Edenred S.A.

Edenred reported H1 2026 total revenue of EUR 1.5 billion, up 1.5% like-for-like; operating revenue growth was also 1.5% like-for-like, while intrinsic operating revenue growth excluding the Italy and Brazil regulatory reset was 8% (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 was EUR 100 million, up 3.6% like-for-like; Rest of World was up 10.6% like-for-like. Operating EBITDA was EUR 503 million, down 5.9% like-for-like, and EBITDA was EUR 616 million, down 4.6% like-for-like with a 47% margin. Adjusted EPS was EUR 1.09, down 6.2% year on year. Free cash flow was negative EUR 164 million in H1. For full-year 2026, Edenred raised EBITDA like-for-like guidance to -7% to -10%, equivalent to EUR 1.230 billion to EUR 1.270 billion, and reaffirmed free cash flow conversion of at least 35% of EBITDA. The company expects 2026 other revenue of around EUR 210 million.

Bertrand Dumazy framed 2026 as a reset year because of meal and food regulatory changes in Italy and Brazil, but emphasized that the underlying business is still growing strongly. He said Edenred is executing its Amplify plan by attracting more users and generating more revenue per user, with cross-selling and upselling growing faster than the core. He also highlighted data and AI investments as a way to improve speed, efficiency and customer acquisition, saying the company aims to be a winner in the AI transition.

Virginie J. Duperat-Vergne said the H1 results were ahead of expectations and reflected the strength of the business model, diversification and resilience through the regulatory reset. She detailed operating EBITDA of EUR 503 million, EBITDA of EUR 616 million, adjusted EPS of EUR 1.09 and free cash flow of negative EUR 164 million, while noting the 47% EBITDA margin and the impact of higher depreciation, a lower tax rate and buybacks. She also said net debt declined by around EUR 0.6 billion year on year, H1 ended with EUR 4.9 billion in cash and restricted funds, a fully undrawn EUR 900 million RCF maturing in 2031, and a 3.4% cost of debt; she confirmed the 35% free cash flow to EBITDA target and said the company is allocating capital to growth, selective M&A and shareholder returns.

Analysts pressed management on why guidance was only raised modestly despite better-than-expected H1 performance, and management said the new range is still consistent with the consensus floor and that the second half remains influenced by Brazil’s regulatory rollout and the timing of gifting campaigns. On Brazil, management said the open-loop/acquirer implementation is taking longer than expected, but compliance is in place and no major competitive shift has been seen yet; renegotiations with clients have gone better than expected. Questions on cash flow and term deposits were answered with the reassurance that the deposits do not begin rolling off in a way that should create a major effect in the next 2-3 years. Management also said capital allocation remains focused first on organic growth and M&A, then dividends and buybacks, with about EUR 100 million left under the current EUR 300 million buyback plan.