Good day ladies and gentlemen. Thank you for standing by and welcome to the Trivago Q4 Earnings Call 2025. I must advise you, the call is being recorded today, Wednesday the 4th of February, 2026. We are pleased to be joined on the call today by Johannes Thomas, Trivago's CEO and Managing Director, and Walsh Moon, Trivago's CFO and Managing Director. The following discussion, reflection, including responses to your questions, reflect management's view as of Tuesday, February 3rd, 2026 only, unless expressly stated otherwise, in which case it reflect management's view as of today, Wednesday, February 4th, 2026 only. Trivago does not undertake any obligation to update or revise this information. As always, some of the statements made on today's call are forward-looking, typically preceded by words such as we expect, we believe, we anticipate or similar statements. Please refer to the Q4 2025 operating in Financial Review and Trivago's order violence with the SEC for information about factors which could cause Trivago's actual results to differ materially from these forward-looking statements. You will find reconciliations of non-GAAP measures to the most comparable gap measures discussed today in Trivago's Operating and Financial Review, which is posted on Trivago's Investor Relations website at ir.trivago.com. You are encouraged to periodically visit Trivago's Investor Relations website for important content. Finally, unless otherwise stated, all comparisons on this call will be against results from the comparable period of 2024. With that, let me turn the call over to Johannes.

