Serko Limited Analysis

Overview

Serko is a story of travel technology innovation. Founders Darrin Grafton and Bob Shaw started the Serko journey with Interactive Technologies Limited in 1994. ITL was a technology company designed to help travel agents solve a number of thorny mid-office and back office system challenges.

As the Internet took off and irrevocably changed the way users searched and booked travel, the business changed direction in order to ride the wave and in 2000 Serko was born. Since then the company has gone from strength to strength and with an unwavering commitment to simplifying and improving the travel experience, has gone on to become Australasia's preferred OBT.

Performance

The following information was extracted from Serko Limited's full year results, released on 20 May 2026:

Serko Limited (NZX & ASX: SKO) today announced audited results for the year ended 31 March 2026, with a 34% increase in total income to $120.9 million.

The result was underpinned by the continued expansion of Booking.com for Business, which saw completed room nights increase 31% to 4.3 million and active customers grow 36% to 301,000, as well as a solid performance in Australasia. FY26 results include the first full year of GetThere revenue of $16.1 million.

EBITDAFI increased 137% to $6.5 million, a significant lift in Serko’s underlying operating earnings. Net loss after tax narrowed by $4.2 million to $17.7 million.

Serko CEO and co-founder, Darrin Grafton, said: “Our FY26 performance demonstrates our ability to deliver high growth and maintain cost discipline, while investing for growth. We have delivered total income at the top end of our narrowed guidance range, demonstrating the strength of our business and our ability to deliver on our strategy.

“We are entering an exciting phase. Our new multi-agent AI solution, Serko.ai, is in closed beta in the US with positive early validation from travellers. We remain on track for an open beta launch in Q3 FY27. Our foundation of proprietary data, domain expertise, and customer trust is what positions us to lead this shift and pursue the massive opportunity before us.”

Financial summary

The FY26 results reflect a focus on top-line growth with rigorous financial and operational discipline. Total income of $120.9 million reached near-parity with the company’s cost base, with total spend of $122.9 million representing 102% of total income. This ratio was achieved despite a period of increased strategic investment to support the US launch of Serko.ai, and total spend remaining within the narrowed guidance range.

Free Cash Flow was ($4.4) million, a decrease of $2.5 million.

Serko remains well-capitalised to execute its FY30 strategy, with $54.1 million in cash and short-term deposits and no debt as at 31 March 2026.