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TRIP Q1 Loss Wider Than Expected on Macro Disruptions & Cancellations
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Key Takeaways
TRIP posted a wider Q1 loss as revenues fell 4% YoY and missed estimates.
Experiences revenues rose 8%, but cancellations and booking slowdowns hurt late-quarter momentum.
TheFork revenues jumped 23%, while Hotels & Other revenues dropped 20% YoY.
Tripadvisor Inc. (TRIP - Free Report) reported a first-quarter 2026 non-GAAP loss of 11 cents per share, wider than the Zacks Consensus Estimate of a loss of 3 cents. This compares to earnings of 14 cents per share in the year-ago quarter.
Total revenues of $382.4 million declined 4% year over year and missed the consensus mark slightly by 0.79%.
Q1 Details of TRIP
Experiences (43.9% of total revenues): The segment’s revenues totaled $167.9 million, increasing 8% year over year. Excluding the impact of currency exchange rate fluctuations, year-over-year growth was approximately 4%.
The number of experience bookings was approximately 5.6 million during the first quarter, an increase of approximately 11% year over year.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
Gross bookings value (GBV) reached approximately $1.2 billion during the first quarter, reflecting year-over-year growth of approximately 13%.
Hotels & Other (41.3% of total revenues): Revenues totaled $157.9 million, down 20% year over year. Excluding the impact of currency exchange rate fluctuations, the year-over-year decline was approximately 22%.
Hotels’ revenues for the first quarter were $114.4 million, reflecting a 23% year-over-year decline.
Media and advertising revenues for the first quarter were $28.0 million, reflecting a 9% year-over-year decline.
Other revenues for the first quarter were $15.5 million, reflecting a 13% year-over-year decline.
TheFork (15.0% of total revenues): Revenues for the segment totaled $57.3 million, increasing 23% year over year. Excluding the impact of currency exchange rate fluctuations, year-over-year growth was approximately 11%.
The total number of bookings during the first quarter grew year over year by approximately 6%.
TRIP's Operating Results
Cost of sales increased 22% year over year to $32.8 million. As a percentage of revenues, the figure was 8.6%, expanding 190 basis points year over year.
Marketing costs increased 3% year over year to $177.6 million. As a percentage of revenues, the figure was 46.4%, expanding 330 basis points year over year.
Personnel costs decreased 10% year over year to $129.6 million. As a percentage of revenues, the figure was 33.9%, contracting 220 basis points year over year.
Technology costs increased 10% year over year to $25.0 million. As a percentage of revenues, the figure was 6.5%, expanding 80 basis points year over year.
General and administrative costs decreased 16% year over year to $14.7 million. As a percentage of revenues, the figure was 3.8%, contracting 60 basis points year over year.
TRIP reported an operating loss of $25.2 million in the quarter compared with an operating loss of $15.5 million in the year-ago quarter.
In the reported quarter, total adjusted EBITDA was $22.1 million, declining 50% year over year. The adjusted EBITDA margin was 5.8%, contracting 520 basis points year over year.
Tripadvisor Flags Late-Quarter Macro Volatility
Tripadvisor pointed to a strong start in Experiences that faded as the quarter progressed. The company said Experiences momentum accelerated through the first two months, but was interrupted late February by a disruption in Mexico and Hawaii, followed by incremental pressure from conflict-related impacts on certain travel corridors in March.
Those events drove a surge in cancellations and a deceleration in forward bookings growth in affected destinations. Management emphasized that revenues are hit by both cancellations and demand softness, which made the late-quarter slowdown especially visible in reported results.
Q1 Balance Sheet & Cash Flow of TRIP
As of March 31, 2026, cash and cash equivalents were $1.12 billion compared with $1.03 billion as of Dec. 31, 2025.
Long-term debt was $817.5 million compared with $819.0 million at the end of the fourth quarter.
Tripadvisor reported $117.8 million of cash from operating activities compared with $101.7 million in the year-ago quarter.
The company reported free cash flow of $101.3 million compared with $82.7 million in the year-ago quarter.
During the first quarter, the company had no share repurchase activity.
