trivago N.V. reports solid Q4 2025 results, achieving 27% YoY revenue growth

Core Insights - trivago N.V. reported strong financial results for Q4 2025, achieving a total revenue growth of 27% year-over-year, driven by a 17% increase in Referral Revenue [4][9][10] - The company exceeded its revenue and profitability expectations for the full year 2025, with total revenue growth of 19% and an Adjusted EBITDA of €15.8 million [4][12] - The CEO highlighted the effectiveness of increased brand investments since mid-2023, which have led to significant growth in branded channel traffic revenue [4][5] Financial Performance - Total revenue for Q4 2025 was €120.0 million, compared to €94.8 million in Q4 2024, marking a 27% increase [6][9] - Referral Revenue reached €109.4 million in Q4 2025, up from €93.5 million in the same quarter of 2024, reflecting a 17% growth [6][21] - Net income for Q4 2025 was €14.5 million, a significant increase from €5.1 million in Q4 2024, while Adjusted EBITDA was €11.3 million, slightly up from €11.1 million [6][48] Growth Drivers - The growth in Q4 2025 was attributed to double-digit Referral Revenue growth across all trivago Core segments, particularly a 20% increase in the Americas [5][10] - The company anticipates continued double-digit revenue growth and improved profitability for the full year 2026, with an expected Adjusted EBITDA of at least €20 million [5][14] Advertising and Marketing - Advertising Spend increased by 31% year-over-year to €75.3 million in Q4 2025, driven by brand marketing investments aimed at increasing direct traffic [11][25] - The Return on Advertising Spend (ROAS) decreased to 147.9% in Q4 2025 from 162.9% in Q4 2024, reflecting higher brand marketing investments [11][26] Segment Performance - The Americas segment generated €43.2 million in Referral Revenue for Q4 2025, a 20% increase from €36.0 million in Q4 2024 [19] - Developed Europe and Rest of World segments also showed growth, with Referral Revenue increasing by 15% in both segments [19][20] Outlook - The company expects to maintain a strong growth trajectory in 2026, focusing on cost discipline and leveraging AI to enhance profitability [5][13] - Continued product improvements and an increasing number of logged-in members are anticipated to further enhance booking conversion rates [13]