Key Issues
- Fraudulent & coercive business model: Trustpilot pressures businesses to pay for premium services by leveraging fake or manipulated reviews; profiles cannot be removed, granting Trustpilot perpetual IP rights.
- Systematic review manipulation: High-volume 5-star reviews are often fabricated; AI analysis shows >80% of positive reviews for certain firms likely fake, while 1-star reviews remain mostly authentic, creating artificial pressure to purchase services.
- Financial & regulatory vulnerability: Excessive sales/marketing spend (45% of revenue), declining relevance vs. Google, and growing legal risks (terms of service disputes, consumer deception claims) threaten long-term viability.
Investor Takeaways
- Business is structurally unsustainable; legal challenges could undermine revenue model.
- Reliance on premium services and fake review ecosystem is a liability, especially under regulatory scrutiny.
- Stock volatility around reporting events offers potential short opportunities; ideal short entry near recent H1/2025 peak.