Tripadvisor Outlines Cautious Q2 Revenue View
Looking ahead, Tripadvisor said April showed improving cancellation rates after the March spike, with bookings demand beginning to recover as the month progressed. Still, it framed macro uncertainty as a key consideration for the remainder of 2026.
For the second quarter, TRIP expects consolidated revenues to be down by mid-single digits and a consolidated adjusted EBITDA margin of about 15% to 17%. Segmentally, it expects Experiences bookings growth of roughly 5% to 8% and revenue growth of about 2% to 5%; TheFork revenue growth of about 10% to 13% (including an estimated 400-basis-point currency benefit); and Hotels & Other revenue declines of about 21% to 24%.
Q2 & 2026 Guidance
Looking ahead, Tripadvisor said April showed improving cancellation rates after the March spike, with bookings demand beginning to recover as the month progressed. Still, it framed macro uncertainty as a key consideration for the remainder of 2026.
For the second quarter, TRIP expects consolidated revenues to be down by mid-single digits and a consolidated adjusted EBITDA margin of about 15% to 17%.
For Experiences, bookings growth is expected to be approximately 5% to 8%, and revenue growth is expected to be approximately 2% to 5%. Adjusted EBITDA margin is expected to be approximately 12% to 14% (approximately flat year over year).
For Hotels & Other, revenues are expected to decline approximately 21% to 24%. Adjusted EBITDA margin is expected to be approximately 22% to 24% (lower year over year).
For TheFork, revenue growth is expected to be approximately 10% to 13%, including approximately 400 basis points of currency benefit. Adjusted EBITDA margin is expected to be approximately 11% to 13%.
Tripadvisor’s full-year 2026 outlook expects approximately flat consolidated revenue growth and an approximately flat adjusted EBITDA margin.
TRIP’s Zacks Rank & Stocks to Consider
Tripadvisor currently carries a Zacks Rank #3 (Hold).
FGI is scheduled to report its upcoming results on May 12. Meanwhile, Globale Online is slated to announce its results on May 13, and Advance Auto Parts is set to report earnings on May 21.
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TRIP Q1 Loss Wider Than Expected on Macro Disruptions & Cancellations
Key Takeaways
Tripadvisor Inc. (TRIP - Free Report) reported a first-quarter 2026 non-GAAP loss of 11 cents per share, wider than the Zacks Consensus Estimate of a loss of 3 cents. This compares to earnings of 14 cents per share in the year-ago quarter.
Total revenues of $382.4 million declined 4% year over year and missed the consensus mark slightly by 0.79%.
Q1 Details of TRIP
Experiences (43.9% of total revenues): The segment’s revenues totaled $167.9 million, increasing 8% year over year. Excluding the impact of currency exchange rate fluctuations, year-over-year growth was approximately 4%.
The number of experience bookings was approximately 5.6 million during the first quarter, an increase of approximately 11% year over year.
TripAdvisor, Inc. Price, Consensus and EPS Surprise
TripAdvisor, Inc. price-consensus-eps-surprise-chart | TripAdvisor, Inc. Quote
Gross bookings value (GBV) reached approximately $1.2 billion during the first quarter, reflecting year-over-year growth of approximately 13%.
Hotels & Other (41.3% of total revenues): Revenues totaled $157.9 million, down 20% year over year. Excluding the impact of currency exchange rate fluctuations, the year-over-year decline was approximately 22%.
Hotels’ revenues for the first quarter were $114.4 million, reflecting a 23% year-over-year decline.
Media and advertising revenues for the first quarter were $28.0 million, reflecting a 9% year-over-year decline.
Other revenues for the first quarter were $15.5 million, reflecting a 13% year-over-year decline.
TheFork (15.0% of total revenues): Revenues for the segment totaled $57.3 million, increasing 23% year over year. Excluding the impact of currency exchange rate fluctuations, year-over-year growth was approximately 11%.
The total number of bookings during the first quarter grew year over year by approximately 6%.
TRIP's Operating Results
Cost of sales increased 22% year over year to $32.8 million. As a percentage of revenues, the figure was 8.6%, expanding 190 basis points year over year.
Marketing costs increased 3% year over year to $177.6 million. As a percentage of revenues, the figure was 46.4%, expanding 330 basis points year over year.
