Q2 2026 HomeToGo SE Earnings Call

August 19, 2026

Speaker #1: Good morning, ladies and gentlemen, and a warm welcome to HomeToGo's earnings call following the publication of the H1 figures for 2026. I'm delighted to welcome co-founder Mr. Andrej and CEO Sebastian Bielski, who will speak in a moment.

Operator: Good morning, ladies and gentlemen, and a warm welcome to HomeToGo's earnings call following the publication of the H1 figures of 2026. I am delighted to welcome Co-founder Mr. Andre and CFO Sebastian Bielski, who will speak in a moment. After the presentation, we will move on to a Q&A session in which you will be able to ask your questions directly to the management. Let's dive straight in. Sebastian, the stage is yours.

Speaker #1: After the presentation, we will move on to the Q&A session, in which you will be able to ask your questions directly to the management. Let's dive straight in.

Speaker #1: Sebastian? The stage is yours.

Speaker #2: Actually, I will hand over back to Patrick, because Patrick will start today.

Sebastian Bielski: Actually, I will hand over back to Patrick because Patrick will start today.

Speaker #1: All right.

Operator: All right.

Speaker #3: Good morning, everyone, and thank you for joining HomeToGo's Half-Year 1 2026 earnings call. As you have seen in our report published this morning, we delivered a strong first half of 2026, characterized by the disciplined and successful execution of our strategic roadmap.

Patrick Andrae: Good morning, everyone, and thank you for joining HomeToGo's H1 2026 earnings call. As you have seen in our report published this morning, we delivered a strong H1 of 2026, characterized by the disciplined and successful execution of our strategic roadmap. Following a transformative 2025, our H1 results clearly demonstrate that our strategic evolution and scale transformation are in full swing and delivering tangible results across the group. Let's now look at how we structure today's call. We want to give you a clear and comprehensive picture of our performance and momentum. We will begin with a brief summary of our H1 highlights, followed by a detailed update on the progress we have made against our strategic goals for 2026.

Speaker #3: Following a transformative 2025, our half-year 1 results clearly demonstrate that our strategic evolution and scale transformation are in full swing and delivering tangible results across the group.

Speaker #3: But let's now look at how we structured today's call. We want to give you a clear and comprehensive picture of our performance and momentum.

Speaker #3: We will begin with a brief summary of our half-year one highlights, followed by a detailed update on the progress we've made against our strategic goals for 2026.

Speaker #3: And then, we will walk you through our financial results for the first half of this year in depth, before reviewing our financial guidance for the full year of 2026.

Patrick Andrae: And then we will walk you through our financial results for H1 of this year in depth before reviewing our financial guidance for the full year of 2026. To wrap up, we will summarize our key takeaways before opening the floor for your questions. Let's dive in. To kick things off, let's look at the overarching highlights that defined our performance in H1 of 2026 on a statutory basis. First and foremost, we achieved a significant improvement in overall group year-over-year profitability. Our adjusted EBITDA grew substantially by 26.6% year-over-year in H1, and has even accelerated in Q2 with a year-over-year increase of 58.6%. This development reflects our continuous advancement in expanding the group's profitability.

Speaker #3: To wrap up, we will summarize our key takeaways before opening the floor for your questions. So, let's dive in. To kick things off, let's look at the overarching highlights that defined our performance in the first half of 2026.

Speaker #3: On a statutory basis, first and foremost, we achieved a significant improvement in overall group year-over-year profitability. Our adjusted EBITDA grew substantially by 26.6% year-over-year in half-year 1, and has even accelerated in Q2 with a year-over-year increase of 58.6%.

Speaker #3: This development reflects our continuous advancement and expanding the group's profitability. Plus, we massively improved our free cash flow by an exceptional €53.2 million year-over-year, reaching €48.2 million in free cash flow in the first half of 2026 alone.

Patrick Andrae: Plus, we massively improved our free cash flow by an exceptional €53.2 million year-over-year, reaching €48.2 million in free cash flow in H1 of 2026 alone. Second, a key element behind this is HomeToGo_PRO. Our B2B segment more than tripled its IFRS revenues to €105.2 million, representing an impressive growth of 250.5% year-over-year, primarily driven by the consolidation of Interhome. Third, our disciplined strategy in the Marketplace segment continues to boost profitability. Marketplace adjusted EBITDA improved by 16% year-over-year, while still delivering a new booking revenue backlog record for the end of H1, validating our strategic shift toward high margin conversion and marketing efficiency. Fourth, on the strategic front, the launch of HomeToGo Originals strengthens our position as Europe's leading vacation rental group.

Speaker #3: Second, a key element behind this is HomeToGo Pro. Our B2B segment more than tripled its IFRS revenues to €105.2 million, representing an impressive growth of 250.5% year-over-year, primarily driven by the consolidation of Interhome.

Speaker #3: Third, our discipline strategy in the Marketplace segment continues to boost profitability. Marketplace adjusted EBITDA improved by 16% year-over-year, while still delivering a new booking revenue backlog record for the end of half-year one.

Speaker #3: Validating our strategic shift toward high-margin conversion and marketing efficiency. Fourth, on the strategic front, the launch of HomeToGo Originals strengthens our position as Europe's leading vacation rental group.

Speaker #3: This new umbrella brand for our group’s property management companies highlights HomeToGo as one of Europe’s largest direct suppliers of vacation rentals, backed by a strong and growing portfolio.

Patrick Andrae: This new umbrella brand for our group's property management companies highlights HomeToGo as one of Europe's largest direct suppliers of vacation rentals, backed by a strong and growing portfolio. Fifth, our AI leadership is driving measurable operational and marketing efficiency gains. Deep group-wide AI adoption is delivering tangible ROI and significantly faster time to market for new product innovations. Finally, backed by the solid H1 performance, we reaffirm our financial guidance for the full year 2026. With that high level summary in mind, let's move to the next section of our call and take a closer look at the concrete progress we've made against our strategic goals for 2026. We introduced our 2026 strategic roadmap earlier this year to provide a clear and transparent framework to track and discuss our progress throughout the year.

Speaker #3: Fifth, our AI leadership is driving measurable operational and marketing efficiency gains. Deep, group-wide AI adoption is delivering tangible ROI and significantly faster time-to-market for new product innovations.

Speaker #3: And finally, backed by the solid first-half performance, we reaffirm our financial guidance for the full year 2026. With that high-level summary in mind, let's move to the next section of our call and take a closer look at the concrete progress we've made against our strategic goals for 2026.

Speaker #3: We introduced our 2026 strategic roadmap earlier this year to provide a clear and transparent framework to track and discuss our progress throughout the year.

Speaker #3: Now, I'm pleased to share that we are executing successfully across all five pillars. But let me walk you through the overview of our year-to-date progress.

Patrick Andrae: Now, I'm pleased to share that we are executing successfully across all five pillars. Let me walk you through the overview of our year-to-date progress. First, on finalizing the Interhome integration. Our TSA exit and cost synergy roadmap remains fully on track to achieve our initial €10 million in annualized cost savings until the end of 2026. We are currently executing several large restructuring projects to capture the remaining cost synergies. Second, in HomeToGo_PRO, we continue to build out our strategic M&A engine. The bolt-on acquisitions closed in Q1 of 2026 have now been successfully integrated. We are actively scaling our capabilities, expanding our dedicated M&A and post-merger integration resources as we solve additional asset deals for H2 of the year. Third, regarding group-wide brand harmonization, we officially launched HomeToGo Originals, our new umbrella brand uniting our core property management businesses.

Speaker #3: First, on finalizing the Interhome integration: our TSA exit and cost synergy roadmap remains fully on track to achieve our initial €10 million in annualized cost savings by the end of 2026.

Speaker #3: We are currently executing several large restructuring projects to capture the remaining cost synergies. Second, in HomeToGo Pro, we continue to build out our strategic M&A engine. The bolt-on acquisitions closed in the first quarter of 2026 have now been successfully integrated.

Speaker #3: We are actively scaling our capabilities and expanding our dedicated M&A and post-merger integration resources, as we source additional asset deals for the second half of the year.

Speaker #3: Third, regarding group-wide brand harmonization, we officially launched HomeToGo Originals, our new umbrella brand uniting our core property management businesses. This unified market presence builds deeper ecosystem trust, enables seamless cross-company switching, and serves as a powerful catalyst to reduce customer acquisition costs.

Patrick Andrae: This unified market presence builds deeper ecosystem trust, enables seamless cross-company switching, and serves as a powerful catalyst to reduce customer acquisition costs. Fourth, on driving operational excellence in the marketplace. Our strategic decision to prioritize profitability over top-line growth is paying off. Despite cutting advertising spend by 16% year over year, we achieved a record end of Q2 booking revenues backlog of EUR 71.9 million, which is up 1% year over year, while still delivering a strong 16% increase in marketplace-adjusted EBITDA for the H1 of the year compared to H1 2025. And finally, on maintaining our AI leadership. AI adoption across the group is driving tangible and measurable efficiency gains. In marketing, latest AI-generated ad tests achieve an impressive 44% lift in ROAS alongside 60% lower video ad production costs.

Speaker #3: Fourth, on driving operational excellence in the marketplace. Our strategic decision to prioritize profitability over top-line growth is paying off. Despite cutting advertising spend by 16% year-over-year, we achieved a record end-of-Q2 booking revenue backlog of €71.9 million, which is up 1% year-over-year, while still delivering a strong 16% increase in marketplace adjusted EBITDA for the first half of the year, compared to H1 2025.

Speaker #3: And finally, on maintaining our AI leadership: AI adoption across the group is driving tangible and measurable efficiency gains. In marketing, the latest AI-generated ad tests achieved an impressive 44% lift in ROAS, alongside 60% lower video ad production costs.

Speaker #3: At the same time, we significantly accelerated operations and are well on track to drastically reduce time to market for product development. So, overall, our disciplined execution across all five strategic priorities continues to strengthen our foundation and drive sustainable profitability across the entire group.

Patrick Andrae: At the same time, we significantly accelerated operations and are well on track to drastically reduce time to market for product development. Overall, our disciplined execution across all five strategic priorities continues to strengthen our foundation and drive sustainable profitability across the entire group. Let us now dive deeper into our first strategic pillar, the integration of Interhome and the substantial value creation it unlocks across the group. As a reminder, when we closed the transaction, we set an initial target of EUR 10 million in annual cost synergies to be realized within 12 to 18 months. I am pleased to report that our execution remains ahead of schedule. Year to date, we have already captured approximately EUR 6 million of these cost synergies on an annualized basis.

Speaker #3: Let's now dive deeper into our first strategic pillar: the integration of Interhome and the substantial value creation it unlocks across the group. As a reminder, when we closed the transaction, we set an initial target of €10 million in annual cost synergies to be realized within 12 to 18 months.

Speaker #3: I'm pleased to report that our execution remains ahead of schedule. Year-to-date, we have already captured approximately €6 million of these cost synergies on an annualized basis.

Speaker #3: This strong momentum is backed by an accelerated TSA exit, and we have successfully exited eight transitional service agreements to date, with two TSAs in the second quarter and at least three additional exits on track for Q3.

Patrick Andrae: This strong momentum is backed by an accelerated TSA exit, and we have successfully exited eight transitional service agreements to date with two TSAs in the Q2 and at least three additional exits on track for Q3. Crucially, we remain fully on schedule to exit all remaining TSAs, including our largest and most critical milestone, the migration of the Interhome's SAP. To capture the remaining cost synergies until year-end, we are now executing several large restructuring projects that were prepared during Q2. Beyond these initial cost savings, we continue to drive our midterm value creation roadmap, which adds an additional EUR 20 million in upside and brings our total midterm synergy and value creation potential to approximately EUR 30 million. Also there, we made excellent headway on two key drivers. First, tech-driven efficiency and sales growth.

Speaker #3: Crucially, we remain fully on schedule to exit all remaining TSAs, including our largest and most critical milestone: the migration of Interhome's SAP. To capture the remaining cost synergies until year-end, we are now executing several large restructuring projects that were prepared during Q2.

Speaker #3: Beyond these initial cost savings, we continue to drive our mid-term value creation roadmap, which adds an additional €20 million in upside and brings our total mid-term synergy and value creation potential to approximately €30 million.

Speaker #3: Also there, we made excellent headway on two key drivers. First, tech-driven efficiency in sales growth. We successfully deployed HomeToGo's core CRM platform across Interhome's shared service center, optimizing operational efficiency while significantly enhancing sales capabilities to unlock commercial upside.

Patrick Andrae: We successfully deployed HomeToGo's core CRM platform across Interhome's shared service center, optimizing operational efficiency while significantly enhancing sales capabilities to unlock commercial upside. Second, distribution margin internalization. We expanded our own direct booking channel share by more than 5%, allowing us to retain a higher share of the distribution margin directly within the group. All in all, this progress clearly demonstrates that Interhome is not only delivering on its cost reduction commitments ahead of plan, but is rapidly turning into a major high-margin profit driver for HomeToGo. Now moving up to our second strategic pillar, expanding our M&A engine within HomeToGo_PRO to lead the consolidation of a highly fragmented European market. To put the scale of this opportunity again into perspective, if you look at the left side of the chart, you see that Europe's core vacation rental destinations comprise roughly 17 million properties in total.

