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    TRIP
    Earnings call· Jun 2026(Q2 FY26)

    TripAdvisor Q2 FY26 earnings call TRIP

    Aug 6, 2026 Source

    Executive summary

    Tripadvisor Q2 FY26 — Experiences Growth Amid Macro Headwinds, TheFork Sale Progresses

    Tripadvisor delivered Q2 FY26 results in line with expectations, driven by the underlying strength of its experiences segment, particularly Viator, despite a fluctuating macro backdrop. The company is actively reshaping its portfolio, highlighted by the proposed sale of TheFork, to focus on its leadership in experiences and optimize profitability in its Hotels & Other offerings. While facing macro-related headwinds and SEO pressures, management remains committed to long-term investments in its experiences marketplace flywheel and AI integration to drive sustainable growth and margin expansion.

    Highlights

    5

    • Group revenue and adjusted EBITDA were in line with expectations, reflecting underlying strength in experiences.

    • Viator, the largest owned and operated point of sale, grew 10% for the quarter.

    • The proposed sale of TheFork for $700 million unlocks value and provides capital allocation flexibility.

    • Year-to-date, fixed costs in Hotels & Other were reduced by approximately 16%.

    • Operating cash flow was $141 million and free cash flow was $130 million in Q2.

    Concerns

    5

    • Overall experiences bookings growth was pressured by sustained SEO headwinds in the Tripadvisor point of sale, accounting for approximately 5 percentage points of growth headwind.

    • Gross booking value (GBV) grew only 3% due to lower average booking value (ABV) from discounting and a higher mix of lower-priced items.

    • Experiences revenue growth was pressured by an increase in cancellation rates, primarily due to adverse weather and travel conditions in the U.S. and Europe.

    • Experiences adjusted EBITDA margin deleveraged by 290 basis points to 11% of revenue due to free/paid channel mix shift.

    • Hotels & Other segment revenue declined 21% to $163 million, impacted by sustained hotel shopper volume headwinds.

    Guidance & targets

    10
    CategoryTargetConfidence
    TheFork Sale Net Proceeds
    $680 million
    high materiality
    High
    Q3 FY26 Experiences Booked Growth
    5% to 7% growth
    medium materiality
    Medium
    Q3 FY26 Experiences Revenue Growth
    declines of 2% to growth of 1%
    medium materiality
    Medium
    Q3 FY26 Experiences Adjusted EBITDA Margin
    14% to 17%
    medium materiality
    Medium
    Q3 FY26 Hotels & Other Revenue Declines
    approximately 20% to 23%
    medium materiality
    Medium
    Q3 FY26 Hotels & Other Adjusted EBITDA Margin
    approximately 22% to 25%
    medium materiality
    Medium
    Q3 FY26 Continuing Operations Revenue Declines
    7% to 10%
    high materiality
    Medium
    Q3 FY26 Continuing Operations Adjusted EBITDA Margin
    17% to 20%
    high materiality
    Medium
    H2 FY26 Revenue Growth
    modest improvement in Q4
    medium materiality
    Low
    H2 FY26 Adjusted EBITDA Margin
    typical seasonal step down from Q3 to Q4
    medium materiality
    Medium

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Experiences
    Revenue growth was 2% on a constant currency basis. SEO headwinds on Tripadvisor point of sale impacted growth by ~5 percentage points. GBV growth was pressured by lower average booking value and higher cancellation rates due to weather. Adjusted EBITDA margin deleveraged by 290 bps due to free/paid channel mix shift.
    Experiences booked growth: 5%Viator growth: 10%Gross booking value (GBV) growth: 3%GBV: ~$1.4 billionAdjusted EBITDA margin: 11%
    		$279 million3%—$31 million
    Hotels & Other
    Revenue decline was driven by sustained hotel shopper volume headwinds, offsetting strong pricing growth. Media and advertising revenue declined due to on-site traffic headwinds. Adjusted EBITDA was higher than expectations due to lower personnel and fixed costs, but margin deleveraged by ~100 bps due to channel mix shift and higher technology costs.
    Media and advertising revenue decline: 12%Adjusted EBITDA margin: 28%
    		$163 million-21%—$46 million
    TheFork (Discontinued Operations)
    TheFork is classified as discontinued operations due to the proposed sale. It showed solid revenue and adjusted EBITDA growth.
    Revenue growth constant currency: 10%Adjusted EBITDA margin: 19%
    		$61 million13%—$11 million

    Operational metrics

    16
    Cost of revenue
    7%down ~70 bps
    Q2 FY26

    Primarily driven by a benefit of approximately $2 million related to indirect tax refund.

