Hostelworld Group (HSW) Q4 2025 TU earnings summary

Executive summary

• H2 2025 saw improved momentum with revenue growth and enhanced marketing efficiency.

• Strategic milestones achieved include the acquisition of OccasionGenius and the launch of Social Passes and budget accommodation options.

• Management expresses confidence in long-term value creation due to new capabilities and platform enhancements.

Financial highlights

• H2 generated revenue increased by 7% year-over-year, driven by a 2% rise in bookings and a 5% increase in average booking value.

• Effective commission rate rose to 16.7% in H2 2025 from 15.4% in H2 2024.

• Direct marketing costs as a percentage of revenue fell to 45% in H2 from 48% in H2 2024.

• Full-year net revenue grew 2% to €93.8m, with adjusted EBITDA expected at €19.9m (21% margin, down from 24% in 2024).

• Closing cash position at €12.2m and net debt at €1.6m.

Outlook and guidance

• Management remains confident that new features and acquisitions will support long-term growth.

• Further expansion of budget accommodation and broader rollout of new features planned for 2026.