eDreams ODIGEO (EDR) Q2 2025 earnings summary

Executive summary

• Prime membership grew 28% year-over-year to 6.5 million, driving profitability and offsetting declines in Non-Prime business, with the company on track for FY25 targets of over 7.25 million Prime members and €180 million Cash EBITDA.

• Cash EBITDA rose 28% year-over-year to €81.1 million, with Cash Marginal Profit up 20% to €131 million and significant margin improvements.

• Prime model continues to drive profitability, offsetting declines in non-Prime business and resulting in improved margins and overall profitability.

• Net income reached €1.3 million, reversing a €1.6 million loss in the prior year; Adjusted Net Income was €8.1 million.

• Mobile bookings increased to 61% of total, and Prime now accounts for up to 68% of Cash Revenue Margin.

Financial highlights

• Revenue Margin was €327.9 million, flat year-over-year; Prime Revenue Margin grew 17% while Non-Prime declined 21%.

• Cash Marginal Profit reached €131 million, up 20% year-over-year, with a margin of 36.2%.

• Free Cash Flow (excluding non-Prime working capital) increased 61% year-over-year to €42 million.

• Adjusted EBITDA was €47.8 million, up 32% year-over-year; Adjusted Net Income was €8.1 million.

• Liquidity position at end of September 2024 was €187 million; net financial debt increased to €338.8 million.

Outlook and guidance

• On track to meet or exceed FY25 targets: over 7.25 million Prime members, more than €180 million Cash EBITDA, and free cash flow (excl. non-Prime working capital) above €90 million.

• Second half Prime member growth expected at 24% versus March 2024; Cash Marginal Profit margin expected at 42%-43% in H2, resulting in ~40% for FY25.

• ARPU expected to remain in the mid-70s for the remainder of the year.

• Longer-term, significant growth potential remains due to low household penetration and expansion opportunities.