Tripadvisor Inc. reported third‑quarter 2025 results that included a revenue of $553 million and a GAAP earnings per share of $0.43, while the adjusted EPS rose to $0.65. The adjusted figure surpassed the consensus estimate of $0.56 by $0.09, a 16% beat, but revenue fell short of the $562.9 million consensus by $9.9 million, a 1.8% miss.
Revenue declined 4% year‑over‑year, driven by an 8% drop in Brand Tripadvisor revenue to $235 million, the company’s core review‑based platform. In contrast, the Viator experiences segment grew 9% to $294 million, offsetting the core decline and supporting the overall revenue trend. The mix shift toward the higher‑margin experiences business helped keep the adjusted EPS above expectations despite the revenue dip.
The GAAP EPS beat the $0.33 estimate by $0.10, reflecting disciplined cost management and the absence of significant one‑time charges. Adjusted EPS benefited from a 22.2% margin, unchanged from the prior year, and from the stronger performance of the Viator segment, which delivered higher contribution margins. The company’s cost‑control program, including a $85 million annualized savings target, contributed to the margin stability.
Management guided for a flat year‑over‑year revenue in Q4 2025 and projected full‑year revenue growth of 3%–4%. Adjusted EBITDA margin guidance for the year remains at 16%–18%, unchanged from the prior guidance, indicating confidence in maintaining profitability while the company navigates the transition to an experiences‑led, AI‑enabled model.
CEO Matt Goldberg said the quarter “reflects the progress we’ve made in our marketplace businesses, particularly our continued success building on our scale position in the experiences category.” CFO Mike Noonan added that Brand Tripadvisor revenue decline was “stronger than anticipated traffic headwinds” and that the company expects continued revenue declines in the low teens next quarter, underscoring the need for the strategic shift.
The company announced a restructuring that will cut approximately 20% of its workforce—about 450 employees—and expects at least $85 million in annualized gross cost savings by 2027. The layoffs are part of a broader effort to streamline operations and focus resources on high‑growth experiences and AI initiatives.
Investors reacted positively to the earnings beat and the company’s strategic pivot, citing the adjusted EPS surprise and the commitment to cost savings as key drivers of confidence in Tripadvisor’s future growth trajectory.
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