Hostelworld Group (HSW) Q3 2025 TU earnings summary

Executive summary

• Q3 revenue grew 5% year-over-year, driven by a 2% increase in bookings and a 3% rise in Average Booking Value (ABV).

• Improved commission rate to 16.3% from 15.2% in Q3 2024, mainly due to the 'Elevate' marketplace tool.

• Direct marketing costs as a percentage of revenue decreased to 47% in Q3, down from 49% in Q3 2024 and 51% in H1 2025.

Financial highlights

• Year-to-date net revenue was €72.6m, broadly flat year-over-year, with 1% growth in net bookings offset by lower deferred revenue benefits.

• Year-to-date adjusted EBITDA was €15.4m with a 21% margin, compared to €17.8m and 25% in YTD 2024, reflecting planned growth investments and deferred revenue timing.

• Closing cash position at €10.9m and net cash of €6.6m; £2.2m in shares repurchased year-to-date.

• Interim dividend of 0.82 € cent per share paid on 19th September 2025.

Outlook and guidance

• Full-year 2025 adjusted EBITDA guidance reaffirmed at €19.8m, in line with market consensus.

• On track to launch social network monetisation and budget accommodation initiatives in Q4.