Despite maintaining gross margins consistently above 93%, the company struggles to achieve operating profitability, with margins dipping as low as -13.4% in 2024Q3 due to aggressive marketing spend.
| Sales/Revenue | 568.92M | 548.91M | 460.85M | 485.03M | 535M | 361.46M | 248.92M | 838.62M | 914.82M | 1.04B | 754.17M | 493.08M | 309.33M |
| Revenue Growth % | 17.66% | 19.11% | -4.99% | -9.34% | 48.01% | 45.21% | -70.32% | -8.33% | -11.64% | 37.29% | 52.95% | 59.4% | - |
| Cost of Goods Sold | 22.7M | 15.1M | 11.27M | 11.97M | 12.69M | 11.5M | 10.13M | 9.16M | 5.43M | 5.93M | 4.27M | 2.95M | 1.44M |
| COGS % of Revenue | - | 2.75% | 2.44% | 2.47% | 2.37% | 3.18% | 4.07% | 1.09% | 0.59% | 0.57% | 0.57% | 0.6% | 0.47% |
| Gross Profit | 546.22M | 533.82M | 449.58M | 473.06M | 522.31M | 349.96M | 238.79M | 829.46M | 909.38M | 1.03B | 749.9M | 490.14M | 307.89M |
| Gross Margin % | 96.01% | 97.25% | 97.56% | 97.53% | 97.63% | 96.82% | 95.93% | 98.91% | 99.41% | 99.43% | 99.43% | 99.4% | 99.53% |
| Gross Profit Growth % | - | 18.74% | -4.96% | -9.43% | 49.25% | 46.56% | -71.21% | -8.79% | -11.66% | 37.28% | 53% | 59.19% | - |
| Operating Expenses | 544.64M | 532.29M | 481.73M | 629.65M | 642.58M | 339.91M | 491.44M | 791.31M | 927.57M | 1.05B | 794.34M | 538.01M | 338.18M |
| OpEx % of Revenue | - | 96.97% | 104.53% | 129.82% | 120.11% | 94.04% | 197.43% | 94.36% | 101.39% | 101.39% | 105.33% | 109.11% | 109.33% |
| Selling, General & Admin | 493.4M | 479.15M | 401.35M | 384.37M | 402.88M | 287.4M | 219.19M | 719.7M | 858.98M | 994.37M | 728.83M | 507.98M | 308.16M |
| SG&A % of Revenue | - | 87.29% | 87.09% | 79.25% | 75.3% | 79.51% | 88.06% | 85.82% | 93.9% | 96.04% | 96.64% | 103.02% | 99.62% |
| Research & Development | 25.39M | 51.35M | 0 | 0 | 0 | 0 | 0 | 0 | 28.69M | 28.69M | 28.69M | 28.69M | 20.12M |
| R&D % of Revenue | - | 9.35% | - | - | - | - | - | - | 3.14% | 2.77% | 3.8% | 5.82% | 6.5% |
| Other Operating Expenses | 1.46M | 1.79M | 80.39M | 245.28M | 239.7M | 52.51M | 272.25M | 71.61M | 539K | 592K | -139K | -1.66M | 123K |
| Operating Income | 1.58M | 1.53M | -32.15M | -156.59M | -120.26M | 10.05M | -252.65M | 38.15M | -18.19M | -20.37M | -44.45M | -47.87M | -30.29M |
| Operating Margin % | 0.28% | 0.28% | -6.98% | -32.28% | -22.48% | 2.78% | -101.5% | 4.55% | -1.99% | -1.97% | -5.89% | -9.71% | -9.79% |
| Operating Income Growth % | - | 104.76% | 79.47% | -30.2% | -1296.52% | 103.98% | -762.24% | 309.78% | 10.71% | 54.17% | 7.15% | -58.02% | - |
| EBITDA | 8.39M | 5.67M | -28.4M | -152.03M | -114.13M | 18.4M | -241.8M | 50.13M | -4.71M | -10.01M | -24.58M | -15.19M | 1.13M |
| EBITDA Margin % | 1.48% | 1.03% | -6.16% | -31.34% | -21.33% | 5.09% | -97.14% | 5.98% | -0.52% | -0.97% | -3.26% | -3.08% | 0.37% |
| EBITDA Growth % | 131.69% | 119.96% | 81.32% | -33.21% | -720.27% | 107.61% | -582.31% | 1163.5% | 52.93% | 59.26% | -61.81% | -1443.15% | - |
| D&A (Non-Cash Add-back) | 6.82M | 4.14M | 3.75M | 4.56M | 6.13M | 8.35M | 10.85M | 11.98M | 13.47M | 10.35M | 19.86M | 32.68M | 31.43M |
| EBIT | 6.19M | 5.9M | -28.23M | -151.85M | -120.2M | 23.68M | -252.86M | 37.72M | -18.63M | -17.77M | -44.58M | -50.54M | -31.73M |
| Net Interest Income | 2.25M | 2.33M | 3.54M | 5.2M | 571K | -215K | -270K | -33K | -1.84M | -44K | -137K | -147K | -11K |
| Interest Income | 2.31M | 2.36M | 3.56M | 5.21M | 622K | 174K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 63.18K | 39.38K | 17K | 12K | 51K | 389K | 270K | 33K | 1.84M | 44K | 137K | 147K | 11K |
| Other Income/Expense | 4.19M | 4.33M | 2.2M | 4.5M | -386K | 13.24M | -482K | -461K | -320K | 2.56M | -276K | -2.81M | -1.45M |
| Pretax Income | 5.76M | 5.86M | -29.95M | -152.09M | -120.65M | 23.29M | -253.13M | 37.69M | -19.49M | -17.81M | -44.72M | -50.68M | -31.74M |
| Pretax Margin % | 1.01% | 1.07% | -6.5% | -31.36% | -22.55% | 6.44% | -101.69% | 4.49% | -2.13% | -1.72% | -5.93% | -10.28% | -10.26% |
| Income Tax | -5.7M | -5.36M | -6.25M | 12.39M | 6.57M | 12.59M | -7.75M | 20.98M | 1.39M | -4.76M | 6.67M | -11.32M | -8.64M |
| Effective Tax Rate % | -98.95% | -91.34% | 20.88% | -8.15% | -5.45% | 54.04% | 3.06% | 55.67% | -7.14% | 26.74% | -14.91% | 22.33% | 27.23% |
| Net Income | 11.47M | 11.22M | -23.7M | -164.48M | -127.22M | 10.7M | -245.38M | 17.16M | -20.82M | -12.48M | -50.68M | -39.13M | -23.1M |
