Trip.com Group Limited (Nasdaq: TCOM) reported a net loss for the second quarter of 2026 after China's market regulator imposed a RMB5.2 billion ($763 million) antitrust penalty, even as total net revenue rose 6% year-over-year to RMB15.7 billion ($2.3 billion).
China's State Administration for Market Regulation opened its investigation into Trip.com Group in January 2026 and concluded the case in July, finding the company had used exclusive hotel agreements and pricing tools to restrict competition since 2020, according to Reuters. The penalty included a fine, confiscated gains, and a refund of hotel deposits.
#SAMR Penalty Drives Trip.com Group to a Quarterly Net Loss
General and administrative expenses jumped 477% year-over-year to RMB6.3 billion ($933 million), driven primarily by the SAMR penalty. Excluding the penalty, general and administrative expenses rose 5% to RMB1.2 billion ($170 million), the company said.
Trip.com Group reported a net loss of RMB2.4 billion ($361 million) for the quarter, compared with net income of RMB4.9 billion in the same period last year. Excluding the penalty, net income would have been RMB2.7 billion ($402 million), the company said.
Net loss attributable to shareholders was RMB2.5 billion ($363 million), compared with net income of RMB4.8 billion a year earlier. Diluted loss per ADS was RMB3.89 ($0.57) for the quarter.
Excluding the penalty, share-based compensation, and other adjustments, non-GAAP net income attributable to shareholders was RMB4.8 billion ($706 million), compared with RMB5 billion a year earlier. Non-GAAP diluted earnings per ADS were RMB7.27 ($1.07), up from RMB7.2 in the same period last year.
Adjusted EBITDA, which excludes the penalty, was RMB4.6 billion ($673 million) for the quarter, compared with RMB4.9 billion a year earlier and RMB4.8 billion in the previous quarter.
Income tax expense was RMB799 million ($118 million) for the quarter, compared with RMB998 million a year earlier and RMB893 million in the previous quarter.
#International Platform Revenue Jumps More Than 50%
Revenue on Trip.com Group's international platform increased by more than 50% year-over-year in the second quarter, the company said. Inbound travel revenue, from travelers visiting China, grew at a high double-digit rate compared with the same period last year.
Inbound and world-to-world travel are "continuing to gain momentum as structural growth drivers," Jane Sun, Chief Executive Officer, Trip.com Group, said in the earnings release.
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#Segment Revenue Shows Mixed Results Across Business Lines
Accommodation reservation revenue was RMB6.6 billion ($969 million), up 6% year-over-year, driven by higher accommodation reservations and partially offset by a contra-revenue charge imposed by the SAMR, the company said.
Transportation ticketing revenue fell 1% year-over-year to RMB5.4 billion ($788 million) and dropped 12% from the previous quarter, which the company attributed to elevated energy prices and geopolitical volatility.
Packaged-tour revenue rose 8% year-over-year to RMB1.2 billion ($171 million), driven by higher packaged-tour reservations, the company said.
Corporate travel revenue increased 11% year-over-year to RMB771 million ($114 million), driven by higher corporate travel reservations.
Cost of revenue rose 12% year-over-year to RMB3.2 billion ($466 million), representing 20% of total net revenue for the quarter.
Product development expenses rose 8% year-over-year to RMB3.8 billion ($559 million), representing 24% of total net revenue, primarily due to personnel-related costs, the company said.
Sales and marketing expenses increased 15% year-over-year to RMB3.8 billion ($566 million), representing 25% of total net revenue, driven by higher spending on promotional activities, the company said.
As of June 30, 2026, Trip.com Group held cash and cash equivalents, restricted cash, short-term investments, and held-to-maturity time deposits and financial products totaling RMB100.5 billion ($14.8 billion), the company said.
James Liang, Executive Chairman, said the company continues to invest in artificial intelligence to expand its global platform and pursue long-term growth. The company cited regulatory developments, competition and economic conditions among its forward-looking risks, while elevated energy prices and geopolitical volatility weighed on second-quarter performance.