Highlights

  • Serko expects a modest upward revision to FY27 total income guidance when it reports interim results on 16 November.
  • First-half trading ran ahead of expectations, driven by faster growth in completed room nights through its platforms.
  • The company now expects positive free Cash Flow for both the September half and the full FY27 year.
  • Chief Financial Officer Shane Sampson will leave in March 2027, and a search for his successor has started.

Stronger-than-expected hotel booking momentum has prompted Serko (ASX:SKO) to signal a modest increase to its FY27 total income guidance, which currently stands at NZ$128 million to NZ$134 million.

The travel and expense technology company said on 27 October 2026 that the revised range will be confirmed with its interim results for the six months to 30 September 2026, due on 16 November.

Core Business Takes Over as the Growth Engine

Serko attributed the stronger first half to faster growth in completed room nights, and expects that momentum to continue into the second half on a seasonally adjusted basis. Total spend is now projected towards the middle of its NZ$132 million to NZ$140 million range.

The update also changed what is driving the outlook. The original FY27 range had been linked mainly to the timing of booking volumes from a strategic initiative targeting defined US corporate segments. Because that initiative remains at an early stage, Serko no longer expects it to contribute meaningfully to FY27 total income, and core business momentum is now expected to be the main growth driver.

Management also expects positive free cash flow for the September half and for the full year, although no amounts were given.

Room Nights Climbed in the First Quarter

In its Q1 FY27 operating update on 29 July, Serko reported that completed room nights through Booking.com for Business rose 39% to 1.4 million, while active customers increased 35% to 325,000. Average Revenue per completed room night fell 11% to €8.70, reflecting slightly lower room rates and commission tiering.

In managed travel, Australasian online bookings edged higher while US bookings declined as expected because of previously flagged customer migrations off GetThere. Serko signed two organisations under its US corporate initiative during the quarter and said it was testing and refining its approach before scaling.

Incentives, Serko.ai and a CFO Search

At a special meeting on 24 August 2026, Serko sought authority to issue up to 2,146,013 restricted share units under executive incentive plans and up to 2,000,000 units as sign-on awards for strategic hires, mainly in the US. The company said those grants are intended to recruit and retain people to develop Serko.ai, its new multi-agent AI product. It explained that a lower share price meant more units were needed to reach target values.

On 25 September, Serko announced that Shane Sampson, CFO since October 2021, will leave in March 2027. He will remain through a six-month notice period to support the handover and FY27 reporting.

Interim Result Will Carry the Detail

Serko plans to provide the updated income range, further FY27 outlook detail and progress on its strategic initiative with the interim result on 16 November 2026. Guidance remains subject to economic and geopolitical uncertainty.

Shares were priced at A$0.97 on 2 November 2026, down 1.02% on the day, giving a Market Capitalisation of A$122.36 million and a 12-month decline of 60.08%.