Speaker #3: And second, distribution margin internalization. We expanded our own direct booking channel share by more than 5%, allowing us to retain a higher share of the distribution margin directly within the group.

Speaker #3: So, all in all, this progress clearly demonstrates that Interhome is not only delivering on its cost reduction commitments ahead of plan, but is rapidly turning into a major high-margin profit driver for HomeToGo.

Speaker #3: Now, moving up to our second strategic pillar: expanding our M&A engine within HomeToGo Pro to lead the consolidation of a highly fragmented European market.

Speaker #3: To put the scale of this opportunity into perspective again, if you look at the left side of the chart, you see that Europe's core vacation rental destinations comprise roughly 17 million properties in total.

Speaker #3: When we narrow this down to rural and marketed vacation homes, we arrive at a service addressable market of roughly 2.5 million homes. Our primary focus within HomeToGo Pro lies in this targeted market, especially for externally managed homes, representing around 900,000 properties operated by more than 100,000 local vacation rental management companies across Europe.

Patrick Andrae: When we narrow this down to rural and marketed vacation homes, we arrive at a serviceable addressable market of roughly 2.5 million homes. Our primary focus within HomeToGo_PRO lies in this targeted market, especially for externally managed homes, representing around 900,000 properties operated by more than 100,000 local vacation rental management companies across Europe. As you can imagine, this landscape is characterized by extreme fragmentation. Most of these hyper-local agencies manage fewer than 100 properties, suffer from low tech adoption, and face clear operational inefficiencies. On top, the top three players, including us with HomeToGo Originals, combined hold only about 10% of the total market share, presenting us with a tremendous long-tail roll-up opportunity. Following the proven success of our Interhome acquisition, we are actively scaling our vacation rental property management business with our buy and build strategy.

Speaker #3: As you can imagine, this landscape is characterized by extreme fragmentation. Most of these hyper-local agencies manage fewer than 100 properties, suffer from low tech adoption, and face clear operational inefficiencies.

Speaker #3: At the top, the top three players—including us with HomeToGo Originals—combined hold only about 10% of the total market share, presenting us with a tremendous long-term roll-up opportunity.

Speaker #3: Following the proven success of our Interhome acquisition, we are actively scaling our vacation rental property management business with our buy-and-build strategy. I'm pleased to share that the first three go-along acquisitions we closed in Q1, adding roughly 200 new units across Switzerland, Italy, and Spain to our property management portfolio, have already been successfully integrated and are fully bookable via the Interhome and HomeToGo platforms.

Patrick Andrae: I am pleased to share that the first three build-on acquisitions we closed in Q1, adding roughly 200 new units across Switzerland, Italy, and Spain to our property management portfolio, have already been successfully integrated and are fully bookable via the Interhome and HomeToGo platform. To build on this transaction, we are expanding our dedicated internal M&A team and ramping up our post-merger integration resources. This infrastructure allows us to even more systematically process deal flow and swiftly onboard new inventory. Looking ahead to H2 2026, we are actively sourcing and expect to close additional value-accretive asset deals to continuously broaden our property management footprint. Now on to our third strategic pillar that we already touched on before, harmonizing our group-wide brands through the launch of HomeToGo Originals. As we continue to expand our property management footprint, establishing a unified and recognizable identity is essential.

Speaker #3: To build on this transaction, we are expanding our dedicated internal M&A team and ramping up our post-merger integration resources. This infrastructure allows us to more systematically process deal flow and swiftly onboard new inventory.

Speaker #3: Looking ahead to the second half of 2026, we are actively sourcing and expect to close additional value-accretive asset deals to continuously broaden our property management footprint.

Speaker #3: Now, on to our third strategic pillar, which we already touched on before: harmonizing our group-wide brands through the launch of HomeToGo Originals. As we continue to expand our property management footprint, establishing a unified and recognizable identity is essential.

Speaker #3: HomeToGo Originals now serves as our new umbrella brand for our property management companies, Interhome and Krauser. Through this, what we call the “One Brand Initiative,” we are connecting key physical and digital customer touchpoints across the entire travel journey.

Patrick Andrae: HomeToGo Originals now serves as our new umbrella brand for our property management companies, Interhome and Casamundo. Through this, what we call One Brand initiative, we are connecting key physical and digital customer touchpoints across the entire travel journey. Whether a guest discovers a home on our digital marketplace or visits one of our local service offices in destination, as illustrated in the storefront mock-up on the right on this slide, HomeToGo Originals clearly signals vacation rentals that are mostly managed directly within our group with our trusted end-to-end service. From a strategic perspective, this cohesive presence significantly strengthens brand recognition and builds deeper trust across our entire ecosystem by seamlessly bridging the gap from initial online search and booking to professional property management, and all the way to actually the physical stay. Importantly, this unified identity also unlocks substantial B2B synergies for HomeToGo_PRO.

Speaker #3: Whether a guest books a home on our digital marketplace or visits one of our local service offices in destination, as illustrated in the storefront mock-up on the right on this slide, HomeToGo Originals clearly signals vacation rentals that are mostly managed directly within our group with our trusted end-to-end service.

Speaker #3: From a strategic perspective, this cohesive presence significantly strengthens brand recognition and builds deeper trust across our entire ecosystem by seamlessly bridging the gap from initial online search and booking, to professional property management, and all the way to the actual physical stay.

Speaker #3: Importantly, this unified identity also unlocks substantial B2B synergies for HomeToGo Pro. By aligning our market presence under one strong roof, we make it easier for homeowners and property managers to transition across our portfolio.

Patrick Andrae: By aligning our market presence under one strong roof, we make it easier for homeowners and property managers to transition across our portfolio. This cohesive structure acts as a powerful catalyst to strengthen our overall pro offering and will ultimately drive down customer acquisition costs across the group and/or increase lifetime value, however you want to see it. Now let us dive into our fourth strategic pillar, the HomeToGo B2C marketplace. Here, our objective remains crystal clear. We strictly prioritize growing profits over pursuing top-line volume. Looking at the left side of the slide, you can see the deliberate strategy is directly reflected in our H1 numbers. While the marketplace IFRS revenues intentionally dipped by 10.2% to €58.8 million, driven by our conscious reduction in ad spend, our booking revenues backlog actually increased 1% year-over-year.

Speaker #3: This cohesive structure acts as a powerful catalyst to strengthen our overall Pro offering and will ultimately drive down customer acquisition costs across the group and/or increase lifetime value, however you want to see it.

Speaker #3: Now, let's dive into our fourth strategic pillar: the HomeToGo B2C marketplace. Here, our objective remains crystal clear: we strictly prioritize growing profits over pursuing top-line volume.

Speaker #3: And looking at the left side of the slide, you can see the deliberate strategy is directly reflected in our half-year-one numbers. While the marketplace IFS revenues intentionally dipped by 10.2% to €58.8 million, driven by our conscious reduction in ad spend, our booking revenues backlog actually increased 1% year over year.

Speaker #3: At the same time, segment profitability improved substantially, with adjusted EBITDA increasing by 16% year over year, to negative €16.8 million, up from negative €20 million in H1 25.

Patrick Andrae: At the same time, segment profitability improved substantially with adjusted EBITDA increasing by 16% year over year to a negative €16.8 million, up from negative €20 million in H1 2025. This earnings progress is powered by a structural transformation in our marketing efficiency, shown on the right. Over the past year, we have fundamentally optimized our cost structure. Group marketing and sales expenses as a percentage of IFRS revenues decreased to a new record low of just 54% in H1 2026, representing a massive 31 percentage point reduction compared to the 85% in H1 of last year that you can see on the slide. By maintaining strict discipline in our B2C marketing spend, we continue to proactively reallocate capital into HomeToGo_PRO, where we see superior growth potential and higher risk-adjusted returns.

Speaker #3: This earnings progress is powered by a structural transformation in our marketing efficiency, shown on the right. Over the past year, we have fundamentally optimized our cost structure.

Speaker #3: Group marketing and sales expenses as a percentage of IFS revenues decreased to a new record low of just 50.4% in half-year 1 26, representing a massive 31 percentage point reduction compared to the 85% in half-year 1 of last year, as you can see on the slide.

Speaker #3: By maintaining strict discipline in our B2C marketing spend, we continue to proactively reallocate capital into HomeToGo Pro, where we see superior growth potential and higher risk-adjusted returns.

Speaker #3: So, for the remainder of this year, we will stick firmly to this playbook: lowering marketing investments, maximizing marketing efficiency, and enhancing profitability. While this means an intentional resetting of the marketplace revenue base, it ensures the segment operates as a highly efficient, high-margin, cash generator for the entire group.

Patrick Andrae: For the remainder of this year, we will stick firmly to this playbook, lowering marketing investments, maximizing marketing efficiency, and enhancing profitability. While this means an intentional resetting of the marketplace revenue base, it ensures the segment operates as a highly efficient, high-margin cash generator for the entire group, this and especially in the coming years. Let's take a closer look at one of the clearest proof points of our operational excellence and marketing efficiency in the marketplace segment. On this slide, on the left side, you can see the significant deliberate reduction in advertising spend. We intentionally scaled back our marketplace ad spend by 16% year over year, bringing it down from €16.5 million in H1 2025 to €51 million in H1 2026.

Speaker #3: This, and especially in the coming years. But let's take a closer look at one of the clearest proof points of our operational excellence in marketing efficiency in the marketplace segment.

Speaker #3: On this slide, on the left side, you can see the significant, deliberate reduction in advertising spend. We intentionally scaled back our marketplace ad spend by 16% year over year, bringing it down from €61.5 million in half-year '25 to €51 million in half-year '26.

Speaker #3: This nearly €10 million cost saving is a direct result of our disciplined strategy to prioritize high-margin conversion and bottom-line profitability over sheer transaction volume.

Patrick Andrae: This nearly €10 million cost saving is a direct result of our disciplined strategy to prioritize high-margin conversion and bottom-line profitability over sheer transaction volume. Remarkably, as shown on the right side, despite this €9.5 million reduction in marketing investment, we successfully expanded our marketplace booking revenues backlog to new end of Q2 records of €71.9 million, up 1% year over year, showcasing what we can do also with lower marketing spend. Now on to a closer look at the underlying health of our marketplace, specifically our regional booking mix and the evolution of our average basket sizes. Starting on the left with our regional booking revenues share for Q2. The DACH region continues to represent our core foundation, accounting for 52% of total marketplace booking revenues, up 3 percentage points year over year.

Speaker #3: Remarkably, as shown on the right side, despite this €9.5 million reduction in marketing investment, we successfully expanded our marketplace booking revenues backlog to a new end-of-Q2 record of €71.9 million, up 1% year over year, showcasing what we can do also with lower marketing spend.

Speaker #3: Now, onto a closer look at the underlying health of our marketplace—specifically, our regional booking mix and the evolution of our average basket sizes.

Speaker #3: Starting on the left with our regional booking revenues share for Q2, the DACH region continues to represent our core foundation, accounting for 52% of total marketplace booking revenues, up 3 percentage points year over year.

Speaker #3: The rest of Europe contributed 26%, up 1 percentage point year over year, reflecting healthy and sustained demand across European destinations. North America contributed 22% to our mix, down 2 percentage points year over year.

Patrick Andrae: The rest of Europe contributed 26%, up 1 percentage point year over year, reflecting healthy and sustained demand across European destinations. North America contributed 22% to our mix, down 2 percentage points year over year. This is a market where we continue to operate selectively under our advertising model. The rest of the world remains stable at under 1%. Moving to the right side of the chart and our basket size evolution. We saw resilient customer demand across all geographies. Our basket size in Q2 grew by 55% year over year to reach €1,056. Looking for that into the individual regions, in the DACH region, average market size increased by 10% year over year to €891, and when excluding the short trip business, it climbed by 8% to €1,263. The rest of Europe followed a similar positive trend, with basket sizes rising 4% year over year to €1,183.

Speaker #3: This is a market where we continue to operate selectively under our advertising model, and the rest of the world remains stable at under 1%.

Speaker #3: Moving to the right side of the chart in our basket size evolution, we saw resilient customer demand across all geographies. Our basket size in Q2 grew by 5% year over year to reach €1,056.

Speaker #3: Looking for that into the individual regions, in the DACH region, average basket size increased by 10% year over year, to 891 euros, and when excluding the short trip business, it climbed by 8% to 1,263 euros.

Speaker #3: The rest of Europe followed a similar positive trend, with basket sizes rising 4% year over year to €1,183. Finally, North America continues to generate our highest absolute order values, with average basket sizes reaching €1,603, up 2% year over year.

Patrick Andrae: Finally, North America continues to generate our highest absolute order values with average basket sizes reaching EUR 1,603, up 2% year-over-year. Overall, and this is important, this broad base and expansion in basket sizes underscores our success in targeting high-value, longer-stay travelers, further supporting our high margin strategy across all key markets. Turning to our fifth pillar, and the final one, maintaining AI leadership. Given the broader market debate around how generative AI might impact digital search and discovery, we want to clearly address why AI represents a structural net positive for HomeToGo. Generally, vacation renters are unique and no commodities like hotels. So on one hand, it is harder for people to let AI choose the right one. On the other hand, it is about vacation, and thus the selection process is for many, the first part of the actual vacation.

