TRIP.COM(TCOM) - 2025 Q2 - Quarterly Results

Executive Summary & Key Highlights Overall Performance Overview Trip.com Group reported strong Q2 2025 financial results, with net revenue increasing 16% year-over-year and 7% quarter-over-quarter, driven by robust travel demand - Executive Chairman James Liang emphasized travel as a key driver for national growth and global engagement, focusing on long-term industry growth and strategic investments in innovation, partnership development, and inbound travel expansion[2] - CEO Jane Sun noted strong momentum across all segments, with a strategy to capture growing demand from all demographics, particularly inbound travel, and enhance service capabilities for global travelers[2] International Business Growth The company's international businesses demonstrated strong growth across all segments in Q2 2025, with overall reservations on its international OTA platform increasing by over 60% year-over-year and inbound travel bookings surging by over 100% year-over-year - International businesses sustained strong growth across all segments during Q2 2025[21] International Business Growth (Q2 2025 YoY) | Metric | Growth | | :----------------------------------- | :------- | | Overall reservations (international OTA) | >60% | | Inbound travel bookings | >100% | | Outbound hotel & air ticket bookings | >120% of pre-COVID (2019) | Second Quarter 2025 Financial Results Net Revenue Performance Trip.com Group's net revenue for Q2 2025 reached RMB14.8 billion (US$2.1 billion), marking a 16% year-over-year increase and a 7% quarter-over-quarter increase, primarily fueled by strong travel demand Net Revenue (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | | :--------- | :------------ | :------------ | :--------- | :--------- | | Net Revenue | 14,843 | 2,072 | +16% | +7% | - The increase was primarily driven by stronger travel demand, particularly during holiday periods[3] Accommodation Reservation Revenue Accommodation Reservation Revenue (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | | :------------------------ | :------------ | :------------ | :--------- | :--------- | | Accommodation Reservation | 6,225 | 869 | +21% | +12% | - Primarily driven by an increase in accommodation reservations and stronger travel demand, especially during holiday periods[4] Transportation Ticketing Revenue Transportation Ticketing Revenue (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | | :---------------------- | :------------ | :------------ | :--------- | :--------- | | Transportation Ticketing | 5,397 | 753 | +11% | Flat | - Primarily driven by an increase in transportation reservations[5] Packaged-Tour Revenue Packaged-Tour Revenue (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | | :--------------- | :------------ | :------------ | :--------- | :--------- | | Packaged-Tour | 1,079 | 151 | +5% | +14% | - Primarily driven by an increase in packaged-tour reservations and stronger travel demand, particularly during holiday periods[6] Corporate Travel Revenue Corporate Travel Revenue (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | | :-------------- | :------------ | :------------ | :--------- | :--------- | | Corporate Travel | 692 | 97 | +9% | +21% | - Primarily driven by an increase in corporate travel reservations[7] Operating Expenses Total operating expenses for Q2 2025 increased to RMB7.9 billion, with cost of revenue, product development, and sales & marketing expenses all showing year-over-year increases, generally in line with revenue fluctuations and strategic investments Total Operating Expenses (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | | :-------------------- | :------------ | :------------ | :--------- | :--------- | | Total Operating Expenses | 7,923 | 1,106 | +15% | +5% | Cost of Revenue Cost of Revenue (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | % of Net Revenue | | :------------- | :------------ | :------------ | :--------- | :--------- | :--------------- | | Cost of Revenue | 2,818 | 393 | +22% | +4% | 19% | Product Development Expenses Product Development Expenses (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | % of Net Revenue | | :---------------------- | :------------ | :------------ | :--------- | :--------- | :--------------- | | Product Development