Serko Limited reports a robust 45% increase in total income for the first half of FY26, driven by its GetThere acquisition and strong momentum in Booking.com for Business, alongside a significant uplift in EBITDAFI.
- 45% total income growth to NZD 61.8 million
- EBITDAFI rises to NZD 6.1 million with positive free cash flow
- Booking.com for Business completed room nights up 32%, active customers up 40%
- US business stabilizes post-GetThere acquisition; InterplX expense management business exited
- AI integration and platform acceleration central to growth strategy
Strong Financial Performance Amid Strategic Expansion
Serko Limited, a key player in travel technology, has unveiled unaudited interim results for the six months ending 30 September 2025, showcasing a striking 45% growth in total income to NZD 61.8 million. This surge is largely attributed to the January acquisition of GetThere and sustained momentum in its Booking.com for Business platform. The company also reported a significant improvement in EBITDAFI, reaching NZD 6.1 million, reflecting disciplined cost management alongside growth.
Despite a net loss after tax of NZD 9.5 million, influenced by foreign exchange losses and a non-cash accounting loss from the sale of its InterplX expense management business, Serko’s free cash flow more than doubled to NZD 3.0 million. The company remains well-capitalized with NZD 65.2 million in cash and short-term deposits and no debt, positioning it strongly for future investments.
Booking.com for Business Drives Customer and Volume Growth
Booking.com for Business continues to be a growth engine for Serko, with completed room nights increasing 32% to 2.1 million and active customers rising 40% to 262,000. New product capabilities, including a faster onboarding process and enhanced checkout experience, have improved customer activation and conversion rates. Although average revenue per completed room night dipped slightly by 3%, the overall volume growth underpins the platform’s expanding footprint.
In Australasia, online bookings grew modestly by 2%, offset by a 2% decline in average revenue per booking, resulting in stable travel revenue but improved margins due to reduced third-party costs. The integration of airline New Distribution Capability (NDC) with Qantas and hotel aggregation via Sabre further strengthens Serko’s regional market position.
US Market Stabilization and Strategic Refocus
The acquisition of GetThere has transformed Serko’s US business, with revenue slightly exceeding expectations as customer attrition slowed. The company has stabilized its US customer base, achieving new annual recurring revenue churn of approximately 1% on key accounts. However, new sales fell short of targets, prompting accelerated investment in platform development and AI-powered capabilities co-designed with US customers.
Serko also exited its US InterplX expense management business, selling assets to CerebriAI and receiving royalties on future revenues. This move aligns with Serko’s strategic focus on core travel booking technologies and partnerships with leading US expense providers rather than operating standalone expense products.
AI and Platform Evolution Central to Future Growth
CEO Darrin Grafton emphasized AI as a core pillar of Serko’s strategy, highlighting ongoing investments in AI-powered product enhancements and operational efficiencies. The company is embedding AI tools into daily workflows and evolving its operating model to accelerate delivery of data-driven capabilities. This focus aims to unlock new value streams and maintain competitive advantage in a rapidly evolving travel technology landscape.
Looking ahead, Serko reaffirmed its FY26 total income guidance of NZD 115 million to NZD 123 million, while revising its total spend guidance slightly lower to NZD 124 million to NZD 128 million. The company cautions that macroeconomic, geopolitical, currency fluctuations, and average revenue per completed room night movements remain key risks to achieving these targets.
Bottom Line?
Serko’s blend of strategic acquisitions, AI innovation, and disciplined growth sets the stage for its ambitious FY30 revenue aspirations, but currency and market dynamics warrant close watch.
Questions in the middle?
- How will Serko’s AI initiatives translate into tangible revenue growth in the competitive US market?
- What impact will currency fluctuations and foreign exchange hedging have on Serko’s profitability in FY27?
- Can Serko sustain Booking.com for Business’s rapid customer growth while improving average revenue metrics?