TripAdvisor (NASDAQ:TRIP – Get Free Report) posted its quarterly earnings results on Thursday. The travel company reported $0.35 earnings per share for the quarter, missing analysts’ consensus estimates of $0.38 by ($0.03), FiscalAI reports. The business had revenue of $385.30 million during the quarter, compared to analyst estimates of $506.27 million. TripAdvisor had a net margin of 0.28% and a return on equity of 4.23%. The firm’s quarterly revenue was down 7.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.46 earnings per share.
Here are the key takeaways from TripAdvisor’s conference call:
- Tripadvisor signed a definitive agreement to sell TheFork to American Express for $700 million, with closing expected before year-end. The approximately $680 million in anticipated net proceeds should provide flexibility for debt reduction and/or share repurchases.
- Q2 continuing-operations revenue was $442 million and adjusted EBITDA was $76 million, with both broadly in line with expectations; EBITDA exceeded expectations. Experiences bookings grew 5%, led by 10% growth at Viator, while TripAdvisor’s point of sale faced roughly a five-percentage-point SEO headwind.
- Management cited weather disruptions, higher cancellations, weakening U.S.-to-Europe demand, lower average booking values, and unfavorable geographic mix as pressures on Q3. Experiences revenue is expected to range from a 2% decline to 1% growth, while consolidated continuing-operations revenue is forecast to decline 7%–10%.
- Hotels and other revenue fell 21% in Q2 to $163 million, driven by sustained hotel shopper-volume and SEO headwinds, despite strong pricing. The company expects another 20%–23% revenue decline in the segment in Q3 and has reduced fixed costs by approximately 16% year to date.
- Tripadvisor remains focused on experiences as its primary long-term growth opportunity, investing in demand diversification, conversion, supplier onboarding, B2B2C distribution, and AI partnerships including Google Gemini. Management said repeat engagement, direct bookings, and supply expansion are improving, although AI-related traffic and monetization remain early.
TripAdvisor Price Performance
Shares of NASDAQ:TRIP opened at $10.78 on Friday. The business’s 50 day simple moving average is $13.27 and its 200-day simple moving average is $11.71. The firm has a market capitalization of $1.25 billion, a price-to-earnings ratio of 1,079.08, a price-to-earnings-growth ratio of 2.04 and a beta of 0.86. The company has a debt-to-equity ratio of 1.28, a current ratio of 1.56 and a quick ratio of 1.25. TripAdvisor has a 12 month low of $9.01 and a 12 month high of $20.16.
Wall Street Analysts Forecast Growth
View Our Latest Research Report on TRIP
Insiders Place Their Bets
In related news, CEO Almir Ambeskovic sold 8,000 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $12.30, for a total value of $98,400.00. Following the completion of the transaction, the chief executive officer directly owned 34,396 shares of the company’s stock, valued at $423,070.80. This trade represents a 18.87% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.00% of the stock is owned by insiders.
Institutional Trading of TripAdvisor
Large investors have recently bought and sold shares of the company. Starboard Value LP raised its stake in shares of TripAdvisor by 1.4% during the 4th quarter. Starboard Value LP now owns 9,644,996 shares of the travel company’s stock worth $140,431,000 after buying an additional 134,512 shares during the last quarter. Ameriprise Financial Inc. grew its stake in TripAdvisor by 24.2% in the 3rd quarter. Ameriprise Financial Inc. now owns 7,416,019 shares of the travel company’s stock valued at $120,585,000 after acquiring an additional 1,445,607 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in TripAdvisor by 6.1% during the 4th quarter. Dimensional Fund Advisors LP now owns 3,762,943 shares of the travel company’s stock valued at $54,790,000 after acquiring an additional 216,862 shares in the last quarter. Nuveen LLC increased its holdings in TripAdvisor by 40.1% during the 4th quarter. Nuveen LLC now owns 3,355,310 shares of the travel company’s stock valued at $48,853,000 after acquiring an additional 961,121 shares in the last quarter. Finally, Par Capital Management Inc. raised its position in TripAdvisor by 9.0% during the fourth quarter. Par Capital Management Inc. now owns 2,180,564 shares of the travel company’s stock worth $31,749,000 after acquiring an additional 180,564 shares during the last quarter. Institutional investors and hedge funds own 98.99% of the company’s stock.
TripAdvisor News Roundup
Here are the key news stories impacting TripAdvisor this week:
- Positive Sentiment: Bank of America Securities maintained a Buy rating and a $15 price target. The analyst acknowledged cyclical weakness but cited growth in Tripadvisor’s Experiences business and potential proceeds from the TheFork sale as sources of value. Analyst Maintains Buy on TripAdvisor
- Positive Sentiment: Management expects third-quarter Experiences bookings to grow approximately 5% to 7%. TheFork sale process could also provide capital and sharpen the company’s strategic focus. Tripadvisor expects Q3 experiences booked growth
- Neutral Sentiment: Tripadvisor said CFO Mike Noonan will hold investor meetings at the Oppenheimer Technology, Internet & Communications Conference on August 11. The event may provide additional details on strategy, operating trends, and the TheFork transaction. Tripadvisor Announces Participation at Upcoming Conferences
- Negative Sentiment: Second-quarter results were below expectations: adjusted EPS was $0.35 versus a roughly $0.38–$0.42 consensus, while revenue of $385.3 million was well below estimates near $506 million. Revenue declined 7.2% year over year, and EPS fell from $0.46 a year earlier. TripAdvisor Q2 Earnings and Revenues Lag Estimates
- Negative Sentiment: JPMorgan downgraded Tripadvisor to Underweight and cut its price target from $11 to $10, while Cantor Fitzgerald also assigned an Underweight rating and lowered its target from $10 to $9. The revisions reinforce concerns about slowing growth and near-term execution.
- Negative Sentiment: Coverage has emphasized that Tripadvisor’s growth is trailing major rivals, raising questions about whether the company may need additional asset sales or strategic changes to improve performance. Tripadvisor’s Growth Is Way Behind Rivals
TripAdvisor Company Profile
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.
Featured Stories
- Five stocks we like better than TripAdvisor
- Uber Stock Lags in 2026, But Cash Flow and AV Bets Fuel Upside
- AppLovin Stock Hits 52-Week Low as Analysts Trim Targets, Stay Bullish
- Why These 3 Equal Weight ETFs Have Outperformed the S&P This Year
- MarketBeat Week in Review – 08/03 – 08/07
Receive News & Ratings for TripAdvisor Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for TripAdvisor and related companies with MarketBeat.com's FREE daily email newsletter.
