SiteMinder Lifts Profitability on Accelerated Smart Platform Growth

SiteMinder (ASX: SDR) increased adjusted EBITDA 96.5% to $28.1 million in the 2026 financial year as its Smart Platform drove strong transaction growth and improved margins.

Annual recurring revenue (ARR) rose 24.1% on a constant-currency and organic basis to $313.7m, while revenue increased 22.0% on the same basis to $266.1m, and 18.6% on a reported basis.

Adjusted free cash flow (FCF) more than doubled to $10.5m, with the reported net loss narrowing to $11.3m from $24.5m despite a stronger Australian dollar and volatile global travel conditions weighing on reported performance.

SiteMinder expects ARR growth to remain in the 20s during FY27 while adjusted EBITDA margin expands meaningfully, before reaching the mid-20s in FY30 as Smart Platform adoption, operating leverage, and AI-enabled efficiencies build.

Deeper Customer Value

Transaction revenue increased 33.8% on a constant-currency and organic basis to $110.9m, supported by Demand Plus and the Smart Distribution Program, while transaction ARR climbed 37.1% to $144.3m.

Dynamic Revenue Plus had expanded to more than 50,000 rooms by year end, more than double the level at the first half, with customer retention after trial above 70%, dynamic pricing activation above 80%, and weekly active usage above 60%.

Channels Plus approached 10,000 connected hotels, while total transaction product uptake increased 29.7% to 45,400 as SiteMinder broadened adoption across its customer base of 56,000 properties and 2.6 million rooms.

Average revenue per user increased 9.3% on a constant-currency and organic basis to $429, while customer lifetime value to customer acquisition cost improved to 6.6 times from 6.2 times as product penetration increased.

AI Expands Platform Opportunity

SiteMinder is positioning its infrastructure as an execution layer between hotel supply and global demand, handling more than 140 million reservations annually and about 100 billion pricing, inventory, availability and booking messages across more than 500 distribution partners.

Dynamic Revenue Plus combines live property, market, demand, and channel data to generate recommendations, before translating them into actions through SiteMinder’s connected distribution infrastructure.

SiteMinder Powered extends those capabilities into partner platforms, with Mews as the inaugural partner, while Model Context Protocol connectivity is intended to give AI platforms standardised access to live, bookable independent hotel inventory without recreating the underlying distribution network.

“SiteMinder’s FY26 performance builds on three years of sustained progress, […] demonstrates the strength and scalability of our business, and provides a durable foundation for continued growth and margin expansion,” chief executive officer Sankar Narayan said.

“With continued momentum across the Smart Platform, a strong product pipeline and go-to-market engine, and significant opportunities to apply AI across our operations and product suite, we are well positioned to build on our strong performance and create long-term value for shareholders.”

Continued Margin Expansion

Adjusted group gross margin increased 84 basis points to 67.2%, including a 577-basis-point lift in adjusted transaction gross margin to 39.4% as higher-margin Smart Platform initiatives contributed more heavily.

Adjusted EBITDA margin reached 10.6%, up from 6.4% in FY25 and negative 14.5% in the FY23, while SiteMinder’s Rule of 40 performance on a 12-month FCF basis improved to 25.9% from 21.3%.

Reported operating cash flow rose $16.2m to $39.8m, while capitalised development costs increased 23.6% to $32.0m as investment continued in Smart Platform products, data analytics, AI, and other initiatives.

SiteMinder expects ARR to grow at a compound annual growth rate in the 20s from FY26 closing levels through FY30 on a constant-currency and organic basis, alongside continued margin expansion.

Leadership Aligned with Growth Priorities

SiteMinder has also reshaped its executive team around partnerships, product development, and disciplined delivery of the multi-year growth framework, with two leadership changes taking effect from 1 November 2026.

Current chief financial officer Tim Howard will move into the newly created role of chief partner officer, reflecting the growing importance of SiteMinder Powered and the broader global partner ecosystem to future growth.

Kevin O’Sullivan, currently chief financial officer of CyberCX, will succeed Mr Howard after holding senior finance and operational roles across international technology and telecommunications businesses.

The appointments follow the recent addition of Samantha Lawson as chief product officer, with SiteMinder aligning leadership around partner-led growth, AI capability, product development, and the continued scaling of its Smart Platform.