REG - Hostelworld Grp PLC - Preliminary results for the year ended 31 Dec 2025
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RNS Number : 1702Y Hostelworld Group PLC 26 March 2026
LEI:213800OC94PF2D675H41
Hostelworld Group plc ("Hostelworld" or the "Group" or the "Company")
Preliminary results for the year ended 31 December 2025
H2 2025 revenue acceleration continuing into 2026; FY 2025 adjusted EBITDA in
line with consensus
26 March 2026: Hostelworld is pleased to announce its preliminary results for
the year ended 31 December 2025.
Key highlights
Accelerating revenue and improved marketing efficiency
· Revenue Acceleration: Full-year Net Revenue of €93.8m (+2%
YoY), with a significant step-up in H2 where generated revenue rose 7%,
demonstrating the strengthening trajectory entering 2026.
· Improved Marketing Efficiency: H2 direct marketing costs fell to
45% of revenue, down from 48% in H2 2024, reflecting the growing benefit of
our social network.
· Adjusted EBITDA in line with consensus: Full-year adjusted EBITDA
of €19.9m, representing a margin of 21%.
Social Travel Platform expansion on track
· Social Network Engagement: Social community reached 3.4m members
with member messaging growing 81% YoY, social members book approximately twice
as frequently as non-members.
· Marketplace Monetisation: Successfully launched Elevate, driving
H2 effective commission rates to 16.7%, up from 15.4% in H2 2024, a proven and
growing revenue driver.
· Inventory Expansion: Launched budget accommodation via a
third-party inventory supplier, initially in 50 destinations and subsequently
expanded across 18,000 destinations, extending our offering well beyond
hostels, with broader platform and language rollout underway in 2026.
· Social Network Monetisation: Launched Social Passes in November
2025, creating a new subscription revenue stream and opening the platform to
travellers who do not book accommodation.
Financial highlights
· Generated revenue¹ rose 3% year-on-year to €93.8m (2024:
€91.5m).
· Full-year net bookings reached 7.0m, up 1% year-on-year (2024:
6.9m).
· Net Average Booking Value increased 2% year-on-year to €13.43
(2024: €13.21). The effective commission rate rose from 15.3% in 2024 to
16.2% in 2025, driven by Elevate.
· Net revenue totalled €93.8m, a 2% increase year-on-year (2024:
€92.0m), after accounting for deferred revenue and other ancillary income
streams.
· Direct marketing as a percentage of revenue¹ was 48% for the
full year (2024: 46%), with H2 improving to 45%.
· Operating costs² totalled €25.8m, stable at 27% of revenue¹,
reflecting continued investment in development resources.
· Adjusted EBITDA €19.9m, down 9% year-on-year (2024: €21.8m),
in line with market consensus.
· Adjusted profit after tax €15.0m, down 14% year-on-year (2024:
€17.4m).
· Adjusted EPS 11.91 cent, down 15% year-on-year (2024: 13.97
cent).
Disciplined capital allocation
· Closing cash position of €12.2m and net debt of €1.6m.
· Total dividend of 2.40 € cent per share. A final dividend of
1.58 € cent per share will be paid in May 2026, following an interim
dividend of 0.82 € cent per share paid in September 2025.
· The Group continues to execute its £5m share buy-back
programme, with £3.9m worth of shares purchased to 31 December 2025 and
will have substantially completed by end of Q1 2026.
(1) Gross revenue less cancellations
(2) Operating costs exclude paid marketing costs and credit card fees, and
below Adjusted EBITDA items relating to exceptional items, depreciation,
amortisation and share option charges
Gary Morrison, Chief Executive Officer, commented:
"2025 was a year of two distinct halves for Hostelworld. While the year began
against a softer trading backdrop, I am very pleased with the significant
momentum we built throughout the second half, delivering 7% revenue growth in
H2 and full-year adjusted EBITDA in line with market consensus.
This performance was underpinned by the disciplined delivery of the strategic
milestones we set out at our 2025 Capital Markets Day. A key highlight was the
successful launch of 'Elevate', our marketplace monetisation tool, which
increased our commission rate to 16.7% in H2. Alongside the acquisition of
OccasionGenius Inc, the launch of Social Passes, and the initial rollout of
budget accommodation (3PI) across 50 destinations, we have fundamentally
strengthened our platform's value proposition and made meaningful progress
towards our Vision: to be the world's leading Social Travel Platform.
The numbers behind our Social Travel Platform are significant. Messaging
volumes grew 81% year on year. Social Members book twice as frequently as
non-members. Every booking, every message and every connection adds to a
proprietary data set spanning 3.4-million-social members, 16 million chat
messages and 17 million social member bookings. This growing data set
underpins our AI powered matching and discovery capabilities and the planned
integration of OccasionGenius Inc in Q2 2026 will add a further proprietary
layer, comprising a structured, global dataset of events across 750 cities,
updated daily, deepening our data advantage further.
