eDreams ODIGEO S.A.

For the first 9 months of FY26, adjusted EBITDA increased 74% year over year to EUR 138.4 million, versus EUR 79.7 million in the same period of FY25. Cash EBITDA increased 2% to EUR 126.7 million, cash revenue margin excluding adjusted revenue items increased 3% to EUR 502.8 million, cash marginal profit grew 3% to EUR 207.8 million, and adjusted net income was EUR 63.8 million. Cash flow from operating activities rose EUR 31.1 million to EUR 79.1 million, while financing activities used EUR 96.3 million, including EUR 55.9 million of share buybacks. Looking ahead, management reaffirmed FY26 targets of 7.9 million Prime members and EUR 155 million cash EBITDA; it also said January Prime subscribers reached 7.8 million. The company said its FY30 targets are 13 million Prime members and EUR 270 million cash EBITDA, with cash EBITDA margins expected to dip to roughly 15% in FY27 before recovering to 23% by FY30.

Dana Dunne framed the quarter as proof that the strategy shift is being executed from a position of strength, not defense. He emphasized that the company has de-risked the model by lowering Ryanair assumptions and moving to annual commitment with monthly installments, while still expecting accelerated growth, more diversified revenue, and stronger shareholder returns. His tone was confident and repeatedly focused on being “significantly undervalued,” with the long-term plan presented as conservative and supported by prior execution.

The CFO highlighted that Prime is driving the economics of the business: Prime cash revenue margin grew 7% over the last 12 months, Prime cash marginal profit grew 18%, and Prime contributed 89% of total cash marginal profit. He noted that overall cash EBITDA margin improved by 3 percentage points from 23% in the first 9 months of FY25 to 26% in FY26, while adjusted EBITDA rose to EUR 138.4 million. On cash flow, operating cash flow increased to EUR 79.1 million, but working capital had a EUR 42.9 million outflow due mainly to a EUR 55 million decrease in prime deferred revenue tied to the payment-model transition. He also said EUR 4 million of nonrecurring items in Q3 were tied to legal proceedings in Germany.

Analysts focused heavily on Ryanair access, the new subscription payment model, ARPU pressure, and whether buybacks should be paused or redirected to debt repurchases. Management said Ryanair access remains volatile and lower than historically, but reiterated that the new plan no longer depends on full Ryanair access. On the payment model, management said churn and bad debt have shown no deterioration versus the 2-year test, but ARPU will stay soft through FY27 because monthly installments recognize revenue more slowly than upfront annual payments. They also defended buybacks, saying repurchases will continue as long as cash flows match plan and that they will not add debt to fund them.