TripAdvisor (NASDAQ:TRIP) reported second-quarter results in line with its expectations as growth in its experiences business was offset by persistent search-related pressure in legacy offerings and uneven travel demand. The company also said it expects to complete the sale of restaurant reservation platform TheFork to American Express before the end of 2026.
President and CEO Matt Goldberg said the proposed $700 million transaction, for which a definitive agreement was signed Aug. 2, would further focus the company on experiences. TripAdvisor expects approximately $680 million in net proceeds and said the funds would provide flexibility for capital allocation, with debt reduction and share repurchases among the potential priorities.
Continuing Operations Revenue Reaches $442 Million
TheFork is now classified as discontinued operations because of the planned sale. TripAdvisor’s continuing operations, consisting of its experiences and hotels and other segments, generated $442 million in second-quarter revenue and $76 million in adjusted EBITDA. TheFork generated $61 million of revenue and $11 million of adjusted EBITDA during the quarter.
Chief Financial Officer Mike Noonan said the company’s reported results, including TheFork, were in line with revenue expectations and above expectations for adjusted EBITDA.
TripAdvisor’s experiences segment recorded 5% growth in experiences booked, while gross booking value rose 3% to about $1.4 billion. Revenue in the segment increased 3%, or approximately 2% on a constant-currency basis.
Viator, the company’s largest owned-and-operated point of sale, grew bookings 10% during the quarter. However, sustained SEO headwinds at the TripAdvisor point of sale weighed on overall segment performance. Noonan estimated that the SEO pressure represented approximately five percentage points of headwind to experiences booking and gross booking value growth.
Experiences adjusted EBITDA was $31 million, or 11% of segment revenue, down 290 basis points from the prior year. The company attributed the margin decline primarily to a shift from free to paid customer acquisition channels, partly offset by lower personnel and other costs.
Travel Conditions and Booking Values Pressure Results
Noonan described demand trends as uneven during the quarter. U.S. domestic bookings improved from April lows, including a recovery in Hawaii bookings, while travel from the U.S. to Europe softened and remained below levels seen earlier in the year.
The company cited geopolitical uncertainty and extreme heat in May and June as factors affecting European travel. Higher cancellation rates, driven by weather and travel disruptions in the U.S. and Europe, also weighed on experiences revenue relative to bookings and gross booking value.
TripAdvisor also saw lower average booking values as it tested discounting and experienced a higher mix of lower-priced items. During the question-and-answer session, Noonan said the shift toward lower-priced tours and attractions appeared to be a macroeconomic signal that emerged near the end of the first quarter and became more pronounced in the second quarter.
Goldberg said the company continues to see favorable underlying indicators, including growth among retained and reactivated users, improving repeat rates and conversion gains. Management said it is investing in its marketplace “flywheel” through demand generation, product conversion improvements and supply expansion.
- TripAdvisor said it is diversifying marketing beyond paid search into social and other mid-funnel channels.
- The company is expanding rewards and incentives to support acquisition, conversion and repeat engagement.
- Product investments have focused on personalization, review presentation and availability information to make booking decisions easier.
- Supply efforts are targeting higher-quality inventory in secondary and tertiary destinations, including attractions and events.
Hotels Segment Revenue Falls 21%
Revenue in the hotels and other segment fell 21% to $163 million, in line with the company’s expectations. Strong hotel pricing was more than offset by lower hotel shopper volume, according to Noonan. Media and advertising revenue declined 12% to $31 million as traffic headwinds outweighed off-platform revenue growth.
The segment produced $46 million of adjusted EBITDA, representing a 28% margin. The margin declined by roughly 100 basis points, although adjusted EBITDA was better than management expected because personnel and other fixed costs were lower than anticipated.
Goldberg said the hotels and other business remains profitable but faces structural changes in its primary SEO channel. TripAdvisor has reduced fixed costs in that segment by approximately 16% year to date and plans to continue evaluating further streamlining opportunities.
Third-Quarter Outlook Calls for Revenue Decline
For the third quarter, TripAdvisor expects experiences booked to increase about 5% to 7%, representing a flat to modest improvement from the second quarter. However, the company forecast experiences revenue to range from a 2% decline to 1% growth, including an approximately one-percentage-point currency headwind.
Management expects third-quarter experiences adjusted EBITDA margin of 14% to 17%, reflecting revenue pressure and continued movement toward paid channels, particularly at the TripAdvisor point of sale.
In hotels and other, TripAdvisor forecast revenue declines of approximately 20% to 23% and adjusted EBITDA margins of 22% to 25%. Across continuing operations, the company expects revenue to decline 7% to 10% in the third quarter, with adjusted EBITDA margin of 17% to 20%.
The company adopted what Noonan called a more prudent outlook for the second half of 2026. It expects modest improvement in revenue growth across both segments in the fourth quarter if one-time travel disruptions do not recur, while further acceleration will depend on a more normalized macroeconomic environment.
TripAdvisor ended the quarter with approximately $843 million in cash and cash equivalents. It repaid approximately $345 million of convertible notes on April 1, reducing both cash and total debt. The company had $110 million remaining under its share repurchase authorization but did not buy shares during the quarter because of the ongoing portfolio review and TheFork sale process.
About TripAdvisor (NASDAQ:TRIP)
TripAdvisor (NASDAQ:TRIP) is a leading online travel company that operates a digital platform for travel information, reviews and booking services. The company’s flagship website and mobile apps allow users to access and contribute travel-related content—ranging from hotel and restaurant reviews to ratings for tours, attractions and vacation rentals—helping consumers plan and book trips around the world.
The core of TripAdvisor’s offering is its community-driven review system, which aggregates user-generated feedback alongside editorial content and professional photography.
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