Edenred: Third Quarter Revenue Down 1.2% on a Comparable Basis, Mobility Up 10.7%
In the third quarter of 2026, Edenred's operational revenue remained stable at €667 million on a reported basis and declined 1.2% on a comparable basis. This decline is explained by new rules governing meal vouchers in Italy and Brazil. Excluding this effect, organic growth reached 6.6%, and the group confirmed on October 21, 2026 its target of 2026 EBITDA down 10% to 7% on a comparable basis.
The key issue with this publication lies in the divergence between these two readings. On one hand, the historical employee benefits business absorbs the capping of commissions collected from merchants. On the other hand, Mobility maintains double-digit growth. This publication comes after an 11% increase in the stock over the quarter, noted on October 20, 2026.
Revenue of €2,198 Million Over Nine Months, Up 1%
Over the first nine months of 2026, Edenred's total revenue reached €2,198 million, up 1.0% on a reported basis and 0.6% on a comparable basis. Operational revenue reached €2,027 million (+ 1.1% reported, + 0.6% comparable). Organic growth, which excludes the regulatory impact in Italy and Brazil, reached 7.6%.
External effects work in opposite directions. The transition of Edenred Pay North America to equity accounting as of August 1, 2026, following the partnership with Abry Partners, reduced revenue by 0.5% over nine months. Currencies, by contrast, added 0.8%.
In the third quarter alone, total revenue reached €725 million, stable on a reported basis and down 1.3% on a comparable basis. The negative scope effect of 0.9% was more than offset by a favorable currency effect of 2.1%, mainly related to Latin American currencies.
Mobility Advances, Employee Benefits Decline Due to New Rules
The Mobility division, which accounts for 28% of activity, generated €575 million in operational revenue over nine months, up 13.4% on a reported basis and 11.0% on a comparable basis. In the third quarter, it reached €202 million, representing growth of 10.7% on a comparable basis. According to the group, fuel cards as well as complementary services (tolls, electric charging, maintenance) contributed to this growth.
The Benefits & Engagement division (employee benefits, 65% of operational revenue) declined 3.4% on a comparable basis over nine months, to €1,311 million, and 5.9% in the third quarter, to €424 million. In Italy, the capping of merchant commissions entered into force on September 1, 2025. In Brazil, a cap was introduced at the end of February 2026, and the system was then opened to open payment networks on May 11, 2026. Excluding these effects, the division's organic growth reached 5.8% in the third quarter.
The group highlights several growth drivers. In Japan, the doubling of the legal cap on the face value of meal vouchers from April 2026 resulted in an increase of more than 50% in operational revenue over nine months. In France, a partnership with Silae is to allow the distribution of Edenred's solutions to 950,000 SME customers of this provider, via a network of 6,000 chartered accountants. The Payment Solutions and New Markets division (7% of the total) declined 0.5% on a comparable basis in the third quarter, penalized in particular by the Middle East conflict in the United Arab Emirates.
2026 EBITDA Expected Between €1,220 and €1,260 Million, Growth Targeted for 2027 and 2028
Edenred confirmed its objectives for 2026, a transition year marked by the meal voucher reform. The group targets EBITDA down 10% to 7% on a comparable basis, or approximately €1,220 to €1,260 million. This range replaces the approximately €1,230 to €1,270 million given at the time of the half-year publication. According to the group, the adjustment incorporates the scope effect of operations finalized in the third quarter and is based on exchange rates as of June 30, 2026. The free cash-flow to EBITDA conversion rate is expected to be 35% or more.
Other revenues, arising mainly from the placement of funds awaiting reimbursement, remained stable at €171 million over nine months. Edenred now expects them to be at least €210 million over the financial year. The group cites higher interest rates than anticipated, partly offset by the exit from banking-as-a-service activities for fintechs.
On the capital side, Edenred signed on July 31, 2026 a new share buyback mandate with a maximum initial amount of €50 million. This mandate is part of an overall program that can reach €600 million until November 2027. For 2027 and 2028, the group confirmed its target of annual EBITDA growth between 8% and 12% on a comparable basis, with a free cash-flow to EBITDA conversion rate of at least 65% at constant regulation and methods.
