Edenred S.A.

H1 2026 total revenue was EUR 1.5 billion, up 1.5% like-for-like; foreign exchange contributed plus 0.2% and scope was minus 0.2%. Intrinsic operating revenue growth excluding the Italy and Brazil meal-and-food regulatory reset was 8% in H1, with plus 8.2% in Q1 and 7.9% in Q2. Mobility operating revenue was EUR 373 million, up 11.2% like-for-like. Europe operating revenue was EUR 887 million, down 2.2% like-for-like; Italy operating revenue was EUR 100 million, up 3.6% like-for-like. Operating EBITDA was EUR 503 million, down 5.9% like-for-like, with a 47% margin. EBITDA was EUR 616 million, down 4.6% like-for-like. Adjusted EPS was EUR 1.09, down 6.2% year on year. Free cash flow was negative EUR 164 million in H1. Other revenue rose 1.2% like-for-like, and management now expects full-year 2026 other revenue of around EUR 210 million. Full-year 2026 EBITDA like-for-like guidance was raised from minus 8% to minus 12% to minus 7% to minus 10%, or EUR 1.230 billion to EUR 1.270 billion. Management reaffirmed free cash flow/EBITDA conversion of at least 35% for 2026 and reiterated 2027-2028 EBITDA like-for-like growth of plus 8% to plus 12% and FCF/EBITDA conversion of at least 65%.

Bertrand Dumazy framed 2026 as a reset year because of meal-and-food regulatory changes in Italy and Brazil, but said Edenred’s underlying commercial engine remains strong. He emphasized the Amplify strategy, with growth coming from both more users and more revenue per user, and pointed to faster-than-core growth in Beyond solutions and stronger SME traction. His tone was confident and upbeat about 2027 and 2028, saying the company is positioned to resume sustainable, profitable growth after the reset.

Virginie J. Duperat-Vergne said H1 results came ahead of expectations and reflected the strength of the diversified model despite the regulatory reset. She highlighted operating EBITDA of EUR 503 million, EBITDA of EUR 616 million, a 47% operating EBITDA margin, adjusted EPS of EUR 1.09, and H1 free cash flow of negative EUR 164 million, while reaffirming at least 35% free cash flow to EBITDA conversion for 2026. She also noted EUR 4.9 billion of cash and restricted funds, net debt down by around EUR 0.6 billion year on year, a fully undrawn EUR 900 million revolving credit facility, and a cost of debt of 3.4%.

Analysts focused on whether the guidance raise was conservative, how much of H1 growth came from new users versus upsell/cross-sell, and whether Brazil’s post-regulation impact might simply shift into 2027. Management said about 50% of H1 growth came from attracting more users and about 40% from enrich/activate activities such as face-value increases and cross-selling; it also said Brazil’s renegotiation process went better than expected and that the open-loop implementation is taking longer than some expected, with no major competitive change seen so far. Other questions covered cash flow timing from term deposits, SME economics and penetration, France demand, Middle East softness in Payment Solutions, and capital allocation; management said capital will first support growth, then selective M&A, dividends, and finally buybacks, with EUR 100 million remaining in the current EUR 300 million buyback program.