Speaker #3: Overall, and this is important, this broad-based expansion in basket sizes underscores our success in targeting high-value, longer-stay travelers, further supporting our high-margin strategy across all key markets.

Speaker #3: Turning to our fifth pillar, and the final one: maintaining AI leadership. Given the broader market debate around how generative AI might impact digital search and discovery, we want to clearly address why AI represents a structural net positive for HomeToGo.

Speaker #3: Generally, vacation rentals are unique and not commodities like hotels. So, on one hand, it's harder for people to let AI choose the right one.

Speaker #3: On the other hand, it's about vacation, and thus the selection process is, for many, the first part of the actual vacation. So you can imagine the total opposite of a stay in a hotel for a business trip.

Patrick Andrae: You can imagine the total opposite of a stay in a hotel for a business trip. But even in a scenario that AI takes fully over the selection process, we are likely the best prepared in the industry. First, the HomeToGo Group generates more than 80% of its adjusted EBITDA with HomeToGo_PRO, effectively insulating the vast majority of our group profits from potential B2C search traffic shifts. Looking at HomeToGo_PRO on the left, our core profitability is protected by a physical moat and unreplicable on-ground services. So the property management business relies fundamentally on local physical services that are simply not easy to replicate. This protects our business model overall, and particular from big tech players that deliberately avoid capital-intensive local operations, especially when you need to build them up from scratch.

Speaker #3: But even in a scenario where AI fully takes over the selection process, we are likely the best prepared in the industry. First, the HomeToGo Group generates more than 80% of its adjusted EBITDA with HomeToGo Pro.

Speaker #3: Effectively insulating the vast majority of our group profits from potential B2C search traffic shifts. Looking at HomeToGo Pro on the left, our core profitability is protected by a physical moat and replicable on-ground services.

Speaker #3: So, the property management business relies fundamentally on local, physical services that are simply not easy to model overall, and in particular, for big tech players that deliberately avoid capital-intensive local operations.

Speaker #3: Especially when you need to build them up from scratch. Even more, a potential B2C shift—search traffic will likely increase the direct traffic to our properties.

Patrick Andrae: Even more, a potential B2C search traffic will likely increase the direct traffic to our properties, so outside of OTAs, and would actually help us further internalize margin. Second, turning to the HomeToGo Marketplace side on the right. We have always solved problems of aggregating the largest selection of vacation renters with the largest machine learning before AI was talked about by everyone. So we were also among the first leveraging the new capabilities of AI that arrived at the end of 2021. Our early AI adoption brought us integrated, personalized AI-powered travel planning on our platform since 2023, launching nice tools and features like AI summaries of reviews and descriptions even before the biggest tech players, and so much more we did first in the vacation rental space.

Speaker #3: So, outside of OTAs, it would actually help us further internalize margin. Second, turning to the HomeToGo marketplace side on the right: we've always solved problems of aggregating the largest selection of vacation rentals with the largest machine learning—before AI was talked about by everyone.

Speaker #3: So, we were also among the first leveraging the new capabilities of AI that arrived at the end of 2021. Our early AI adoption brought us integrated, personalized, AI-powered travel planning on our platform since '23, launching nice tools and features like AI summaries of reviews and descriptions even before the biggest tech players.

Speaker #3: And so much more, we did in the first we did first in the vacation rental space. Today, we have also deployed our own native HomeToGo model contracts protocol MCP, to allow autonomous AI agents and third-party LLMs directly accessing direct access to our inventory.

Patrick Andrae: Today, we have also deployed our own native HomeToGo Model Context Protocol, MCP, to allow autonomous AI agents and third-party LLMs direct access to our inventory, turning AI platforms into highly efficient, low-cost acquisition channels. Beyond these known customer-facing innovations, internal AI adoption is radically accelerating our daily operational efficiency and delivering measurable margin expansion across the group. So that is something we have not spoken so much about yet. Let us take a look. Today, 100% of our workforce has access to AI tooling, with 15 active tools leveraging all leading frontier models across every department. This is supported by a successful training proof of concept with over 100 employees, enabling non-technical teams to use AI frontier models natively, via command line interface or CLI, if that is something that you are familiar with, and securely in a secure sandbox environment.

Speaker #3: Turning AI platforms into highly efficient, low-cost acquisition channels. Beyond these known customer-facing innovations, internal AI adoption is radically accelerating our daily operational efficiency and delivering measurable margin expansion across the group.

Speaker #3: So that's something we haven't spoken much about yet. Let's take a look. Today, 100% of our workforce has access to AI tooling, with 15 active tools leveraging all leading frontier models across every department.

Speaker #3: This is supported by a successful training proof of concept with over 100 employees, enabling non-technical teams to use AI frontier models natively—so, via command-line interface, or CLI, if that's something that you are familiar with.

Speaker #3: And securely, in a secure sandbox environment. Let me highlight three areas of the many parts where internal use is already delivering tangible ROI. First, in marketing.

Patrick Andrae: Let me highlight three areas of the many parts where internal use is already delivering tangible ROI. First, in marketing. AI-generated responsive search ads are now outperforming human-written ad copy at near zero generation cost, driving a 44% lift in return on advertisement spend in many of our tests. In video production, AI tools have enabled us to cut costs by more than 60%. Second, we take a look into product development. Time to market has been drastically shortened. A standout example is our new partner center featuring natural language interface, which our engineering teams built and deployed in just 4 weeks, a process that previously would have taken us 6 months. Third, in operations.

Speaker #3: AI-generated response search ads are now outperforming human-written ad copy at near-zero generation cost, driving a 44% lift in return on advertising spend in many of our tests.

Speaker #3: In video production, AI tools have enabled us to cut costs by more than 60%. Second, we take a look into product development. Time to market has been drastically shortened.

Speaker #3: The standard example is our new Partner Center featuring a natural language interface, which our engineering teams built and deployed in just four weeks—a process that previously would have taken us six months.

Speaker #3: And third, in operations: process automations have enabled three times faster customer email response times, reduced human chat escalations by 85%, as we discussed prior, and cut turnaround times for standard legal contract drafts by up to 95% for specific parts of the business.

Patrick Andrae: Process automations have enabled 3 times faster customer email response times, reduced human chat escalations by 85%, as we discussed prior, and cut turnaround times for standard legal contract drafts by up to 95% for specific parts of the business. In summary, AI is not just a future vision for HomeToGo. It is an operational reality, actively widening our competitive moat, driving marketing efficiency, and accelerating our profitability already today. This concludes the first part of our presentation on the strategic and operational highlights for the H1 of this year. As you have seen, our strategic evolution into a B2B-led powerhouse, complemented by a strict marketplace efficiency and AI leadership, is actively delivering tangible high-margin results across the group.

Speaker #3: In summary, AI is not just a future vision for HomeToGo. It's an operational reality, actively widening our competitive moat, driving marketing efficiency, and accelerating our profitability already today.

Speaker #3: This concludes the first part of our presentation on the strategic and operational highlights for the first half of this year. As you have seen, our strategic evolution into a B2B-led powerhouse, complemented by strict marketplace efficiency and AI leadership, is actively delivering tangible, high-margin results across the group.

Speaker #3: To now give you a more granular look at how this strategic process and progress translate into our detailed half-year one financial performance and the actual segment dynamics, I will now hand over to our CFO, Sebastian. Thank you very much.

Patrick Andrae: To now give you a more granular look at how this strategic process and progress translates into our detailed H1 financial performance and the actual segment dynamics, I will now hand over to our CFO, Sebastian. Thank you very much, Sebastian. The floor is yours.

Speaker #3: Sebastian, the floor is yours.

Speaker #1: Thank you, Patrick, and a warm welcome to everyone from my side as well. I am pleased to walk you through our financial results for the first half of 2026.

Sebastian Bielski: Thank you, Patrick, and a warm welcome to everyone from my side as well. I am pleased to walk you through our financial results for the H1 of 2026. It was characterized by strong top-line expansion, accelerating profitability momentum driven by a very strong Q2, and a remarkable surge in our free cash flow performance. Let us dive straight into the financial highlights for the H1 of this year. Let us take a closer look at our statutory P&L comparison for the H1 of the year. To be clear, this comparison looks at our H1 2026 performance against the figures as reported in the H1 of 2025, which at that time did not yet include Interhome. Let us start with the IFRS revenues. We delivered significant statutory revenue growth of 71.8% year-over-year, reaching €160.1 million.

Speaker #1: It was characterized by strong top-line expansion and accelerating profitability momentum, driven by a very strong second quarter and a remarkable surge in our free cash flow performance.

Speaker #1: Let's dive straight into the financial highlights for the first half of this year. Let's take a closer look at our statutory P&L comparison for the first half of the year.

Speaker #1: To be clear, this comparison looks at our H1 2026 performance against the figures as reported in the first half of 2025, which at that time did not yet include Interhome.

Speaker #1: Let's start with the IFRS revenues. We delivered significant statutory revenue growth of 71.8% year-over-year, reaching €160.1 million. This strong jump is driven by the full consolidation of Interhome, which was not part of the group's reported figures for the first half of last year.

Sebastian Bielski: This strong jump is driven by the full consolidation of Interhome, which was not part of the group's reported figures for the H1 of last year. Next, we look at the cost of revenues. Cost of revenues increased to €41.4 million, reflecting a structural shift in our business model due to the inclusion of Interhome's managed service operations, which incur substantial direct expenses such as cleaning and laundry services. Next, we look at product development and operations. Here, expenses increased to €25.7 million. This was driven by a larger workforce following the Interhome consolidation alongside increased software license fees. Next, we look at G&A expenses. These expenses reached €21.8 million. This increase mainly reflects the full consolidation of Interhome, bringing its personnel-related software license and third-party service expenses directly into the group's expanded cost base. Last, we look at the adjusted EBITDA and the margin expansion.

Speaker #1: Next, we'll look at the cost of revenues. Cost of revenues increased to €41.4 million, reflecting a structural shift in our business model due to the inclusion of Interhome's managed service operations, which incur substantial direct expenses such as cleaning and laundry services.

Speaker #1: Next, we'll look at Product Development and Operations. Here, expenses increased to €25.7 million. This was driven by a larger workforce following the Interhome consolidation, alongside increased software license fees.

Speaker #1: Next, we'll look at G&A expenses. These expenses reached €21.8 million. This increase mainly reflects the full consolidation of Interhome, bringing its personnel-related, software license, and third-party service expenses directly into the group's expanded cost base.

Speaker #1: Last, we'll look at the adjusted EBITDA and the margin expansion. Adjusted EBITDA improved by 26.6% year over year to negative €15.1 million.

Sebastian Bielski: Adjusted EBITDA improved by 26.6% year over year to negative €15.1 million. This growth, a large margin expansion of +12.6 percentage points, improving our adjusted EBITDA margin from negative 22.1% in H1 of last year to negative 9.4% in this year. This clearly demonstrates how we are delivering on our 2026 targets by driving group profitability through strong marketing efficiency and a significantly widened revenue base. Now let's take a closer look at the composition of our IFRS revenues and adjusted EBITDA by segment for the H1 of the year, again, on a statutory basis, comparing our current scale to the prior year period when Interhome was not yet part of our reported figures. I will start with discussing IFRS revenues. At the group level, we realized a big step change with 72% year over year growth to €160.1 million of IFRS revenue.

Speaker #1: This was driven this drove a large margin expansion of plus 12.6 percentage points, improving our adjusted EBITDA margin from negative 21 22.1% in H1 of last year to negative 9.4% in this year.

Speaker #1: This clearly demonstrates how we are delivering on our 2026 targets by driving group profitability through strong marketing efficiency and a significantly widened revenue base.

Speaker #1: Now let's take a closer look at the composition of our IFRS revenues and adjusted EBITDA by segment for the first half of the year.

Speaker #1: Again, on a statutory basis, comparing our current scale to the prior-year period when Interhome was not yet part of our reported figures. I will start with discussing IFRS revenues.

Speaker #1: At the group level, we realized a big step change with 72% year-over-year growth to €160.1 million of IFRS revenue. For HomeToGo Pro, the standout driver is our volume-based revenue, which grew by 412% to €91.1 million, reflecting the full impact of the Interhome consolidation.

Sebastian Bielski: For HomeToGo_PRO, the standard driver is our volume-based revenue, which grew by 412% to €91.1 million, reflecting the full impact of the Interhome consolidation. In addition, subscription revenue expanded by a strong 16% to €14.1 million, mainly driven by very good performance at Smoobu. For the HomeToGo Marketplace, overall IFRS revenue declined by circa 10%. This decline was expected and reflects the strategic shift away from a focus on top-line growth to a focus of growing earnings, and came on the back of a 16% reduction in marketing spending. Within IFRS revenue for the HomeToGo Marketplace, the shift between advertising revenue and on-site revenue continues, with advertising revenue declining by 26%, while on-site revenue actually grew by 4%. For HomeToGo, on-site revenue carries a much higher strategic value as it provides a superior customer experience throughout the entire booking journey.