AI-powered recommendations are already improving how our members connect,
discover and book in our Apps, and as the network grows it generates richer
data, which drives better matching, which attracts more members. This
compounding dynamic contributed to a meaningful improvement in marketing
efficiency in the second half, with direct marketing costs falling to 45% of
revenue in H2 2025, down from 48% in H2 2024, and is accelerating our
transition from a transactional booking engine to a data-led social travel
platform uniquely positioned to benefit from the shift towards AI-powered
travel discovery."
Outlook
"The Group enters 2026 with an expanded platform, a resilient balance sheet,
and encouraging early momentum. Q1 trading has been positive, with the Group
on track to deliver ~3% bookings growth and >12% revenue growth for the
quarter, versus Q1 2025, supported by a commission rate of 17.7% and direct
marketing costs of less than 50% of revenue, all consistent with our CMD
guidance ranges.
The new capabilities delivered in 2025, budget accommodation, Social Passes
and the OccasionGenius Inc acquisition, will contribute to Q1 results and will
scale throughout the year. The Board remains confident in the Group's ability
to deliver low double-digit revenue growth in 2026 and 2027, in line with the
targets set out at the April 2025 Capital Markets Day, with an adjusted EBITDA
margin greater than 20% and adjusted free cash flow conversion of
approximately 70%.
The Group is mindful of the evolving situation in the Middle East and its
potential broader impact on global travel patterns and airline pricing. We are
seeing some softness in bookings to Asia and Oceania, offset by stronger
demand in Europe and North America, supported in part by the timing of Easter
this year. While it is too early to draw firm conclusions from these early
trends, to date there has been no material effect on revenues. Our current
outlook assumes no material impact on bookings and is subject to there being
no further escalation in the region which would further disrupt air travel. We
will continue to monitor the situation closely and update shareholders should
the position change.
Looking further ahead, the Group is well positioned to benefit from the
structural shift towards AI-powered travel discovery. Our proprietary social
dataset, spanning member profiles, chat messages, bookings and, from Q2 2026,
OccasionGenius Inc event data, provides a compounding data advantage that
strengthens our platform's relevance to the next generation of travellers. I
remain confident in our strategy and in the team's ability to execute our
roadmap and deliver sustainable, long-term value for our shareholders."
Analyst Presentation: A presentation will be made to analysts today at 9.00am,
a copy of which will be available on our Group website:
http://www.hostelworldgroup.com. If you would like to dial into the
presentation, join directly via webcast link provided below.
Webcast Link: https://brrmedia.news/HSW_FY (https://brrmedia.news/HSW_FY)
For further information please contact:
Hostelworld Group plc
Corporate@hostelworld.com (mailto:Corporate@hostelworld.com)
Gary Morrison, Chief Executive Officer
Caroline Sherry, Chief Financial Officer
David Brady, Head of Commercial Finance
Sodali &
Co
hostelworld@sodali.com
(mailto:hostelworld@sodali.com)
Eavan
Gannon
+44 (0) 20 7250 1446
About Hostelworld
Hostelworld Group plc is a ground-breaking social network-powered Online
Travel Agent ("OTA") with a clear mission to help travellers find people to
hang out with. Our mission is founded on the insight that most travellers go
hostelling to meet other people. Our platform connects travellers through a
range of social features, including city and hostel chat rooms, AI-powered
recommendations, and event discovery, facilitating real-world interactions
before, during and after their trips.
Hostelworld's vision is to be the world's leading social travel platform.
Since launching its social network in 2022, the Group has welcomed over 3.4
million social members, with engagement growing faster than stays booked.
Messaging volumes grew 81% year-on-year in 2025, and social members book
approximately twice as frequently as non-members, demonstrating the platform's
utility and its contribution to customer lifetime value.
Our proprietary dataset, spanning over 3.4 million social members, 16 million
chat messages and 17 million bookings since launch, strengthens our ability to
understand traveller behaviour, personalise experiences, and build network
effects that differentiate Hostelworld from generalist OTAs. This data asset,
which is exclusively ours and compounds in value as our community grows,
underpins our AI-powered matching and recommendation capabilities.
Founded in 1999 and headquartered in Ireland, Hostelworld is a recognised
brand with around 270 employees, hostel and accommodation partners across more
than 180 countries, and a growing suite of products including budget
accommodation and Social Passes that extend the platform well beyond the
traditional hostelling category.
Hostelworld has a long-standing commitment to improving the sustainability of
the hostelling industry. The Group has introduced a hostel-specific Staircase
to Sustainability framework, accredited by the Global Sustainable Tourism
Council, which helps partners adopt more sustainable practices while giving
travellers clearer information for decision-making. Customers can choose to
offset trip emissions, and for the fifth consecutive year the Group has
retained the 'Taking Climate Action' label from South Pole.
