eDreams ODIGEO (EDR) Q3 2026 earnings summary

Executive summary

• Adjusted EBITDA for the first nine months of FY 2026 rose 74% year-over-year to €138.4 million, with Prime membership up 13% to 7.7 million and a target of 7.9 million by March 2026.

• Prime-related revenue now accounts for 75% of cash revenue margin, highlighting the shift to a subscription-driven business.

• The company is executing a €100 million share buyback program through September 2027, with €23 million repurchased this quarter and 9.4% of share capital already amortized.

• Strategic review supports accelerated growth, targeting over 13 million Prime members and €270 million+ cash EBITDA by FY 2030.

• Strategic investments in new products, geographies, and transition to monthly Prime payments temporarily impacted profitability.

Financial highlights

• Revenue margin increased 3% year-over-year to €502.8 million for 9M FY26, driven by a 16% rise in Prime revenue margin.

• Cash adjusted EBITDA improved by 2% to €126.7 million for the nine months, despite investments and Ryanair content instability.

• Cash marginal profit margin expanded by 5 percentage points to 42%, with Prime contributing 89% of total cash marginal profit.

• Adjusted net income for the nine months stood at €63.8 million, up from €14.5 million year-over-year.

• Cash flow from operating activities rose by €31.1 million to €79.1 million, despite working capital outflow due to the subscription model transition.

Outlook and guidance

• On track to deliver FY 2026 targets: 7.9 million Prime members, €172.9 million adjusted EBITDA, and €155 million cash EBITDA.

• Long-term targets include over 13 million Prime members and €270 million+ cash EBITDA by FY 2030.

• Anticipated record net adds of 1.5–2 million Prime members per year between FY 2028 and FY 2030, with 15–20% annual growth.

• Cash EBITDA margin expected to dip to 15% in FY 2027 during peak investment, returning to 23% by FY 2030.

• Guidance is de-risked due to conservative assumptions on Ryanair content and payment model changes.