RateGain Travel Technologies (RATEGAIN) Q3 25/26 earnings summary

Executive summary

• Q3 FY 2026 was transformative, marked by the Sojern acquisition, creating a leading AI-driven travel tech platform serving over 13,000 brands globally and driving 94% year-on-year revenue growth and robust free cash flow.

• Integration of Sojern delivered $12 million in annualized cost savings within 100 days, with full impact expected from Q1 FY 2027.

• Focused on scalable growth, unified go-to-market structure, and sustainable profitability supported by a strong balance sheet.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved and reviewed by the Board and auditors.

• Results include the impact of the acquisition of Sojern Inc. and its subsidiaries, completed on November 6, 2025.

Financial highlights

• Q3 FY2026 operating revenue grew 94% year-on-year to INR 5,400.3 million, including two months of Sojern revenue; 9MFY2026 revenue up 35.8% to INR 11,080.0 million.

• Q3 EBITDA increased 41.7% YoY to INR 871.2 million (16.1% margin); 9MFY2026 EBITDA up 11.1% to INR 1,904.2 million (17.2% margin).

• Q3 PAT declined 53.2% YoY to INR 264.5 million due to one-time acquisition expenses; adjusted PAT (excluding one-time costs) was INR 611 million, up 8% YoY.

• Cash flow from operations for nine months was INR 1,500 million; Q3 alone generated INR 700 million.

• Net worth stood at INR 18,600 million, with cash and equivalents at INR 3,617.1 million and net debt at INR 8,800 million as of December 31.

Outlook and guidance

• Confident of beating FY 2026 organic revenue and EBITDA guidance; Q4 expected to deliver double-digit organic growth.

• Full-year organic EBITDA margin expected between 17.5%-18%; Sojern's EBITDA margin expected to reach 18.5%-19.5% post-synergies.

• Long-term sustainable consolidated EBITDA margin targeted at 18%-18.5%, with reinvestment of excess margins for growth.

• FY 2027 guidance to be issued in May, but double-digit organic growth is anticipated.

• Integration of Sojern progressing well, with cost synergies and organizational alignment underway.