Disclaimer
This announcement contains forward‐looking statements. These statements
relate to the future prospects, developments and business strategies of
Hostelworld. Forward‐looking statements are identified by the use of such
terms as "believe", "could", "envisage", "estimate", "potential", "intend",
"may", "plan", "will" or variations or similar expressions, or the negative
thereof. Any forward‐looking statements contained in this announcement are
based on current expectations and are subject to risks and uncertainties that
could cause actual results to differ materially from those expressed or
implied by those statements. If one or more of these risks or uncertainties
materialize, or if underlying assumptions prove incorrect, Hostelworld's
actual results may vary materially from those expected, estimated or
projected. Any forward‐looking statements speak only as at the date of this
announcement. Except as required by law, Hostelworld undertakes no obligation
to publicly release any update or revisions to any forward‐looking
statements contained in this announcement to reflect any change in events,
conditions or circumstances on which any such statements are based after the
time they are made.
Chair's Statement: Carl G. Shepherd, Interim Chair
"2025 was a year of renewed momentum for Hostelworld - one in which we
strengthened our strategy, invested with discipline, and leveraged AI to
enhance personalisation and shape the future of social travel."
AI played an increasingly important role in 2025, enhancing personalisation
across our platform and helping travellers connect more meaningfully. From
AI-driven recommendations to smarter social interactions, these innovations
strengthened our community and improved the travel experience, while
positioning Hostelworld to harness the transformative potential of AI
responsibly in the years ahead.
It has been my privilege to serve as Interim Chair following Ulrik Bengtsson's
departure in September 2025, and to support the Company through a period of
Chair transition and strategic acceleration. On behalf of the Board, I would
like to extend our sincere thanks to Ulrik for his service and leadership as
Chair and as a Non‑Executive Director.
Having served on the Board as a Non-Executive Director since 2017, I have seen
Hostelworld navigate multiple phases of reinvention: from the Group's early
days as a public company, through the strategic reset led by Gary Morrison and
the management team , to the resilience demonstrated through the COVID‑19
pandemic, when the entire travel industry's priority shifted from progress to
survival. These experiences have left the organisation with a resilient,
start‑up mindset that remains one of its greatest strengths. This mindset
continues to drive our strategic execution, enabling us to build a global
community of adventurous travellers who value unique experiences and the
enduring human connections that define our brand.
Operating Environment and Strategic Context
Travel markets remained dynamic in 2025, with shifting customer expectations,
rapid digital evolution, and heightened demand for personalised and
community‑led experiences. Against this backdrop, Hostelworld continued to
execute its strategy with purpose and clarity.
As the Group emerged from COVID-19 and the industry experienced a rapid return
to normal trading, Hostelworld created an entirely new travel category: social
travel. This proposition is centred on helping travellers find people to hang
out with and finding unique experiences in their chosen destination, creating
a differentiated and defensible position in a market where connection,
experiences and community increasingly shape decision‑making. Throughout
2025, this strategy continued to prove its relevance and long‑term growth
potential.
At our Capital Markets Day market, management set out a clear roadmap to scale
our social strategy and accelerate growth by strengthening our platform,
expanding our addressable market, and broadening how travellers can connect
before and during their trips. Hostelworld's position at the convergence of
travel and shared experiences gives the Company a distinct role, particularly
for younger and solo travellers seeking connection and community while
travelling. During the year, the Company made strong progress against the
milestones set out in April, with performance in 2025 reinforcing the Board's
confidence in the strategic direction of the business.
Strategic Progress
· Strengthening Our Platform
During the year, we continued to strengthen the product experience,
prioritising earlier and more meaningful engagement with customers. Our
ongoing investment in the higher‑margin Hostelworld app is underpinned by
new features that allow travellers to connect before, during and after their
trips by using and sharing the Group's Travel Plans product, which launched in
March 2025, and delivering personalised, AI‑driven recommendations to
customers on people to meet and communities to join.
AI will clearly play a significant role in reshaping travel discovery and
planning, and the Board believes Hostelworld is well-positioned to benefit
from this evolution. Given the age profile of our core customers (18-34
years), who are at the forefront of AI adoption in everyday life, we will
continue to invest in responsible AI capabilities that enhance personalisation
while reinforcing the fundamental value of human connection.
· Expanding Our Market Reach
Two major product launches broadened our market access:
Social Passes, launched in November 2025, provides time-bound paid access to
our community and social features to travellers who may not have booked
accommodation through Hostelworld.
Third‑Party Inventory (3PI), launched initially across 50 destinations in
December 2025, provides customers with access to a wider accommodation
offering, enabling us to serve customers wherever they choose to travel, most
importantly in those destinations where there are few, if any, operating
hostels.
· Integrating OccasionGenius Inc.
The acquisition of OccasionGenius Inc., a US based event discovery platform,
will significantly enhance our social travel ecosystem by integrating real
time event discovery into the Hostelworld experience. This product will enrich
the social experience by enabling travellers to discover activities and
travel-worthy events that deepen engagement and foster connection beyond
accommodation. This initiative complements our social strategy and strengthens
our differentiated position in the travel market.