Good morning, and thank you for joining our Q4 2025 earnings call. We are thrilled to share the results of an exceptional year 2025 in our fourth consecutive quarter with double-digit year-over-year growth in referral revenue and higher-than-expected profitability. For the full year 2025, we exceeded both our top and bottom line expectations, despite Material FX-related headwinds, delivering 19% year-over-year total revenue growth and 15.8 million euro in adjusted EBITDA. We closed the year with an exceptionally strong fourth quarter, achieving 27% year-over-year total revenue growth. In 2025, our strategic theme for the year was Turning the Tide, Tearing our focus on making our turnaround a reality. In 2026, we are rallying behind the theme, optimizing momentum, pushing frontiers. Striking the right balance between growth and marketing discipline while continuing to innovate at the leading edge of our space. Our long-term strategy is playing out. We are confident that our brand and product flywheels can continue to drive growth and profitability. For 2026, we expect double-digit total revenue growth and are targeting at least $20 million of adjusted WDA. Despite strong comparables in the first half of the year, we anticipate our fifth consecutive quarter of double-digit total revenue growth in Q1 at higher profitability compared to previous years. Let me now highlight a few developments of the past year that demonstrate our outstanding progress the Trivago team has achieved since Andre, our CPO, Jasmine, our CMO, and I returned to the company in mid-2023. Our increased brand marketing investments since mid-2023 are paying off. Branded traffic revenue growth has outpaced top-line revenue growth significantly in the recent years. We have seen compounding effects and sustained attractive return on incremental brand marketing spend. Our core hotel search product continues to advance quickly. In 2025, we have improved our conversion, reaching 37% increase versus 2023, materially enhancing our unit economics. These gains are powered by AI and hundreds of experiments each quarter. We have evolved our member proposition, driving revenue from locked-in members to more than 25% of referral revenue, a 93% increase in Q4 2025 compared to Q4 2023. Our investments in empowering partners are translating into meaningful gains. Our partners reach more qualified leads than ever, and our transaction-based CPA model continues to exceed expectations. More than 140 partners have adopted this operating model, and over 25% of referral revenue is now processed under this model. Referral revenue flowing through our higher converting Trivago book and co-funnel has increased by 137% in Q4 2025 compared to Q4 2023. Zooming out, we believe we are well positioned within a 1.6 trillion travel market, with hotels representing about $500 billion of that opportunity. Our recent research shows that roughly half of travelers prioritize value for money and competitive prices. More than 40% of travelers compare prices between different booking sites. Our deal-oriented value proposition is tailored to this need, giving us conviction that we have a substantial room to grow. Let me now recap our key success drivers behind each of our strategic pillars and outlined our priorities for 2026. For additional detail, please refer to our investor presentation on ir.trivago.com, which further demonstrates our progress and the points I'm about to cover. Our first strategic priority is to drive growth through brand marketing. Our brand engine continues to gain momentum. Our brand marketing team has run campaigns in 30 countries and has delivered success across all geographical segments in 2025. Our AI-powered summer campaign featuring Global Icon and soccer coach Jürgen Klopp has proven very effective. And our winter campaign started with promising results. In the last quarter, we followed a different approach compared to previous year. We leaned into latter markets, which have a different peak seasonality, and invested in other key markets where we identified exceptional opportunities that we chose to exploit. We are consistently improving brand marketing efficiency and have expanded into new brand marketing channels. We remain disciplined and invest behind what we see is working. In 2026, we will continue to increase brand marketing spend, primarily in the markets we have focused on in the recent years. However, the pace of growth and brand spend will be substantially lower than in the past years, as we are now getting closer to our target brand marketing investment levels. Our priority will shift from entering new markets to further optimizing existing one. Unlike prior years, when profitable regions subsidized newly activated markets to a greater extent, we expect the slower growth and incremental brand marketing spend, combined with compounding effects of the past investments, to make us progressively more profitable in 2026 and beyond. Our second strategic priority is to enhance our hotel search and price comparison experience. In 2025, we significantly increased the number of tests run on our platform, delivering meaningful product improvements and conversion rate gain. Advanced machine learning and LLMs have enabled us to develop and scale AI-powered features that are broadly adopted by our users. Our AI highlights and AI review summaries are changing how people discover and evaluate hotels in every search on Trivago today. Our AI-driven natural language search allows travelers to search hotels in entire new ways. We launched our AI Smart Search in Q4 2024, becoming the first hotel search platform to offer this capability. It's an advanced free text search powered by large language models that lets users find hotels using natural conversational queries. Since the launch, we have steadily increased its visibility, continuous refined both the UX as well as the underlying logic. As a result, we are seeing growing user adoption. Our member proposition continues to strengthen as well, which we expect to improve retention. The key drivers behind this success are the exclusive rates that our partners provide to our members and our enhanced ability to personalize search results. Looking ahead to 2026, we will maintain our relentless focus on improving our core products. We see clear upside and further increasing conversions through high-velocity testing. We'll continue to invest in AI power features that are central to offering a superior hotel search experience. We aim to lead in price perception, offering great deals and making them easy for users to find. We will also stay focused on expanding our member base. In addition, we will double down on Trivago Booking Goal, which we aim to integrate more deeply in our user platform's journey, with the goal to facilitate the more seamless booking experience that further elevates conversion rates for our partners and Trivago. Our third strategic priority is to empower our partners to realize their full potential on our platform. Our transaction-based CPA model has seen broad adoption among small and mid-sized partners. These partners often lack resources and data scale needed to optimize bids and exposure effectively in our option. By shifting risk and optimization complexity away from bidding, the CPA model helps smaller partners compete more effectively in our marketplace. Going forward, we will continue to deliver highly qualified users to our partners, equip them with even better tools, and increase our efforts to help them optimize their rates on Trivago. In particular, we will focus on working with our partners to deliver more exclusive deals to our members. Finally, let me share my enthusiasm on the evolution of AI. I see this as a huge opportunity for our business and shareholders. Our vision is to operate with 600 people as if we were 6,000. We are fast, nimble team, adopting AI in every possible way. Using it to amplify our marketing impact, build previously unimaginable features for our users and boost our team's productivity day by day. In short, we are doing far more without expanding our workforce. With that, I'll hand over to our CFO Volz for a more detailed financial review.