Speaker #1: In addition, subscription revenue expanded by a strong 16% to €14.1 million, mainly driven by very good performance at Smoobo. For the marketplace, overall IFRS revenue declined by approximately 10%.

Speaker #1: This decline was expected and reflects the strategic shift away from a focus on top-line growth to a focus on growing earnings, and came on the back of a 16% reduction in marketing spending.

Speaker #1: Within IFRS revenue for the marketplace, the shift between advertising revenue and onsite revenue continues, with advertising revenue declining by 26%, while onsite revenue actually grew by 4%.

Speaker #1: For HomeToGo, onsite revenue carries a much higher strategic value, as it provides a superior customer experience throughout the entire booking journey. Furthermore, it enables us to achieve customer ownership, fostering long-term relationships and driving repeat business.

Sebastian Bielski: Furthermore, it enables us to achieve customer ownership, fostering long-term relationships, and driving repeat business. Consequently, we continue to work actively with our partners to transition them from the advertising model to the on-site booking model. I will now discuss adjusted EBITDA. At the group level, we improved our statutory adjusted EBITDA by 27% to negative €15.1 million, demonstrating significantly enhanced operating leverage. HomeToGo_PRO turned profitable, delivering a positive adjusted EBITDA of €1.7 million. For the HomeToGo Marketplace, further proving our operational discipline, segment adjusted EBITDA improved by 16% year over year to negative €16.8 million. Overall, I would like to remind you of the seasonal pattern of our business. In Q1, we invest into customer acquisition to capture the bookings. In Q2, we start to see revenue coming in and profitability increases.

Speaker #1: Consequently, we continue to work actively with our partners to transition them from the advertising model to the onsite booking model. I will now discuss adjusted EBITDA.

Speaker #1: At the group level, we improved our statutory adjusted EBITDA by 27% to negative €15.1 million, demonstrating significantly enhanced operating leverage. HomeToGo Pro turned profitable, delivering a positive adjusted EBITDA of €1.7 million.

Speaker #1: For the marketplace, further proving our operational discipline, segment adjusted EBITDA improved by 16% year over year to negative €16.8 million. Overall, I would like to remind you of the seasonal pattern of our business.

Speaker #1: In Q1, we invest in customer acquisition to capture the bookings. In Q2, we start to see revenue coming in and profitability increases. But our by far strongest quarter in every year is Q3, where we generate the majority of revenue and earnings.

Sebastian Bielski: Our, by far, strongest quarter in every year is Q3, where we generate the majority of revenue and earnings. We are seeing the exact same pattern also in this year, so our strongest quarter for revenue and earnings is yet to come in Q3 of this year. I would now like to provide more transparency and clarity on the more significant items below adjusted EBITDA in our statutory P&L for H1 of this year. First, share-based payments stood at €7.9 million compared to €7.1 million last year. These remain non-cash expenses related to our long-term incentive program. We have discussed the setup of our long-term incentive program and the accounting treatment of share-based payments in much detail in our last full-year call, and I would like to point you there in case you have any questions on this matter.

Speaker #1: We are seeing the exact same pattern this year, so our strongest quarter for revenue and earnings is yet to come—in Q3 of this year.

Speaker #1: I would now like to provide more transparency and clarity on the more significant items below adjusted EBITDA in our statutory P&L for the first half of this year.

Speaker #1: First, ShareBase payments stood at €7.9 million, compared to €7.1 million last year. These remain non-cash expenses related to our long-term incentive program.

Speaker #1: We have discussed the setup of our long-term incentive program and the accounting treatment of ShareBase payments in much detail in our last full-year call, and I would like to point you there in case you have any questions on this matter.

Speaker #1: The appendix of this presentation also contains a slide with some additional detail. Second, on costs: total €3.4 million for the first half of this year, essentially flat year over year.

Sebastian Bielski: The appendix of this presentation also contains a slide with some additional detail. Second, one-off costs totaled €3.4 million for H1 of this year, essentially flat year over year. These were primarily driven by integration costs of €1.7 million as we continue to execute on synergy realization from the Interhome acquisition. We also have a slide with some more detail on one-off items in the appendix of this presentation. Third, amortization and depreciation. Amortization of fair value step-ups from M&A increased to €10.4 million, which was up from €5.3 million in H1 of last year. This reflects non-cash charges recognized as part of the purchase price allocation for Interhome. Regular amortization of intangible assets stood at €3.6 million. I would again point you to the appendix of this presentation in case you are looking for more detail.

Speaker #1: These were primarily driven by integration costs of €1.7 million, as we continue to execute on synergy realization from the Interhome acquisition. We also have a slide with some more detail on one of the items in the appendix of this presentation.

Speaker #1: Third, amortization and depreciation. Amortization of fair value step-ups from M&A increased to €10.4 million, which was up from €5.3 million in the first half of last year.

Speaker #1: This reflects non-cash charges recognized as part of the purchase price allocation for Interhome. Regular amortization of intangible assets stood at €3.6 million. I would again point you to the appendix of this presentation in case you're looking for more detail.

Speaker #1: Fourth, net financial income came in at negative €14.6 million, comprising €0.4 million in interest income and €14.1 million in interest expenses. There were a lot of items driving this post, so I will go into more detail.

Sebastian Bielski: Fourth, net financial income came in at a -€14.6 million, comprising €400,000 in interest income at €14.1 million in interest expenses. There were a lot of items driving this post, so I will go into more detail. So within the €14.1 million of interest expenses, there were €3.2 million for the full amortization of transaction costs related to the old loan, which we have paid in March 2026. There was €3.1 million in actual interest on the new Nordic bond. There was €2.6 million relating to the deferred consideration for Interhome, and €1.4 million in interest on the old loan, which we repaid in March of this year. Further non-cash items included a €1.9 million revaluation of the call options that we have for the remaining 49% of GetAway Group, along with smaller accounting adjustments for the Nordic bond prepayment option, interest hedges, and lease interest.

Speaker #1: So within the €14.1 million of interest expenses, there were €3.2 million for the full amortization of transaction costs related to the old loan, which we have paid in March 2026.

Speaker #1: There was €3.1 million in actual interest on the new Nordic bonds. There was €2.6 million relating to the deferred consideration for Interhome.

Speaker #1: And €1.4 million in interest on the old loan, which we repaid in March of this year. Further non-cash items included a €1.9 million revaluation of the call option that we have for the remaining 49% of Getaway Group, along with smaller accounting adjustments for the Nordic bond prepayment option, interest hedges, and lease interest.

Speaker #1: In summary, while our statutory net income is impacted by these non-cash accounting effects and integration-related items, our underlying operational momentum and profit expansion are clearly visible in our significantly improved adjusted EBITDA and also our very positive free cash flow trajectory.

Sebastian Bielski: In summary, while our statutory net income is impacted by these non-cash accounting effects and integration-related items, our underlying operational momentum and profit expansion are clearly visible in our significantly improved adjusted EBITDA and also our really positive free cash flow trajectory. Let's now take a closer look at our like-for-like P&L comparison for H1 of this year. As a reminder, the like-for-like basis compares our statutory financial results for H1 of this year against pro forma financial results for H1 of last year, which includes Interhome, and eliminate any distortions created by the timing of the acquisition of Interhome, which only closed on 28 August 2025. Again, we will start with IFRS revenues. IFRS revenues came in virtually flat at €160.1 million, down slightly by 0.2% year over year.

Speaker #1: Let's now take a closer look at our like-for-like P&L comparison for the first half of this year. As a reminder, the like-for-like basis compares our statutory financial results for the first half of this year against pro forma financial results for the first half of last year, which include Interhome and eliminate any distortions created by the timing of the acquisition of Interhome, which only closed on August 28, 2025.

Speaker #1: Again, we'll start with IFRS revenues. IFRS revenues came in virtually flat at €160.1 million, down slightly by 0.2% year over year. This reflects a stable overall top-line development despite our deliberate strategic decision to deprioritize revenue growth in the marketplace segment. The managed decline in the marketplace segment was offset by very good revenue growth in our B2B business.

Sebastian Bielski: This reflects a stable overall top-line development despite our deliberate strategic decision to deprioritize revenue growth in the marketplace segment. The managed decline in the marketplace segment was offset by very good revenue growth in our B2B business. Next, we look at cost of revenues. Cost of revenues increased by 6.3% to €41.4 million. This includes a €1 million increase in payment costs due to the higher adoption of HomeToGo Payments by our partners, which also led to a material improvement in our networking capital, as well as a 600,000 increase for additional cleaning staff and €400,000 in higher costs for domains and hosting. Next, we look at marketing and sales. We achieved a significant cost reduction of 11.1%, with expenses decreasing to €86.2 million.

Speaker #1: Next, we'll look at cost of revenues. Cost of revenues increased by 6.3% to €41.4 million. This includes a €1 million increase in payment costs due to the higher adoption of HomeToGo Payments by our partners.

Speaker #1: This also led to a material improvement in our net working capital, as well as a €600,000 increase for additional cleaning staff and €400,000 in higher costs for domains and hosting.

Speaker #1: Next, we'll look at marketing and sales. We achieved a significant cost reduction of 11.1%, with expenses decreasing to €86.2 million. This positive shift was driven by €9.5 million lower performance marketing expenditures year over year, as we rigorously focused on operational efficiency and margin protection, particularly within the marketplace segment.

Sebastian Bielski: This positive shift was driven by €9.5 million lower performance marketing expenditures year over year as we rigorously focused on operational efficiency and margin protection, particularly within the marketplace segment. Next, we look at G&A. G&A expenses decreased by 5.2% to €21.8 million. This reduction was primarily driven by the materialization of operational synergies and the successful exit of traditional services agreements for Interhome. Next, other income. Other income decreased to €1.4 million, which was driven by lower other income at Interhome, which actually had an unusually high value for the baseline of last year. Lastly, overall, our adjusted EBITDA improved significantly by €7.3 million on a like-for-like basis of 32.6% year over year to negative €15.1 million, expanding our adjusted EBITDA margin by 4.7 percentage points to negative 9.4%.

Speaker #1: Next, we look at G&A. G&A expenses decreased by 5.2% to €21.8 million. This reduction was primarily driven by the materialization of operational synergies and the successful exit of traditional services agreements for Interhome.

Speaker #1: Next are the income figures. Other income decreased to €1.4 million, which was driven by lower other income at Interhome, which actually had an unusually high value for the baseline of last year.

Speaker #1: Lastly, overall, our adjusted EBITDA improved significantly by €7.3 million on a like-for-like basis, or 32.6% year over year, to negative €15.1 million, expanding our adjusted EBITDA margin by 4.7 percentage points to negative 9.4%.

Speaker #1: This strong like-for-like progress, especially on EBITDA, clearly confirms the power of our group strategy, which is to combine the scaling of our high-growth B2B segment with strict marketing and cost discipline in our B2C business.

Sebastian Bielski: This strong like-for-like progress, especially on EBITDA, clearly confirms the power of our group strategy, which is to combine the scaling of our high-growth B2B segment with strict marketing and cost discipline in our B2C business. Now let's dive into our IFRS revenues and adjusted EBITDA by segment for the H1 2026, again, comparing these on a like-for-like basis. That means including Interhome for the comparison period for last year. Let's start again with IFRS revenues. On a group level, as I already said, overall revenues remained stable at €160.1 million. For HomeToGo_PRO, we saw solid progress across both revenue streams. Volume-based revenues expanded by 5% year over year to €91.1 million, while subscription revenues grew even stronger by 16% year over year to €14.1 million, which again was driven by very good performance at Interhome. For the marketplace, overall IFRS revenues declined by circa 10%.

Speaker #1: Now, let's dive into our IFRS revenues and adjusted EBITDA by segment for the first half of 2026, again comparing these on a like-for-like basis.

Speaker #1: That means including Interhome for the comparison period for last year. Let's start again with IFRS revenues. On a group level, as I already said, overall revenues remain stable at €160.1 million.

Speaker #1: For HomeToGo Pro, we saw solid progress across both revenue streams. Volume-based revenues expanded by 5% year over year to €91.1 million, while subscription revenues grew even stronger by 16% year over year to €14.1 million, which again was driven by very good performance at Hugo.

Speaker #1: For the marketplace, overall IFRS revenues declined by approximately 10%. This decline was expected and reflects the strategic shift away from a focus on top-line growth to a focus on growing earnings and came on the back of a 16% reduction in marketing spending.

Sebastian Bielski: This decline was expected and reflects a strategic shift away from a focus on top-line growth to a focus of growing earnings and came on the back of a 16% reduction in marketing spending. Within the IFRS revenues for the marketplace, the shift between advertising revenue and on-site revenue continues, with advertising revenue declining by 26%, while on-site revenue grew by 4%. For HomeToGo_PRO, on-site revenues carries a much higher strategic value as it provides a superior customer experience throughout the entire booking journey. Furthermore, it enables us to achieve customer ownership, fostering long-term relationships and driving repeat business. Consequently, we continue to work actively with our partners to position them from the advertising model to the on-site booking model. Now looking at the adjusted EBITDA. At the group level, we significantly improved adjusted EBITDA by €7.3 million or 33% year over year to negative €15.1 million.

