0001193125-26-210297
SEC filingQ1 revenue declined 3.9% to $382.4M, with operating loss widening to -$25.2M due to higher marketing costs and lower Hotels & Other revenue.
Revenue for the first quarter of 2026 was $382.4 million, down 3.9% from $398.0 million in the same period last year. The decrease was primarily due to declines in traditional display and programmatic advertising (together referred to as "on platform" advertising) that correlates closely with overall traffic volume. While Experiences and TheFork continued to grow, the decline in Hotels & Other revenue weighed on the top line.
Operating income was a loss of $25.2 million, compared to a loss of $15.0 million in the prior year. The decline in adjusted EBITDA margin was primarily due to an increase in marketing costs as a percent of revenue. Management noted that the company strikes an appropriate balance between investment and expense management, and cost reduction measures taken in the fourth quarter of 2025 reduced personnel costs. Net loss was $32.4 million, or $0.28 per diluted share, compared to a net loss of $11.0 million, or $0.08 per diluted share, in the prior year. The increase in net loss was partly due to a swing in income tax provision.
Management flagged macro headwinds, including the Middle East conflict, flooding, and civil unrest, which negatively impacted Experiences bookings in March. The company continues to execute on its growth strategies and invest in its marketplace businesses, expecting these trends to continue. However, evolving technologies, customer preferences, and competitive trends present ongoing challenges.