    Marketing costs
    49%up ~500 bps
    Q2 FY26

    Driven by ongoing pressure from free/paid channel mix, including SEO headwinds impacting Tripadvisor experiences and the H&O segment.

    Marketing costs
    12.4%up from 11.3% YoY
    Q2 FY26

    Modest deleverage due to prepaid mix and SEO on Tripadvisor.

    Personnel costs
    22%down ~400 bps
    Q2 FY26

    Primarily due to lower costs in Hotels & Other and lower share-based compensation (SBC) expense.

    Personnel costs (ex-SBC)
    19%down ~200 bps
    Q2 FY26

    Lower SBC expense due to forfeitures related to cost savings program and lower annual grant values.

    Technology costs
    5%up ~40 bps
    Q2 FY26

    Primarily driven by lower revenue; absolute dollar basis was largely flat.

    G&A costs
    3%up ~130 bps
    Q2 FY26

    Primarily due to a difficult comparison of lower G&A expense in Q2 2025 resulting from a one-time true-up.

    Cash and cash equivalents
    $843 million
    as of June 30, 2026

    Reflects paydown of convertible notes on April 1, which reduced cash and total debt by ~$345 million. $52 million of cash is included in discontinued operations.

    Deferred merchant payables
    $484 million
    as of June 30, 2026

    Used to calculate excess cash balance.

    Excess cash balance
    $359 million
    as of June 30, 2026

    Calculated as total cash and cash equivalents less deferred merchant payables.

    Total debt
    $836 million
    as of June 30, 2026

    Reflects paydown of convertible notes on April 1.

    Annual cost previously allocated to TheFork
    $4 million
    Annual

    These costs primarily pertain to corporate personnel and insurance. Anticipate recovering the majority in 2027 through a transition services agreement.

    SEO headwind impact on Experiences segment growth
    5 percentage points
    Q2 FY26

    Estimated impact on experiences booked growth, primarily affecting the Tripadvisor point of sale.

    Currency tailwind impact on GBV growth
    1%
    Q2 FY26

    Estimated impact on Gross Booking Value growth.

    SEO headwind impact on GBV growth
    5 percentage points
    Q2 FY26

    Estimated impact on Gross Booking Value growth.

    Experiences revenue growth constant currency
    2%
    Q2 FY26

    Reported revenue growth was 3%.

    Industry KPIs

    3
    MetricValueDetails
    Advertising revenue by segment$31 millionUSD
    Share buyback capital returned$0USD
    Ai feature adoption monetizationMillionspeople

    Product announcements

    2
    ProductTypeDetails
    Viator as Google Gemini travel experiences partnerexpansion
    Native AI offering for in-destination uselaunch

    Deals & partnerships

    3
    American ExpressProposed sale of TheFork$700 million

    Tripadvisor signed a definitive agreement on August 2, 2026, to sell TheFork to American Express. American Express is seen as a natural long-term home and an important ongoing strategic partner.

    Google GeminiTravel experiences partnership

    Viator became the first travel experiences partner for Google Gemini, integrating experiences inventory.

    OpenAI, Perplexity, Microsoft, Amazon, AnthropicCollaborations with leading AI platforms

    Tripadvisor is actively partnering with multiple leading AI labs to integrate its offerings and learn from their platforms.

    Risks & headwinds

    6
    Fluctuating macro backdropQ2 FY26 and Q3 FY26

    Uneven recovery in Q2, with bookings growth stepping back in June; July performance remained uneven.

    Mitigation: Focusing on long-term growth opportunities in experiences, disciplined investment, and margin expansion. Expecting modest improvement in Q4 assuming one-off travel disruptions do not recur.

    Sustained SEO headwindsQ2 FY26, expected to moderate next year

    Approximately 5 percentage points of growth headwind to the Experiences segment, primarily impacting Tripadvisor point of sale. Continues to outweigh performance in other channels.

    Mitigation: Diversifying marketing mix beyond paid search, scaling investments in social and mid-funnel channels, leveraging proprietary data and bidding expertise to maximize efficiency in paid channels. SEO becoming a smaller share of overall bookings mix.

    Lower average booking value (ABV)Q2 FY26, expected to pressure Q3 GBV growth

    Drove lower Gross Booking Value (GBV) growth (3%) relative to bookings growth (5%). Caused by discounting and a higher mix of lower-priced items.

    Mitigation: Management views this as a transitory macro signal, expecting it to alleviate as macro conditions improve and discretionary income for higher-priced experiences returns.

    Increased cancellation ratesQ2 FY26, particularly May and June, continuing into July

    Pressured Experiences revenue growth relative to bookings and GBV growth.

    Mitigation: Primarily driven by adverse weather and travel conditions in the U.S. and Europe. Management views this as transitory and not structural, expecting it to normalize.

