SiteMinder Doubles Adjusted EBITDA on 22% Revenue Growth in FY26

Strong Profitability Gains Amid Revenue Acceleration

SiteMinder Limited (ASX:SDR) reported a near doubling of adjusted EBITDA to $28.1 million for the fiscal year ended June 30, 2026, up 96.5% from $14.3 million the prior year. This leap in profitability accompanied a 22.0% increase in revenue on a constant currency and organic basis, reaching $266.1 million. The company’s net loss after tax halved to $11.3 million, reflecting disciplined cost management and operating leverage despite a challenging macroeconomic backdrop and a stronger Australian dollar weighing on reported figures.

Annualised Recurring Revenue (ARR) grew 24.1% to $313.7 million, underpinned by resilient subscription revenue rising 15.1% and a remarkable 37.1% surge in transaction ARR. The latter was fuelled by accelerated adoption of SiteMinder’s AI-enhanced Smart Platform products, which now support over 50,000 rooms with Dynamic Revenue Plus and nearly 10,000 hotels connected via Channels Plus.

Smart Platform and AI Drive Unit Economics and Margin Expansion

The Smart Platform strategy is central to SiteMinder’s growth story, combining proprietary data, AI-driven insights, and seamless distribution to empower hoteliers with continuous pricing and inventory optimisation. Transaction revenue, which grew 33.8% (cc, organic) to $110.9 million, now accounts for an increasing share of total revenue, reflecting deeper product penetration and higher-value customer engagements.

Unit economics improved notably with customer lifetime value (LTV) rising 9.2% to $29,857, outpacing a modest 1.8% increase in customer acquisition cost (CAC) to $4,529, pushing the LTV/CAC ratio to 6.6x. Average revenue per user (ARPU) increased 9.3% to $429, driven by a 19.3% rise in transaction ARPU, while subscription ARPU remained stable at $250. Monthly revenue churn held steady at 1.0%, supporting strong customer retention.

Gross margins expanded across the board, with group gross margin improving 84 basis points to 67.2%. Subscription margins rose to 87.0%, aided by scale and AI-enabled efficiencies, while transaction margins jumped 577 basis points to 39.4%, boosted by the higher-margin Smart Platform mix.

Operational Transformation and Strategic Partnerships

SiteMinder is embedding AI not only in its products but also across internal workflows to automate routine tasks and augment decision-making, enhancing productivity and scalability. This operational reimagination supports ongoing margin expansion and improved customer experience.

Strategic moves included launching SiteMinder Powered, a partnership model embedding SiteMinder’s distribution capabilities directly into hotel technology platforms, with Mews as the inaugural partner. This initiative deepens the company’s ecosystem integration and opens new growth avenues.

Additionally, SiteMinder partnered with AI-powered booking platform DirectBooker, enabling access to its extensive independent hotel inventory, which further positions the company at the center of AI-driven hotel commerce.

Global Growth and Regional Performance

The company’s global footprint expanded to 56,000 properties, up 11.8% year-on-year, with net additions of 5,900. Growth was broad-based across Americas, Asia Pacific, and EMEA regions, with APAC and EMEA showing accelerating momentum amid resilient travel demand.

SiteMinder continues to target larger hotel properties that generate higher gross booking value, enhancing long-term monetisation potential through its variable fee transaction products.

Outlook: Sustained Growth and Margin Expansion

Looking ahead to FY27, SiteMinder expects ARR growth to remain in the 20% range on a constant currency and organic basis, with a meaningful expansion in adjusted EBITDA margin. The company aims to reach mid-20s EBITDA margins by FY30, driven by continued Smart Platform adoption, operational efficiencies, and leverage.

SiteMinder’s CEO Sankar Narayan emphasised the company’s strengthened position in AI-enabled hotel commerce infrastructure, noting that the company’s network, data assets, and connectivity provide a durable competitive advantage as the industry evolves.

With a strong balance sheet including $31.6 million in cash and an undrawn $30 million credit facility, SiteMinder is well positioned to invest in growth initiatives while driving profitability.