eDreams ODIGEO Financial Results 9M 2026 | EBITDA Growth, Prime Members & FY30 Target

eDreams ODIGEO Q3 FY26 Financial Results: Subscription Powerhouse Accelerating Toward €270M Cash EBITDA TargetPresented by CFO David de la ElizagaDavid de la Elizaga, CFO of eDreams ODIGEO, presented the company’s Q3 FY26 results (nine months ending 31 December 2025), outlining a business undergoing a structural transition — but from a position of operational strength.Strong Underlying ProfitabilityAdjusted EBITDA increased 74% year-on-year to €138.4 million, demonstrating the resilience of the core business. This metric excludes the temporary cash timing impact resulting from the shift from annual upfront Prime subscriptions to annual subscriptions paid in monthly instalments.Cash EBITDA reached €126.7 million (+2% YoY), despite:Investments in new products and geographiesTemporary instability in Ryanair contentSubscription payment timing effectsImportantly, profitability per transaction improved:Cash Marginal Profit rose to €207.8 million (+3%)Cash Marginal Profit Margin expanded to 42%Cash EBITDA margin improved to 26%This signals increasing operating leverage as the Prime member base matures.Prime Membership: The Core Growth EnginePrime subscribers reached 7.7 million (+13% YoY), increasing to 7.8 million in January. Management reaffirmed the FY26 target of 7.9 million members.Prime-related revenue now represents 75% of Cash Revenue Margin, confirming the structural shift from transactional OTA to subscription-led travel platform.Higher customer lifetime value and improved loyalty metrics (+10% increase in NPS) further support the long-term model.Strategic Transition: Short-Term Cash Timing, Long-Term Value CreationThe move to annual subscriptions paid monthly causes a temporary “one-time unwind” in cash metrics. However, the cash remains contractually secured and is collected over 12 months rather than upfront.This shift expands total addressable market, accelerates subscriber growth and diversifies revenue streams.By FY30, management targets:13+ million Prime members€270+ million Cash EBITDA1.5–2.0 million net adds annually (FY28–FY30)Cash EBITDA margin dip to ~15% in FY27 (investment year)Margin recovery to 23% by FY30By FY30, 66% of volume will be diversified away from core European flight exposure.Valuation DisconnectAt current share prices, the company trades at:4.4x FY26 Cash EBITDA4.0x Adjusted EBITDAThis compares with:~8.3x Global OTA average~11.0x B2C subscription averageManagement believes the market significantly undervalues the structural improvement in business quality and long-term cash generation.Capital Allocation & Shareholder ReturnseDreams reinforces confidence through aggressive capital return:€23M shares repurchased this quarter€100M buyback commitment through September 202712M shares already amortised (9.4% of share capital)~24% of market capitalization pending repurchase at current pricesThis implies an exceptional yield profile rarely seen in growth-phase companies.Investment ThesiseDreams ODIGEO is transitioning into a high-margin, recurring revenue travel subscription leader.Despite temporary cash timing headwinds, operational profitability, subscription growth and strategic diversification remain intact.▶️ Other videos:Elevator Pitch: https://seat11a.com/investor-relations-elevator-pitch/Company Presentation: https://seat11a.com/investor-relations-company-presentation/Deep Dive Presentation: https://seat11a.com/investor-relations-deep-dive/Financial Results Presentation: https://seat11a.com/investor-relations-financial-results/ESG Presentation: https://seat11a.com/investor-relations-esg/T&CThis publication is for informational purposes only and does not constitute investment advice. Using this website, you agree to our terms and conditions outlined on www.seat11a.com/legal and www.seat11a.com/imprint.