TripAdvisor, Inc.

Hello, and thank you for standing by. Welcome to TripAdvisor fourth quarter 2025 conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. I would now like to hand the conference over to Angela White, Vice President of Investor Relations. You may begin.

Thank you, Tawanda. Good morning, everyone, and welcome to TripAdvisor's fourth quarter and full year 2025 financial results call. Joining me today are Matt Goldberg, President and CEO, and Mike Noonan, CFO. Earlier this morning, we filed and made available our earnings release. In that release, you'll find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measure discussed on this call. Before we begin, I'd like to remind you that this call may contain estimates and other forward-looking statements that represent management's views as of today, February 12, 2026. TRIP Advisor disclaims any obligation to update these statements to reflect future events or circumstances. Please refer to our earnings release as well as our filings with the SEC for information concerning factors that could cause actual results to differ materially from these forward-looking statements. With that, I'll turn the call over to Matt.

Thanks, Angela, and good morning, everyone. We're pleased with our 2025 results, which reflected continued momentum in our experiences and European dining marketplace offerings, which are increasingly replacing the declines in our legacy meta-search and media offerings. We achieved record high revenue of $1.9 billion, a result of 10% revenue growth in experiences and 22% growth at the fork, offsetting legacy revenue declines of 8% in our hotels and other segments. Group adjusted EBITDA was 319 million or 17% of revenue. TripAdvisor Group is fundamentally different today than it was three years ago. Our focus and investment are now deliberately centered on a large and growing marketplace opportunity, particularly in experiences rather than on constrained SEO dependent legacy offerings. This shift is changing the composition of our revenue and profit profile. In 2025, our marketplace businesses represented 61% of group revenue and 35% of adjusted EBITDA. By contrast, in 2022, our legacy offerings generated 59% of revenue and all of the group's profit. In 2026, we expect this transition to advance further. Marketplace revenue is expected to deliver two-thirds of total group revenue and half of adjusted EBITDA. And experiences on its own is expected to contribute more than 50% of our revenue and roughly 40% of our adjusted EBITDA, firmly establishing it as the group's primary value drive. Over the past year, we streamlined our corporate structure and made deliberate operational choices to concentrate on the areas of travel with the greatest long-term opportunity, grounded in our competitive advantages. As we enter 2026, our priorities are clear. We'll extend our leadership position and experiences globally, leverage our differentiated assets to position ourselves for an AI-enabled future, and simplify our legacy offerings while we continue to evaluate strategic options across the portfolio to unlock shareholder value. As we concentrate the group more fully on becoming an experiences-first company, we're mindful that the fork has more limited strategic synergies with where we're headed. At the same time, it's growing fast, diversifying its revenue, expanding profitability, and innovating as the only dining marketplace in Europe operating at scale across both B2B and B2C. We believe this is a uniquely valuable business with an attractive long-term growth profile, which may be underappreciated in our portfolio given the market activity we've seen around the dining category. As a result, we've decided to explore strategic alternatives for The Fork as part of our broader portfolio review. We view this as one potential path to creating additional capacity for meaningful capital return to shareholders, balanced with opportunities to invest further in our experiences strategy. I'd like to spend most of my time today on experiences, our highest strategic priority, and the area where we believe we have the assets, track record, and teams to be the global leader. We have a proven business model with growing customer loyalty driving improving unit economics in a highly attractive market. We see a durable long-term position ahead thanks to tailwinds in consumer preferences and low online penetration. The fragmented long-tail nature of the supply base and the critical role our unique brands play in smoothing the friction between customers and small operators. Over the next few years, the online portion of the experiences market is expected to grow by double digits, and our profitability and scale provides us the flexibility to invest in capturing even more share and accelerate our growth at attractive ROIs. We've achieved meaningful scale. Our gross booking value, or GBV, is rapidly approaching $5 billion, with a majority of bookings coming from loyal repeat customers that spend more and increasingly returned to us through direct channels. We're driving this growth profitably as we expanded adjusted EBITDA margins and experiences to 10% in 2025 and see a clear path for healthy margin growth in the future. Last year, our bookings volume and GBV growth progressed quarter by quarter and we exited 2025 strong with 18% bookings growth and 16% GBV growth in Q4. a profile that suggests we're accelerating, taking share in our core markets, and entering 2026 with momentum. As we look forward, our priorities are to drive demand from a diverse set of channels, improve our product experience to lift conversion, and grow our supply base to attract new customers. Let me walk through each of these elements of our flywheel briefly, demand, product, and supply. We've made progress in our marketing efficiency, by coordinating our two brands to capture more demand at improving ROIs. Our operating model changes have increased the combined click share in our core US performance marketing channels, outpacing other players. This year, we'll build on this playbook as we broaden our demand sources, expand investment in social media, and evolve our engagement with scaled strategic partners in AI, while continuing to lower our marketing spend as a percent of revenue. Our product teams are aggressively accelerating experimentation velocity, ending 2025 