Trivago N.V. ADS NASDAQ: TRVG reported what management described as an “exceptional year” in 2025, capped by a strong fourth quarter that delivered double-digit growth in referral revenue and higher-than-expected profitability. On the company’s Q4 2025 earnings call, CEO Johannes Thomas and CFO Wolf Schmuhl said the metasearch platform exceeded internal expectations for both revenue and earnings despite foreign exchange headwinds, while continuing to invest in brand marketing and product improvements powered by AI.
Q4 and full-year results show accelerating growth
Trivago reported fourth-quarter total revenue of EUR 120 million, up 27% year over year. Schmuhl said the quarter marked the company’s fifth consecutive quarter of total revenue growth and was driven primarily by higher branded channel traffic stemming from ongoing brand marketing investments.
For the full year 2025, management said Trivago delivered 19% year-over-year total revenue growth, income of EUR 11.2 million, and Adjusted EBITDA of EUR 15.8 million, even as FX created “material” pressure. Schmuhl quantified the FX headwind in Q4 at approximately 5% globally.
By geography in Q4, Trivago reported year-over-year referral revenue growth of:
- 20% in America
- 16% in Rest of World
- 15% in Developed Europe
Profitability outperformed as spending rose, led by marketing
Trivago posted Q4 net income of EUR 14.5 million and Adjusted EBITDA of EUR 11.3 million, which Schmuhl said was better than expected. The quarter also reflected a sharp increase in spending, with operational expenses rising EUR 26 million to EUR 113 million.
Schmuhl attributed the bulk of the expense increase to selling and marketing, which rose by EUR 19.7 million due to higher brand marketing investments and incremental expenses from the acquisition of Trivago Deals (formerly Holisto). Advertising spend increased across all core segments, including EUR 9.8 million (+43%) in America, EUR 4.3 million (+31%) in Rest of World, and EUR 3.8 million (+18%) in Developed Europe.
As brand marketing scaled in the quarter, global return on advertising spend (ROAS) declined to 147.9% from 162.9% in the prior year. ROAS decreased across all segments, including America (to 137.5% from 159.6%), Rest of World (to 131% from 148.3%), and Developed Europe (to 173.8% from 176%).
The company ended 2025 with EUR 130.9 million in cash and cash equivalents and no long-term debt, which Schmuhl said underscored Trivago’s “exceptional financial position.”
Strategy: brand marketing, AI-led product iteration, and partner tools
Thomas framed 2025 under the theme “Turning the Tide,” and said 2026 will focus on “Optimizing Momentum, Pushing Frontiers,” balancing growth with marketing discipline and continued product innovation. He pointed to several operating metrics management believes reflect progress since leadership changes in mid-2023.
- Brand marketing: Thomas said increased investments since mid-2023 are “paying off,” with branded traffic revenue growth outpacing top-line growth. He added the company is seeing “compounding effects” and sustained attractive returns on incremental brand spend.
- Core product and conversion: Trivago said it improved conversion, reaching a 37% increase versus 2023, supported by AI and “hundreds of experiments each quarter.” Schmuhl added conversion reached an all-time high in 2025, improving unit economics.
- Membership proposition: Management said revenue from “locked-in members” rose to more than 25% of referral revenue, representing a 93% increase in Q4 2025 compared to Q4 2023.
- Partner model and Book & Go: Thomas said more than 140 partners have adopted Trivago’s transaction-based CPA model, and over 25% of referral revenue is processed under that model. He also said referral revenue flowing through the Trivago Book & Go funnel increased 137% in Q4 2025 compared to Q4 2023.
Management also highlighted AI features such as AI Highlights, AI Review Summaries, and AI-driven natural language search. Thomas said Trivago launched AI Smart Search in Q4 2024, describing it as an LLM-powered free-text search that allows users to search with “natural conversational queries,” and said adoption has grown as visibility increased and the experience was refined.
2026 outlook: double-digit revenue growth and higher Adjusted EBITDA
For 2026, management guided to double-digit total revenue growth and is targeting at least EUR 20 million of Adjusted EBITDA. Schmuhl said the company is facing “tough comps” in Q1 and Q2, but noted an encouraging start in January in line with expectations for double-digit top-line growth in Q1 and improved profitability.
On guidance, Schmuhl said Trivago will only provide guidance on total revenue going forward, arguing that referral revenue has become less meaningful as a proxy given intercompany eliminations and the growing impact of Trivago Deals and Book & Go on reported revenue mix.
Management also signaled that brand marketing spend will continue to rise in 2026, but at a substantially lower pace than in prior years as Trivago approaches targeted investment levels. Thomas said the company expects to shift from entering new markets to optimizing existing ones, and anticipates profitability to improve as incremental brand spend slows and past investments compound.
Q&A: travel trends, mega-events, and Holisto’s role
In response to questions about travel demand, management shared internal indicators from Q4. Schmuhl said ADRs were positive in Rest of World but slightly negative in America and Developed Europe. Length of stay was slightly up across all three segments, while average booking value (ABV) was positive in Developed Europe and Rest of World and stable in America. Looking to Q1 2026 travel, he said clicked ABV looked stable overall, with Developed Europe and Rest of World positive and America slightly negative.
On international travel, Schmuhl said the mix of search requests remained stable globally, except that travelers from the Americas continued shifting more toward domestic trips, alongside “double-digit declines” in travel to the U.S. from countries including Canada, Germany, and France.
Regarding major sporting events such as the Olympics and World Cup, Schmuhl said the company has not modeled any positive or negative impact and did not see overlapping mega-events as a problem, adding that such events tend to encourage travel.
On the Holisto acquisition, management downplayed the idea of pursuing a separate white-label booking engine business as a priority. Instead, Thomas emphasized that the focus is on Book & Go completing bookings on Trivago on behalf of partners, with the primary goal of improving conversion.
Thomas also said Trivago has diversified its brand marketing mix beyond linear TV into channels such as streaming, podcasts, and social media, aiming to reduce dependence on search engines and maintain discipline in performance marketing.
In closing remarks, Thomas thanked employees and said management remains focused on sustaining momentum while staying disciplined in executing its strategy.
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.
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