SiteMinder Ltd (ASX: SDR) shares are higher on Wednesday after the hotel software company delivered its half-year results.
At the time of writing, the SiteMinder share price is up 8.16% to $3.18.
The gain follows a sharp sell-off in recent weeks. The stock is down roughly 43% over the past month amid broader weakness across artificial intelligence-linked tech names.
Here's what the company reported for the 6 months ended 31 December 2025.
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Revenue and ARR continue to accelerate
SiteMinder reported total revenue of $131.1 million for H1 FY26, up 23% year on year on a constant currency organic basis. This compared to 21% growth in H2 FY25.
Subscription revenue increased 14%, while transaction revenue rose 38.2%, supported by uptake of products including Dynamic Revenue Plus and the Smart Distribution Program.
Annualised recurring revenue (ARR) climbed 27.4% to $280.3 million on a constant currency organic basis. Subscription ARR increased 15.7%, while transaction ARR surged 49.2%.
Net property additions were 2,900 during the half, taking total properties on the platform to 53,000, representing 2.5 million rooms globally.
Margins expand as scale benefits emerge
Gross margin improved during the period, reflecting operating leverage and product mix.
Adjusted subscription gross margin increased 125 basis points to 86.7%. Adjusted transaction gross margin rose 558 basis points to 40.1%. At the group level, adjusted gross margin increased 98 basis points to 67.8%.
Adjusted EBITDA more than doubled to $12.3 million, up from $5.3 million in the prior corresponding period.
On a reported basis, operating cash flow improved by $11.6 million to $17.4 million. Adjusted free cash flow was positive at $2.7 million, compared to an outflow in H1 FY25.
Operating expenses increased during the half as SiteMinder continued investing in product development and go-to-market capabilities. Despite this, adjusted net loss after income tax narrowed to $3.9 million, compared with a loss of $9 million in the prior corresponding period.
Outlook unchanged
Management reiterated its focus on sustaining ARR growth while improving profitability metrics.
Building on the 27.4% ARR growth delivered in H1, the company expects continued ARR growth through FY26, alongside further improvement in adjusted EBITDA and free cash flow.
SiteMinder noted that transaction product adoption and Smart Platform initiatives remain key drivers of revenue growth and margin expansion.
Foolish Takeaway
SiteMinder delivered another period of strong revenue and ARR growth, with margins improving and free cash flow turning positive.
While the share price has been heavily impacted by the recent tech sell-off, today's strong result points to continued operational momentum.
Attention now turns to whether ARR growth and expanding margins can translate into sustained profitability in the second half.