These initiatives and continued product innovation represent important
building blocks for the Company's next phase of growth. Our strategy is firmly
focused on enabling a global community of travellers to connect, supporting
sustainable growth and long‑term value creation for shareholders, as we
continue to pursue our ambition of becoming the world's leading social travel
platform.
Our People
Our people are at the heart of everything we do, and attracting and retaining
highly talented staff is essential to achieving the Company's goals. In 2025,
we achieved our highest ever employee engagement scores, reflecting a
motivated and committed team. We were also proud to be awarded the 'Investors
in Diversity Gold' accreditation, placing the Company among just 34
organisations in Ireland and making it the first within the travel sector to
achieve this recognition. This external recognition confirms that our people
strategy is aligned with best practice and reflects strong performance across
governance, inclusive leadership, workforce representation and employee
engagement.
Capital Structure and Shareholder Returns
We remain focused on delivering growth and long‑term sustainable value for
shareholders, underpinned by a strong balance sheet and disciplined capital
allocation. In 2025, we maintained a careful approach to capital allocation,
balancing reinvestment in the business with returns to shareholders.
During the year, we introduced a dividend and commenced a £5 million share
buyback programme, reflecting confidence in our strategy, operational
performance and growth outlook. These returns were balanced with continued
reinvestment in technology, product development, and strategic initiatives
such as the OccasionGenius Inc. acquisition. OccasionGenius Inc. was acquired
for an agreed purchase price of $12.0 million, fully funded by a new €10.3
million, 3-year term loan facility with Allied Irish Banks, plc, at an
interest rate of 2.0% over EURIBOR.
At the end of 2025, the Group had a closing cash position of €12.2 million
(2024: €8.2 million) and a net debt position of €1.6 million (2024: net
cash €2.0 million). We continue to hold an interest-free warehoused debt
facility with the Irish Revenue Commissioners. This liability will be paid in
full by April 2027, in accordance with the terms of the agreed payment plan.
Building on the Board's decision to reinstate a progressive dividend policy,
we declared an interim dividend of 0.82 € cent per share for the first half
of 2025. This interim dividend was paid to shareholders on the register as of
the applicable record date, 19 September 2025. Subject to shareholder approval
at the 2026 AGM, the Board intends to pay a final dividend of 1.58 € cent
per share, which will be paid in May 2026.
In June 2025, the Company announced the commencement of a £5 million share
buyback programme, authorised under the general share repurchase authority
granted by shareholders at the 2025 AGM on 7 May 2025. The programme is
designed to reduce the Company's share capital, with all repurchased shares
cancelled. As at year‑end 2025, the Company had repurchased and cancelled
3.1 million shares at a total cost of £3.9 million, with buyback activity
continuing in early 2026 in line with the programme parameters.
The Board is confident that our approach to capital allocation positions
Hostelworld for sustainable growth while maintaining flexibility to pursue
opportunities that strengthen our competitive advantage.
Sustainability
We recognise our responsibility to minimise environmental impact and promote
responsible travel, and the Board remains committed to ensuring key ESG
principles are fully reflected in how the business is run.
Our Staircase to Sustainability ("S2S") framework helps hostels demonstrate
and communicate their sustainability credentials to customers with clarity and
transparency. A fifth of our hostels now carry an S2S badge, which is
accredited by the Global Sustainable Tourism Council ("GSTC"). We continue to
champion responsible travel and remain the only OTA represented on the GSTC's
advisory group for Small and Medium Enterprises.
We also take responsibility for emissions arising from our own operations. In
line with Science Based Targets initiative criteria, the Company has
established reduction targets, referenced to the baseline years in which they
were first set. Scope 1 and Scope 2 emissions have reduced by 95% since the
establishment of a 2019 baseline. Scope 3 emissions, excluding hostel
emissions, have reduced by 37% since the establishment of a 2023 baseline.
For the fifth consecutive year we retained the South Pole 'Taking Climate
Action' label. This independent recognition reflects our continued commitment
to the robust measurement, management, and reduction of our carbon footprint.
Further details on our sustainability strategy, performance, and targets are
set out in the Sustainability Report to the Annual Report.
Board Changes
In September 2025, Ulrik Bengtsson stepped down as Non‑Executive Chair,
having previously announced his intention to do so in March 2025. I assumed
the role of Interim Chair while the Board continued its comprehensive process
to appoint a permanent successor, resulting in the appointment, on 30 January
2026, of Marieke Bax as a Non‑Executive Director and member of both the
Remuneration and Nomination Committees. Marieke will assume the roles of Chair
and Chair of the Nomination Committee with effect from 31 March 2026. We
extend a warm welcome to Marieke and look forward to benefiting from her
experience, insight and leadership, as we continue to execute our strategy and
build on the company's positive momentum. Full details of the Board changes
that occurred during the reporting period and in the period prior to the date
of signing of this annual report are set out in the Nomination Committee
Report within the Annual Report.
