TRVG

• Turnaround Progress: Three years into the company's turnaround, Trivago delivered its sixth consecutive quarter of double-digit year-over-year total revenue growth, exceeding internal top and bottom line expectations. It achieved positive adjusted EBITDA of €1.1 million in Q2, the first positive Q2 adjusted EBITDA since 2023.
• Core Strategic Priority 1: Drive growth through brand marketing. Branded traffic referral revenue growth outpaced total referral revenue growth, building more lasting, higher-margin revenue. CRM channel referral revenue more than doubled YoY, with no incremental dedicated marketing cost, as the member base grows and retention improves. Logged-in members generate over 30% of referral revenue before intercompany eliminations, and new member 3-month retention is up 24% since Q1 2023. Performance marketing investment remains disciplined, with ongoing optimization of incrementality and attribution.
• Core Strategic Priority 2: Enhance core hotel search experience. Product conversion rate is up 64% since Q2 2023, improving unit economics. AI-powered features including context-aware hotel highlights and scanable AI review summaries have been rolled out to over 500,000 hotels, improving personalization and user trust. Trivago Book & Go, the company's native marketplace offering, has tripled in size YoY, and has onboarded Expedia as a new supply partner, with deeper native integration into the core platform.
• Core Strategic Priority 3: Strengthen partner ecosystem. The partner base has become more structurally diverse and resilient, with the share of referral revenue from non-major partners growing from 20% (Q2 2023) to 35% (Q2 2026). The transaction-based CPA model, which shifts bidding complexity and risk away from partners, has exceeded adoption and performance expectations.
• AI Adoption: 93% of employees use AI daily, up from 63% one year prior, saving an average of 55 minutes per employee per day. Investment in AI tooling and tokens in the first seven months of 2026 is five times the full 2025 investment. The company targets becoming AI-native, with AI handling execution and employees focusing on strategy, judgment, and product craft.

• Full-year 2026 guidance was revised upward, to mid-teens percentage year-over-year total revenue growth and adjusted EBITDA of approximately €30 million.
• Management reaffirmed and narrowed the mid-term target of reaching a 10% adjusted EBITDA margin by 2028.
• The company plans to continue scaling brand marketing investments in 2026 at a more moderated pace than in prior years, leveraging existing compounding brand effects to sustain improving profitability.
• Management expects to continue the existing share buyback program, viewing it as a disciplined high-return use of capital, as the current share price is seen to understate Trivago's long-term earnings potential.

Total Q2 2026 revenue was €168.4 million, a 21% year-over-year increase. 1. Americas: Referral revenue grew 16% YoY, delivered ROAS improvement from 116.9% in Q2 2025 to 125.3% in Q2 2026, advertising spend increased €6.2 million (14%) YoY. 2. Developed Europe: Referral revenue grew 14% YoY, ROAS saw a slight decline from 122.1% to 121.0% due to strong brand investments, advertising spend increased €8.3 million (18%) YoY. 3. Rest of World: Referral revenue declined 11% YoY, contributed 18% of total Q2 referral revenue, ROAS softened from 117.1% to 115.9%, advertising spend decreased €2.3 million (9%) YoY. By segment contribution, the share of referral revenue from non-major partners grew from 20% in Q2 2023 to 35% in Q2 2026.

• Rest of World segment is facing 7% foreign exchange headwinds and geopolitical pressure from the ongoing conflict in the Middle East, including airspace restrictions and elevated oil prices, which drove an 11% YoY decline in Rest of World referral revenue in Q2. The situation remains fluid, creating near-term uncertainty, though the limited 18% revenue contribution limits overall company impact.
• Google has not yet implemented required compliance changes related to the EU Digital Markets Act ruling that found Google non-compliant for self-preferencing in hotel search. While Google faces potential daily fines of up to 5% of global turnover if non-compliant, the final outcome and impact of any changes remains uncertain.
• Search result page changes from large search platforms are inherently volatile, making it difficult to predict if they will create a tailwind or headwind for Trivago's traffic, even if structural compliance is expected to level the playing field long-term.

Q: With the 10% 2028 adjusted EBITDA margin target now formalized, how does management view top-line growth potential over this period, what is the maximum potential share of non-major partners in the referral revenue mix, and what is the impact of Google's required EU compliance changes? / A: Management plans to grow revenue above the market average, but will wait for more data on member strategy traction before providing additional formal top-line guidance. Management sees a 30-40% share of non-major partners as a healthy, balanced mix for the marketplace, and does not control the exact share as it depends on partner activity. Google has not yet implemented compliance changes, but is testing potential compliant updates; management expects a long-term structural tailwind from a more level competitive playing field if full compliance is achieved.

Q: What are the key building blocks that give management confidence to hit the 10% 2028 adjusted EBITDA margin target, and what is driving Book & Go's rapid growth? / A: The three core building blocks for margin expansion are: 1) compounding brand investment that grows lower-cost branded traffic, with brand spend now increasing at a slower pace that flows through to bottom-line profitability; 2) continued conversion rate improvements that directly lift unit economics and profitability; 3) growing member base and higher retention, with free CRM engagement reducing customer acquisition costs for repeat visits. Book & Go's growth is driven by user demand for a seamless native booking experience that accommodates the chaotic, multi-touch nature of travel planning, and Trivago will remain multi-partner to accommodate different user preferences.

Q: What is the long-term potential size of Book & Go, and why did Expedia join as a supply partner? / A: Book & Go is currently active in 16 markets, and management estimates it could eventually serve 10-20% of Trivago users longer term. Expedia joined to gain incremental visibility: the platform gives Expedia exposure to Trivago's branded audience and allows it to display its own brand and inventory directly to users, creating incremental demand that Expedia would not otherwise capture.