with more than double our testing volume versus the prior year. This lift has resulted in a meaningful lift to conversion, a critical driver of improving unit economics. We drove higher conversion rates on the TripAdvisor point of sale quarter by quarter through last year and are now approaching the conversion rates of the Viator point of sale. As we move into 2026, We're sustaining that pace, leveraging AI, machine learning, and predictive modeling to optimize the user experience in areas like personalization, merchandising, and booking flexibility. Working with suppliers, we're also launching new tools to deliver the right price at the right time to travelers, benefiting both sides of the marketplace. We're extending our supply coverage and quality across markets, leveraging the group's reach and customer signals. In 2025, we've grown supply in our core markets to more than 425,000 products from 70,000 suppliers, and our quality scores above 4.5 out of 5 stars are rising, up approximately 20% from last year. We'll continue to build on our supply scale advantage, focusing on relevance and conversion to attract new customers. We have a clear signal that our efforts are stimulating new demand, As we've added new supply, we continue to improve the all important rate to achieve the first booking and a strong mix of the new experiences are proving to be incremental. For 2026, this all adds up to higher quality of supply, driving more travelers to more relevant experiences and increased revenue opportunities for our operators. Looking forward, repeat bookers will continue to be our largest and fastest growing cohort, which is especially important given the impact these loyal customers have on our marketing leverage and profitability. We also see opportunities to target new customers by capturing more of the global TAM. This year, we'll build on our strengths by extending our marketing investment outside of our core U.S. point of sale, leveraging the power of both brands, localizing our storefronts for non-English native language customers, and adding locally relevant new supply across geographies and categories. Before turning to some commentary on our other segments, a quick word on how we'll continue to position ourselves for an AI-enabled future. Last quarter, we mentioned that we would rapidly launch an AI native MVP in Q4, and we did just that. Our goal is simple. utilize the substantial data and content we have to make more relevant, personalized recommendations, better match to travel intent, and easier to book, whether in the planning phase or in destination. While it's too early to say how or when this AI innovation will change our financial profile, we were pleased that we could deploy smaller teams working at higher velocity to go live quickly with a fully AI-first approach so we can test and learn from the large audience at TripAdvisor. And the early data indicates that our MVP is outperforming our prior onsite AI efforts across key customer engagement and conversion metrics. And of course, as we innovate on our own platforms, we're also taking advantage of direct relationship with key AI partners to experiment and learn across AI first search and agentic AI through licensing and product integration. The Viator app in ChatGPT is now live. as a proof of concept, joining our apps from TripAdvisor and The Fork. This cooperation has reinforced the value of our brand, content, and data, and suggests the power of the trust and travel category insight we provide. It's also resulting in significant increases in traffic coming from LLMs with higher revenue per visitor, although it's still small relative to other traffic sources. We believe there's a big opportunity ahead to scale our partnerships further by helping travelers close the trust gap between using AI for discovery and planning and using AI to book with confidence. Next, turning to the fork. As I mentioned earlier, over the last few years, we've strengthened our market position and financial profile. We diversified our revenue, improving our marketing efficiency and leveraging our R&D investments to increase profitability. In our more mature B2C offering, more than 80% of our bookings are coming from repeat diners. And with nearly 80% of bookings coming through the mobile app, we're also bringing more diners direct, improving the unit economics and validating the long-term margin opportunity for this business at scale. In our higher growth B2B subscription offering, our improved product is delivering strong growth in premium plan adoption. which in turn is driving higher than average revenue per restaurant within our base of more than 50,000 restaurants, a clear sign of the value in the B2B product. The Fork's innovation agenda is expanding reach and conversion gains through an engaging social feed while leveraging AI to improve search, matching, and conversion for diners and increasing productivity in customer service. Finally, we'll continue to simplify our hotel and other offerings as we streamline the cost base while leveraging TripAdvisor's heritage of trusted travel guidance to support our strategic objectives. We continue to hold a unique position in this space, despite ongoing declines in fly-by visitors to our site due to the changing search landscape and the rise of AI overviews. Last year, a stable base of travelers shared nearly 80 million contributions on TripAdvisor, Impressive and consistent volumes despite the traffic headwinds we've endured. This reflects a commitment of our most loyal travelers and the valuable proprietary data asset we'll deploy to advance our experiences and AI priorities. At the same time, we'll run our hotel and other legacy offerings for profit. We'll continue to align costs with revenue, evaluate strategic partnerships to stabilize and add scale, or potentially exit certain business lines. where we aren't driving value to our broad base of customers or partners, we'll continue to anchor on simplification. We just kicked off 2026, but we've hit the ground running with energy, focus, and confidence in our plans. We couldn't be more excited about our experiences future, the innovation and execution across our teams, and the opportunity we see to catalyze shareholder value and drive sustainable long-term revenue growth and margin expansion ahead. With that, I'll turn the call over to Mike.