trivago Maintains Strong Momentum in Q3, Delivering 13% Growth

Core Insights - trivago N.V. reported a 13% year-over-year revenue growth for Q3 2025, marking the third consecutive quarter of double-digit growth, driven by strong branded channel traffic revenue [3][10][14] - The company achieved an Adjusted EBITDA of €16.0 million, an 18% increase from the previous year, and net income of €11.0 million, the strongest third-quarter result since going public [3][5][55] - The strategic acquisition of Holisto Limited contributed positively to the financial results, with a notable income gain of €3.2 million recognized [8][55] Financial Performance - Total revenue for Q3 2025 was €165.6 million, up from €146.1 million in Q3 2024, while total revenue for the nine months ended September 30, 2025, reached €429.0 million, a 17% increase from €366.1 million in the same period of 2024 [5][10] - Referral Revenue increased by 11% year-over-year to €161.6 million in Q3 2025, contributing to a total of €423.5 million for the nine months, also a 17% increase [5][23] - The Return on Advertising Spend (ROAS) remained stable at 134.1% for Q3 2025, reflecting effective marketing strategies despite increased advertising investments [4][33] Market Segments - The Americas segment saw a 14% growth in Referral Revenue, while Developed Europe and Rest of World segments reported 9% and 12% growth, respectively [4][20] - The company continues to observe strong growth dynamics across its marketing channels, particularly in Developed Europe and the Americas, driven by strategic marketing investments [10][11] Advertising and Marketing - Advertising Spend increased by €13.6 million in Q3 2025, representing a 13% year-over-year rise, primarily due to enhanced brand marketing efforts [29][40] - The company maintained a disciplined approach to marketing investments, focusing on long-term sustainability and profitability [12][29] Future Outlook - For the full year of 2025, trivago expects mid-teens percentage revenue growth and positive Adjusted EBITDA of at least €10 million, with a similar outlook for 2026 [4][14] - The company aims to expand its audience reach and enhance user experience through the integration of Holisto's offerings, particularly in the trivago Book & Go service [13][14]