Personnel costs decreased 10% year over year to $129.6 million. As a percentage of revenues, the figure was 33.9%, contracting 220 basis points year over year.
Technology costs increased 10% year over year to $25.0 million. As a percentage of revenues, the figure was 6.5%, expanding 80 basis points year over year.
General and administrative costs decreased 16% year over year to $14.7 million. As a percentage of revenues, the figure was 3.8%, contracting 60 basis points year over year.
TRIP reported an operating loss of $25.2 million in the quarter compared with an operating loss of $15.5 million in the year-ago quarter.
In the reported quarter, total adjusted EBITDA was $22.1 million, declining 50% year over year. The adjusted EBITDA margin was 5.8%, contracting 520 basis points year over year.
Tripadvisor Flags Late-Quarter Macro Volatility
Tripadvisor pointed to a strong start in Experiences that faded as the quarter progressed. The company said Experiences momentum accelerated through the first two months, but was interrupted late February by a disruption in Mexico and Hawaii, followed by incremental pressure from conflict-related impacts on certain travel corridors in March.
Those events drove a surge in cancellations and a deceleration in forward bookings growth in affected destinations. Management emphasized that revenues are hit by both cancellations and demand softness, which made the late-quarter slowdown especially visible in reported results.
Q1 Balance Sheet & Cash Flow of TRIP
As of March 31, 2026, cash and cash equivalents were $1.12 billion compared with $1.03 billion as of Dec. 31, 2025.
Long-term debt was $817.5 million compared with $819.0 million at the end of the fourth quarter.
Tripadvisor reported $117.8 million of cash from operating activities compared with $101.7 million in the year-ago quarter.
The company reported free cash flow of $101.3 million compared with $82.7 million in the year-ago quarter.
During the first quarter, the company had no share repurchase activity.
Tripadvisor Outlines Cautious Q2 Revenue View
Looking ahead, Tripadvisor said April showed improving cancellation rates after the March spike, with bookings demand beginning to recover as the month progressed. Still, it framed macro uncertainty as a key consideration for the remainder of 2026.
For the second quarter, TRIP expects consolidated revenues to be down by mid-single digits and a consolidated adjusted EBITDA margin of about 15% to 17%. Segmentally, it expects Experiences bookings growth of roughly 5% to 8% and revenue growth of about 2% to 5%; TheFork revenue growth of about 10% to 13% (including an estimated 400-basis-point currency benefit); and Hotels & Other revenue declines of about 21% to 24%.
Q2 & 2026 Guidance
Looking ahead, Tripadvisor said April showed improving cancellation rates after the March spike, with bookings demand beginning to recover as the month progressed. Still, it framed macro uncertainty as a key consideration for the remainder of 2026.
For the second quarter, TRIP expects consolidated revenues to be down by mid-single digits and a consolidated adjusted EBITDA margin of about 15% to 17%.
For Experiences, bookings growth is expected to be approximately 5% to 8%, and revenue growth is expected to be approximately 2% to 5%. Adjusted EBITDA margin is expected to be approximately 12% to 14% (approximately flat year over year).
For Hotels & Other, revenues are expected to decline approximately 21% to 24%. Adjusted EBITDA margin is expected to be approximately 22% to 24% (lower year over year).
For TheFork, revenue growth is expected to be approximately 10% to 13%, including approximately 400 basis points of currency benefit. Adjusted EBITDA margin is expected to be approximately 11% to 13%.
Tripadvisor’s full-year 2026 outlook expects approximately flat consolidated revenue growth and an approximately flat adjusted EBITDA margin.
TRIP’s Zacks Rank & Stocks to Consider
Tripadvisor currently carries a Zacks Rank #3 (Hold).
FGI Industries (FGI - Free Report) , Globale Online (GLBE - Free Report) and Advance Auto Parts (AAP - Free Report) are some better-ranked stocks that investors can consider in the broader Retail-Wholesale sector.
FGI Industries currently sports a Zacks Rank #1 (Strong Buy), while Globale Online and Advance Auto Parts carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
FGI is scheduled to report its upcoming results on May 12. Meanwhile, Globale Online is slated to announce its results on May 13, and Advance Auto Parts is set to report earnings on May 21.