Thank you, Johannes, and good morning, everyone. We are excited to report that the fourth quarter reflected our profitable growth trajectory with a year-over-year total revenue growth of 27%. For the full year, we achieved total revenue growth of 19% year-over-year. a net income of €11.2 million and an adjusted EBITDA of €15.8 million, despite FX-related headwinds. Our brand strategy, as well as our continuous product improvements, led to an all-time high in our conversion rate, which significantly improved our unit economics. Let's review our fourth quarter results and our 2026 outlook, Unless otherwise indicated, all comparisons for 2025 are on a year-over-year basis. In the fourth quarter, our total revenue reached 120 million Euro, representing a 27% increase compared to the same period in 2024. We are pleased to note this marks our fifth consecutive quarter of total revenue growth. This growth was driven by yet another quarter of strong year-over-year double-digit referral revenue growth of 20% in America, 16% in the rest of the world, and 15% in developed Europe. We achieved this despite its X-related headwinds of approximately 5% globally. The growth was primarily driven by increased branded channel traffic in response to our ongoing brand marketing investments. Strong creatives and the diversification of our branded marketing channels create further potential to scale and reduce our dependency on search engines. During the fourth quarter, we reported a net income of €14.5 million and achieved a better than expected adjusted EBITDA of €11.3 million. Euro. Operational expenses increased by 26 million Euro totaling 113 million Euro for the fourth quarter. This was mainly due to a 19.7 million Euro increase in selling and marketing resulting from higher brand marketing investments made over the course of the quarter and incremental financial expenses resulting from our acquisition of Trivago deals, formerly Holisto. Advertising spend increased by 9.8 million Euro, or 43% in America, 4.3 million Euro, or 31% in the rest of the world, and 3.8 million Euro, or 18% in developed Euro, driven largely by increased brand marketing investments in all Trivago core segments. Due to the scaling of our brand marketing investments in this quarter, global ROAS decreased from 162.9% in the prior year to 147.9% in 2025. We observed a reduction in ROAS year-over-year across all Trivago core segments during the fourth quarter, with America's decreasing from 159.6% in 2024 to 137.5% in 2025. The rest of the world decreasing from 148.3% in 2024 to 131% in 2025. and developed Europe from 176% in 2024 to 173.8% in 2025. As of December 31st, 2025, we had 130.9 million euro in cash and cash equivalents at no long-term debt, underscoring our exceptional financial position. Although we are facing TASCOMs in Q1 and Q2 2026, we are off to an encouraging start in line with our expectations. We will maintain close discipline and keep our headcount stable by leveraging AI. We will further scale our brand marketing investments, but on a lower level compared to previous years, and make use of compounding brand effects in order to gradually increase profitability in 2026. For 2026, we expect double-digit percentage total revenue growth and an adjusted EBITDA of at least 20 million euros. With that, let's open the line for questions. Operator, we are now ready to take the first question.

We will now begin the question analysis session. If you would like to ask a question, please raise your hand now. If you have dialed in to today's call, please press star 9 to raise your hand and star 6 to mute. Please stand by while we compile the Q&A roster. Your first question comes from the line of Navid Khan with B-Riley Securities. Your line is now open. Please go ahead.

Great. Can you hear me?

Yes, we can hear you.

All right. Thank you very much. So, my first question is just a little bit of clarification on the guidance. So for the double-digit growth in 2026, how should you think about the growth in referral revenues? Because you do have some contribution from the acquisition. Should we expect referral revenue to also grow in the double digits? And then maybe a related question is, you know, pre-COVID, you had, I think you had around over 800 million euros in referral revenue and you had kind of set out an aspiration goal of getting back to those kind of levels. Do you still expect to get back to where you were pre-COVID levels? and I think the EBITDA margin around the time was around six percent so how should we think about that over the kind of medium term and then and maybe just a clarification on the brand advertising channel I think you've talked about this kind of finding a new opportunity can you just elaborate on that a little bit if it's offline or online and what's the opportunity to scale that channel Thank you.

Hi, Navet. Here's Wolf. Thanks for your question. So, let me start with your first question and clarify on how we want to give guidance from now. We decided, and we also mentioned it in the last earnings call, that from now on we will only give guidance on total revenue. Why do we do this? We think it's more meaningful because when you look at referral revenue as a proxy for the development of Trivago Core, this is, from our perspective, not meaningful anymore because you will have a distorted picture. Because, and this is also described in our 6K, if you look only at the referral revenue, because we present it after inter-company elimination. And therefore, the part that is related to Trivago deals is not included. And it will be added as other revenue, and then you end up with the total revenue, which is a meaningful picture from our perspective. And another important point which is important in this context is that the more Trivago Book & Go will gain attraction in the future, the more this picture that you miss when you only look at referral revenue will be distorted. So we will only give guidance on the total revenue, so on a consolidated level. And, yeah, here we are with a double-digit top-line growth. And maybe one other point that I would like to mention is, or what I can say is that we saw an encouraging start in January in line with our expectation for Q1, which is double-digit top-line growth and improved profitability. That's it on the first question.

