TCOM

Trip.com has executed a textbook post-pandemic recovery, with revenue climbing from $3.14B in FY2021 to $8.93B in FY2025 (+22.2% YoY) and the business swinging from a -$86M loss in FY2021 to $4.76B of net income in FY2025. The economics are those of a high-quality, asset-light online travel platform: 80.6% gross margin, 25.3% operating margin, and a 19.5% return on equity, with capex of just $114M against $2.06B of operating cash flow. The balance sheet is a genuine strength — $24.4B of equity against $13.6B of total liabilities (0.55x liabilities/equity), $5.70B of cash, and long-term debt cut 40.8% to $1.63B — while management is returning capital, doubling buybacks to $629M and paying $204M in dividends.

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