Mondee Holdings, Inc.

Q2 net revenue was $58 million, up 3% year over year, or up 11.5% after adjusting for acquisitions and divestitures. Gross bookings were $678 million, flat year over year. Adjusted EBITDA increased 38% to $6.1 million from $4.4 million, and adjusted EBITDA margin expanded to 10.5% from 7.8%. Take rate improved 20 bps to 8.6%. On a GAAP basis, net loss was $25.5 million, including $19.1 million of non-cash and/or non-recurring items. Cash and cash equivalents were $32 million and total debt was $169 million at quarter end, versus $36 million and $162 million at the end of December 2023. Operating cash flow was negative $7.6 million in Q2 versus negative $2.4 million in Q2 2023; year to date, operating cash flow was positive $11.1 million and free cash flow was positive $3.3 million. For full-year 2024, management now expects net revenue of $240 million to $250 million and adjusted EBITDA of $25 million to $30 million.

Prasad Gundumogula framed the quarter as evidence that Mondee’s mix shift and platform strategy are working, pointing to higher take rate, stronger transactions, and improved adjusted EBITDA. He emphasized that the refinancing gives the company longer-dated capital structure flexibility and should support long-term growth, profitability, and free cash flow. His tone was constructive and confident, especially around AI-led automation, international expansion, and non-air growth.

Jesus Portillo focused on the financial drivers behind the quarter: gross bookings held at $678 million, net revenue reached $58 million, and adjusted EBITDA rose to $6.1 million with margin at 10.5%. He said sales and marketing expense fell 5% in absolute terms and improved to 65% of net revenue from 71%, aided by AI-driven revenue-management optimization and lower B2C performance marketing. He also explained that cash of $32 million, debt of $169 million, negative Q2 operating cash flow of $7.6 million, and working-capital usage tied to Fintech partner credit-limit reductions made the refinancing important; the new financing is expected to extend the term loan to June 30, 2028 and preferred equity to December 31, 2028, subject to a $15 million letter of credit.

Analysts pressed management on how much working capital the refinancing would free up and where it would be deployed; management said about $20 million in total working capital support was expected, with priority going to Fintech products because they carry the highest take rate. Questions also focused on hotel-only and non-air penetration, where management said direct hotel connections and packaging expertise are improving hotel take rates, including an increase of over 50% in North America hotel take rate so far this year. On AI, management said Abhi is generating traction but still represents less than 2% of the business, while Infinity is being rolled out function by function and has already helped reduce sales and marketing expense.