eDreams ODIGEO S.A.

For the first 9 months of FY26, adjusted EBITDA increased 74% year-on-year to EUR 138.4 million, compared with EUR 79.7 million in the prior-year period. Cash EBITDA rose 2% to EUR 126.7 million, adjusted net income was EUR 63.8 million, and revenue margin excluding adjusted revenue items increased 3% to EUR 502.8 million. Cash flow from operating activities rose by 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. Management said it remains on track to meet FY26 guidance for EUR 155 million cash EBITDA, and reaffirmed the FY26 Prime target of 7.9 million members; as of January, Prime members reached 7.8 million. Looking further out, the company set FY30 targets of 13 million Prime members and EUR 270 million in cash EBITDA, with cash EBITDA margins seen dipping to roughly 15% in FY27 before recovering to 23% by FY30.

Dana Dunne framed the quarter as evidence that the business is moving to a stronger, more diversified subscription model and repeatedly said the company is “on track” and “from a position of strength.” He emphasized that the strategic review and new guidance were built on live operating data, and argued that the move to annual commitment with monthly installments is a timing change, not a structural loss of cash. His tone was confident and promotional, with a strong focus on the company being undervalued and able to accelerate growth over the next several years.

David Corrales focused on the mechanics of the Prime model and the margin progression it is driving. He cited Prime cash revenue margin up 7% in the last 12 months, Prime cash marginal profit up 18%, overall cash marginal profit up 3% to EUR 207.8 million, and cash EBITDA margin improving by 3 percentage points to 26% for the 9-month period. He also pointed to cash flow from operations of EUR 79.1 million, a working-capital outflow of EUR 42.9 million driven mainly by a EUR 55 million decrease in prime deferred revenue variations, and financing outflows of EUR 96.3 million including buybacks. He said share repurchases remain funded by business cash flows, not debt.

Analysts pressed on Ryanair content, AI disintermediation, churn under the phased payment model, ARPU softness, and whether share buybacks should be replaced by debt repayment or a tender offer. Management said Ryanair access remains volatile and lower than historical levels, but the new plan no longer depends on it; they also said AI/agentic search is more of an opportunity than a threat because travel is complex and they already use AI extensively. On ARPU, they said softness should continue until the end of FY27 because monthly installments mean fewer cash payments early in a customer’s life, and they repeated that churn and bad debt have not shown deterioration versus the two-year test period. They also said they would not suspend buybacks unless business performance missed expectations, and they prefer repurchasing shares over buying bonds because they believe the free cash flow yield is higher.