trivago (TRVG) AI Stock Analysis

• Market Cap: $220.06M
• Dividend Yield: N/A
• Average Volume (3M): 51.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: 8.29%
• EPS Growth: 87.33%
• Country: US
• Employees: 668
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -0.02
• Shares Outstanding: 22,881,096
• 10 Day Avg. Volume: 34,611
• 30 Day Avg. Volume: 51,882
• PEG Ratio: 0.07
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 8.17
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 0.36
• Enterprise Value/Ebitda: -8.12
• 1Y Price Target: $4.20
• Price Target Upside: 34.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 55 Neutral
• Price Target: $3.50 ▲(11.82% Upside)

trivago's overall stock score is driven by its strong revenue growth and strategic initiatives highlighted in the earnings call. However, profitability challenges and a negative valuation weigh heavily on the score. Technical indicators suggest caution, with the stock trading below key moving averages.

Positive Factors

Revenue Growth

Consistent revenue growth over multiple quarters indicates strong market demand and effective business strategies, enhancing long-term prospects.

Strategic Acquisitions

Acquiring Holisto strengthens trivago's technological capabilities and market position, potentially driving future revenue and competitive advantage.

AI and Product Innovations

Investments in AI and product innovation enhance user experience, likely increasing user engagement and retention, supporting long-term growth.

Negative Factors

Profitability Challenges

Ongoing profitability issues, reflected in negative net margins, could hinder sustainable growth and limit reinvestment capabilities.

Cash Flow Issues

Declining free cash flow indicates potential liquidity constraints, affecting the company's ability to fund operations and strategic initiatives.

Operational Efficiency

Rising operational costs without corresponding revenue increases can pressure margins, necessitating efficiency improvements for sustainable profitability.

trivago Business Overview & Revenue Model

Company Description

trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform in the United States, Germany, the United Kingdom, and internationally. It offers an online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels. The company provides access to its platform through 53 localized websites and apps in 31 languages. As of December 31, 2021, its hotel search platform offered access to approximately 5.0 million hotels and other types of accommodation worldwide. The company was incorporated in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. is a subsidiary of Expedia Lodging Partner Services Sarl.

How the Company Makes Money

Trivago primarily generates revenue through a performance-based advertising model. The company earns money by charging hotels and online travel agencies (OTAs) a fee each time a user clicks on a hotel listing that redirects them to the advertiser's website to complete a booking, a process known as Cost Per Click (CPC). Key revenue streams include direct partnerships with hotel chains and OTAs that pay for increased visibility on the Trivago platform. Additionally, Trivago leverages its extensive data analytics capabilities to optimize advertising placements and enhance user experiences, which further attracts advertisers. The company's success is also bolstered by its global reach and brand recognition, which draws a significant volume of traffic to its website and mobile applications.

trivago Financial Statement Overview

Summary

trivago demonstrates strong gross margins and a stable balance sheet with low leverage. However, the company faces profitability challenges with negative net income and cash flow issues, as evidenced by declining free cash flow. While revenue growth is positive, operational efficiency needs improvement to achieve sustainable profitability.

Income Statement

trivago's income statement shows a mixed performance. The company has a strong gross profit margin of 97.8% TTM, indicating efficient cost management. However, the net profit margin is negative at -4.89% TTM, reflecting ongoing losses. Revenue growth is positive at 4.28% TTM, showing a recovery trend, but the EBIT and EBITDA margins remain negative, suggesting operational challenges.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.20 TTM, indicating conservative leverage. However, the return on equity is negative at -12.91% TTM, highlighting profitability issues. The equity ratio is strong, suggesting a solid capital structure.

