Serko reports NZD 120.9m income and 137% EBITDAFI growth in FY26

Robust Growth Anchored by Booking.com for Business and GetThere

Serko Limited (NZX & ASX:SKO) delivered a strong FY26 result with total income climbing 34% to NZD 120.9 million, driven by the continued expansion of its Booking.com for Business platform and the first full year of revenue from its US acquisition, GetThere. Completed room nights on Booking.com for Business rose 31% to 4.3 million, while active customers grew 36% to 301,000, underscoring the solid traction in the small-to-medium enterprise segment.

GetThere contributed NZD 16.1 million in revenue for the full year, complementing Serko’s geographic diversification and accelerating its US presence. Australasia remained resilient with a 6% increase in travel revenue, supported by stable booking volumes and average revenue per booking.

Profitability Metrics Show Marked Improvement

Underlying operating earnings surged, with EBITDAFI soaring 137% to NZD 6.5 million, reflecting effective cost discipline alongside strategic investments. Total spend rose 33% to NZD 122.9 million, maintaining near parity with income at 102%, a meaningful improvement in operating leverage. The net loss after tax narrowed by 19% to NZD 17.7 million, benefiting from a lower non-cash impairment charge compared to the prior year.

Free cash flow outflow widened to NZD 4.4 million, reflecting increased investment in platform acceleration and US expansion initiatives, including the Serko.ai rollout.

Serko.ai Closed Beta Launch Signals AI-Driven Future

A defining milestone was the closed beta launch of Serko.ai in the US, a multi-agent AI solution designed to transform business travel by automating trip planning and booking with personalised intent-driven agents. Early user feedback has been positive, and Serko remains on track for an open beta launch in Q3 FY27. This AI initiative builds on Serko’s proprietary data and domain expertise, positioning it to lead the AI shift in corporate travel.

Serko.ai’s development is supported by a strengthened engineering hub in India and new senior hires with AI and e-commerce experience. The AI platform is expected to form the foundation of Serko’s global managed travel offerings by FY30.

FY27 Guidance Reflects Cautious Optimism Amid Geopolitical Risks

Looking ahead, Serko projects total income between NZD 128 million and 134 million for FY27, with total spend anticipated between NZD 132 million and 140 million. The guidance range reflects uncertainty from geopolitical tensions, notably the Middle East conflict, which could impact business travel demand. Serko has made a strong start to FY27, with booking volumes slightly ahead of expectations, particularly from its US corporate segment expansion.

The company continues to focus on scaling Booking.com for Business, deepening its US market penetration, and advancing Serko.ai, all underpinned by disciplined capital allocation and a strong balance sheet with NZD 54.1 million in cash and no debt.

Sustainability and Governance Remain Core Priorities

Serko’s FY26 ESG Report highlights a 21% reduction in emissions intensity against its FY23 baseline, with initiatives such as a hotel carbon search filter and a partnership with Air New Zealand to purchase Sustainable Aviation Fuel certificates. The company has also made progress on diversity, reducing its gender pay gap to 11.06% and winning recognition for fostering a culture that supports women’s advancement.

Governance enhancements include the establishment of a Senior Leadership Group to bridge strategy and execution, an evolved AI governance framework, and strengthened business continuity management aligned with ISO 22301 standards.

Serko’s remuneration framework was refined to better align executive incentives with long-term shareholder value, introducing a deferred short-term incentive and linking long-term incentives to absolute total shareholder return hurdles.

What to Watch Next

Serko’s FY27 performance hinges on the pace of adoption in its targeted US corporate segments and the successful open beta rollout of Serko.ai. The geopolitical landscape remains a wildcard, with the Middle East conflict posing potential volatility for business travel demand. How effectively Serko balances strategic investment with cost discipline will be critical as it seeks to convert AI innovation into sustained revenue growth and margin expansion.

Investors will be keen to monitor Serko’s execution on AI-driven product development and US market penetration, as well as any updates on its Booking.com for Business partnership renewal beyond 2029, which underpins its long-term growth ambitions.