    Weakening demand in U.S. to Europe travel corridorQ2 FY26, continuing into July

    Remained well below levels seen at the beginning of the year, impacting bookings growth.

    Mitigation: Attributed to persistent macro-related factors including geopolitical uncertainty and extreme heat. Management views this as transitory and expects it to normalize over time.

    Free/paid channel mix shiftQ2 FY26, expected to continue in Q3

    Drove 290 basis points of adjusted EBITDA margin deleverage in Experiences segment and increased marketing costs as a percent of revenue.

    Mitigation: Diversifying marketing channels, focusing on marketing efficiency (SEM costs vs. GBV remaining flat), and maintaining consistent ROAS targets. Long-term thesis includes margin expansion as repeat cohorts build.

    What to watch in Q3 FY26

    5

    Experiences Booked Growth

    next quarter
    Current5% (Q2 FY26)
    Target5% to 7% growth (Q3 FY26)

    Why it matters

    This metric indicates the core health and growth trajectory of the Experiences segment, which is the company's strategic focus.

    Starting with our Experiences segment for Q3, we expect a flat to modest improvement from Q2 in Experiences booked to approximately 5% to 7% growth.

    Q&A highlights

    5

    Given competitors like GetYourGuide and Trivago are showing higher revenue growth, can Tripadvisor make investments to match this, or are there structural limitations?

    Management stated that Tripadvisor's scale in North America is significantly higher than competitors, and Viator's growth in the mid-teens is strong. They are investing across the demand, storefront, and supply flywheel, diversifying marketing beyond SEO, and improving conversion and supply quality. They acknowledge macro factors but remain committed to long-term investments.

    “We are a scale significantly higher than our next largest competitor in North America. We do say that our Viator, our most scaled and mature channel has been growing in the mid-teens.”

    asked by Richard Clarke · answered by Mike Noonan

    2 min read5 chapters

    Detailed Narrative

    01

    Experiences Segment Performance and Strategy

    The Experiences segment saw bookings grow 5% overall in Q2, with Viator, the largest owned and operated point of sale, delivering 10% growth. This performance was achieved despite SEO headwinds on the Tripadvisor point of sale, which impacted overall segment growth by approximately 5 percentage points. The company is focused on strengthening its marketplace flywheel by generating higher-quality demand through diversified marketing channels, improving conversion via product enhancements like personalization and availability details, and building stronger supply by actively expanding inventory in secondary/tertiary destinations and streamlining operator onboarding.

    02

    Hotels & Other Segment Optimization

    The Hotels & Other segment reported a 21% decline in Q2 revenue to $163 million, primarily due to sustained hotel shopper volume headwinds, which offset strong pricing growth. Media and advertising revenue within this segment also declined 12%. The company's objective for this segment remains to simplify the business and align revenue trends with costs, having already reduced fixed costs by approximately 16% year-to-date. The profitability of this segment allows for reinvestment into higher-priority areas, particularly experiences.

    03

    TheFork Divestiture and Portfolio Review

    Tripadvisor announced a proposed agreement to sell TheFork for $700 million, with a definitive agreement signed on August 2 and an expected close before year-end. This transaction is part of an ongoing portfolio review aimed at unlocking shareholder value and focusing the company on its experiences business. The net proceeds of approximately $680 million will provide flexibility for capital allocation, prioritizing debt reduction and/or share repurchases. The company continues to explore additional opportunities to reshape its business and enhance asset value.

    04

    AI Integration and Strategic Partnerships

    Tripadvisor is actively integrating AI across its business to accelerate the experiences marketplace flywheel, enhance native AI offerings for travel planning and in-destination use, and collaborate with leading AI platforms. Viator became the first travel experiences partner for Google Gemini, adding to existing partnerships with OpenAI, Perplexity, Microsoft, and Amazon. While AI-driven traffic is currently small, Tripadvisor and Viator are highly visible in Google's AI overviews, and internal AI tools are being used for engineering productivity, supply acquisition, customer service, marketing optimization, and fraud detection.

    05

    Macroeconomic Headwinds and Q3 Outlook

    The company experienced uneven performance in Q2 and July, attributing challenges to unusual weather in the U.S. and Europe, weakening demand in the U.S. to Europe travel corridor, and lower average booking values due to a higher mix of lower-priced items. These factors led to increased cancellation rates and pressured revenue growth. For Q3, Tripadvisor expects Experiences booked growth of 5% to 7%, but revenue is projected to decline 2% to grow 1%, with adjusted EBITDA margin of 14% to 17%. Hotels & Other revenue is expected to decline 20% to 23%, with adjusted EBITDA margin of 22% to 25%.

    AI-generated summary of the company’s earnings call. Not investment advice.