Key Highlights

  • Annual Recurring Revenue increased 24.1 percent on a constant-currency and organic basis to $313.7 million
  • Adjusted EBITDA rose 96.5 percent to $28.1 million, with Margin expanding 419 basis points to 10.6 percent
  • Reported net loss narrowed to $11.3 million from $24.5 million in FY25, more than halving year on year
  • Adjusted free Cash Flow more than doubled to $10.5 million from $4.7 million in FY25

SiteMinder Limited (ASX:SDR), the hotel commerce platform operator, reported annual recurring revenue growth of 24.1 percent on a constant-currency and organic basis to $313.7 million for FY26, or 14.9 percent on a reported basis. Revenue increased 22.0 percent on a constant-currency and organic basis to $266.1 million, and 18.6 percent on a reported basis. Subscription ARR grew 15.1 percent on a constant-currency and organic basis to $169.4 million, while transaction ARR rose 37.1 percent to $144.3 million on a reported basis, an increase of 26.5 percent. The company noted that a strengthening Australian dollar adversely affected reported revenue and profitability during the year, given more than 85 percent of customer billings are denominated in currencies other than the Australian dollar.

Profitability Improves Though Losses Continue

Adjusted EBITDA increased 96.5 percent to $28.1 million, with the adjusted EBITDA margin expanding 419 basis points to 10.6 percent. Reported EBITDA improved to $24.4 million from $7.1 million in FY25, including $3.8 million of restructuring and other costs. The company's reported net loss narrowed to $11.3 million from $24.5 million in the prior year, while the adjusted net loss improved to $7.6 million from $17.2 million. Adjusted free cash flow more than doubled to $10.5 million from $4.7 million in FY25. Despite these improvements, SiteMinder remained loss-making on both a reported and adjusted basis for the year.

Smart Platform and Product Momentum

SiteMinder reported continued adoption of its Smart Platform products during FY26. Dynamic Revenue Plus more than doubled the number of hotel rooms supported since the first half of the year, reaching more than 50,000 rooms, while Channels Plus grew to almost 10,000 connected hotels from 7,000 at the half-year mark. The company also launched SiteMinder Powered, a Partnership model that allows hotel systems such as Mews to embed SiteMinder's distribution capabilities directly within their platforms, and partnered with DirectBooker to distribute participating hotels' inventory through AI-powered booking experiences. Net property additions for the year were 5,900, taking total properties on the platform to 56,000.

Key Operating Metrics

Average revenue per user increased 9.3 percent on a constant-currency and organic basis to $429. The ratio of customer lifetime value to customer Acquisition cost expanded to 6.6 times from 6.2 times in FY25, with lifetime value rising 9.2 percent to $29,857 against a 1.8 percent increase in acquisition cost to $4,529. Adjusted group gross margin increased 84 basis points to 67.2 percent, with adjusted transaction margins rising 577 basis points to 39.4 percent. The company's Rule of 40 measure, on a 12-month free cash flow basis, improved to 25.9 percent from 21.3 percent in FY25.

Outlook for FY27 and Beyond

SiteMinder said it expects its adjusted EBITDA margin to expand meaningfully in FY27, with ARR growth in the 20s supporting continued revenue growth on a constant-currency and organic basis. The company is targeting an adjusted EBITDA margin in the mid-20s by FY30, alongside an ARR compound annual growth rate in the 20s from FY26 closing levels through to FY30, underpinned by continued Smart Platform adoption and the expansion of artificial intelligence capabilities across its operations and product suite.

Conclusion

SiteMinder's FY26 results showed continued growth in annual recurring revenue and a marked improvement in profitability, with adjusted EBITDA nearly doubling and both reported and adjusted net losses narrowing substantially from the prior year. The company remained loss-making on a statutory basis despite these gains, while currency movements weighed on reported results. Management has pointed to further margin expansion and continued ARR growth through to FY30, supported by ongoing Investment in its Smart Platform and artificial intelligence initiatives.