Expenses | 3,500 | 489 | +17% | -1% | 24% | - Primarily due to the increase in product development personnel related expenses[9] Sales and Marketing Expenses Sales and Marketing Expenses (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | % of Net Revenue | | :-------------------- | :------------ | :------------ | :--------- | :--------- | :--------------- | | Sales and Marketing Expenses | 3,326 | 464 | +17% | +11% | 22% | - Primarily due to the increase in expenses relating to sales and marketing promotion activities[10] General and Administrative Expenses General and Administrative Expenses (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | % of Net Revenue | | :-------------------------- | :------------ | :------------ | :--------- | :--------- | :--------------- | | General and Administrative Expenses | 1,097 | 153 | +2% | +6% | 7% | Profitability and Earnings Trip.com Group reported strong profitability in Q2 2025, with net income increasing significantly year-over-year and quarter-over-quarter, and adjusted EBITDA also showing healthy growth Income from Operations (Q2 2025) | Metric | RMB (million) | USD (million) | YoY Change | QoQ Change | | :----------------- | :------------ | :------------ | :--------- | :--------- | | Income from Operations | 4,102 | 573 | +15% | +15% | Net Income and Adjusted EBITDA Net Income and Adjusted EBITDA (Q2 2025) | Metric | RMB (million) | USD (million) | Q2 2024 (RMB) | Q1 2025 (RMB) | YoY Change | QoQ Change | | :-------------- | :------------ | :------------ | :------------ | :------------ | :--------- | :--------- | | Net Income | 4,880 | 681 | 3,888 | 4,314 | +25% | +13% | | Adjusted EBITDA | 4,880 | 680 | 4,436 | 4,247 | +10% | +15% | Net Income Attributable to Trip.com Group Limited Net Income Attributable to Trip.com Group Limited (Q2 2025) | Metric | RMB (million) | USD (million) | Q2 2024 (RMB) | Q1 2025 (RMB) | YoY Change | QoQ Change | | :------------------------------------------ | :------------ | :------------ | :------------ | :------------ | :--------- | :--------- | | Net Income Attributable to Trip.com Group Limited | 4,846 | 676 | 3,833 | 4,277 | +26% | +13% | | Non-GAAP Net Income Attributable to Trip.com Group Limited | 5,011 | 699 | 4,985 | 4,188 | +1% | +20% | Earnings Per Share (EPS) Earnings Per Share (Q2 2025) | Metric | RMB | USD | Q2 2024 (RMB) | Q1 2025 (RMB) | YoY Change | QoQ Change | | :-------------------------------- | :---- | :---- | :------------ | :------------ | :--------- | :--------- | | Diluted EPS (per ordinary share/ADS) | 6.97 | 0.97 | 5.57 | 6.09 | +25% | +14% | | Non-GAAP Diluted EPS (per ordinary share/ADS) | 7.20 | 1.01 | 7.25 | 5.96 | -1% | +21% | Financial Position Cash and Investments As of June 30, 2025, Trip.com Group maintained a strong liquidity position with RMB94.1 billion (US$13.1 billion) in cash, cash equivalents, restricted cash, short-term investments, and held-to-maturity time deposits and financial products Cash and Investments (as of June 30, 2025) | Metric | RMB (billion) | USD (billion) | | :-------------------------------------------------------------------------------- | :------------ | :------------ | | Cash, cash equivalents, restricted cash, short-term investment, and held to maturity time deposit and financial products | 94.1 | 13.1 | Recent Developments Share Repurchase Program Trip.com Group continued its capital return policy by repurchasing 7 million ADSs for US$400 million under its existing program, and the Board authorized a new share repurchase program of up to US$5 billion - Repurchased 7 million ADSs for a total gross consideration of US$400 million under the existing share repurchase program as of August 27, 2025[17] - The Board authorized a new share repurchase program of up to an aggregate of US$5 billion of its outstanding ordinary shares and/or ADSs in August 2025[18] Conference Call Information Conference Call Details Trip.com Group will host a conference call on August 27, 2025, at 8:00 PM U.S. Eastern Time to discuss the financial results, with webcast and replay available on its investor relations website - Conference call scheduled for August 27, 2025, at 8:00 PM U.S. Eastern Time (August 28, 2025, 8:00 AM Hong Kong Time)[19] - Live webcast and replay available at https://investors.trip.com, with replay archived