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 half year results, released on 18 November 2025:

Serko delivers 45% total income growth and EBITAFI uplift

Driven by GetThere and momentum in Booking.com for Business

Serko Limited (NZX & ASX: SKO) today reports its unaudited interim results for the six months to 30 September 2025 (1H26), with total income growth of 45% compared to 1H25 to $61.8 million, reflecting continued strong growth with cost discipline. EBITDAFI grew to $6.1 million.

Momentum in Booking.com for Business drove Serko’s result, with Completed Room Nights up 32% to 2.1 million, underpinned by growth in Active customers and new product capabilities delivered. Active customers increased 40% compared to 1H25.

GetThere, acquired in January, drove a step change in Serko’s US business. US revenue slightly exceeded expectations as expected customer exits occurred more slowly. Serko has stabilised its customer base, with new ARR churn on key accounts around 1% of annualised revenue.

Serko CEO and Co-Founder Darrin Grafton said: “Our performance reinforces Serko's continued track record and ability to deliver high growth and cost discipline as we execute on our strategic focus areas. We have strong momentum in our Booking.com for Business performance and conviction in our growth strategy. We’re pleased with Booking.com for Business volume growth including a 32% increase in completed room nights compared to the previous half year.”

“Our business is founded on a traveller-first approach and we’re excited about the future and delivering on opportunities that have emerged from agentic AI. Serko is well positioned to unlock the full value of AI as a core pillar of our strategy and product roadmap.”

Australasian travel revenue was stable with Online Bookings up 2% and improved margins. A –2% decline in average revenue per booking was driven by reduced third-party pass-through costs.

Serko made progress during the half year on increasing its strategic focus including exiting its US InterplX expense management business on 30 September 2025. Serko also continues to optimise its operating model to unlock the value of AI and emerging technologies.

Serko is co-designing AI-powered capabilities with customers in the US and receiving positive customer and prospect engagement. Financial summary Increased total income and operational efficiency delivered positive EBITDAFI of $6.1 million for the half year, a $4.9 million improvement on 1H25.

Total Spend-to-income ratio fell from 106% to 97%. Net loss after tax was $9.5 million, an increase of $4.4 million driven by foreign exchange losses and a non-cash accounting loss on sale of the InterplX expense business. Free Cash Flow increased 128% to $3.0 million