execution of savings and experiences acceleration .
Cash/authorization provide flexibility: ~~$1.2B cash and expected buyback restart (~~$160M remaining) can support programmatic repurchases, contingent on macro .
Monitor AI deliverables: Q4 launch of planning MVP and embedded apps/licensing deals could unlock new demand funnels and monetization channels .
2026 setup: ≥$85M gross savings to be executed through 2026 and fully realized by 2027, plus experiences TAM/geographic expansion; margin improvement of ~100 bps preliminarily indicated for 2026 .

TripAdvisor, Inc. (TRIP)·Q3 2025 Earnings Summary