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

Thank you, Towanda. Good morning, everyone, and welcome to Tripadvisor, Inc.'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 will find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measure discussed on this call. Before we begin, I would like to remind you that this call may contain estimates and other forward-looking statements that represent management's views as of today, 02/12/2026. Tripadvisor, Inc. 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 will turn the call over to Matt.

Thanks, Angela, and good morning, everyone. We are pleased with our 2025 results, which reflected continued momentum in our experiences and European dining marketplace offerings are increasingly replacing the declines in our legacy metasearch and media offerings. We achieved record high revenue of $1,900,000,000, 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 $319,000,000 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 will extend our leadership position in 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…

Thanks, Matt, and good morning. I will start with a review of our financial performance and then provide more information on our outlook for 2026, each under our new segment reporting. As a reminder, all growth rates are relative to the comparable period in 2025 unless noted otherwise. Q4 consolidated revenue was $411,000,000, flat with a year ago, and in line with our expectations. Revenue growth in Experiences and The Fork came in at the high end of our guidance range, but was offset by slightly lower revenue performance in Hotels and Other. Full year consolidated revenue was $1,900,000,000 or 3% growth. Q4 consolidated adjusted EBITDA was $45,000,000 or 11% of revenue, which was at the low end of our expectations. In the quarter, we saw an opportunity to capture incremental demand through increased marketing investment, which we believe will benefit Experiences growth in 2026. Full year consolidated adjusted EBITDA was $319,000,000 or 17% of revenue. Experiences and The Fork both delivered adjusted EBITDA margin expansion that was more than offset by deleverage from Hotels and Other. Before discussing segment performance, I would like to briefly review the key changes to our new segment reporting. This morning, we posted materials with a detailed explanation of the changes and recast of historical periods. I would like to make a few key points on the changes. In the Viator sec in Experiences segment, revenue and all related metrics are the same as our prior Viator segment reporting. Adjusted EBITDA reflects all costs associated with entirety of our Experiences business, including the fixed and variable costs for both the Viator and Tripadvisor, Inc. points of sale. Therefore, there is no longer intersegment Experiences revenue because the new Experience segment reflects the full P&L for both brands. In Hotels and Other segment, revenue and…

Thank you. Please press 11 on your telephone, then wait for your name to be announced. To withdraw your question, please press 11 again. Our first question comes from the line of Eric Sheridan with Goldman Sachs. Your line is open.

Thanks so much for taking the question. Sticking with the Experiences side of the business, can you characterize how you are thinking about the incremental growth investments in the business, especially in the marketing side in response to two things, both the demand signal you think you are getting from the market in terms of Experiences growing as a percentage of consumer spend and also in light of what might be different or stable elements of the competitive intensity in Experiences. We would love to get some characterization on both against your growth investments. Thanks so much.

Yeah. Thanks, Eric. I appreciate the question. It is Matt. And I will take the question, and Mike can fill in as he likes. We see the Experiences market as very attractive. Obviously, it is growing faster than other travel categories. We saw, know, from '19 to '25, the online portion growing at 13%. In that period, we grew 22%. From '22 to '25, the market grew 16%. Online 22%. We grew 22% over that period. So we feel really good about our ability to grow not only in line with the online portion, but to exceed it over time. Looking forward, you know, we think there are a number of reasons that we can really deliver here. The first is the scale we have already achieved, the position we have in our core market, in the U.S., and the ability to extend that globally. You can see that in our GBV. That is accelerating and approaching $5,000,000,000 last year. You can see that in how our supply is growing and the relationship we have with operators. And you can see demand signals very, very clearly both in our Tripadvisor, Inc. point of sale, where we are able to take that data and match supply and demand as we target the supply we want to go after that is going to allow us to extend, internationally. We brought our team together to drive marketing efficiency, and we have a stronger competitive position there. We are leveraging our product and, as as I mentioned, supply across those brands. And really smoothing the friction to get more, conversion and ultimately driving our unit economics across the business. So that is driving profitability. And as we see scale, and accelerating growth with profitability, we really think that that gives us the flexibility to invest further, to drive global leadership. So the operating model is helping. We see it, in our data. And you can obviously see it externally. Anybody you talk to in travel is talking about the power of Experiences and how that is driving all of the other categories. So we feel we sit bull's eye there. As we relate to others in this space, I think it is really interesting because when when you look at where we stand, it is really you know, we are the most profitable Experiences player in there. I think you come from the strongest market, which gives us an opportunity to extend that into other markets. Our unit economics are progressing, and we just feel that between our ability to go after demand and meet that with supply, extend the TAM growth, right, by looking into new geographies and categories, we are really well positioned to double down in Experiences, add resources and investment that are going to draw accelerate both growth and profitability over time.

