Singular Bank | The company reported first-quarter results for fiscal year 2026 in line with expectations, confirming its targets for the year in terms of PRIME member growth and Cash EBITDA generation, although with a decline in free cash flow due to higher taxes and refinancing costs. The PRIME base increased by 205,000 members to 7.5 million, at the high end of the guidance, and the revenue margin grew by 8%, although adjusted for deferred revenue it fell by 6% due to the monthly fee trial.
Cash EBITDA remained in line with expectations due to the effect of deferred revenue, while adjusted EBITDA significantly exceeded estimates, leading to a much higher net profit despite higher taxes and a €6 million increase in financial costs.
Free cash flow was slightly below the previous year due to the impact of working capital, lower average basket size and refinancing. The company reiterated its targets of more than one million new PRIME members in 2026, growth of over 10% in 2027 and 2028, and Cash EBITDA of between €215 million and €220 million, although it cut its free cash flow forecast to around €105 million from the previous €120 million. This unexpected cut may be the cause of yesterday’s 8.3% drop in its share price.
