TripAdvisor (NASDAQ:TRIP) Releases Quarterly Earnings Results, Misses Expectations By $0.08 EPS

TripAdvisor (NASDAQ:TRIP) announced its earnings results on Thursday. The travel company reported ($0.11) earnings per share for the quarter, missing the consensus estimate of ($0.03) by ($0.08), FiscalAI reports. The business had revenue of $382.40 million for the quarter, compared to analyst estimates of $384.69 million. TripAdvisor had a net margin of 2.12% and a return on equity of 10.67%. The firm’s revenue was down 4.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.14 earnings per share.

Here are the key takeaways from TripAdvisor’s conference call:

• TripAdvisor is seeing tangible traction in its experiences strategy — unified marketing, product changes and supply onboarding drove >20% conversion growth on TripAdvisor POS and Viator growth exceeded 20% in Jan–Feb, with AI partnerships beginning to drive high‑intent traffic.
• Late‑Feb macro/geopolitical shocks (notably the Middle East conflict plus Mexico and Hawaii disruptions) caused a spike in cancellations and an estimated ~3‑4 point headwind to Q1 growth, and management now guides Q2 consolidated revenue down mid‑single digits amid ongoing uncertainty.
• TheFork outperformed with Q1 revenue up 23% (11% constant currency) and ~8% EBITDA margin, strong B2B growth, and management is exploring strategic alternatives for TheFork that could unlock shareholder value.
• Q1 consolidated revenue was $382M (‑4%) with adjusted EBITDA $22M; operating and free cash flow were strong, the company repaid $345M of convertible notes leaving roughly $369M excess cash (ex deferred payables), and the full‑year outlook was adjusted to reflect first‑half headwinds with an expected re‑acceleration in H2.

TripAdvisor Stock Down 6.9%

NASDAQ:TRIP traded down $0.78 during mid-day trading on Friday, reaching $10.45. The stock had a trading volume of 3,530,116 shares, compared to its average volume of 3,505,152. The company has a market capitalization of $1.20 billion, a price-to-earnings ratio of 34.83, a price-to-earnings-growth ratio of 1.89 and a beta of 0.91. TripAdvisor has a 1-year low of $9.01 and a 1-year high of $20.16. The stock’s 50 day simple moving average is $10.51 and its two-hundred day simple moving average is $12.86. The company has a debt-to-equity ratio of 1.33, a current ratio of 1.29 and a quick ratio of 1.29.

Hedge Funds Weigh In On TripAdvisor

A number of hedge funds have recently bought and sold shares of the company. Corient Private Wealth LLC acquired a new position in TripAdvisor in the fourth quarter worth about $211,000. Invesco Ltd. lifted its holdings in TripAdvisor by 0.6% in the fourth quarter. Invesco Ltd. now owns 1,052,760 shares of the travel company’s stock worth $15,328,000 after acquiring an additional 6,053 shares during the last quarter. DCM Advisors LLC lifted its holdings in TripAdvisor by 668.9% in the fourth quarter. DCM Advisors LLC now owns 355,612 shares of the travel company’s stock worth $5,178,000 after acquiring an additional 309,362 shares during the last quarter. Empowered Funds LLC lifted its holdings in TripAdvisor by 603.9% in the fourth quarter. Empowered Funds LLC now owns 132,060 shares of the travel company’s stock worth $1,923,000 after acquiring an additional 113,300 shares during the last quarter. Finally, XTX Topco Ltd lifted its holdings in TripAdvisor by 65.8% in the fourth quarter. XTX Topco Ltd now owns 36,439 shares of the travel company’s stock worth $531,000 after acquiring an additional 14,458 shares during the last quarter. 98.99% of the stock is currently owned by institutional investors and hedge funds.

TripAdvisor News Summary

Here are the key news stories impacting TripAdvisor this week:

• Negative Sentiment: TripAdvisor reported a Q1 loss of $0.11 per share, wider than the expected loss of $0.03, while revenue of $382.4 million also came in slightly below estimates. The miss reinforces worries about near-term execution and demand softness. Article Title
• Negative Sentiment: Zacks said the quarter was hurt by macro disruptions, cancellations, and weaker hotel revenues, which widened losses and suggests pressure may continue if travel conditions remain choppy. Article Title
• Negative Sentiment: JPMorgan lowered its price target on TripAdvisor to $11 from $12 and kept an underweight rating, signaling continued skepticism about the stock’s upside despite the new target still implying modest gains from current levels. Article Title
• Neutral Sentiment: BTIG Research reaffirmed its buy rating and raised its target to $15, which shows some analysts still see meaningful upside if TripAdvisor can stabilize results. Article Title
• Neutral Sentiment: TripAdvisor also said it has made progress on selling TheFork and is exploring LLM data deals, which could be strategically positive over time but is not yet a direct catalyst. Article Title

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on TRIP. JPMorgan Chase & Co. lowered their target price on TripAdvisor from $12.00 to $11.00 and set an “underweight” rating for the company in a research note on Friday. BTIG Research reaffirmed a “buy” rating and set a $15.00 price target on shares of TripAdvisor in a research report on Thursday. Cantor Fitzgerald set a $10.00 price target on TripAdvisor and gave the stock an “underweight” rating in a research note on Friday, February 13th. Zacks Research downgraded TripAdvisor from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, February 18th. Finally, The Goldman Sachs Group decreased their price target on TripAdvisor from $25.00 to $22.00 and set a “buy” rating for the company in a research note on Tuesday, February 17th. Four investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus target price of $14.37.

About TripAdvisor

TripAdvisor (NASDAQ:TRIP) is a leading online travel company that operates a digital platform for travel information, reviews and booking services. The company’s flagship website and mobile apps allow users to access and contribute travel-related content—ranging from hotel and restaurant reviews to ratings for tours, attractions and vacation rentals—helping consumers plan and book trips around the world.

The core of TripAdvisor’s offering is its community-driven review system, which aggregates user-generated feedback alongside editorial content and professional photography.