Cash Flow

trivago's cash flow statement indicates challenges with a negative free cash flow growth rate of -30.84% TTM. The operating cash flow to net income ratio is 0.15 TTM, showing limited cash generation relative to net losses. However, the free cash flow to net income ratio is relatively healthy at 0.66 TTM, indicating some ability to cover losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	504.24M	460.85M	485.03M	535.00M	361.46M	248.92M
Gross Profit	493.27M	449.58M	473.06M	522.31M	349.96M	238.79M
EBITDA	-21.98M	-24.48M	-147.30M	-120.26M	10.05M	-252.65M
Net Income	-24.67M	-23.70M	-164.48M	-126.82M	10.70M	-244.64M
Balance Sheet
Total Assets	301.36M	300.72M	325.07M	691.59M	834.52M	830.90M
Cash, Cash Equivalents and Short-Term Investments	111.24M	133.75M	127.07M	293.58M	256.38M	227.80M
Total Debt	37.25M	38.43M	40.73M	45.27M	47.54M	93.17M
Total Liabilities	115.89M	103.11M	110.05M	129.86M	140.74M	166.38M
Stockholders Equity	185.47M	197.60M	215.02M	561.74M	693.78M	664.52M
Cash Flow
Free Cash Flow	6.62M	17.45M	24.29M	62.29M	28.75M	2.37M
Operating Cash Flow	10.10M	20.25M	27.80M	66.27M	32.54M	7.87M
Investing Cash Flow	-12.66M	12.22M	16.29M	-54.91M	10.02M	-16.19M
Financing Cash Flow	-945.00K	-774.00K	-190.44M	-19.62M	1.05M	-180.00K

trivago Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRVG, the sentiment is Negative. The current price of 3.13 is below the 20-day moving average (MA) of 3.35, below the 50-day MA of 3.48, and below the 200-day MA of 3.69, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 35.49 is Neutral, neither overbought nor oversold. The STOCH value of 0.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TRVG.

trivago Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSTK	76 Outperform	$791.78M	12.38	11.62%	5.78%	14.20%	38.92%
OPRA	74 Outperform	$1.60B	22.26	8.57%	4.36%	29.62%	-19.65%
YELP	73 Outperform	$2.01B	14.39	20.13%	―	5.37%	13.08%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NBIS	60 Neutral	$32.14B	139.24	4.95%	―	-95.06%	1.92%
TRVG	55 Neutral	$220.06M	―	-12.44%	―	8.29%	87.33%
NXDR	54 Neutral	$797.75M	―	-14.27%	―	9.65%	56.50%

trivago Corporate Events

trivago Reports Strong Q2 2025 Growth and Completes Holisto Acquisition

On August 5, 2025, trivago N.V. announced its financial results for the second quarter ending June 30, 2025, reporting a 17% year-over-year revenue growth to €139.3 million, driven by an 18% increase in Referral Revenue. This marks the third consecutive quarter of growth, with significant contributions from branded channel traffic, particularly in Developed Europe and the Americas. Despite a net loss increase to €6.5 million, the company improved its Adjusted EBITDA loss to €5.1 million. The acquisition of Holisto Ltd., completed on July 31, 2025, is expected to further enhance revenue and user experience. trivago anticipates continued double-digit revenue growth into the third quarter of 2025, reinforcing its strategic marketing and user engagement initiatives.

Trivago Completes Acquisition of Holisto to Enhance Travel Tech Services

On July 31, 2025, trivago N.V. completed the acquisition of Holisto Limited, an AI-driven travel technology platform, for approximately €22.3 million. This acquisition positions trivago to expand its operations by integrating Holisto’s hotel rate aggregation and booking engine services, potentially enhancing its market presence and operational capabilities.

Trivago N.V. Announces Key Resolutions from June 2025 AGM

On June 27, 2025, trivago N.V. held its Annual General Meeting of Shareholders, where several key resolutions were passed. These included the adoption of the annual accounts for 2024, the appointment of an external auditor for 2025, and the re-appointment and appointment of supervisory and managing directors. The meeting also authorized the management board to acquire shares in the company’s capital, indicating a strategic move to potentially enhance shareholder value.