| Net Margin % | 2.02% | 2.04% | -5.14% | -33.91% | -23.78% | 2.96% | -98.58% | 2.05% | -2.28% | -1.21% | -6.72% | -7.94% | -7.47% |
| Net Income Growth % | 149.63% | 147.35% | 85.59% | -29.29% | -1288.51% | 104.36% | -1529.86% | 182.45% | -66.77% | 75.37% | -29.53% | -69.41% | - |
| Net Income (Continuing) | 11.47M | 11.22M | -23.7M | -164.48M | -127.22M | 10.7M | -245.38M | 17.16M | -21.49M | -13.05M | -51.39M | -39.37M | -23.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 199.81M | 2.08M | 0 |
| EPS (Diluted) | 0.16 | 0.15 | -0.34 | -2.40 | -1.80 | 0.15 | -3.45 | 0.25 | -0.30 | -0.23 | -1.05 | -0.85 | -0.49 |
| EPS Growth % | 148.63% | 144.12% | 85.83% | -33.33% | -1300% | 104.35% | -1480% | 183.33% | -30.43% | 78.1% | -23.53% | -73.47% | - |
| EPS (Basic) | - | 0.15 | -0.35 | -2.40 | -1.85 | 0.15 | -3.45 | 0.25 | -0.30 | -0.23 | -1.05 | -0.85 | -0.49 |
| Diluted Shares Outstanding | 70.66M | 71.52M | 69.92M | 68.99M | 70.99M | 71.33M | 70.67M | 71.35M | 70.17M | 54.93M | 47.56M | 47.02M | 47.02M |
| Basic Shares Outstanding | 70.66M | 70.46M | 67.71M | 68.53M | 69.26M | 70.51M | 70.67M | 70.4M | 70.17M | 54.93M | 47.56M | 47.02M | 47.02M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - |
SEM bidding cost inflation
According to recent financial disclosures, trivago's revenue growth has exhibited significant volatility, ranging from a 12.6% contraction in 2023Q4 to a 25.4% expansion by 2025Q4, highlighting the company's sensitivity to seasonal travel demand and the aggressive marketing cycles required to maintain its top-line relevance.
The revenue trajectory appears heavily influenced by the timing of peak travel seasons, which creates lumpy quarterly performance. Investors should monitor whether the recent growth acceleration is sustainable or merely a reflection of increased marketing spend that fails to translate into long-term user retention.
As reported in financial statements, trivago maintains exceptionally high gross margins consistently exceeding 93%, yet this figure masks a fragile operating profile where operating margins frequently dip into negative territory, often falling as low as -13.4% during periods of heavy investment in performance-based advertising.
The disconnect between gross and operating margins suggests that the company's primary cost of goods sold is effectively its marketing budget. This structural reality implies that trivago lacks the pricing power to decouple its profitability from the rising costs of search engine keyword auctions.
Based on the provided income statement data, trivago struggles to achieve meaningful operating leverage, as SG&A expenses often scale in lockstep with revenue, preventing the company from converting its high gross profit into consistent operating income across the observed ten-quarter period.
The inability to reduce SG&A as a percentage of revenue suggests that the platform remains trapped in a cycle of high customer acquisition costs. Without a shift toward organic traffic, operating income will likely remain hostage to the competitive bidding environment of major search platforms.
Analysis of the company's income statement suggests that trivago's business model is essentially a marketing arbitrage engine, where the primary risk is that rising SEM costs will permanently compress margins, as evidenced by the recurring quarterly operating losses observed in five of the last ten periods.
Short-term profitability appears highly sensitive to the bidding behavior of major OTAs like Expedia and Booking Holdings. If these partners reduce their CPC bids, trivago's revenue could face immediate pressure, potentially exposing the lack of a defensible moat beyond its current search-based traffic acquisition strategy.
Quick answers to the most common questions about buying TRVG stock.
For fiscal year 2025, trivago N.V. (TRVG) reported total revenue of $548.9M. This represents a 77.5% increase compared to $309.3M in 2014.
trivago N.V. (TRVG) is profitable, generating $11.2M in net income for the fiscal year ending 2025 with a net profit margin of 2.0%.
trivago N.V. (TRVG) reported an operating income of $1.5M, resulting in an operating profit margin of 0.3%. This margin reflects the operational efficiency of the business before interest and taxes.
trivago N.V. (TRVG) generated $533.8M in gross profit for the year, representing a gross profit margin of 97.3%. This demonstrates the company's core pricing power and production efficiency.