Edenred (EDEN) H2 2025 earnings summary

Executive summary

• Achieved record 2025 commercial and operating performance, surpassing guidance for EBITDA growth and free cash flow conversion, with operating revenue up 6.2% like-for-like and EBITDA margin reaching 45.9%.

• EBITDA grew 11.2% like-for-like versus 2024, exceeding the >10% target, and adjusted EPS rose 10% to €2.59.

• Free cash flow conversion reached 82%, up 12 points, and net debt reduced by 31% to a leverage ratio of 0.9x.

• Shareholder returns included €125 million in buybacks and a proposed dividend of €1.33 per share (+10%), with total returns of €463 million.

• Growth strategy leverages digital, AI, and platform efficiencies to increase users and value per user.

Financial highlights

• Total revenue reached €2.961 billion, up 7.6% like-for-like (excluding Italian regulation impact); reported growth was 3.7% due to FX headwinds.

• Operating revenue was €2.732 billion, up 6.2% like-for-like; EBITDA was €1.36 billion, up 11.2% like-for-like, with margin at 45.9%.

• Free cash flow increased 34% year-over-year to €1,111 million, driven by record funds from operations and disciplined cash collection.

• Net profit (Group share) was €521 million, up 2.8%; adjusted EPS at €2.59 (+10%).

• CapEx was €198 million (6.7% of revenue), down €20 million year-over-year.

Outlook and guidance

• 2026 is a rebasing year due to regulatory changes in Italy and Brazil, with guidance for EBITDA growth between -8% and -12% like-for-like.

• Excluding regulatory impacts, intrinsic EBITDA growth expected at 8%-12% for 2027 and 2028.

• Free cash flow to EBITDA conversion expected to return to 65%+ from 2027.

• Long-term ambition to reach €5 billion in total revenue by 2030.

• Strategic plan Amplify 25-28 launched to support growth.