Speaker #1: Within the IFRS revenues for the marketplace, the shift between advertising revenue and on-site revenue continues, with advertising revenue declining by 26%, while on-site revenue grew by 4%.

Speaker #1: For HomeToGo Pro, on-site revenue carries—for HomeToGo—on-site revenues carry a much higher strategic value, as it provides a superior customer experience throughout the entire booking journey.

Speaker #1: Furthermore, it enables us to achieve customer ownership, fostering long-term relationships and driving repeat business. Consequently, we continue to work actively with our partners to position them from the advertising model to the on-site booking model.

Speaker #1: Now, looking at the adjusted EBITDA—at the group level, we significantly improved adjusted EBITDA by €7.3 million, or 33% year over year, to negative €15.1 million.

Speaker #1: HomeToGo Pro was a standout performer, delivering a swing in profitability to reach a positive €1.7 million, up from negative €2.4 million in the same period last year.

Sebastian Bielski: HomeToGo_PRO was a standout performer, delivering a swing in profitability to reach +€1.7 million, up from -€2.4 million in the same period of last year. This clearly demonstrates the strong underlying earnings power and synergy potential of our B2B operations, especially Interhome. In the marketplace segments, the segment-adjusted EBITDA improved by 16% year-over-year to -€16.8 million, a direct result of our profitability-first strategy and disciplined marketing and cost execution. Let's now move to our liquidity development and cash generation profile. On the left-hand side of this chart, you can see our cash bridge for the period starting with 31 December of last year until 30 June of this year. In H1 2026, HomeToGo generated a remarkable €55.3 million in positive net operating cash flow, powered by a surging €52.7 million in Q2 alone.

Speaker #1: This clearly demonstrates the strong underlying earnings power and synergy potential of our B2B operations, especially Interhome. In the marketplace segments, the segment adjusted EBITDA improved by 16% year over year to negative €16.8 million, a direct result of our profitability-first strategy and disciplined marketing and cost execution.

Speaker #1: Let's now move to our liquidity development and cash generation profile. On the left-hand side of this chart, you can see our cash bridge for the period starting with 31 December of last year until 30 June of this year.

Speaker #1: In the first half of 2026, HomeToGo generated a remarkable €55.3 million in positive net operating cash flow, powered by a surging €52.7 million in Q2 alone.

Speaker #1: Driven by this strong operational cash performance, our cash and cash equivalents advanced from €91.6 million at year-end to €134.7 million as of June 30th of this year.

Sebastian Bielski: Driven by the strong operational cash performance, our cash and cash equivalents advanced from €91.6 million at year-end to €134.7 million as of 30 June of this year. Moving to the right side. In order to provide more transparency, let's walk through the bridge from our operational earnings to our underlying unlevered free cash flow for H1. We start with adjusted EBITDA, which improved by €5.5 million year-over-year to -€15.1 million. From there, we deduct CapEx payments for intangible assets of €5.8 million, which mainly relate to capitalized internal software development expenses and CapEx for PP&E of €1.2 million. We then account for interest in principal payments for leasing of €3.3 million and income tax paid of €3.5 million.

Speaker #1: Moving to the right side, in order to provide more transparency, let's walk through the bridge from our operational earnings to our underlying unlevered free cash flow for the first half.

Speaker #1: We start with adjusted EBITDA, which improved by €5.5 million year over year to negative €15.1 million. From there, we deduct capex payments for intangible assets of €5.8 million, which mainly relate to capitalized internal software development expenses, and capex for PP&E of €1.2 million.

Speaker #1: We then account for interest in principal payments for leasing of €3.3 million and income tax paid of €3.5 million. Finally, we factor in the primary engine of our cash performance in the first half of this year—a very strong €77.2 million cash inflow from the change in net working capital, a significant €48.6 million improvement over the first half of last year.

Sebastian Bielski: Finally, we factor in the primary engine of our cash performance in H1 of this year, a very strong €77.2 million cash inflow from the change in net working capital, a significant €48.6 million improvement over H1 of last year. The key contributors were a €56.4 million increase in other liabilities, mainly driven by seasonal advanced payments from travelers, as well as a €23.2 million increase in trade and other payables. The result, our underlying unlevered free cash flow surged to +€48.2 million in H1 of this year, a massive €50.7 million swing compared to -€2.5 million in H1 of last year.

Speaker #1: The key contributors were a €56.4 million increase in other liabilities, mainly driven by seasonal advanced payments from travelers, as well as a €23.2 million increase in trade and other payables.

Speaker #1: As a result, our underlying unlevered free cash flow surged to positive €48.2 million in the first half of this year, a massive €50.7 million swing compared to negative €2.5 million in the first half of last year.

Speaker #1: Achieving this impressive cash generation clearly underscores our enhanced cash conversion power, which, to be honest, is very much driven by the further implementation and ongoing, very good take-up by partners of the HomeToGo Payment product, and also the successful optimization of our operational cash cycles.

Sebastian Bielski: Achieving this impressive cash generation clearly underscores our enhanced cash conversion power, which to be honest, is very much driven by the further implementation and ongoing very good take-up by partners of the HomeToGo Payments product, and also the successful optimization of our operational cash cycles. Let's now turn to our balance sheet strength, especially looking at our net debt position and covenant headroom as of 30 June of this year. Our total gross debt stands at €209 million. This comprises €101 million face value of our Nordic bond, €81.3 million in deferred payments related to the Interhome acquisition that we still need to pay over the next three years, and €26.6 million in lease liabilities. Offsetting this gross debt, we hold €134.7 million in cash on our balance sheet and also €9.8 million in cash held in escrow. This brings our total net debt to €64.5 million.

Speaker #1: Let's now turn to our balance sheet strengths, especially looking at our net debt position and covenant headroom as of June 30th of this year.

Speaker #1: Our total gross debt stands at €209 million. This comprises €101 million face value of our Nordic bond, €81.3 million in deferred payments related to the Interhome acquisition that we still need to pay over the next three years, and €26.6 million in lease liabilities.

Speaker #1: Offsetting this gross debt, we hold €134.7 million in cash on our balance sheet and also €9.8 million in cash held in escrow.

Speaker #1: This brings our total net debt to €64.5 million. Moving to the right, under the documentation for the Nordic bond, HomeToGo has to adhere to two maintenance covenants.

Sebastian Bielski: Moving to the right. Under the documentation for the Nordic bond, HomeToGo has to adhere to two maintenance covenants. The first covenant is the leverage ratio defined as net debt to last 12 months adjusted EBITDA. This covenant requires us to remain below 4.5x as of 30 June of this year. Based on our net debt of €64.5 million and an LTM adjusted EBITDA of €49.8 million, our leverage ratio stood at a very healthy 1.3x, well below the required threshold. The other covenant is the minimum cash position. The requirement is a minimum of €20 million. As of 30 June, our total cash position, including cash held in escrow, stood at €144.4 million, providing a substantial liquidity buffer.

Speaker #1: The first covenant is the leverage ratio, defined as net debt to last 12 months' adjusted EBITDA. This covenant requires us to remain below 4.5 times as of June 30 of this year.

Speaker #1: Based on our net debt of €64.5 million and LTM adjusted EBITDA of €49.8 million, our leverage ratio stood at a very healthy 1.3 times, well below the required threshold.

Speaker #1: The other covenant is the minimum cash position. The requirement is a minimum of €20 million as of June 30. Our total cash position, including cash held in escrows, stood at €144.4 million, providing a substantial liquidity buffer.

Speaker #1: In summary, all maintenance covenants for the Nordic bond are met with very comfortable headroom, fully underpinning the Group's financial stability and strong balance sheet.

Sebastian Bielski: In summary, all maintenance covenants for the Nordic Bond are met with very comfortable headroom, fully underpinning the group's financial stability and strong cash. With our strong H1 financial performance and operational execution laying a solid foundation, let's now turn to our outlook and financial guidance for the full year 2026. Based on our solid performance in the H1 of this year, we are confirming our financial guidance for the full year 2026. We reiterate our target of IFRS revenues of between €400 and €410 million and adjusted EBITDA between €45 and €47 million. Looking closer at how we expect to deliver within these target ranges. First, regarding IFRS revenues. We currently expect full-year results to come in towards the lower end of our guidance range.

Speaker #1: With our strong first-half financial performance and operational execution laying a solid foundation, let's now turn to our outlook and financial guidance for the full year 2026.

Speaker #1: Based on our solid performance in the first half of this year, we are confirming our financial guidance for the full year 2026. We reiterate our target of IFRS revenues of between €400 million and €410 million, and adjusted EBITDA between €45 million and €47 million.

Speaker #1: Looking closer at how we expect to deliver within these target ranges—first, regarding IFRS revenues, we currently expect full-year results to come in at the lower end of our guidance range.

Speaker #1: The driver for the softer revenue outlook is lower-than-expected demand in our ancillary short-drives business, which is being impacted by softer consumer sentiment and also forest fires throughout holiday destinations in southern Europe.

Sebastian Bielski: The driver for the softer revenue outlook are lower than expected demand in our ancillary short trips business, which is being impacted by softer consumer sentiment and also forest fires throughout holiday destinations in Southern Europe. Crucially, overall demand in our core vacation rental business remains as expected. Second, looking at adjusted EBITDA, we expect bottom line performance to come in towards the upper end of our guidance range. Our strong focus on profitability in the HomeToGo Marketplace, combined with very good progress on synergy realization, is providing us with increased confidence in our bottom line execution. To wrap up our presentation, let's summarize the four key takeaways from our performance in the H1 of this year. First, exceptional top-line growth and significant profitability improvement. Group IFRS revenues increased by 72% year over year to €160 million.

Speaker #1: But crucially, overall demand in our core vacation rental business remains as expected. Second, looking at adjusted EBITDA, we expect bottom-line performance to come in towards the upper end of our guidance range.

Speaker #1: Our strong focus on profitability in the HomeToGo marketplace, combined with very good progress on synergy realization, is providing us with increased confidence in our bottom-line execution.

Speaker #1: To wrap up our presentation, let's summarize the four key takeaways from our performance in the first half of this year. First, exceptional top-line growth and significant profitability improvement.

Speaker #1: Group IFRS revenues increased by 72% year over year to €160 million. Group adjusted EBITDA improved substantially by almost 27% year on year to negative €15.1 million, driven by accelerating growth in the second quarter of plus 59% year over year.

Sebastian Bielski: Group adjusted EBITDA improved substantially by almost 27% year on year to -€15.1 million, driven by accelerating growth in the Q2 of +59% year over year. Second, HomeToGo_PRO scales rapidly as the group's main revenue and profit driver. Our B2B segment delivered extraordinary growth, with IFRS revenues more than doubling by 250% year over year to €105.2 million. Now accounting for approximately 66% of total group revenues, while segment-adjusted EBITDA turned distinctively positive. Third, we saw a surge in free cash flow driven by the successful Interhome integration, seasonal cash conversion, and optimized working capital, also driven by the further adoption of the HomeToGo Payments product. Free cash flow surged to €48.2 million in the H1, up from -€5 million in the H1 of last year, advancing our cash position to €134.7 million.

Speaker #1: Second, HomeToGo Pro scales rapidly as the group's main revenue and profit driver. Our B2B segment delivered extraordinary growth, with IFRS revenues more than doubling—up by 250% year over year—to €105.2 million.

Speaker #1: Now accounting for approximately 66% of total group revenues, while segment adjusted EBITDA turned distinctively positive. Third, we saw a surge in free cash flow driven by the successful Interhome integration, seasonal cash conversion, and optimized working capital, also driven by the further adoption of the HomeToGo payment product.

Speaker #1: Free cash flow surged to €48.2 million in the first half, up from negative €5 million in the first half of last year.

Speaker #1: Advancing our cash position to €134.7 million. Lastly, we are reaffirming our guidance for this year, backed by a strong first half. We reiterate our full-year guidance of €400 million to €440 million for IFRS revenues, and €45 million to €47 million in adjusted EBITDA, now tracking towards the lower end of the range for IFRS revenues and towards the upper end of the range for adjusted EBITDA.

Sebastian Bielski: Lastly, we are reaffirming our guidance for this year. Backed by a strong H1, we iterate our full year guidance of EUR 400 to EUR 420 million for IFRS revenues and EUR 45 to EUR 47 million in adjusted EBITDA, now tracking towards the lower end of the range for IFRS revenues and towards the upper end of the range for adjusted EBITDA. With that, we thank you very much for your attention today. We will now open the floor for your questions.

Speaker #1: With that, we thank you very much for your attention today. We will now open the floor for your questions. Yes, thank you so much for your presentation.

Operator: Yes, thank you so much for your presentation. We will now move on to the Q&A session. For an engaging conversation, we kindly request to ask your questions in person via audio line. To do so, please click on the raise hand button. If you have dialed in via phone, you can raise your hand by pressing star key 9 and unmuting yourself by pressing star key 6. Additionally, you can also place your questions in our chat, and I will read them out loud for you. With that said, we have received some risen hands, and I just sent an invite to Mr. Kruse. You may unmute yourself now.

