TBOTEK

Q2 FY26 Review: Broad-Based Rebound, Global Expansion, and Strategic Luxury Push

staged a strong comeback in Q2 FY26, following a subdued Q1, with revenue rising 26% YoY and gross transaction value (GTV) up 12% YoY. Growth was broad-based across Europe, MEA, APAC, and the Americas, while India returned to positive GTV growth. 🔹 Regional Performance Highlights - Europe: - GTV up 20% YoY, led by Spain, France, Germany, Italy, and Israel. - Middle East & Africa (MEA): - GTV rose 27% YoY, recovering from June’s geopolitical disruptions. - Asia-Pacific (APAC): - GTV surged 41% YoY, with standout growth in Singapore, Hong Kong, and Australia (up ~90%). - Americas (LATAM): - GTV rebounded 10% YoY, led by Argentina and Brazil. - B - India: - GTV grew 0.3% YoY; hotels segment up 4%. 🔹 Segmental Trends - Hotels: - Revenue up 34.3% YoY; GTV up 20%. - Take rates improved from 7.6% to 8.5% YoY, aided by a shift to commission-based models. - Air Ticketing: - GTV remained flat due to competitive pricing and yield pressures. - Continues to be a volume-driven, lower-margin business. 🔹 Strategic Acquisition: Classic Vacations - Acquired for $125 million in October 2025, marking TBO’s entry into North America’s luxury travel market. Classic brings a 50-year legacy, 10,000+ travel advisors, and 1,500+ luxury hotel partnerships. - While near-term EBITDA margin is dilutive (~10% vs. TBO’s 17.3%), long-term synergies are expected through cross-leveraging premium supply and advisor networks. 🔹 Outlook & Valuation - TBO expects margin recovery by Q4FY26 as new agents mature and SG&A costs stabilize. - At 40x FY27 earnings, the stock trades at a reasonable valuation given its differentiated model and long-term growth potential. - The Classic acquisition enhances TBO’s strategic depth in high-value markets, reinforcing its premium positioning. TBO Tek’s Q2 rebound, expanding global presence, and strategic luxury acquisition underscore its evolution into a full-spectrum travel platform.