Conclusion
2025 saw Hostelworld strengthen its platform and scale its social travel
proposition, focusing on deeper customer engagement, broader product
relevance, and long‑term differentiation within the travel market. The
progress made this year reinforces the Board's confidence in the company's
long‑term direction and growth prospects.
As we look toward 2026, we will continue to invest with discipline to enhance
the business for the benefit of all stakeholders. While the full financial
contribution of our new features will build over time, they represent
meaningful platform enhancements and provide a strong foundation for future
growth. Our focus remains on building the world's leading social travel
platform and empowering a global community of travellers to connect, explore,
and create unforgettable memories together.
On behalf of the Board, I would like to extend my sincere thanks to Gary
Morrison and the management team for their leadership, and to all our
colleagues for their dedication and contribution during the year. I also
extend our appreciation to our partners, customers and shareholders for their
continued confidence and support.
Carl G. Shepherd
Interim Chair
25 March 2026
Chief Executive's Review: Gary Morrison
"In 2025, we delivered every commitment we made at our Capital Markets Day,
strengthening our social platform, launching new revenue streams, and
embedding AI across our business, laying the foundations for the next phase of
Hostelworld's growth."
2025 was a year of two distinct halves - a softer start followed by meaningful
acceleration, with H2 delivering 7% revenue growth and a significant
improvement in marketing efficiency. More importantly, it was the year in
which we laid the strategic foundations for our next phase of growth. We
delivered every milestone we committed to at our Capital Markets Day: the
rollout of Elevate, driving higher commission rates; the acquisition of
OccasionGenius Inc.; the launch of Social Passes; and the initial rollout of
budget accommodation. Underpinning all of this is a social platform that is
growing in both scale and intelligence, with member messaging up 81%
year-on-year, and AI-powered recommendations increasingly driving how our 3.4
million members connect, discover and book. Together, these advances are
moving Hostelworld from a transactional booking engine to a data-led social
travel platform, and they provide a strong foundation for the growth we are
targeting in 2026 and beyond.
Trading and Financial Performance
Overall, 2025 was a year of strategic execution and significant operational
progress, with a notably stronger performance in the second half of the year.
For the full year, we delivered net revenue of €93.8 million (2024: €92.0
million), representing a 2% year-over-year increase (2024: 1% decline). This
growth was underpinned by 7.0 million net bookings (2024: 6.9 million) and a
2% rise in Average Booking Value (ABV) to €13.43 (2024: €13.21). Our
full-year adjusted EBITDA reached €19.9 million (2024: €21.8 million), in
line with market consensus and reflecting an EBITDA margin of approximately
21% (2024: 24%).
Financial momentum accelerated in the second half of 2025, during which
generated revenue rose by 7% year-over-year. This strength was driven by
improved marketing efficiency, with direct marketing costs as a percentage of
generated revenue falling to 45% in the second half (down from 48% in H2
2024), and the successful rollout of our marketplace monetisation tool,
'Elevate'. This tool enhanced our effective commission rate, which increased
to 16.7% in the second half compared to 15.4% in the prior year period.
We closed the year with a resilient balance sheet, including a closing cash
position of €12.2 million (2024: €8.2 million) and net debt of €1.6
million (2024: net cash €2.0 million). This financial stability allowed us
to continue our £5 million share buy-back programme and reinstate the
progressive dividend, with an interim payment made in September 2025.
Executing our Growth Strategy
Throughout 2025, we continued to implement our distinctive social network
growth strategy in line with our mission to help travellers find people to
hang out with. Our social platform uses booking data to create hostel and
city-based chat rooms and enables private messaging in our iOS and Android
apps. Travellers with overlapping stay dates can connect seven days before
check-in and for one day after check-out, with city chats organised around
themes such as walking tours and food.
Building on this, we began extending social discovery into the pre-booking
phase, allowing travellers to connect earlier in their journey. Engagement
across the network accelerated meaningfully, driven in part by the first wave
of AI-powered recommendations that improve the relevance of the people,
conversations and content surfaced to each member. The more our members
interact, the richer the data we generate, and the better our recommendations
become, creating a self-reinforcing cycle that is increasingly visible in our
growth metrics.
· Social Membership: By December, the social community reached 3.4
million members.
· Engagement: Unique Chat Users grew 18% year-over-year, Messages
between members grew 81% year-over-year and the number of messages sent per
unique chat user grew 53% year-over-year.(( 1 (#_ftn1) ))
· Customer Value: These customers remain highly valuable, booking
approximately twice as often and being three times more likely to use the app
in the first 91 days than non-members.
· App Role(( 2 (#_ftn2) )): 63% of total net bednights were sold
via our app (2024: 60%).