Speaker #1: We will now move on to the Q&A session. For an engaging conversation, we kindly request that you ask your questions in person via the audio line.

Speaker #1: To do so, please click on the Raise Hand button. If you have dialed in via phone, you can raise your hand by pressing star key 9, and unmute yourself by pressing star key 6.

Speaker #1: Additionally, you can also place your questions in our chat, and I will read them out loud for you. With that said, we have received some raised hands, and I just sent an invite to Mr. Kruse.

Speaker #1: You may unmute yourself now.

Speaker #2: Good evening. Thanks for the presentation and solid set of numbers. First question for Patrick. It's encouraging to see your average basket size actually going up—I think that's, for the industry, probably at best a stable development.

Tim Kruse: Thanks for the presentation and solid set of numbers. First question for Patrick. Encouraging to see your average basket size actually going up. I think that is, on the industry, probably at best a stable development. Maybe you can shed some comments on overall sort of booking behaviors and how you see that you are faring against the competition on that respect.

Speaker #2: Maybe you can shed some comments on overall booking behaviors, and how you see that you're faring against the competition in that respect.

Speaker #3: Yes, happy to. Yeah, so part of it is obviously our marketing efficiency—topics that we said we strategically put on our radar for this year, where we said we will try to cover higher conversion and higher basket sizes.

Sebastian Bielski: Yes. Happy to. Part of it is obviously our marketing efficiency topics that we said we would strategically put on our radar for this year, where we said we will try to cover higher conversion and higher basket sizes. So people that may have an interest in book, also bigger vacation or spend more. This is basically also reflected if you compare it in regards to the overall market, that we have been able to not only lower our ad spend and nonetheless get a higher booking revenues backlog, but also part of it is targeting specific consumer segments that are actually letting us profit from that in the basket size development.

Speaker #3: So people that may have an interest in booking also book bigger vacations or spend more. And this is basically also reflected if you compare it in regards to the overall market, that we have been able to not only lower our ad spend and nonetheless get higher booking revenues and backlog, but also part of it is targeting specific consumer segments.

Speaker #3: That are actually letting us profit from that in the basket size development.

Speaker #2: Okay, thanks. And then, Sebastian, a few questions for you. Thanks for providing the pro forma P&L—that's very helpful, the transparency there. If I look at Q2 isolated, the adjusted EBITDA improvement is only marginal.

Tim Kruse: Okay, thanks. Sebastian, two questions for you. Thanks for providing the pro forma P&L. That is very helpful, the transparency there. If I look at the Q2 isolated, the adjusted EBITDA improvement is only marginal. Can you remind us how we should look at those cost synergies? Seems like they all came sort of in Q1. Anything we should have in mind there? On that, also could you remind us for the pro forma EBITDA for Q3 last year? I think I had EUR 69 million in mind. Could you confirm that? Thank you.

Speaker #2: Can you remind us how we should look at those cost synergies? It seems like they all came, sort of, in Q1. Is there anything we should have in mind there?

Speaker #2: And on that, also, could you remind us of the pro forma EBITDA for Q3 last year? I think I had €69 million in mind. Could you confirm that?

Speaker #2: Thank you.

Speaker #4: On the EBITDA for Q2 in isolation, there are two effects that I want to point out that are important to know, and that's why I think actually looking at the half-year is probably a much better metric.

Sebastian Bielski: On the EBITDA for Q2 in isolation, two effects that I want to point out that are important to know, that is why I think actually looking at H2 is probably the much better metric. It is timing of Easter. Easter was in Q2 last year, and it was actually in Q1 of this year. Because of the way we recognize revenue, that means that a lot of revenue has actually shifted between quarters. Q2 this year is kind of negatively impacted by that because some of the revenue and then also EBITDA actually shifted towards the first quarter. Again, I would invite you to look at H2 because that is the much better comparison. Then for Q3, I would point you to our Q3 presentation that we gave last year.

Speaker #4: It is the timing of Easter. So, Easter was in Q2 last year, and it was actually in Q1 this year. Because of the way we recognize revenue, that means a lot of revenue has actually shifted between quarters.

Speaker #4: So, Q2 this year is kind of negatively impacted by that, because some of the revenue and then also EBITDA actually shifted towards the first quarter.

Speaker #4: So again, I would invite you to look at H2, because that is the much better comparison. Then, for Q3, I would point you to our Q3 presentation that we gave last year—in the appendix, you will find the full pro forma P&L, including Interhome, on a quarterly basis.

Sebastian Bielski: In the appendix, you will find the full pro forma P&L including Interhome on a quarterly basis. So you can actually look it up there, Tim.

Speaker #4: So, you can actually look it up there, too.

Speaker #2: Okay, thanks. And then finally, on the free cash flow—yeah, great performance there. I know you don't give guidance on that number, but maybe, sort of more on a qualitative level, how we should expect that figure to pan out in the next quarters.

Tim Kruse: Okay, thanks. Then finally on the free cash flow, great performance there. I know you do not give guidance on that number, but maybe sort of more on a qualitative level, how we should expect that figure to pan out in the next quarters. That will be very helpful. Thank you.

Speaker #2: That would be very helpful. Thank you.

Speaker #4: Yeah, so the seasonality pattern that we see in revenue and EBITDA, we obviously also see in cash, right? So, we get cash prepayments from our travelers.

Sebastian Bielski: Yeah. The seasonality pattern that we see in revenue and EBITDA, we obviously also see in cash. We get cash prepayments from our travelers, especially in H1. When the traveler is actually taking the holiday, we also have to pay out money to the host, especially at Interhome, so we have a very seasonal pattern. For those of you who were part of the Nordic bond fundraising last year, there were a couple of slides in the presentation materials back then where we showed the seasonal cash pattern, especially for Interhome. Tim, I am happy if you do not have those materials to shoot them over after this call. The cash pattern will follow the same patterns as last year, also this year.

Speaker #4: Especially in the first half, when the traveler is actually taking the holiday, we also have to pay out money to the host, especially at Interhome.

Speaker #4: So, we have a very seasonal pattern. For those of you who were part of the Nordic Bond fundraising last year, there were a couple of slides in the presentation materials back then where we showed the seasonal cash pattern, especially for Interhome.

Speaker #4: Tim, I’m happy if you don’t have those materials to shoot them over after this call. The cash pattern will follow the same patterns as last year also this year, right?

Speaker #2: Okay, that would be helpful. Thank you. All the best.

Tim Kruse: Okay, that will be helpful. Thank you. All the best.

Speaker #4: Thank you.

Sebastian Bielski: Thank you.

Speaker #1: Thank you very much. Another raised hand. We do have one from Mr. Nagaraj. You may unmute yourself now; I just sent you an invite. Mr. Nagaraj, can you hear us?

Operator: Thank you very much. Another risen hand we do have from Mr. Nagaraj. You may unmute yourself now. I just sent you an invite. Mr. Nagaraj, can you hear us? I just sent you an invite to unmute yourself.

Speaker #1: I just sent you an invite to unmute yourself.

Bharath Nagaraj: Yeah.

Speaker #3: Yeah. Yeah. Sorry.

Operator: Oh, there you are. Hello.

Speaker #1: There you are. Hello.

Speaker #3: Thank you. Hope you can hear me. I just had a couple of questions. Could you share how much traffic you're currently getting from third-party LLMs and AI agents?

Bharath Nagaraj: Thank you. Hope you can hear me. I just had a couple of questions. Could you share how much traffic you are currently getting from third-party LLMs and AI agents? That is the first question. The second question, with regards to your HomeToGo_PRO business, the 3% growth on a pro forma basis, is that in line with your expectations for this year? What kind of growth are you looking to get to in the medium term for this business and the steps you are taking to get there, please?

Speaker #3: That's the first question. And the second question, with regards to your pro business: the 3% growth on a pro forma basis, is that in line with your expectations for this year?

Speaker #3: And what kind of growth are you looking to get to in the medium term for this business, and what steps are you taking to get there?

Speaker #3: Please.

Speaker #4: So on the LLMs, look, I think the answer to that is, I think most importantly, we don't get many bookings through them, right?

Sebastian Bielski: On the LLMs, look, I think the answer to that is, I think the most importantly is like we do not get many bookings through them, right? So LLM is, that is all very early. I think probably the bookings I do personally with HomeToGo every year probably outpace the combined volume of all bookings we ever received through an LLM. So this is really early adoption of technology. We do believe that much more bookings will migrate to this channel in the future. So we want to be positioned very early on in there. We want to learn, but economically, it does not have any material impact at all for us at the moment.

Speaker #4: So, LLM is—that is all very, very early. I think probably the bookings I do personally with HomeToGo every year probably outpace the combined volume of all bookings we ever received through an LLM.

Speaker #4: So this is really early adoption of technology. We do believe that much more bookings will migrate to this channel in the future, so we want to be positioned very early on in there.

Speaker #4: We want to learn, but economically it doesn't have any material impact at all for us at the moment. Then, on your second question for B2B, yes, it is in line with our expectations.

Sebastian Bielski: On your second questions for B2B, yes, it is in line with our expectations, so we are actually quite happy with the B2B performance that we are seeing, and our midterm expectations remain the same, as we have also discussed in prior calls with you.

Speaker #4: So we're actually quite happy with the B2B performance that we're seeing, and our midterm expectations remain the same, as we have also discussed in prior calls with you.

Speaker #3: Okay, all right. May I just ask one more question, then? With regards to SmooBoo subscriptions, any color on the seasonality with regards to new subscriber adds and the growth in SmooBoo—is that being currently driven by the new subscriber adds or price increases, or anything else to talk about?

Bharath Nagaraj: Okay. All right. May I just ask one more question then? With regards to Smoobu subscriptions, any color on the seasonality with regards to new subscriber adds and the growth in Smoobu, is that being currently driven by the new subscriber adds or price increases or anything else to talk about? Thank you.

Speaker #3: Thank you.

Speaker #4: Yeah, so the growth in SmooBoo is driven by new subscribers, actually. So it's not driven by price increases mainly this year. And there is not much seasonality profile necessarily when it comes to subscriber growth.

Sebastian Bielski: Yeah. The growth in Smoobu is driven by new subscribers, actually. It is not driven by price increases mainly this year. There is not much seasonality profile necessarily when it comes to subscriber growth. It is more driven by campaigns that we run at Smoobu, where we try to push for subscriber growth. So there is not that much seasonality profile in there.

Speaker #4: It's more driven by campaigns that we run at SmooBoo, where we try to push for subscriber growth. So there's not that much of a seasonality profile in there.

Speaker #3: Understood. Thank you.

Bharath Nagaraj: Understood. Thank you.

Speaker #1: Thank you so much, Mr. Nagaraj. Another raised hand from Mr. Hinkle. I just sent you an invite to unmute yourself.

Operator: Thank you so much, Mr. Nagaraj. Another risen hand by Mr. Hinkel. I just sent you an invite to unmute yourself.

Speaker #5: Hello. Can you hear me?

Knud Hinkel: Hello, can you hear me?

Speaker #1: Yes, we can. Hello.

Operator: Yes, we can. Hello.

Speaker #5: Fantastic. Thank you very much for having me. I have three questions, if I may. On the wildfires we are currently seeing, I guess that makes Southern Europe in summer increasingly more or less an attractive destination.

Knud Hinkel: Fantastic. Thank you very much for having me. I have three questions, if I may. On the wildfires we are currently seeing, I guess that makes Southern Europe in summer increasingly more or less attractive a destination, maybe also some DACH regions. Can you say something, how do you see the impact of that on your business model? Probably summer months are very important for HomeToGo, maybe you can share your thoughts on that one, if that's possible. Secondly, I would like to understand that short-term trips seem to be much more important in the DACH region than elsewhere. Is it because most of your customers are in the DACH region, and they tend to be more attracted by short-term trips, or what is the reason behind that? Lastly, on HomeToGo Payments, you said that you incurred additional cost of EUR 1 million for HomeToGo Payments.

Speaker #5: Maybe also some DACH regions. Can you say something? How do you see the impact of that on your business model? I mean, probably the summer months are very important for HomeToGo.

Speaker #5: Maybe you can share your thoughts on that one, if that's possible. Secondly, it seems I would like to understand why short-term trips seem to be much more important in the DACH region than elsewhere.

Speaker #5: Is that because most of your customers are in the DACH region and they tend to be more attracted to short-term trips? Or what's the reason behind that?

Speaker #5: And lastly, on HomeToGo Payments, you said that you incurred additional cost of $1 million for HomeToGo Payments. But overall, my understanding was always that this is a very positive feature for HomeToGo because you are able to manage more effectively your net working capital when it comes to payments, customer prepayments, etc.

Knud Hinkel: But overall, my understanding was always that this is a very positive feature for HomeToGo because you are able to manage more effectively your networking capital when it comes to payments, customer prepayments, et cetera. Can you confirm that? That would be my three questions. Thank you very much.

Speaker #5: Can you confirm that? That would be my three questions. Thank you very much.

