Prosus (PRX) Q4 2026 Earnings Report

The call emphasized strong progress on scale, margin recovery, and rapid growth in ecosystem adjacencies driven by AI and platform investments (revenue ~EUR 10bn, EBITDA EUR 1.3bn, free cash flow improvement of ~EUR 2bn, ecosystem $1.5bn growing >40%, multiple >50–100% growth rates across adjacencies). However, the company is facing significant near-term headwinds from intense competition (especially in Brazil), increased CPO and promotional spending by peers, the need to invest heavily in Just Eat and iFood which keeps FY2027 EBITDA roughly flat, and some cash flow/working-capital volatility. On balance, the business shows robust structural momentum and technology differentiation, while acknowledging short-term reinvestment and competitive pressures that will depress near-term profitability but aim to enable higher long-term returns.

Guidance from the call emphasized continued top‑line and ecosystem-led growth while accepting near‑term reinvestment: group revenue was ~€10bn in FY2026 with management targeting >€13bn next year (another estimate cited $12–$12.3bn), EBITDA was €1.3bn (up 84% YoY) and leadership reiterated the ambition to deliver “billions” of EBITDA long‑term though group profitability is expected to be roughly flat in FY2027 as they invest in iFood and Just Eat; free cash flow moved from €‑0.5bn to €+1.5bn (+€2bn) over two years. They expect half of LATAM revenue in the next 12–24 months to come from adjacencies as the ecosystem (now >$1.5bn revenue, +40%+) already represents >50% of revenue (food 45%, fintech 17%, travel 29%, other 7%) and generates >$150m of profit; iFood is ~200m orders, the group has ~1bn customers, ~5m partners and ~€100bn GMV. High‑growth unit guidance includes grocery +50% (multi‑year), pharmacy +70% YoY, fintech lines ~100% YoY (credit +115%, infra +100%, voucher +60%), Rapido +110–120% YoY and Despegar +30% (40% in Brazil, 21% of Brazil revenue driven by cross‑sell). Technology rollouts—LCM models 100m LatAm customers, ToqanClaw (70k agents, 12k apps, 4k employees onboarded, expanding to 5m restaurant partners) and Zapia—are expected to drive efficiency and revenue synergies (e.g., €5m/month logistics savings = ~€60m/year), while capital allocation continues with an open $5bn buyback program funded by non‑core disposals (~$2bn last year, ~$1bn Q1) and dividend receipts (Tencent, FY2027 €0.10).