Key social features shipped in 2025 included Travel Plans, launched in May,
which lets travellers share future trips and meet others before booking. Early
results show Travel Plans driving a measurable uplift in engagement and
bookings for cohorts who interacted with the feature. We also shipped the
first wave of AI-powered recommendations across social, improving how we
suggest people to meet and conversations to join.
In October 2025, we acquired OccasionGenius Inc. (OG), a US-based B2B events
discovery platform, for an agreed purchase price of $12.0 million. OG
accelerates our strategy by bringing a structured, global dataset of events
that we are integrating across the Hostelworld platform, leveraging AI-driven
curation to surface the most relevant experiences to each traveller, to
inspire travel and improve conversion. In November 2025, we introduced Social
Passes, providing time-bound paid access to our social network for non-booking
travellers, broadening our addressable market.
In December 2025, we launched the integration of Third-Party Inventory (3PI)
within our platform, initially focused on English language iOS app users
across a limited number of destinations. This extends our offer beyond hostels
so customers can stay with us even when hostel options are limited. Customers
who book this inventory are automatically connected to our social network in
their destination, accessing city chats and core social features. Early
indications are positive, with engagement and conversion strongest on searches
with fewer direct Hostelworld results.
Taken together, these developments mark a significant evolution in what
Hostelworld is. We enter 2026 not simply as a hostel OTA, but as a social
travel platform with three areas of revenues, a materially larger addressable
market, and a proprietary dataset spanning 3.4-million-social members, 16
million chat messages and 17 million bookings, that no competitor can
replicate. This data is the foundation of our AI strategy: as the network
grows, it generates richer signal, which powers better matching, which
attracts more members, compounding our advantage over time. It also positions
us well for the broader shift we are seeing in how travellers discover and
plan trips - increasingly through AI-powered tools that favour platforms with
deep, structured, social data over those that offer price comparison alone.
Expanding our Inventory Coverage
In 2025, we continued to grow our directly contracted hostel inventory.
Ongoing enhancements to our onboarding experience, combined with an expanded
activation team, drove a 28% year-over-year increase in activation rates,
enabling our directly contracted inventory to reach its highest level since
the pre-COVID period. Complementing this, the December launch of Third-Party
Inventory extends our reach beyond directly contracted hostels, giving
customers access to a broader range of accommodation options in destinations
where our hostel coverage is limited.
The Linkups platform continues to give hostels a dedicated way to promote
in-house events. In 2025, we focused on quality and scale, streamlining
creation and management on our platform. Engagement proved resilient, with
around 70,000 live Linkups per month in the second half of the year and strong
customer interest in hostel-hosted events. We sharpened the proposition by
concentrating on these hostel-hosted events, giving our partners a more
visible way to bring guests together.
Investing in our Platform
In the first half of 2025, we completed our core services modernisation
programme as planned. We now have a flexible microservices-based architecture
with application-level on-demand scaling and integrated off-the-shelf services
from our cloud provider. Overall, this multi-year effort has delivered
significant benefits, including improved monitoring, faster service speeds,
and reduced error rates.
Leveraging our cloud-native architecture enabled us to hit our 2025 goal of
transitioning our infrastructure to production infrastructure as code. This
has helped eliminate single points of failure and improved scalability while
reducing hosting costs. Our cloud-native technology stack also provides the
foundation for our AI capabilities, enabling the recommendation engine that
powers social matching, the curation layer that will surface OccasionGenius
Inc. events to members, and the operational intelligence tools we are
embedding across the business in 2026.
Progressing our ESG Agenda
During 2025 we continued to build on the foundations established through
collaboration with Bureau Veritas and the Global Sustainable Tourism Council
("GSTC"). With the Staircase to Sustainability ("S2S") framework fully
operational, our focus was promoting self-assessment to our hostel partners.
· Adoption: These efforts delivered a 24% year-over-year increase
in badge adoption, with 20% of all hostels now carrying an S2S badge.
· Commercial Performance: Badged hostels now over-index on
conversion and regularly over-index on price per night.
· Sector Leadership: Hostelworld remains the only OTA represented
on the GSTC advisory group for Small and Medium Enterprises.
We continue to focus on reducing our own environmental impact, working towards
reduction targets set in line with the Corporate Net Zero Standard. I am
pleased to report that for the fifth consecutive year we retained the South
Pole 'Taking Climate Action' label.
Employees, Partners, and Communities
2025 marked a significant step in our journey to become a truly Remote First
organisation. We invested in impactful events like Connections Week,
reinforcing our sense of belonging. These efforts resonated with our people,
as reflected in our highest-ever engagement scores, placing us ahead of our
peer group.
For our hostel partners, we prioritised face-to-face engagement, hosting major
conferences in Tokyo (May) and Seville (September). In total, the Global
Markets team visited 50 locations during 2025 to gather direct feedback to
inform future product and platform development.
