- Trivago NASDAQ: TRVG Stock a Forgotten Travel Recovery Play
Trivago N.V. ADS NASDAQ: TRVG reported second-quarter revenue growth of 21% and positive adjusted EBITDA, extending its streak of double-digit quarterly revenue growth to six consecutive quarters as the travel-search company raised its full-year outlook.
Total revenue reached EUR 168.4 million in the second quarter, while adjusted EBITDA was positive EUR 1.1 million. Net loss for the period was EUR 5.2 million. Chief Executive Officer and Managing Director Johannes Thomas said the result marked the company’s first positive second quarter since 2023 and exceeded internal expectations for both revenue growth and profitability.
“The first half of the year is our investment period, while the second half is where we expect to earn the majority of our profits,” Thomas said. “Reaching profitability already in Q2, while substantially cutting our first half adjusted EBITDA loss shows how much our earnings profile has strengthened as we head into our strongest season.”
Regional performance and marketing spending
Referral revenue grew 16% year over year in the Americas and 14% in developed Europe, both ahead of management’s expectations. Chief Financial Officer and Managing Director Wolf Schmuhl attributed the growth to branded traffic, compounding benefits from brand marketing and better marketing efficiency.
Rest-of-world referral revenue declined 11%, affected by approximately 7% in foreign-exchange headwinds and geopolitical pressures in the Middle East, including airspace restrictions and higher oil prices. Schmuhl said the company adjusted bidding, marketing spending and targets locally during the quarter. The region represented 18% of second-quarter referral revenue, limiting its effect on the consolidated result.
Operating expenses increased EUR 26.9 million from a year earlier to EUR 174.2 million. Selling and marketing expenses rose EUR 14.3 million as trivago increased investment in brand and performance channels. The company also cited incremental costs related to the consolidation of trivago DEALS.
- Advertising spending in developed Europe rose EUR 8.3 million, or 18%.
- Advertising spending in the Americas increased EUR 6.2 million, or 14%.
- Advertising spending in rest-of-world markets declined EUR 2.3 million, or 9%.
Despite the higher spending, global return on advertising spend, or ROAS, improved to 121.8% from 119.0% a year earlier. Americas ROAS increased to 125.3% from 116.9%, while developed Europe declined slightly to 121.0% from 122.1% and rest-of-world ROAS fell to 115.9% from 117.1%.
Product, members and Book & Go
Thomas said the company’s product conversion rate has increased 64% since the second quarter of 2023. During the quarter, trivago aligned desktop and mobile experiences more closely, added more relevant listings and simplified the search-to-booking path.
The company also expanded its use of artificial intelligence in hotel search. Its AI-generated review summaries now use a per-paragraph format with highlighted elements and related images, while Hotel Highlights were improved for more than 500,000 hotels and made more context-aware, according to Thomas.
Trivago continued to pursue its member strategy, seeking to convert anonymous visitors into signed-up and profiled members. The three-month retention rate for new members has risen 24% since the first quarter of 2023, Thomas said. Before intercompany eliminations, logged-in members generated more than 30% of referral revenue.
Revenue from customer relationship management channels, such as email and push notifications, more than doubled from a year earlier. Thomas said these channels have no dedicated marketing investment requirement and are becoming a relevant contributor to profitability, although they remain small in revenue terms.
The company’s Book & Go offering also continued to expand. Its share of bookings on the platform roughly tripled year over year, and the service is now available in 16 markets. Trivago recently added several advertisers, including Expedia as a supply partner.
Thomas said Expedia can gain additional visibility through the product, appearing under its own brand as well as through trivago’s branded booking channel. He added that Book & Go remains a complement to, rather than a replacement for, trivago’s core metasearch offering.
Outlook and capital position
Management raised its 2026 guidance and now expects total revenue growth in the mid-teens percentage range and adjusted EBITDA of about EUR 30 million. The company reiterated a target of reaching a 10% adjusted EBITDA margin by 2028.
Schmuhl said the company expects to continue investing in brand marketing, though at a more moderate pace than in prior years, as it seeks to benefit from the compounding effects of its brand investments. Management cited improved conversion, greater customer retention, CRM engagement and a more diversified partner base as key elements supporting its margin target.
Before intercompany eliminations, the share of referral revenue generated by “all other” advertisers increased to 35% in the second quarter from 20% in the second quarter of 2023. Thomas said a range of 30% to 40% would represent a healthy marketplace distribution.
At June 30, trivago had EUR 114.5 million in cash and cash equivalents and no long-term debt. Schmuhl also said the company would continue its share repurchase program. As of July 31, the company had repurchased approximately 700,000 ADS for about $3.5 million.
AI adoption and Google developments
Thomas said internal AI adoption continued to increase. In the company’s latest employee survey, 93% of employees reported using AI daily, compared with 63% a year earlier, and employees reported saving an average of 55 minutes per day, up from 36 minutes. Trivago spent more than five times as much on AI tooling and tokens in the first seven months of 2026 as it spent during all of 2025, he said.
During the question-and-answer session, Thomas also addressed Google’s search practices in Europe. He said trivago had not yet seen Google implement a solution in general search results related to the European Union’s Digital Markets Act case. Thomas referenced a European Commission finding in July that Google was non-compliant and had been fined EUR 890 million for self-preferencing in search, among other issues.
Thomas said greater compliance could be a long-term structural positive for trivago by creating a more level competitive environment, while cautioning that the effects of search-result changes can be difficult to predict.
About Trivago N.V. ADS (NASDAQ:TRVG)
Trivago N.V. ADS NASDAQ: TRVG operates as a leading online travel metasearch platform focused on helping consumers compare hotel prices worldwide. Headquartered in Düsseldorf, Germany, the company aggregates accommodation offers from hotel websites, online travel agencies and other booking platforms, enabling travelers to find optimal rates and availability across millions of properties. Its platform is accessible via desktop and mobile applications, offering user-friendly search filters, customer reviews and detailed property information to support informed booking decisions.
The company's primary revenue model centers on cost-per-click (CPC) advertising, where accommodation providers and travel agencies bid for prominent placement in search results.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
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