Speaker #4: Yes. So on the first one, on the wildfires, I think the wildfires per se, we do see cancellations in the areas which are specifically impacted by the wildfires, right?

Sebastian Bielski: Yeah. On the first one, on the wildfires, I think the wildfires per se, we do see cancellations in the areas which are specifically impacted by the wildfires. We do see cancellations. Overall, they are not exceptionally meaningful for us right now. It is a rapidly developing situation, and it is very hard to forecast wildfires. We just need to see, and hopefully it is all going well and there is rain coming. I think the broader question, to be honest, is more what the impact of climate change in Europe will do to holidays. Because when you live in Germany and you are already suffering from heat, you probably are not really looking to take a holiday in southern Europe where it is even hotter. What we do see is an increasing interest in holidays in northern destinations.

Speaker #4: So, we do see cancellations overall. They're not exceptionally meaningful for us right now, right? But it is a rapidly developing situation, and it's very, very hard to forecast wildfires.

Speaker #4: So, we just need to see, and hopefully it's all going well and there is rain coming. I think the broader question, to be honest, is more about what the impact of climate change in Europe will do to holidays.

Speaker #4: Because when you live in Germany and you are already suffering from heat, you probably are not really looking to take a holiday in Southern Europe, where it's even hotter.

Speaker #4: So, what we do see is an increasing interest in holidays in northern destinations. For example, the Baltic Sea, where we are also very strong, has had a very, very good year this year.

Sebastian Bielski: For example, the Baltic Sea, where we are also very strong, has had a very good year this year. People are looking towards taking holidays there. From industry, we also know that Scandinavia had a very good year this year, which is an area where we are currently underrepresented. It is definitely an area we are looking at to grow in the future. We do see that some southern destinations, for example, Croatia, are actually suffering this year. Climate change and the expectation that the heat patterns will continue in Europe, and hot summers like we had this year will probably be the norm in the next couple of years, will definitely have an impact on where people want to take holidays.

Speaker #4: So, people are looking towards taking holidays there. From industry, we also know that Scandinavia had a very, very good year this year, which is an area where we are currently underrepresented.

Speaker #4: So it's definitely an area we're looking at to grow in the future. And we do see that some southern destinations, for example, Croatia, are actually suffering this year, right?

Speaker #4: So climate change and the expectation that the heat patterns will continue in Europe—and that hot summers like we had this year will probably be the norm in the next couple of years—will definitely have an impact on where people want to take holidays. We as a travel provider need to adjust to that, and we need to make sure that our destination portfolio is also well equipped to cater for that.

Sebastian Bielski: We, as a travel provider, need to adjust to that, and we need to make sure that our destination portfolio is also well-equipped to cater for that. Then the second one on DACH. Yeah, our short-term business is really a very German business. It is Kurzurlaub und Kurzreisen, that is a business that is catering towards German customers taking short trips in Germany. Think about taking a short trip with your wife to, I do not know, go to Munich and see the opera or something like that. This is definitely a part of our business where we do see negative customer sentiment coming through. There is less interest in this kind of booking. It is seen as an item of spending that people can do without, in contrast to the big summer holiday, which is the driver for our core vacation rental business.

Speaker #4: Then the second one on DACH. So yeah, our short-term business is really a very German business, right? So it's Kurzurlaub und Kurzreisen. That is a business that is catering to German customers taking short trips in Germany.

Speaker #4: So think about taking a short trip with your wife to, I don't know, go to Munich and see the opera or something like that.

Speaker #4: And this is definitely a part of our business where we do see negative consumer sentiment coming through, so there is less interest in this kind of booking.

Speaker #4: It's seen more as an item of spending that people can do without, in contrast to the big summer holiday, which is the driver for our core vacation rental business.

Speaker #4: So, this is definitely one part of our business where we see negative sentiment, unfortunately, playing against us. And then, on HomeToGo Payments—yes, you're absolutely right.

Sebastian Bielski: This is definitely one part of our business where we see negative sentiment, unfortunately, playing against us. Then on HomeToGo Payments, yes, you are absolutely right. We obviously have higher payment fees as more and more of our partners are using the payment product, but the benefit far outweighs the cost. It is, number one, a much better customer experience. Overall conversions are positively impacted by that. Number two, the cash flow is also positively impacted because we get the money in earlier if people use our payment infrastructure. It is a very good thing if more and more people use that.

Speaker #4: So, we obviously have higher payment fees as more and more of our partners are using the payment product. But the benefit far outweighs the cost.

Speaker #4: It's number one: a much better customer experience. So, overall conversions are positively impacted by that. Number two: the cash flow is also positively impacted because we get the money in earlier if people use our payment infrastructure.

Speaker #4: So, it's a very, very good thing if more and more people use that.

Speaker #5: Okay. Thank you very much.

Knud Hinkel: Okay. Thank you very much.

Speaker #1: Thank you so much. We have another raised hand from Mr. Volker. I just sent you an invite to unmute yourself. As you're dialing in by phone, please press the star key followed by six to do so.

Operator: Thank you so much. We have another written hand by Mr. Volker. I just sent you an invite to unmute yourself, and as you are dialing in by phone, please press star 26 to do so. Hello, Mr. Volker, can you hear us?

Speaker #1: Hello, Mr. Volker. Can you hear us?

Speaker #6: I'm off the bottom bank. Can you hear me?

Volker Bosse: It was the Baader Bank. Can you hear me?

Speaker #1: There you are. Hello. Yes, we can.

Operator: There you are. Hello. Yes, we can.

Speaker #6: Yeah. Perfect. Thank you very much. Yeah. Thanks for all the details already provided. A couple of questions from my side. First of all, in the future, I mean, it's about AI and in the future, if I got it right, HomeToGo could be more an inventory provider than for the AI models.

Volker Bosse: Yeah. Perfect. Thank you very much. Thanks for all the details already provided. A couple of questions from my side. First of all, in the future, it is about AI, and in the future, if I got it right, HomeToGo could be more an inventory provider for the AI models. You said that it is, of course, not immediate impact, but looking ahead, what does it mean on your business model and how could that impact take rates, for example? First question. Second question is on M&A. You have to work on that. You touched on that in the past. It was always a topic. Are you working on a shortlist here? How is your priority in regards to M&A versus debt reduction, for example? How do you look at that? Last one, perhaps some words on the negative EPS trend in H1 versus H1 last year.

Speaker #6: You said that is, of course, not an immediate impact, but looking ahead, what does it mean for your business model, and how could that impact sales rates, for example?

Speaker #6: First question. And second question is on M&A. I mean, perhaps a word on that—you touched on it in the past. It was always a topic.

Speaker #6: I mean, are you working on a shortlist here, and how is your priority in regards to M&A versus debt reduction, for example? How do you look at that?

Speaker #6: And last one—perhaps some words on the negative EPS trend in H1 versus H1 last year. How do you think about the quality of your net income, given the higher PPA, higher financing costs, and higher SBC effects?

Volker Bosse: How do you think about the quality of your net income given that the higher PPA, higher financing costs, and higher SBC effects? Thank you.

Speaker #6: Thank you.

Speaker #5: Thank you, Volker. I'll take the first question, and Sebastian will take the second and the third. So, in regard to AI—yeah, as mentioned by us, we see the LLMs as a potential addition to, or somehow replacing, the direct traffic channel.

Patrick Andrae: Thank you, Volker. I take the first question, and Sebastian will take the second and the third. In regards to AI, as mentioned by us, we see the LLMs as a potential additional or somehow replacing direct traffic channel. Because people might turn, not only that they go directly to OpenAI ChatGPT or use Claude or Anthropic, but also within the integrated AI mode of Google when they search, you obviously have this kind of LLM interaction there, right? HomeToGo has always been doing is not only going after our own website, but we had from some time ago, the HomeToGo Doppelgänger product, which is allowing third parties to access HomeToGo inventory. This is something we further went after with building this MCP. So that LLMs can theoretically directly access our inventory via the MCP protocol.

Speaker #5: Yeah. So, because people might not only go directly to OpenAI, ChatGPT, or use Claude from Anthropic, but also within the integrated AI mode of Google when they search, you obviously have this kind of LLM interaction there, right?

Speaker #5: And so what HomeToGo has always been doing is not only going after our own website, but we had, from some time ago, the HomeToGo Doppelgänger product, which allows third parties to access HomeToGo inventory.

Speaker #5: Yeah, and this is something we further pursued by building this MCP. Yeah, so that LLMs can theoretically directly access our inventory via the MCP protocol.

Speaker #5: So, really trying to build a standard if people want to connect to the largest selection of vacation rentals. And you can imagine, as we have good relations with Google—but also OpenAI and others are eager to connect to our large amount of inventory—we believe that this is an interesting kind of traffic channel in general.

Patrick Andrae: Really trying to build a standard if people want to connect to the largest selection of vacation rentals. You can imagine, as we have good relations with Google, but also OpenAI, and others are eager to connect to our large amount of inventory, we believe that this is an interesting kind of traffic channel in general. In regards to take rates, that shouldn't change something. We actually expect that customer acquisition costs, like in terms of ad spend, would rather be lower on that side. Especially for our HomeToGo_PRO part of the business, as you said. There, what we take as take rates for managing the house, maintaining it, cleaning it, and so on, that is not affected by AI.

Speaker #5: In regards to take rates, that shouldn't change anything. We actually expect that customer acquisition costs, in terms of ad spend, would be lower on that side.

Speaker #5: And especially for our HomeToGo Pro part of the business, as you said, right? So there, what we take as take rates for managing the house, maintaining it, cleaning it, and so on, that is not affected by AI.

Speaker #5: Furthermore, we also believe that the acquisition costs will get lower as more people might go directly to, for instance, the inter-home inventory, instead of needing to pay another OTA margin in between.

Patrick Andrae: The more we also believe there that the acquisition costs will get lower as more people might get directly to, for instance, the Interhome inventory, instead of needing to pay another OTA a margin in between. Take rates stay the same, but margin likely goes up because we do not have to share part of our take rate with third parties.

Speaker #5: So take rates stay the same, but margin likely goes up because we don't have to share parts of our take rate with third parties.

Volker Bosse: Mm-hmm. Just for clarification, in the end, it would be that the customer could book via an LLM at a HomeToGo property without having seen the website of HomeToGo in this booking process, right?

Speaker #6: So, just for clarification, in the end, it would be that the customer could book via an LLM at a HomeToGo property without having seen the website of HomeToGo in the booking process, right?

Speaker #5: No, at the moment, this is not how these things are happening, right? Because also, OpenAI.

Patrick Andrae: No. At the moment, this is not how these things are happening, right? Because also like OpenAI

Volker Bosse: That is future music. I mean, not at the moment. That is right.

Speaker #6: I mean, not at the moment. That is right.

Patrick Andrae: Yeah.

Speaker #5: Yeah, yeah, yeah.

Speaker #6: But in the future, you're thinking about it the way I described.

Volker Bosse: But in the future, you are thinking about the way I described it?

Patrick Andrae: So as said, all of these things take longer usually than you expect, but we prepare for such a future. Because Google, for instance, is currently testing. You might have seen that in the US, that you can directly, within their AI mode, basically book hotels. So not only search them, but book them. So it could also be that this is something that will come usually a little bit later due to European regulations to the EU. But at some point, it might definitely come. As we have also on the inventory side with Google Vacation Rentals and Google Hotel Finder, a good kind of relation to Google. We expect also this at some point being part of this, because as said.

Speaker #5: So as I said, right? All of these things usually take longer than you expect, but we prepare for such a future. Yeah, because Google, for instance, is currently testing.

Speaker #5: You might have seen that in the US, that you can directly, within their AI mode, basically book hotels. Yeah. So, not only search them, but book them.

Speaker #5: And so, it could also be that this is something that will usually come a little bit later, due to European regulations, to the EU.

Speaker #5: But at some point, it might definitely come. And as we have also on the inventory side with Google Vacation Rental Finder and Google Hotel Finder, a good kind of relationship to Google, we expect also this at some point being part of this because, as said, right, for us, it's about that our properties get the bookings.

Patrick Andrae: For us, it is about that our properties get the bookings and not necessarily that they always have to have happen via the HomeToGo Marketplace.

Speaker #5: And not necessarily that they always have to have happened via the HomeToGo marketplace.

Volker Bosse: Mm-hmm. Yeah. Thanks for the clarification.

Speaker #6: Yeah. Thanks for the clarification.

Speaker #1: Thank you so much.

Operator: Thank you so much.

Speaker #2: I will, sorry. I will take over for the second and third questions now. The second question was on M&A—if we have a shortlist and whether we prioritize debt reduction or M&A.

Sebastian Bielski: Sorry, I will take over for the second and third question now. The second question was on M&A, if we have a shortlist and whether we prioritize debt reduction or M&A. Yes, we absolutely have a shortlist that we are working on. As Patrick has also explained in his presentation, we are also increasing overall our M&A deal capacity. We are both increasing the number of people on the sourcing and execution of M&A deals as well as on the integration side. We want to be able to do many more deals, especially the smaller deals. We are very focused on deals in the property management sector, which is in line with what we had said before. We generally want to do M&A deals only on the B2B side and especially on the property management side.

