Tripadvisor reported a weaker third quarter, with revenue down 11% year over year and adjusted EBITDA down 34%. A $369.5 million non-cash goodwill impairment pushed the company to a GAAP net loss, although it remained profitable on a non-GAAP basis.
The results cover continuing operations. Tripadvisor also said its September 30 cash balance did not include proceeds received in November from the sale of TheFork; it did not provide the amount of those proceeds in the material provided.
Key details
- Revenue fell to $436.4 million from $490.8 million a year earlier. Experiences revenue declined 3% to $284.8 million, while Hotels and Other revenue fell 23% to $151.6 million.
- The company recorded a $316.9 million GAAP net loss, or $2.70 per diluted share, compared with net income of $48.5 million a year earlier. The loss was driven primarily by the $369.5 million non-cash goodwill impairment.
- Profitability weakened even excluding the impairment. Adjusted EBITDA was $71.1 million, down from $107.8 million, while non-GAAP net income fell to $43.4 million from $71.2 million. Non-GAAP diluted earnings per share were $0.37, versus $0.58.
- Total costs and expenses rose 81% to $773.1 million, largely because of the impairment. Among the listed expense categories, personnel costs declined 24% to $94.0 million. Marketing spending was essentially unchanged at $213.0 million, but increased to 48.8% of revenue from 43.3% a year earlier as sales fell.
- Experiences bookings grew, but revenue and profitability fell. The segment recorded about 6.8 million bookings, up approximately 2%, while gross bookings value was roughly flat at about $1.3 billion. Adjusted EBITDA declined 27% to $38.2 million, and its margin narrowed to 13.4% from 17.8%.
- Hotels and Other remained under pressure. Hotels revenue fell 23% to $109.7 million; media and advertising revenue also declined 23%, to $27.7 million. Segment adjusted EBITDA dropped 41% to $32.9 million, with its margin falling to 21.7% from 28.2%.
- Cash flow was negative for the quarter. Operating cash flow from continuing operations was a use of $122.0 million, compared with a $32.9 million inflow a year earlier. Free cash flow was negative $131.2 million, versus positive $19.0 million.
- Cash and cash equivalents from continuing operations stood at $706.8 million at September 30, down $271.2 million from year-end 2025. The company attributed the decline to repaying its 2026 senior notes for $345.4 million on April 1. The September balance excludes the proceeds received in November from the sale of TheFork.
What the results show
The impairment explains why Tripadvisor reported a large GAAP loss, but the declines in adjusted EBITDA and non-GAAP earnings show that operating performance also weakened. Experiences bookings increased modestly, yet flat gross bookings value and lower revenue indicate that booking growth did not translate into stronger reported sales in the quarter. The sale proceeds were received after the quarter ended, so they are not reflected in the September 30 cash balance.