Trustpilot Gets a One-Star Review From Investors

THE GIST

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Trustpilot's underlying business is still growing quickly, with revenue up 23%, bookings up 22% and adjusted EBITDA climbing 46% in the first half. But investors instead focused on a surprise statutory loss, several one-off charges and management's decision to leave full-year guidance unchanged after a huge run in the shares.

WHAT HAPPENED

Trustpilot shares fell as much as 20% after the online review platform reported strong first-half growth but delivered a messier bottom line than investors had expected.

Revenue increased 23% to $151.4 million in the six months to June, equivalent to 19% growth at constant currencies, while bookings rose 22% to $171.2 million.

Adjusted EBITDA climbed 46% to a record $26.3 million and the margin expanded to 17.4%, although the profit figure came in slightly below the $27 million company-compiled consensus.

The statutory result looked considerably worse, with Trustpilot swinging to a net loss of roughly $1.1 million after reporting a profit a year earlier.

That reversal was driven by around $6 million of non-recurring items, including a €4 million fine from Italy's competition authority and a provision of roughly $1 million for historical sales taxes that had not been collected in certain US states.

The Italian penalty relates to findings by the country's competition regulator, which Trustpilot is appealing, while management said the U.S. tax issue does not affect the underlying operational performance of the business.

Despite the strong revenue growth, Trustpilot kept its 2026 outlook unchanged. It continues to expect high-teens constant-currency revenue growth and an improvement of two to three percentage points in its adjusted EBITDA margin.

That lack of an upgrade mattered because the shares had risen roughly 60% through the previous session, helped by enthusiasm around US growth, larger enterprise contracts and Trustpilot's potential role in AI-generated search and recommendations.

WHY IT MATTERS

Trustpilot has spent the past few years moving from a fast-growing but loss-making internet platform toward a business with genuine operating leverage, and the underlying first-half numbers suggest that transition is still progressing.

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Revenue rose substantially faster than the company's cost base, adjusted EBITDA increased by nearly half and North American bookings had already shown particularly strong momentum earlier in the year. The subscription model also gives Trustpilot good visibility because signed contracts generally feed into revenue over their duration.