eDreams ODIGEO (EDR) Q4 2026 earnings summary

Executive summary

• FY 2026 results exceeded guidance, with Prime membership growing 9% to 7.9 million and net additions surpassing targets, now exceeding 8 million members.

• Prime-driven revenue now constitutes 75% of total cash revenue margin, with Prime members generating 90% of cash marginal profit.

• Record adjusted EBITDA grew 29% year-over-year to EUR 172.3 million, and cash EBITDA reached EUR 157 million, beating the EUR 155 million target.

• The business is executing a new long-term strategic roadmap, targeting accelerated growth, geographic and product expansion, and a de-risked model.

• AI-first strategy accelerated, delivering productivity gains, cost reductions, and enhanced customer experience.

Financial highlights

• Adjusted EBITDA grew 29% year-over-year to EUR 172.3 million; cash EBITDA reached EUR 157 million, exceeding guidance.

• Revenue margin for FY26 was EUR 668.5 million, with Prime revenue margin up 10% and Non-Prime down 23%.

• Net income rose 16% to EUR 52.2 million; adjusted net income surged 42% to EUR 72.9 million.

• Variable costs improved by 11% to EUR 388.4 million, reflecting operational efficiency and subscriber maturity.

• Net cash from operating activities increased by EUR 28.7 million, driven by higher adjusted EBITDA and working capital optimization.

Outlook and guidance

• FY 2027 guidance: 600,000 net Prime additions (targeting 8.5 million members), EUR 167 million adjusted EBITDA pre-investments, and EUR 115 million cash EBITDA post-investments.

• By FY 2030, Prime membership is projected to reach 13 million, with cash EBITDA exceeding EUR 270 million and margins returning to 23% as acquisition costs decline.

• Anticipated Prime net additions of 1.5–2 million annually between FY 2028 and FY 2030.

• Cash EBITDA margin expected to moderate to 15% in FY27 during peak investment, returning to 23% by FY30.