trivago NV Q4 FY2025 earnings call

Key points include: Strategic theme in 2025 was 'turning the tide' with focus on turnaround; 2026 theme is 'optimizing momentum'. Brand marketing investments paying off with branded traffic revenue growth outpacing top line. Core hotel search product advanced with 37% conversion increase since 2023, powered by AI. Member proposition strengthened with logged-in members contributing over 25% of Referral revenue in Q4 2025 vs Q4 2023. Transaction-based CPA model adopted by over 140 partners, with over 25% of Referral revenue under this model. 2026 priorities: Drive growth through brand marketing (continue increasing spend but at lower pace), enhance hotel search and price conversion experience (focus on AI-powered features, Book & Go integration), empower partners (continue CPA model, help with exclusive deals for members).

For the full year 2025, trivago achieved 19% year-over-year total revenue growth and EUR 15.8 million in adjusted EBITDA. The fourth quarter saw a 27% year-over-year total revenue growth. In Q4 2025, Referral revenue grew 20% in Americas, 16% in Rest of the World, and 15% in Developed Europe despite material FX-related headwinds. Total revenue for Q4 2025 was EUR 120 million, with net income of EUR 14.5 million and adjusted EBITDA of EUR 11.3 million. Operational expenses in Q4 2025 totaled EUR 113 million, with selling and marketing expenses up due to increased brand marketing investments and the acquisition of trivago DEALS.

For 2026, trivago expects double-digit total revenue growth and an adjusted EBITDA of at least EUR 20 million. Q1 2026 is expected to be the fifth consecutive quarter of double-digit total revenue growth with higher profitability compared to previous years. Jan 2026 started off encouragingly, in line with expectations.

Q: Clarification on 2026 guidance, Referral revenue, pre-COVID aspirations, brand advertising channel A: Wolf explained that trivago will only give guidance on total revenue going forward as Referral revenue is distorted by intercompany eliminations and trivago DEALS. Johannes talked about trivago's aspiration to get close to pre-COVID levels and that brand marketing has diversified into new channels like streaming, podcasts, social media, reducing dependence on linear TV Q: Health of global travel, impact of major events, benefits of Book & Go and CPA model A: Johannes discussed travel trends including ADRs, length of stay, ABV, and search interest. Stated no major impact from mega events like Winter Olympics or World Cup. Book & Go has grown 137% Q4 2025 vs Q4 2023, contributing to partner conversion Q: Update on Holisto (trivago DEALS) white label booking engine A: Johannes said Book & Go is for driving conversion on trivago's platform, not a separate full tech stack business for other OTAs or hotel chains Q: Shift in traffic strategy as brand marketing level nears A: Johannes said trivago has diversified brand marketing channels, reduced dependence on performance/search channels, and is disciplined in performance marketing while continuing to invest in diversified brand channels