Serko (SKO) H2 2025 earnings summary

Executive summary

• Total income grew 27% year-over-year to NZD 90.5 million, driven by Booking.com for Business, Australasian travel revenue, and the acquisition of GetThere.

• Pre-acquisition business generated positive free cash flow of NZD 7.4 million, supporting ongoing growth and platform investment.

• Booking.com for Business saw a 29% increase in both active customers and completed room nights, with accelerated growth in the second half of FY25.

• Organisational efficiency improved, with headcount reduced 1% (excluding acquisition) and operational leverage achieved.

• Integration of GetThere and expansion in North America are key strategic priorities, with deliberate investment in data and AI capabilities.

Financial highlights

• Total income increased by NZD 19.3 million (27%) to NZD 90.5 million, with pre-acquisition income at NZD 85.7 million (20% growth).

• EBITDAFI improved by NZD 4.3 million to positive NZD 2.8 million, up from a loss in the prior year.

• Free cash flow improved by NZD 5.2 million to -NZD 1.9 million, with pre-acquisition business generating NZD 7.4 million positive free cash flow.

• Net loss after tax was NZD 22 million, impacted by one-off costs and a non-cash impairment, but improved by NZD 6.1 million year-over-year.

• Cash and short-term deposits at NZD 61.4 million, with no debt; cash down due to GetThere acquisition.

Outlook and guidance

• FY26 total income expected between NZD 115 million and NZD 123 million, led by Booking.com for Business.

• FY26 total spend forecasted at NZD 127 million–NZD 133 million, with CAPEX around NZD 10–12 million.

• North America revenue contribution to remain modest in FY26; aspiration for NZD 250 million total income by FY30 reaffirmed.

• Expect to exceed 4.2 million completed room nights in FY26, triggering lower commission tiers but continued revenue growth.

• Risks to FY26 goals include macroeconomic, geopolitical, and currency/ARPCRN factors.