Trivago (TRVG) - Q3 2025 Earnings Call
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Call Details
Call Title: Trivago Q3 Earnings Call 2025
Date Held: November 5, 2025
Management Team Members Present:
Johannes Thomas, CEO and Managing Director
Wolf Schmull, CFO and Managing Director
Call Summary
Financial Performance
Trivago reported a 13% year-over-year revenue growth, marking its third consecutive quarter of double-digit growth. Johannes Thomas stated, “Q3 exceeded expectations on both the top and bottom lines.”
The total revenue reached €165.6 million, driven primarily by a 14% increase in referral revenue growth within the Americas, alongside a 12% increase in the rest of the world.
The company’s net profit for Q3 was €11 million, and it achieved an adjusted EBITDA exceeding €16 million, which is indicative of improved financial health.
Operational expenses decreased to €153.4 million, attributed mainly to the non-recurrence of a €30 million impairment charge recorded in the prior year.
Despite foreign exchange headwinds negatively impacting revenues by approximately 4% globally, the company demonstrated strong core growth. “Due to our strong fundamentals, and diversified global footprint, we have still been able to demonstrate strong growth,” Wolf Schmull noted.
The return on advertising spend (ROAS) improved significantly, with a stable performance witnessed across various regions, especially in America, where ROAS increased from 126.3% to 135.4%.
As of September 30, 2025, Trivago maintained a solid cash position with €106.3 million in cash and cash equivalents and reported no long-term debt.
Guidance
Trivago anticipates mid-teens percentage revenue growth for the full year of 2025, with expectations for a positive adjusted EBITDA of at least €10 million.
Looking ahead to 2026, the company projects an adjusted EBITDA of around €20 million, aligning with its strategy to optimize current markets rather than expanding aggressively.
Wolf Schmull emphasized, “Our brand investments are still below 2019 levels and also there we see a strong opportunity to invest at attractive returns.”
The company aims to maintain its double-digit growth trajectory, fueled by ongoing brand marketing investments expected to yield scalable results.
Trivago plans gradual optimization of profitability, expected to manifest in its bottom line over time, as noted by Johannes Thomas: “It’s a matter of optimizing country mix, marketing mix, and improving our creatives.”
Capital Allocation
The management emphasized disciplined capital allocation, with plans to enhance brand investments where results are clear and promising.
Johannes Thomas highlighted, “We remain disciplined, investing where we see strong response,” signaling a methodical approach to spending.
The consolidation of Trivago Deals Limited into Trivago’s operations will be factored into future financial guidance, enriching the overall value proposition for partners.
While brand marketing investments are expected to increase, the focus will shift towards optimizing existing operations rather than venturing into new markets.
As a reflection of its strong financial footing, Trivago aims to sustain operational discipline while exploring growth opportunities within its core segments.
Macro & Demand Trends
The company acknowledged economic uncertainties and foreign exchange fluctuations but remains optimistic about future demand.
With strong brand integration and targeted marketing campaigns, particularly in the Americas, Trivago expects to capture and retain market share amidst competitive pressures.
“Our branded traffic revenue growth continues to outperform,” stated Thomas, underscoring the resilience of Trivago’s brand in a turbulent macroeconomic environment.
Demand for travel services is expected to remain robust, with Trivago strategically tapping into increasing leisure travel interests as markets stabilize post-pandemic.
AI Trends
Trivago continues to leverage AI to enhance the user experience, with features like AI-powered smart searches and review summaries that improve booking satisfaction.
Johannes Thomas remarked, “I’m especially proud of how broadly our team is adopting AI in novel ways,” indicating a significant integration of AI into their operations for efficiency.
The company showcased AI’s role in transforming product development, achieving outcomes previously requiring extensive human resources, with a compact team efficiently managing vast content creation.
AI advancements are expected to drive higher engagement and conversion rates, contributing positively to the company’s financial outlook.
Product Updates
The company noted notable enhancements to its core hotel search experience, aimed at instilling traveler confidence in their bookings.
With the introduction of new guest sentiment ratings and improved personalization through AI, Trivago is actively working to elevate user experience.
“We maintained a high product testing velocity,” says Thomas, implying continuous improvement in user engagement mechanisms.
The company’s member proposition is evolving, with rising revenues from logged-in members, contributing to retention and conversion.
Competition
Trivago is observing competitive dynamics, especially with rivals like Airbnb pivoting towards more hotel-centric offerings.
Johannes Thomas stated, “We are by far making most of our returns with hotels,” highlighting Trivago’s firm footing in the hotel sector despite other competitors’ expansions.
The management also mentioned a strong commitment to maintaining market effectiveness while engaging with various booking platforms including OTAs.
NOTABLE QUOTES:
“Q3 exceeded expectations on both the top and bottom lines.”
“Due to our strong fundamentals, and diversified global footprint, we have still been able to demonstrate strong growth.”
“Our brand investments are still below 2019 levels and also there we see a strong opportunity to invest at attractive returns.”
“We remain disciplined, investing where we see strong response.”
“I’m especially proud of how broadly our team is adopting AI in novel ways.”
“Our branded traffic revenue growth continues to outperform.”
“We maintained a high product testing velocity delivering notable enhancements.”
“We are by far making most of our returns with hotels.”
“It’s a matter of optimizing country mix, marketing mix, and improving our creatives.”
“Every partner is invited to join it from small to big.”
Q&A SUMMARY:
Q: Wyatt Swanson (DA Davidson & Co.): What are your goals for the percentage of logged-in users over the next 12 to 18 months, and what initiatives are you implementing to retain these users?
A: Johannes Thomas indicated that rather than a strict target, they are focused on gradual testing. He stated, “If we are reaching something like 30%, it is a number where we can say we have identified a core user segment.” Logged-in users convert 25% better, indicating the importance of this strategy.
Q: Wyatt Swanson (DA Davidson & Co.): Can you discuss Trivago’s potential role in B2B growth?
A: Thomas explained, “With Holisto now having a white label platform, you could access B2B rates,” highlighting interest in future B2B opportunities while emphasizing current focus on leisure travel.
Q: Navet Khan (B. Riley Securities): Can you clarify growth expectations in your core business versus Holisto for 2026?
A: Wolf Schmull responded that both segments are expected to grow double digits. He added optimism due to the large market share still available, indicating significant growth potential in their existing operations.
Q: Doug Anmuth (JPMorgan): How is Trivago positioning itself in the evolving AI-centric competitive landscape?
A: Thomas explained their strategy, emphasizing that while AI’s impact has been modest so far, they focus on brand strength and product engagement, stating, “We are where we see attractive volumes and returns.”
Q: Jack Huong (Mizuho Securities): Are you seeing increased bidding from Airbnb as they focus more on hotels?
A: Thomas affirmed they have had partnerships with Airbnb, noting, “We still make most of our returns with hotels,” suggesting they are cautious but ready to collaborate where complementarity exists.
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