Our commitment to inclusion was recognised with Investors in Diversity Gold
accreditation, making Hostelworld the first travel company in Ireland to
achieve this standard. We also deepened our partnership with Teen-Turn,
providing mentorship for young women in STEM and reinforcing our commitment to
building a more diverse pipeline of future talent.
Summary
2025 demonstrated both the resilience of our business model and the focused
execution of our team. While the year began against a softer backdrop, the
second half delivered 7% revenue growth, significantly improved marketing
efficiency, and full-year adjusted EBITDA of €19.9 million in line with
market consensus.
Equally important was what we delivered. Every strategic milestone we
committed to at our Capital Markets Day was delivered: Elevate, OccasionGenius
Inc., Social Passes and budget accommodation; and together they have
transformed the platform. We now have three areas of revenue where there was
one, a materially larger addressable market, and a proprietary social dataset
that grows more valuable as our community expands. AI-powered recommendations
are already strengthening engagement and will increasingly underpin how we
match travellers, surface events and drive bookings.
We enter 2026 with an expanded set of capabilities, a resilient balance sheet,
and a clear roadmap. I thank our employees for their commitment and our
shareholders for their continued support.
Gary Morrison
Chief Executive Officer
25 March 2026
Chief Financial Officer's Review: Caroline Sherry
"2025 marked a year of execution against our strategy, combining revenue
growth, targeted investment and a renewed focus on shareholder returns."
Financial Highlights
Net Bookings Generated Revenue* Net Revenue
2025 7.0m, 2024 6.9m 2025 €93.8m, 2024 €91.5m 2025 €93.8m, 2024 €92.0m
Net Average Booking Value ("ABV")* Direct Marketing as a % of Generated Revenue* Administration Expenses
2025 €13.43, 2024 €13.21 2025 48%, 2024 46% 2025 €75.9m, 2024 €71.8m
Profit for the Year Basic EPS Dividend per Share*
2025 €7.0m, 2024 €9.1m 2025 5.63 cent, 2024 7.28 cent 2025 2.40 cent, 2024 Nil
Adjusted EBITDA* Adjusted EBITDA Margin*
2025 €19.9m, 2024 €21.8m 2025 21%, 2024 24%
Adjusted Profit after Tax* Adjusted EPS*
2025 €15.0m, 2024 €17.4m 2025 11.91 cent, 2024 13.97 cent
Cash Net (Debt)/Cash* Cash Conversion*
2025 €12.2m, 2024 €8.2m 2025 (€1.6m), 2024 €2.0m 2025 51%, 2024 66%
*The Group uses Alternative Performance Measures ("APMs") which are non-IFRS
measures to monitor the performance of its operations and of the Group as a
whole. APM definitions and rationale are provided in Appendix 1 of the Annual
Report.
2025 was a year of resilient financial performance, characterised by strong
ABV expansion, disciplined cost control, and a strengthened balance sheet,
despite heightened marketing inflation and investment in strategic
acquisitions. Generated revenue increased by 3% to €93.8 million (2024:
€91.5 million), supported by a 2% increase in ABV and continued momentum in
marketplace monetisation through our Elevate and Featured Listings tools.
Adjusted EBITDA of €19.9 million (2024: €21.8 million) reflects the impact
of inflationary pressures in performance marketing and higher strategic
investment in Product & Technology capability, though second half
financial performance demonstrated meaningful recovery. The Group remains
well-capitalised, with €12.2 million of cash (2024: €8.2 million),
supporting both our ongoing investment agenda and progressive capital returns
policy.
The acquisition of OccasionGenius Inc. introduces strategically accretive
capabilities across content, event discovery and social product integration. A
strong post year-end trading start, with ABV up double-digit and direct margin
trending ahead of prior year, provides confidence in delivering our FY26
growth objectives.
Revenue
Generated revenue, defined as gross revenue net of cancellations, increased by
3% year-on-year to €93.8 million (2024: €91.5 million). This growth
reflects a 2% improvement in ABV to €13.43 (2024: €13.21) and a modest 1%
increase in net bookings to 7.0 million (2024: 6.9 million).
The uplift in ABV was driven primarily by the continued rollout and
optimisation of "Elevate", our marketplace monetisation tool, which lifted the
effective commission rate from 15.3% in 2024 to 16.2% in 2025.
Net revenue increased by 2% to €93.8 million (2024: €92.0 million),
reflecting deferred revenue movements and ancillary income streams. Net
revenue includes €0.2 million recognised from OccasionGenius Inc., following
its acquisition in October 2025.
Operating Profit
Administrative expenses increased to €75.9 million (2024: €71.8 million),
representing a year-on-year increase of €4.1 million, with the movement
driven by higher direct marketing costs, investment in strategic growth
initiatives and acquisition-related exceptional costs.
Direct marketing costs increased by €2.8 million to €45.3 million (2024:
€42.5 million), reflecting ongoing cost inflation across performance
marketing channels. Direct marketing expenditure represented 48% of generated
revenue (2024: 46%).
