TripAdvisor, Inc. (NASDAQ:TRIP) delivered third-quarter earnings that surpassed analyst expectations on Thursday, as the travel platform sharpened its focus on becoming an experiences-driven, AI-enhanced company.
The company reported adjusted earnings per share of $0.65, beating Wall Street’s consensus estimate of $0.56. Revenue reached $553 million, slightly below the expected $562.92 million but still up 4% year-over-year. Shares rose 1.6% following the results.
TripAdvisor also announced a major realignment of its operating model, part of a strategic shift toward an experiences-led growth strategy. The restructuring is projected to generate at least $85 million in annualized gross cost savings by 2027.
The company said the reset will strengthen its leadership in the fast-growing experiences segment, which now contributes nearly 60% of total revenue.
“Our performance in the third quarter reflects the progress we’ve made in our marketplace businesses, particularly our continued success building on our scale position in the experiences category,” said Chief Executive Officer Matt Goldberg.
“The shift in our operating model we are announcing today positions Tripadvisor Group as an experiences-led and AI-enabled company.”
The company’s Viator segment, which specializes in travel experiences and tours, continued to be a key growth driver. Revenue climbed 9% year-over-year to $294 million, while adjusted EBITDA surged 63% to $50 million. Conversely, the Brand Tripadvisor segment saw revenue decline 8% to $235 million.
Overall, adjusted EBITDA totaled $123 million, or 22.2% of revenue, roughly in line with last year’s margin. TripAdvisor closed the quarter with $1.2 billion in cash and cash equivalents, up $154 million from the end of 2024.
As part of the transformation, TripAdvisor will unify its Viator and Tripadvisor experiences teams under a single roadmap to streamline execution and accelerate innovation. The company also intends to leverage its extensive data and content to pursue AI-powered growth opportunities.
At the same time, Brand Tripadvisor will narrow its focus to prioritize experiences and data-driven strategies, while simplifying its portfolio of legacy offerings to enhance operational efficiency.