lastminute.com (SWX:LMN) Q3 Results Revive Profit As Margin Strain Eases

lastminute.com entered this Q3 2026 report with a bruised share chart, having fallen sharply over the past three months, yet the stock closed today at CHF9.82 after a short-term bounce. The headline is simple: the online travel group put real profit on the table again, with Q3 net income of €7.3m and basic earnings per share of €0.69, while keeping revenue close to €100m. Price action is reacting to recent volatility. The earnings story is about something quieter and more persistent: the biggest margin and profit squeeze finally starting to ease.

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Q3 2026 Earnings Summary

• Revenue (Q3 2026 vs Q3 2025): €99.1 million vs €101.3 million (slight decline year on year)
• Net Income (Q3 2026 vs Q3 2025): €7.3 million vs €1.9 million (strong improvement in profitability)
• Basic EPS (Q3 2026 vs Q3 2025): €0.69 vs €0.18 (sharp uplift per share)
• Trailing 12-month Net Profit Margin (2026 vs 2025): 2.4% vs 2.8% (modest compression in overall profitability)

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Evaluating lastminute.com’s Margin-Rebuild Bull Case

The bullish story hinges on lastminute.com owning more of each trip and squeezing more profit from each booking, not just chasing volume.

"The shift from being a flight distribution platform to a full-service holiday provider that aims to own more of the customer experience, from booking through the trip itself, gives the company greater control over the value chain and add on services, which can support revenue per booking and adjusted EBITDA."

Q3 results show partial delivery on that ambition. Package revenue softened, yet gross profit still edged up and adjusted EBITDA grew 7%, helped by lower variable and fixed costs. Hotels grew strongly and mix shifted toward higher value categories, which fits the full-service narrative. Cash generation looks weaker, with 12-month free cash flow pulled down by working capital and restructuring, so the business is not yet through the full transition.

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lastminute.com: Complexity Risk Still Hanging Over Margins

The bearish worry is that lastminute.com’s push into packages adds complexity faster than it adds profit.

"The shift from being mainly a flight distributor to owning more of the package holiday experience increases operational complexity across technology, customer service and supplier management. If execution falls short or AI investments do not deliver expected efficiencies, cost inflation could outpace gross travel value growth and pressure net margins and earnings."

Q3 shows that fear only partly playing out. Adjusted EBITDA and gross profit improved while both variable and fixed costs fell. That points to execution progress. The missed milestone sits in cash. Free cash flow over 12 months moved to a €38.3m outflow, with working capital and one offs still biting hard.

Hunt Fresh Dislocations In Plain Sight

lastminute.com recently showed how quickly sentiment can change when profitability improves. The real opportunity is identifying stocks that could be undervalued before the market reassesses them.

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