Yeah. And one thing I would add on to that, Eric, would be a little bit about specifically on the marketing approach. To add on. No. I think a few fundamental things about the category. One, we believe it is very large, as Matt said, but the awareness is still relatively low. And so I think it it is how you find intent, how you convert that tent. And, you know, we see that intent primarily through the paid channels. And I think we have exceedingly good teams that are good at those conversions. And importantly, importing that those wins over to both our points of sale at Viator and Tripadvisor, Inc. And so, really, we have to follow that intent and convert that where we can. And that is really the basis of how we think about our ROIs in the paid channels. You know, we we understand that as an investment in a new user, particularly a new user in the category. And it is all then how you drive that repeat behavior. And and and how we target those ROIs is just based on where we see our long-term margin progression until target margin can be over the long period of time. And that is the formation of how we think about our ROIs.

Please stand by for our next question. Our next question comes from the line of Naveed Khan with B. Riley Securities. Your line is open.

Question on the on the Experiences margin expansion. I think you are guiding to a few 100 basis points of EBITDA margin expansion in Experiences. And my question is about the the fact that you mentioned repeat bookings are up from the previously acquired cohorts. Why not why not double down on customer acquisition versus giving back some on the on the EBITDA margin. Why not just optimize for long-term customer growth and maximize the potential there? And then second question is, I think you mentioned that you expect that SEO will be less than 10% of the traffic for 2026. How should we think about that and your long-term sort of margin view of maybe this business operating at around mid-twenties EBITDA margin. Just give us your thoughts there. Thank you.

I will I will I will hit both, and Matt can chime in. So I I think, you know, the question on growth and profitability, what you are getting at. So I think the profitability this year in Experiences is driven by two. Two factors. One, which we believe we can continue to drive, efficiencies in our, in marketing, driven by really product-driven conversion growth, operating two teams, operating, you know, two two platforms as one. We can drive a lot of efficiencies there. We are excited about that. And then two, as you said, Naved, the natural, repeat cohorts that are building in the business, I I would just say when we think about, our growth profit trade-off, we are not targeting profitability over growth. I think what we have to look at and continue to look at is what is that incremental ROI and marginal ROI for new users which I said as I just said, is an investment. And we are continuing to look at where we can be smarter and make trade-offs. We made some trade-offs in Q4 that we liked. And so you have seen us demonstrate that in in the Q4, and we will continue to be flexible and do that as we move through the year. But listen. When when we are we are sitting primarily in a North American market where new users are are, we are always looking at that marginal, incremental ROI to see where we can drive more growth at profit levels that makes sense based on re rates we see. Part of the algorithm, we talked about this last call. We mentioned again this call about how we are expanding our TAM, our addressable TAM by looking at new regions outside of North America. We are very excited…

Please stand by for our next question. Our next question comes from the line of Nafeesa Gupta with Bank of America. Your line is open.

Hi. Thank you. Hi, Matt. Could you tell us more about this AI-native MVP that you launched in the fourth quarter and how that is different from your earlier trip plan? And then I have one more after this. Yeah. So I just want to understand about the economics that you are seeing from the larger platforms in terms of user acquisition? And also, how are you thinking about monetizing your user review data that you have from Tripadvisor, Inc. core?