Speaker #2: So yes, we absolutely have a shortlist that we're working on. As Patrick has also explained in his presentation, we are also increasing, overall, our M&A deal capacity.

Speaker #2: So we're both increasing the number of people on the sourcing and execution of M&A deals, as well as on the integration side. So we want to be able to do many more deals, especially the smaller deals.

Speaker #2: And we're very focused on deals in the property management sector, which is in line with what we had said before. So we generally want to do M&A deals only on the B2B side, and especially on the property management side.

Speaker #2: As I explained, we are thinking about our portfolio as well, strategically, right? So, which regions we're buying at. At the moment, we're probably not that interested in doing deals in Croatia.

Patrick Andrae: As I explained, we are thinking about our portfolio as well strategically, right? Which regions we are buying at. At the moment, we are probably not that interested in doing deals in Croatia. But we would be really interested to do deals in Scandinavia, for example. With debt reduction, we can only repay all at once for the loan. We cannot repay it partially under the terms of the loan. We probably would not do that anyways at the moment. We have a good M&A pipeline. We are pretty excited about that. We can do deals at very good multiples. We see a much better return on deploying capital there rather than repaying the debt.

Speaker #2: But we would be really interested to do deals in Scandinavia, for example. And with debt reduction, we can only repay all at once for the loans.

Speaker #2: So, we cannot repay it partially under the terms of the loan. So, yeah, we probably wouldn't do that anyway at the moment. We have a good M&A pipeline.

Speaker #2: We're pretty excited about that. We can do deals at very good multiples, so we see a much better return on deploying capital there rather than repaying the debt.

Speaker #2: Then lastly, your question on net income. What I want to reiterate is, when you look at where the deterioration comes from, it is coming from the net financial result, right?

Sebastian Bielski: Lastly, your question on net income. What I want to reiterate is when you look at where the deterioration comes from, it is coming from the net financial result, which is at -40.8 million, and then also the much higher depreciation and amortization. Within the almost EUR 50 million of net financial results, the actual interest cost in there is about 5. There is EUR 10 million of non-cash accounting stuff in there. Is this really a good indicator towards underlying earnings power? In my personal opinion, no, but everybody has to form their own opinion. The higher amortization charge comes from the M&A related amortization for Interhome. All of that is non-cash. Again, it is also accounting driven. In my personal view, the reported loss says very little about underlying performance or underlying earnings power.

Speaker #2: Which is at negative $40.8 million. And then also the much higher depreciation and amortization. So, within the almost $50 million of net financial results, the actual interest cost in there is about $5 million.

Speaker #2: So, there is €10 million of non-cash accounting stuff in there. So is this really a good indicator of underlying earnings power? My personal opinion: no.

Speaker #2: But everybody has to form their own opinion. And then the higher amortization charge comes from the M&A-related amortization for Interhome. All of that is non-cash again.

Speaker #2: It is also accounting-driven. So, in my personal view, the reported loss says very little about underlying performance or underlying earnings power. And the story really is about EBITDA and free cash flow generation.

Sebastian Bielski: The story really is about EBITDA and free cash flow generation. That is my personal opinion on that.

Speaker #2: So, that's my personal opinion on that.

Speaker #6: Yeah, well understood. Thank you very much for that. Thanks.

Volker Bosse: Well understood. Thank you very much for that. Thanks.

Speaker #1: Thank you so much. We actually have some more questions in our chat box—five, to be exact. I would say we’ll start with a couple of questions by Mr. Johannessen.

Operator: Thank you so much. We actually have some more questions in our chat box, five to be exact. I would say we will start with a couple of questions by Mr. Johannisen. His first question is, pro forma adjusted EBITDA is higher on LTM than your full year guidance. Do you essentially expect a decline in H2?

Speaker #1: His first question is: Pro forma adjusted EBITDA is higher on LTM than your full-year guidance. Do you essentially expect a decline in H2?

Sebastian Bielski: They are obviously two different metrics, right? LTM adjusted EBITDA is 100% certain. That relates to history, so I know it with certainty. Then guidance relates to the future. As much as I still are wishing for a crystal ball to be given to me for Christmas, my wish hasn't come true yet. By definition, we are always a little bit more cautious about the future. The guidance we have actually increased in this call, right? To the upper end of the guidance, and I think that stands on itself.

Speaker #2: They're obviously two different metrics, right? So, LTM adjusted EBITDA is 100% certain. That relates to history, so I know it with certainty. And then guidance relates to the future.

Speaker #2: And as much as I still am wishing for a crystal ball to be given to me for Christmas, my wish hasn't come true yet.

Speaker #2: So, by definition, we're always a little bit more cautious about the future. So, the guidance we've actually increased in this call, right? So, to the upper end of the guidance.

Speaker #2: And I think that that stands on its own.

Speaker #1: All right, thank you. Second question would be: To understand working capital movements in H2, where do you see leverage ending '26?

Operator: All right. Thank you. His second question would be to understand working capital movements in H2, where do you see leverage ending 2026?

Speaker #2: So, we do not give a guidance for end-of-'26 leverage. But as I explained before, when I was talking to Tim, the seasonal cash patterns will be the same ones as, or very similar to, last year.

Sebastian Bielski: We do not give a guidance for end of 2026 leverage. As I explained before when I was talking to Tim, the seasonal cash patterns will be the same ones as, or very similar as last year. I know that you know the presentation materials because you were involved in the fundraising, so I would just point you to there.

Speaker #2: So I know that you have the presentation materials because you were involved in the fundraising, so I would just point you there.

Speaker #1: Thank you very much. The question is: can you provide a timeline on the expected realization of the remaining €4 million in synergies to reach the €10 million target?

Operator: Thank you very much. His third question is, can you provide a timeline on the expected realization of the remainder EUR 4 million synergies up to the EUR 10 million target?

Speaker #2: Yeah, so as Patrick has said, we are working on it. I mean, there's also been some news reporting about that in the partnership title, for example.

Sebastian Bielski: Yeah. As Patrick has said, we are working on it. There has also been some news reporting about that, the Badische Zeitung, for example. They will be realized in the second half.

Speaker #2: So, they will be realized in the second half.

Speaker #1: All right. His last question: What is the latest update around further M&A bolt-ons?

Operator: All right. His last question: what is the latest update around further M&A bolt-ons?

Speaker #2: Yeah. As I just said when talking to Mr. Folka, we have an M&A pipeline. We're working on that. We are picky in the deals that we're doing.

Sebastian Bielski: Yes. As I just said when talking to Mr. Volker, we have an M&A pipeline. We are working on that. We are picky in the deals that we are doing, so there is no deal that we must do. So we are looking for deals, generally speaking, which fit our strategic criteria, which is it needs to be on the B2B side, especially in property management. It needs to fit the geographic search focus that we have, and it needs to be priced well. We are in multiple discussions at the moment, and we expect to do deals in the coming weeks and months.

Speaker #2: So there is no deal that we must do. So we're looking for a deal, generally speaking, which fits our strategic criteria—which is, it needs to be on the B2B side, especially in property management.

Speaker #2: It needs to fit the geographic search focus that we have, and it needs to be priced well. We're in multiple discussions at the moment, and we expect to do deals in the coming weeks and months.

Speaker #1: Thank you so much. There are two more questions by Mr. Braun. I will read them out one by one. His first one is: You are evidently planning a restructuring.

Operator: Thank you so much.

Sebastian Bielski: No problem.

Operator: There are two more questions by Mr. Braun. I will read them out one by one. His first one is: you are evidently planning a restructuring. What does this entail, and what impact will it have on the financial figures?

Speaker #1: What does this entail? And what impact will it have on the financial figures?

Speaker #2: Yeah. So, as Patrick has also explained during his presentation, the restructuring is part of the synergy realization. So, it's getting those last €4 million until the end of the year.

Sebastian Bielski: Well, as Patrick has also explained during his presentation, the restructuring is part of the synergy realization. It is getting those last €4 million until the end of the year. There is a couple of larger projects that we are working on, and that is the restructuring that is mentioned. One of them entails discussion with the workers' council, which we have started recently. As those discussions are ongoing, we cannot give specific guidance on the restructuring costs involved.

Speaker #2: There are a couple of larger projects that we're working on, and that is the restructuring that is mentioned. So one of them entails discussions with the workers' council, which we have started recently.

Speaker #2: As those discussions are ongoing, we cannot give specific guidance on the restructuring costs involved.

Speaker #1: All right. Thank you. His second question would be: the quarterly report mentions a compensation claim against the former owners of Interhome. What is this about?

Operator: All right. Thank you. His second question would be: the quarterly report mentions a compensation claim against the former owners of Interhome. What is this about, and what risks does it pose for HomeToGo?

Speaker #1: And what risks does it pose for HomeToGo?

Speaker #2: Yes, so I would point you to Note 6 in the half-year report. There is actually a lot of detail on your question in there already.

Sebastian Bielski: Well, I would point you to note six in the half year report. There is actually a lot of detail on your question in there already. This relates to a tax matter at Interhome. It all relates to the period well before our ownership. There is about a €26 million in risk there, tax risk, of which €18 million relates to back taxes and €8 million to interest and penalties. We have taken a liability as part of the purchase price allocation for that. But most importantly, we have also created an asset which is exactly the same amount. And why have we created that asset? Because we have an ironclad indemnification from the seller towards that.

Speaker #2: So this relates to a tax matter at Interhome. It all relates to the period well before our ownership. There is about a 26 million euros in risk there, tax risk, of which 18 million euros relates to back taxes and 8 million euros to interest and penalties.

Speaker #2: We have taken a liability as part of the purchase price allocation for that. But most importantly, we've also created an asset, which is exactly the same amount.

Speaker #2: And why have we created that asset? Because we have an ironclad indemnification from the seller towards that. So the net risk for us is zero, because any back taxes, interest, and penalties are to the account of the seller.

Sebastian Bielski: The net risk for us is zero, because any back tax and interest and penalties are to the account of the seller, and we are working through that at the moment also together with the seller.

Speaker #2: And we're working through that at the moment, also together with the seller.

Speaker #1: Perfect. Thank you so much. We have two remaining questions in our chat box. The first is: Can you expand on your free cash flow expectations for the full year?

Operator: Perfect. Thank you so much. We have two more remaining questions in our chat box. One is, can you expand on your free cash flow expectations for the full year? This would be very helpful since the lack of a free cash flow guidance has been a concern for investors. Also, can you reconfirm your midterm aspiration for approximately 20% EBITDA margins in the midterm and share your current thoughts on a sustainable FCF EBITDA conversion level for your business model? Thank you very much.

Speaker #1: This would be very helpful, since the lack of a free cash flow guidance has been a concern for investors. Also, can you reconfirm your midterm aspiration for approximately 20% EBITDA margins in the midterm, and share your current thoughts on a sustainable FCF to EBITDA conversion level for your business model?

Speaker #1: Thank you very much.

Speaker #2: Yeah. I mean, we do not give free cash flow guidance, so we also do not want to start with that right now. Especially with bond investors, I’ve gone through how the cash flow works and what the constituent parts of cash flow are.

Sebastian Bielski: Well, we do not give free cash flow guidance. We also do not want to start with that right now, especially with bond investors. I've gone through how the cash flow works and what the constituent parts of cash flow are in detail many times. I would point to that. I think there is a lot of knowledge within investors about that. Yes, I can reconfirm our midterm aspiration for the EBITDA margins.

Speaker #2: In detail, many, many times. So I would point to that. I think there is a lot of knowledge within investors about that. And yes, I can reconfirm our midterm aspiration for the EBITDA margins.

Speaker #1: All right. Thanks a lot. Last question for today: What is the needed cash buffer to be able to sustain seasonal swings in working capital?

Operator: All right. Thanks a lot. Last question for today. What is the needed cash buffer to be able to sustain seasonal swings in working capital?

Speaker #2: Look, I would probably point you to the number that is the second maintenance covenant test, which is the $20 million, right? And so we had about $144 million. I think the $20 million, which is the maintenance level, is a good proxy for that.

Sebastian Bielski: Look, I would probably point you to the number that is the second maintenance covenant test, which is the EUR 20 million. Right? We had about EUR 144 million. I think the EUR 20 million, which is the maintenance level, is a good proxy for that.

Speaker #1: All right. Thank you so much. As we have not received any more questions in our chat or any raised hands, I would say we now come to the end of today's earnings call.

Operator: All right. Thank you so much. As we have not received any more questions in our chat or risen hands, I would say we now come to the end of today's earnings call. You will find the presentation on HomeToGo's website and also at the Airtime platform by clicking into today's event. Dear participants, thank you for joining and your interest in HomeToGo. If you should have any further questions at a later time, please feel free to contact Investor Relations. Thanks once again. Have a nice day and goodbye.

Speaker #1: You will find the presentation on HomeToGo's website and also on the Airtime platform by clicking into today's event. Dear participants, thank you for joining and for your interest in HomeToGo.

Speaker #1: If you should have any further questions at a later time, please feel free to contact Investor Relations. Thanks once again. Have a nice day and goodbye.

Sebastian Bielski: Okay.

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Q2 2026 HomeToGo SE Earnings Call

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