for twelve months[19] - Participants must pre-register to join the call[19][20] Forward-Looking Statements & Non-GAAP Measures Safe Harbor Statement The report includes forward-looking statements subject to inherent risks and uncertainties, as per the U.S. Private Securities Litigation Reform Act of 1995, and actual results may differ materially - The announcement contains forward-looking statements made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995[21] - Forward-looking statements involve inherent risks and uncertainties, and actual results could differ materially due to factors such as economic downturns, industry disruptions, competition, and regulatory changes[22] About Non-GAAP Financial Measures Trip.com Group utilizes non-GAAP financial measures to supplement GAAP consolidated financial statements, excluding specific items to provide a clearer view of operating results and aid future planning - Non-GAAP financial measures (adjusted net income, adjusted EBITDA, adjusted diluted EPS) are used to supplement GAAP statements[23] - These measures exclude share-based compensation charges, fair value changes of equity securities investments, and exchangeable senior notes, and their tax effects[23][24] - Management believes non-GAAP measures facilitate a better understanding of operating results and aid in planning and forecasting, but they are not a substitute for GAAP results[23][24] Company Information About Trip.com Group Limited Trip.com Group Limited is a leading global one-stop travel platform, founded in 1999, operating brands like Ctrip, Qunar, Trip.com, and Skyscanner - Trip.com Group Limited (Nasdaq: TCOM; HKEX: 9961) is a leading global one-stop travel platform[26] - Operates under a portfolio of brands including Ctrip, Qunar, Trip.com, and Skyscanner[26] - Mission is 'to pursue the perfect trip for a better world'[26] Consolidated Financial Statements Unaudited Consolidated Balance Sheets The unaudited consolidated balance sheets provide a snapshot of the company's financial position as of December 31, 2024, and June 30, 2025, detailing assets, liabilities, and shareholders' equity Total Assets (as of June 30, 2025) | Metric | RMB (million) | USD (million) | | :---------- | :------------ | :------------ | | Total Assets | 252,438 | 35,239 | Total Liabilities (as of June 30, 2025) | Metric | RMB (million) | USD (million) | | :------------- | :------------ | :------------ | | Total Liabilities | 102,958 | 14,373 | Total Shareholders' Equity (as of June 30, 2025) | Metric | RMB (million) | USD (million) | | :---------------------- | :------------ | :------------ | | Total Shareholders' Equity | 148,689 | 20,756 | Unaudited Consolidated Statements of Income The unaudited consolidated statements of income present the company's revenues, expenses, and net income for the three and six months ended June 30, 2025, and comparative periods Net Revenue (Six Months Ended June 30, 2025) | Metric | RMB (million) | USD (million) | H1 2024 (RMB) | YoY Change | | :--------- | :------------ | :------------ | :------------ | :--------- | | Net Revenue | 28,673 | 4,003 | 24,677 | +16% | Net Income (Six Months Ended June 30, 2025) | Metric | RMB (million) | USD (million) | H1 2024 (RMB) | YoY Change | | :--------- | :------------ | :------------ | :------------ | :--------- | | Net Income | 9,194 | 1,283 | 8,213 | +12% | Unaudited Reconciliation of GAAP and Non-GAAP Results This section provides a detailed reconciliation between GAAP and non-GAAP financial measures for the three and six months ended June 30, 2025, and comparative periods, illustrating the adjustments made for items like share-based compensation and fair value changes Non-GAAP Net Income Attributable to Trip.com Group Limited (Six Months Ended June 30, 2025) | Metric | RMB (million) | USD (million) | H1 2024 (RMB) | YoY Change | | :------------------------------------------ | :------------ | :------------ | :------------ | :--------- | | Non-GAAP Net Income Attributable to Trip.com Group Limited | 9,199 | 1,283 | 9,040 | +2% | Non-GAAP Diluted Income Per ADS (Six Months Ended June 30, 2025) | Metric | RMB | USD | H1 2024 (RMB) | YoY Change | | :---------------------------- | :---- | :---- | :------------ | :--------- | | Non-GAAP Diluted Income Per ADS | 13.16 | 1.84 | 13.24 | -0.6% |