Okay. Thanks. Yeah. So on the end and the AI-native MVP, what we wanted to do was to shift the way that we deliver AI products to our customers. And so we want it to be AI-first, AI-native, use the tools, and really reimagine what Tripadvisor, Inc. could be in a fully AI-native world. So we are we are going back to our roots. We want to help people validate their travel choices with better recommendations that understand who they are, drive personalization, that these recommendations can be better explained through social proof and that they can immediately be more actionable. And so we have been learning off the last quarters and years of our investment in our AI infrastructure and our products, which we are really adding on to our existing product. Now we are going fully AI-native to to reinvent. And so we like the data that we are learning. We we believe that we can build trust in the why behind travel choices. We believe that our UGC, which as I said, is stable, and we intend to really drive growth there, gives the social proof that users want before they are willing to book. And we think that we can ultimately become that trust layer whether it be on our own products or serve and services or in partnership with a a scaled AI partner. So we are taking a very different approach. The teams have been, you know, running really fast. They are they are extraordinarily lean, and we are iterating on live customer behavior to understand how how we can improve and and and drive that conversion and and that revenue. I will say, you know, we are live to a slice of of our of our audience. So it is still early. But…

Please stand by for our next question. Our next question comes from the line of Stephen Ju with UBS. Your line is open.

So I think know, for Viator, I think there was a push for a number of years. If not from yourself, but generally, know, across the segment to make it progressively less episodic by maybe asking your users to use it, you know, in their home market. So you know, is that proving to be more challenging, or is just an awareness factor? Are you getting that activity picking up currently? And you know, because, you know, with folks thinking that maybe they should only open up Viator only when they travel. Thanks.

Yeah. Thanks. We are definitely continuing our work to attract customers who are interested in Experiences wherever they may be, whether that is on a a long haul trip, a domestic short haul trip closer to home, or even, you know, an experience that they want to have over a long weekend. And, of course, you know, our supply is the largest supply available anywhere. So we think that matching that kind of demand is something that we can do now. We are growing our supply, and it will depend on you know, really going after more local Experiences, and that is something that as we continue to invest in supply, we can continue to add. I would say that our primary focus right now has been to enter new geos. But as we enter new categories and think about extending that supply, going deeper perhaps into attractions, you know, maybe that local supplier who you rent a canoe from to go down the river with your kids, you know, that will be something we will continue to do. So it is an area of future growth. I would not say that it is the priority we are driving hardest at. Otherwise, we would have called it out. But it is definitely something that we believe our platform can deliver on. So there will be more there to discuss going forward.

Please stand by for our next question. Our next question comes from the line of Lloyd Wamsley with Mizuho. Your line is open.

Thanks. I have got two questions. First, just drilling into the geographic expansion for Experiences. Like, how much of that is building supply, you know, in new markets and demand in new markets, versus maybe selling North American Experiences into new points sale where you do not need new supply. It is more marketing. Just anything you can help us understand on on the plan for geographic expansion. And then the second one was just, you know, you sort of hinted at, the potential for evolution in the partnerships with the larger AI search platforms? Like, anything you can tell us either specifically, or should we expect evolution there? This year in in any meaningful way? Anything you could share there would be great. Thanks.

Thanks, Lloyd. On the geo expansion, it is a combination of both, but, of course, you know, we are already serving U.S. North American customers going to international destinations. We think we do that relatively well. Of course, we can continue to improve as we think about specific supply in particular locations. But I think going after the geo expansion is very much about the supply that will appeal to international source markets that we have not served in the past. We have done some in English language, but I would say we are under-optimized as we think about that native traveler from international source markets. So think about a different kind of experience that they may want to have relative to an American. That is supply. We will go out. We have the Tripadvisor, Inc. brand, which is highly trusted and huge awareness in Europe and Asia. And, obviously, we can leverage that. We can use those signals of intent to go target the right supply. We can use AI to localize through translation and do that relatively quickly. And then, of course, we can leverage all of our data to go and target through our marketing channels in those geographic locations. So think local sourcing of new markets as a meaningful opportunity for us ahead, which we are just getting going on, and we are we are excited about that with more to come. In the second question, about our partnership opportunities, we are very excited about what is ahead in our partnership. I would say that 2025 was very much about establishing a foundation. We wanted to learn from partners what worked, what did not, what we had that was valuable, and really get a set of partners going. So you saw us working with OpenAI, with…

Our next question comes from the line of Jed Kelly with Oppenheimer and Company. Your line is open.

