lastminute.com Earnings Call Highlights Profitable Growth

lastminutecom NV ((CH:LMN)) has held its Q4 earnings call. Read on for the main highlights of the call.

lastminute.com’s latest earnings call struck an upbeat tone, with management emphasizing broad-based growth, sharply higher profitability and a much cleaner balance sheet. Executives framed the year as a turning point where disciplined cost control, stronger cash generation and targeted tech investments outweighed one‑off restructuring costs and heavier marketing outlays.

Revenue Momentum Defies Seasonality

Full-year revenue climbed 15% to €361 million, underlining solid demand across the platform. Fourth-quarter revenue jumped 23% to €77 million, making it the strongest quarter of the year despite usually softer seasonal trends and confirming the company’s growth trajectory.

EBITDA Surges on Operating Leverage

Adjusted EBITDA rose 33% to about €55 million for the year, highlighting significant operating leverage as revenues scaled. In Q4, adjusted EBITDA of €8.8 million was up 62% year-on-year, underscoring how modest fixed-cost growth is now translating into outsized profit expansion.

Cash Generation Flips Into High Gear

Management spotlighted cash flow as a major success, with adjusted EBITDA minus CapEx doubling to €32.4 million from €16.2 million. Free cash flow swung to a positive €27 million from a €4.7 million loss, driving an impressive free-cash-flow-to-EBITDA conversion near 58%.

Flights and Hotels Lead Segment Performance

Flights were the standout, with Q4 revenue up 48% and full-year growth of 31%, supported by stronger unit economics and ancillary sales. Hotels also performed well, delivering 22% growth in Q4 and 21% for the year, providing a steady revenue pillar alongside flights.

Packages Show Resilient but Mixed Progress

Dynamic Packages, the company’s core product, posted 16% growth in Q4 and 11% for the year, confirming resilient demand for bundled travel. However, this remained slower than overall company growth and well behind flights, signaling work still to do to fully reignite momentum in the strategic heart of the business.

Cost Discipline Drives Structural Efficiency

Fixed costs rose just 6% in Q4, and would have declined 13% excluding performance-linked pay, demonstrating tight operating control. The fixed-cost ratio improved by around four percentage points year-on-year, reinforcing the company’s growing operating leverage as volumes scale.

App, Loyalty and Repeat Business Gain Traction

App downloads increased 12% year-on-year to 1.6 million, with over 600,000 monthly active users and roughly 20–21% of bookings now coming via the app. Bookings from repeat customers grew 27%, helped by the launch of a free multi-tier loyalty program, PRO, which debuted in the U.K. and is designed to deepen customer stickiness.

Balance Sheet Strengthens as Debt Falls

The net financial position improved to nearly €32 million from €19 million at the end of the prior year, reflecting stronger cash generation. All short-term debt was repaid by year-end, giving the company more flexibility to fund dividends, reinvestment and opportunistic M&A without balance-sheet strain.

AI and Technology to Protect Distribution

The company launched a Flight MCP server designed as a plug for large language models, aiming to keep its inventory visible in conversational AI channels. It also rolled out integrations in AI-powered apps and is pursuing wider automation and personalization initiatives to adapt as travel discovery shifts toward AI-driven search.

One-Offs and Net Profit Dilute the Headline Story

Despite the strong operational performance, the full-year net result was €11.6 million, slightly below the prior year. Management pointed to more than €8 million of one-off charges linked to reorganization and the exit from cruises, which weighed on reported earnings but are expected to be non-recurring.

Marketing and Gross Profit Dynamics

Gross profit grew 17% in Q4 and 10% for the year, lagging revenue growth as the company leaned into performance marketing. Variable costs, especially marketing spend, rose sharply—about 36% in Q4—putting short-term pressure on margins as management prioritized data-driven customer acquisition and market-share gains.

Cruise Exit Reshapes ‘Other’ Segment

The decision to discontinue the cruise business in early October reduced revenue within the ‘Other’ segment, trimming that line item. However, gross profit in the segment turned positive after the exit, suggesting a cleaner and more profitable mix going forward despite the loss of that revenue stream.

Macro and Structural Uncertainties Linger

Management acknowledged external risks, including rising unemployment and a softer European macro outlook that could dampen travel budgets. They also flagged structural uncertainties around AI-led discovery and shifting traffic sources, which may alter customer acquisition costs and channel economics over time.

Guidance Signals Steady Growth and Higher Cash

Looking ahead to 2026, the company expects to continue outgrowing the market with roughly 10% revenue growth and adjusted EBITDA expanding in line. With CapEx held flat, no repeat of 2025’s one-off charges, ongoing debt reduction and a maintained dividend policy, management sees materially stronger cash generation and higher net profit while stepping up brand investment.

lastminute.com’s call painted a picture of a business exiting a restructuring phase with renewed momentum, stronger margins and much better cash metrics. While heavier marketing spend, the cruise exit and macro uncertainty remain watch points, management’s focus on technology, loyalty and capital discipline suggests a company positioning for sustainable, profitable growth.