Maybe I can talk about aspirations, and I think two things here. You mentioned 2019 numbers. It remains our aspiration to get as close as possible towards that, but it's not like a hard goal we want to achieve. It's more an outcome of executing what we do in marketing. We are more disciplined in performance marketing, and we are not after just generating volumes. We are after driving branded traffic revenue growth, which means we're increasing our ad spend. We increase our marketing efficiency. We increase the impact of our creative. And we think we do still a substantial increase in brand marketing investment this year. We will also see brand marketing investments in the next few years, But there will be a digressive curve, so the increased spend will kind of slow down. And then the revenue is more an outcome because in terms of percentage, in terms of profitability, we want to get to around 10% adjusted EBDA share and rather in the next few years. And from there then decide, do we expand into new markets or do we further focus on expanding profitability and margins? And that's still open, but I think in the short term, you should think about 2019 is the aspiration. Whether it's 800 million or 700 million, I think we will figure that out. We're not dogmatic about it. What's then important for us is to expand the bottom line, deliver a solid outcome and then decide do we continue to lean into growth or do we focus more on margin and this decision is path dependent and will take in a few years. And then the brand marketing, I think I explained a bit the brand marketing strategy around the incremental spend being digressive and slowing down. I think this year, what you have seen in this quarter, the ROAS has been lower compared to previous year and even the previous year, the year before that. Typically, we have had a higher ROAS in the fourth quarter. The major reason is that we've leaned into latter markets. Latin American markets have a different seasonality. Their peak seasonality is around these times. So it's basically a flipped peak seasonality in Europe or in the U.S. also is around July, June, August. And in Latin America, it's the opposite side. We've leaned into those markets. They used to be very successful. Last year, we made a big leap in becoming more successful in these markets. And we doubled down this year in those markets into four. That's why you will see the ROAS is lower in terms of dynamics. And then we have also other markets where we saw opportunities, and how you can think about that is we are around the world talking to media stations, marketing outlets, and when we see that opportunity and being exposure available for an attractive price, we would take that opportunity and, as we expect, a very attractive return on that. We have seen that in Q4, so we saw opportunities to lean into. in other key markets, and we have done that as well. I think that's maybe how you can think about Q4 and what we did differently compared to previous years.

Excellent. Thank you very much. I keep up the good execution.

Thank you. Your next question comes from the line of Dirk Anmuth with J.P. Morgan. Your line is now open. Please go ahead.

Great. This is D.D. Alfred. Thanks for taking my questions. first one um just talk a little bit about how you will characterize the health of global travel as we said today and are you expecting any impact from major sporting events such as the winter olympics or the world cup on your platform and then secondly um where do you expect the most benefits to show up from the newer products like book and go and cpa model and Can these products drive further diversification in your advertiser base?

Yes, thanks for your question. Let me begin with, I'll give you a quick overview on the travel trends we are currently seeing. So the development we are describing here is based on our internal data, FoxU4, and we see ADRs were positive in the rest of the world, Americas and developed Europe were slightly negative. Length of stay was slightly up in all three segments and ABV was positive in developed Europe and rest of the world and stable in Americas. When we look at recent search interest based on our internal data for travel that starts In Q1, 2026, the clicked ABV overall looks stable. Clicked ABV for Q1 in developed Europe and the rest of the world is positive. And for America, it's slightly negative. Share of interest or share of search interest for four to five-star categories is stable on a global level. and the average travel distance clicked during the fourth quarter remains positive year-on-year, while the mix of search requests for international travel destinations remains stable, except for trips by travelers from Americas, where we continue to see a shift more towards domestic trips by U.S. travelers, combined with double-digit declines in travel to the U.S. from countries like canada germany or france so that's it on the on the travel trends

