Edenred (EDEN) Q1 2026 TU earnings summary

Executive summary

• Achieved sustained top-line growth in Q1 2026, with operating revenue of €673 million (+3.1% like-for-like), despite regulatory headwinds in Italy and Brazil.

• Intrinsic group growth was 8.2% like-for-like, consistent with FY 2025, highlighting portfolio diversity and commercial traction.

• All business lines and geographies contributed to growth, with strong commercial momentum and successful cross-selling and upselling initiatives.

• ESG leadership recognized with an 'A' rating from CDP, placing the group among the top 4% globally.

• Strategic plan Amplify 25-28 in disciplined execution, with initiatives in Mobility, Benefits & Engagement, and AI-driven enhancements.

Financial highlights

• Operating revenue: €673 million (+3.1% like-for-like, +0.9% reported); total revenue: €730 million (+3.1% like-for-like, +0.8% reported).

• Benefits & Engagement: €446 million (+0.2% like-for-like; +7.8% adjusted for regulatory impacts).

• Mobility: €176 million (+10% like-for-like), driven by strong growth in Latin America and Europe.

• Payment Solutions & New Markets: €51 million (+6.2% like-for-like), with robust digital wallet growth in UAE and Taiwan.

• Other revenue: €57 million, up 3.2% like-for-like, supported by higher float volume and slower interest rate decreases.

Outlook and guidance

• Confirms FY 2026 objectives: intrinsic EBITDA growth of 8%-12% like-for-like, but reported EBITDA to decline -8% to -12% due to regulatory impacts.

• Free cash flow to EBITDA conversion rate of at least 35%, or 65% on a comparable regulatory basis.

• 2026 is a rebasing year due to regulatory changes, with sustainable and profitable growth expected to resume in 2027.

• Strategic focus on data, AI, and operational efficiency to drive future growth.