Tripadvisor — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the third quarter ended September 30, 2026, was $436.4 million, a decline of 11% year-over-year compared to $490.8 million in the prior year period.
• GAAP net loss from continuing operations was $316.9 million, or $(2.70) diluted EPS, compared to net income of $48.5 million, or $0.39 diluted EPS, in the prior year.
• Non-GAAP net income from continuing operations was $43.4 million, or $0.37 diluted EPS, a 39% decrease year-over-year from $71.2 million.
• Adjusted EBITDA from continuing operations was $71.1 million, or 16.3% of revenue, down 34% year-over-year from $107.8 million.
• Cash flow from operating activities from continuing operations was $(122.0) million, compared to $32.9 million in the prior year.
• Free cash flow from continuing operations was $(131.2) million, compared to $19.0 million in the prior year.
• Total costs and expenses from continuing operations were $773.1 million, an 81% increase year-over-year, driven primarily by a non-cash goodwill impairment charge of $369.5 million.
• Marketing expenses were $213.0 million (48.8% of revenue), essentially flat year-over-year.
• Personnel expenses were $94.0 million (21.5% of revenue), a 24% decrease year-over-year.

Guidance and Future Outlook:

• Management expects to prioritize the reduction of long-term debt using net proceeds from the sale of TheFork.
• The company initiated a restructuring plan expected to result in total company annualized gross savings of approximately $40 million.
• Estimated pre-tax restructuring and other related reorganization costs of $15 million to $20 million are expected to be incurred primarily in the fourth quarter of 2026.

Business Segments and Product Lines:

• Experiences: Revenue was $284.8 million, a 3% decline year-over-year. Experience bookings increased approximately 2% to 6.8 million. Gross bookings value (GBV) was approximately $1.3 billion, flat year-over-year. Adjusted EBITDA was $38.2 million (13.4% margin), down from $52.4 million (17.8% margin).
• Hotels and Other: Revenue was $151.6 million, a 23% decline year-over-year.
  • Hotels revenue was $109.7 million (down 23%).
  • Media and advertising revenue was $27.7 million (down 23%).
  • Other revenue was $14.2 million (down 18%).
  • Adjusted EBITDA was $32.9 million (21.7% margin), down from $55.4 million (28.2% margin).
• TheFork ceased to be a reportable segment in the second quarter of 2026, with results classified as discontinued operations.

Market and Competitive Landscape:

• The goodwill impairment in the Hotels and Other segment was primarily driven by a sustained decline in financial performance and reduction in forecasted profitability, largely due to multi-period acceleration of traffic headwinds resulting from changes in the search landscape.
• The restructuring plan aims to simplify the Hotels and Other segment by reducing roles across non-core revenue lines and reallocating product, engineering, and data analytics roles to the Experiences segment.

Risks and Challenges:

• Significant non-cash goodwill impairment charge of $369.5 million impacted GAAP net income.
• Declining revenue trends across both Experiences and Hotels and Other segments.
• Restructuring costs of $15 million to $20 million expected in Q4 2026.
• Risks associated with the divestiture of TheFork, including potential liabilities, tax consequences, and difficulties in segregating technology and data platforms.

Management Commentary and Tone:

• Management indicated that the net proceeds from the sale of TheFork provide additional flexibility in the capital structure.
• The company is focusing on an "experiences-led strategy" and AI-led initiatives, as noted in forward-looking statements.
• The tone reflects a strategic pivot to simplify the business and prioritize debt reduction following the divestiture.

Other Key Points:

• The company completed the sale of TheFork to American Express effective November 1, 2026, receiving total net cash consideration of approximately $741.0 million.
• Cash and cash equivalents from continuing operations were $706.8 million as of September 30, 2026, a decrease of $271.2 million from December 31, 2025, driven by the repayment of the Company's 2026 Senior Notes for $345.4 million on April 1, 2026.
• TheFork proceeds received in November 2026 are not included in the September 30, 2026 cash balance.
• The company incurred $0.9 million in pre-tax restructuring costs during the third quarter of 2026 related to prior cost savings actions.
• A conference call to discuss results was held on November 5, 2026.