uh maybe the the mega events we have not modeled anything into um into you know neither positive nor negative impact around um world cup olympics um it's not there's not like it's more problem with many mega mega events overlapping each other we we don't see that and they rather get more people to travel than less and so I think there's nothing we would call out here we also don't see trends you certainly see prices up during those periods and effective cities but that's probably no news and then what what you asked around book and go and CPA you can see in the share and the partner mix that our mix has become more healthy in the course of the last two, three years after the pandemic, which is more – it's back to where it has been in 2019, and we think that's a good level, and part of this development is that I think in particular, maybe if you compare both, CPA has a bigger impact on making partners more competitive, and book and go over the course also increased in impact. But it's still, compared to CPA, I think a smaller impact. Book and Go, I think we shared it has grown 137% compared to Q4 2025, compared to Q4 2023. And this trajectory you see also in the investor presentation has been a trajectory that also happened into 2025 and coming during 2024 and 2025. We expect this trend to continue, and this will further support driving up conversions for our partners and for Trivago as a whole, and that will contribute to that as well.

Got it. Thank you.

Your next question comes from the line of Stephen Ju with UBS. Your line is now open. Please go ahead.

This is Vanessa calling in for Steven. So you previously mentioned, like, how Listo and now named Trivago Deals could provide white-label booking engine services, particularly for small and medium-sized OTAs and potentially hotel chains. I was just hoping we could get an update on this opportunity.

Yeah, I think I touched on it a bit in my remarks and in the previous question. So what this means is we facilitate the booking for our partners. Our priority is not, it might be an opportunity in the future, that we kind of power full tech stacks of other OTAs or so on. That's not a priority for us. What we focus on is book and go being a channel that completes the booking on Trivago on behalf of our partners and on behalf of Trivago Deals or the underlying product. Holisto has been operating in the past, and that is developing very well in our platform and with the main goal of driving conversion. And we outlined that conversion has been up 37% compared to 2023, which means marketing is more effective, which means user satisfaction is a lot higher, and that I think will be the payoff here and not kind of a separate business line that we are after.

Your next question comes to the line of Wei Feng with Mizuho Securities. Your line is now open. Please go ahead.

Okay, thank you so much. And congrats on the solid growth as well. I just want to double click on the commentary you're saying you're getting much closer to your plan, like brand marketing level, right? And does that mean you will need to maybe shift a little bit of your traffic strategy to some of the other channels on the way? Just want to see if you can comment on that. Thank you very much.

Yeah, thank you for your question. I'm not sure if I fully got it, but if you think about how we increase our brand investment, I think I touched on it before. Our strategy is to keep increasing this year substantially and the years ahead, but with less incremental growth than previous years. I think we generally, what I mentioned is that we have also worked, that we have also been successful in other brand market and new or additional brand marketing channels. if you are after that. So in the past, we had a strong focus on linear TV, and over the past two years, we have tried a lot of new channels from streaming to podcasts to social media, all kinds of new channels that have emerged and really were now able to scale because technologically they evolved over. And we have diversified into channels, and today we are less dependent on linear TV. And when it comes to broader marketing channels, we have been very disciplined in performance marketing. As we know, the attractive and the profitable traffic that we get that has stickiness and then also gives us lifetime value is branded traffic when people come to us directly and they have our brand in mind compared to performance marketing channels where you have a touch point and then don't have so much stickiness. So we have reduced dependencies on performance marketing channels or on search channels over the course of the years, which was an important step as well. And we will continue to be disciplined on those channels. And I think on the brand channel, we have become more diversified, which was also an objective to get confidence that we have avenues to grow in brands with a high elasticity when we incrementally invest.

Karl, thank you very much.

There are no further questions at this time. I want to also call back to Johannes for closing remarks.

Yes, thank you. I'm proud to be on this journey with such a strong team, and I want to say thanks a lot to everyone at Trivago for making our turnaround a reality. Our shareholders can be confident that we will remain focused on sustaining our momentum and be disciplined in executing on our strategy. Thank you to our partners and investors. for your continued trust and support and we look forward to sharing further updates in our next quarterly call. Thanks a lot.

This concludes today's call. Thank you for attending. You may now disconnect.