Experiences held up, but Hotels weakness drove another sharp earnings decline

The quarter was broadly in line with the company’s own plan, but not a clean upside surprise. The prior outlook called for second-quarter consolidated revenue down mid-single digits and adjusted EBITDA margins of roughly 15%–17%; the filing reports continuing-operations revenue down 7% and adjusted EBITDA margin of 17.3%. However, TheFork was reclassified as discontinued operations before the quarter’s presentation, so the published consensus of approximately $504 million of revenue is not directly comparable to the recast $441.9 million figure. The reported $0.35 non-GAAP diluted EPS matches that published consensus.

Experiences delivered the strategic proof point, but with weaker profitability. Revenue grew 3% and bookings grew approximately 5%, broadly matching the company’s Q2 expectations for 2%–5% revenue growth and 5%–8% bookings growth. The less favorable detail is that Experiences adjusted EBITDA fell 19% to $30.8 million, with margin dropping to 11.1% from 14.0%; marketing rose 4% even as revenue grew only modestly (Segment Highlights — Experiences; Cost performance).

Hotels and Other remains the main operating drag. Revenue declined 21%, including a 23% drop in Hotels revenue, while adjusted EBITDA fell 23% to $45.6 million. Margin held relatively well at 27.9% versus 28.9%, suggesting cost reductions are cushioning the revenue decline, but the segment’s contraction more than offset Experiences’ growth (Segment Highlights — Hotels and Other).

The $700 million TheFork sale is the major portfolio catalyst, but it was already known. The company exercised the put option on August 1, 2026 and signed the purchase agreement on August 2, with closing still subject to customary conditions and regulatory approvals. That adds potential liquidity and simplifies the business around Experiences, but it is not new value creation in this filing: the sale was announced June 14, and the cash proceeds have not yet been received (Pending Sale of TheFork).

Net read: strategically constructive, financially mixed. The core Experiences business met the standing operating plan, and the sale process advanced, but consolidated continuing-operations revenue, EBITDA, EPS, and free cash flow all deteriorated year over year. The filing therefore supports the portfolio-reset story without yet showing accelerating earnings power from the Experiences strategy (Financial Highlights; Cash Flow statement; Pending Sale of TheFork).