Hey, great. Thanks for taking my question. Just just drilling down to Experiences, you know, obviously, the marketing was up quite a bit in fourth quarter. Can you just talk about the competitive intensity around that? Or is that more from you testing new channels? Now the other thing with with Experience is have you looked into getting into more partnerships that could actually drive more repeat traffic such as, like, event ticketing? Thank you.

Yeah. I will I will take the first one. You know, Matt, take the second one. Yo, listen. I think in terms of the the the marketing, in Q4, one, no change in approach. As I as I was talking earlier with with Naveed. You know, we are looking and driving a very disciplined set of ROIs in a marketing spend, and, you know, where we think we can drive growth, we will look to do so based on the same set of of of of criteria. I I would say when you are accelerating that deleverage as a percent of revenue is going to show through for sure. When you look at our marketing as a percent of GBV, it is pretty flat year over year. So, in our minds, you know, the the marketing spend was was it was kinda in line to our historical, disciplined approach, the way we approach it. And and as I said earlier, we are going to be flexible as we approach as we move through the year. We always are going to be seeking ways to, you know, grow, accelerate, take share, but we are going to do it in a way that is disciplined, that ladders up to a long-term target market. And, again, I think as we open up our geo expansion, that opens up a different set of, of really exciting choices for us.

Yeah. And on your second question, Jed, around partnerships to drive repeat booking, absolutely, we are always talking with a variety of partners. We have a strong B2B team and a partnerships team. Live events and ticketing, as you just described, is one area. Earlier, we were talking about local activities that we could go after. So it is a combination of partnerships and supply, and, absolutely, that is something we are focused on. We think there is any number of additional opportunities to go after. I do not want to get ahead of ourselves and start talking about those now. But we talked about two of them, and I think you can expect to hear more from us on on some of those opportunities ahead.

Our next question comes from the line of Tom White with D. A. Davidson and Company. Your line is open.

Hey, this is Wyatt on for Tom. Thanks for taking our Just given the heavy fragmentation and Experiences, is that technically better insulated from potential AI disintermediation? And I would like to hear your thoughts on maybe how Experiences are maybe uniquely positioned in the travel space. Thanks.

Yeah. I think that, Tom, thanks for the question. I think your commentary about the long-tail fragmented supply with, you know, all of those hundreds of thousands of small businesses that are out there to go after, and we feel really good about our penetration there. I think you are right. I think that does insulate AI disintermediation. There are a couple other reasons why I think it is insulated and durable ahead. First, you know, as Mike was saying earlier, it is much less dependent on the structurally challenged SEO traffic. Second, I think it is really hard to bring that structure to the supply base and connect them directly to consumers, taking friction out of the journey, putting in place all of the infrastructure as a marketplace, applying, you know, customer service, dealing with the logistical challenges. And then I think, you know, the way that, you know, we have been competing effectively in these high-intent demand channels in getting these heat economics going is is also, you know, an installation there. So we think that positions us really well. And, of course, you know, we will continue to to drive that flywheel and only strengthen the durability and potential to defend. So it is a good question, and that is exactly how we are approaching it.

Thank you. Ladies and gentlemen, due to the interest of time, I would now like turn the call back over to Matt Goldberg for closing remarks.

Yeah. Thanks for that, and and thanks, everyone, for joining us today. We covered a lot on this morning's call. I think the most important thing is we are excited about 2026 and executing on our priorities. We think it will drive durable, sustained long-term shareholder return. Also just want to take a moment to thank all of our employees for their good work to deliver on our clear priorities ahead. We are looking forward to 2026 and updating you on our progress and plans on the next call. Thank you, everyone.

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.