The Group incurred exceptional costs of €1.3 million (2024: €nil),
relating primarily to professional fees incurred in connection with the
October 2025 acquisition of OccasionGenius Inc.
Wages and salaries increased marginally to €19.1 million (2024: €19.0
million), with higher average headcount (260 employees in 2025 compared with
228 in 2024), largely offset by lower discretionary compensation.
Cost discipline and robust procurement controls ensured that other operating
costs were maintained at 27% of net revenue, consistent with the prior year.
Group operating profit for the year was €8.4 million (2024: €11.3
million), a decrease of €2.9 million year-on-year. Adjusted EBITDA totalled
€19.9 million (2024: €21.8 million), with an adjusted EBITDA margin of 21%
(2024: 24%), broadly reflecting the cost dynamics noted above.
Exceptional Items
Exceptional items are disclosed separately where their size or nature is
considered to be material and relevant to an understanding of the Group's
underlying performance. In the current period, the Group recognised €1.3
million of acquisition and integration costs relating to the acquisition of
OccasionGenius Inc. in October 2025. These costs relate primarily to
professional fees incurred as part of the transaction.
No exceptional items were recognised in the prior period.
Share-Based Payment
The Group recognised a share-based payment expense of €1.5 million during
the year (2024: €1.8 million), relating to awards granted under the Group's
Restricted Share Unit ("RSU") and Long-Term Incentive Plan ("LTIP")
arrangements.
On 24 March 2025, the Group granted 2,093,088 LTIP awards to executives and
selected key employees. All LTIP and RSU awards are granted as nil-cost
options. During the year, 2,287,540 shares were issued on 1 May 2025 following
vesting of the RSU 2022 grant. Further detail is set out in the Remuneration
Committee Report in the Annual Report.
Earnings per Share
Basic earnings per share for the Group amounted to 5.63 € cent (2024: 7.28
€ cent), and adjusted earnings per share amounted to 11.91 € cent per
share (2024: 13.97 € cent per share).
Adjusted EPS is an APM of the Group, a key metric guided to the market and a
key element of Executive Director and senior management remuneration.
Current and Deferred Taxation
The Group's current corporation tax charge was €0.3 million (2024: €0.3
million), relating to profits earned in international markets, where tax
losses arising in Ireland cannot be utilised.
The deferred tax charge for the year was €1.1 million (2024: €1.7
million), reflecting utilisation of a deferred tax asset (2025: €13.7
million, 2024: €13.8 million) arising from prior year trading tax losses and
interest relief. This deferred tax asset is being released to the income
statement in line with the utilisation of the underlying tax losses and
interest relief, has no expiry date and may be carried forward indefinitely.
In connection with the acquisition of OccasionGenius Inc., the Group has
recognised a deferred tax liability of €1.2 million and a deferred tax asset
of €1.0 million on acquisition. Deferred tax assets are recognised only to
the extent that it is probable that future taxable profits will be available
against which the losses and credits can be utilised.
Acquisition of OccasionGenius Inc.
In October 2025, the Group acquired OccasionGenius Inc., a US-based event
discovery platform for an agreed purchase price of $12.0 million (€10.3
million). The acquisition introduces strategic synergies across social
engagement and product discoverability. An intangible asset of €9.4 million
has been recognised relating to technology assets of €6.2 million, customer
contracts €0.5 million, and trade name €0.6 million, and a goodwill
balance of €2.1 million.
Net Debt and Financing
At the balance sheet date, the Group reported a net debt position of €1.6
million (2024: net cash of €2.0 million). Net debt comprised cash of €12.2
million (2024: €8.2 million), a new €10.3 million AIB term loan drawn to
fund the OG acquisition and €3.5 million of warehoused tax liabilities
(2024: €6.2 million). The Group retains access to an undrawn €2.5 million
overdraft facility with AIB. In the prior year, the Group fully repaid its
existing AIB facilities, which at that time, included a €10.0 million term
loan and a €7.5 million revolving credit facility.
Cash conversion for the year reduced to 51% (2024: 66%), reflecting an
increase in working capital requirements.
Debt Warehoused
The Group availed of the Irish Revenue Commissioners' tax warehousing scheme,
under which €9.4 million of Irish employer taxes were deferred for the
period from February 2020 to March 2022. As at 31 December 2025, the balance
remaining under the scheme was €3.5 million (31 December 2024: €6.2
million).
A structured repayment arrangement with the Irish Revenue Commissioners
commenced in May 2024, comprising an initial payment of 15%, followed by
monthly instalments over a three-year period to April 2027. The Group
continues to comply with, and closely monitor, all applicable Revenue
guidelines governing the scheme.
Deferred Revenue
Deferred revenue at year end amounted to €3.2 million (2024: €3.5
million). Of this balance, €3.1 million (2024: €3.2 million) relates to
bookings made under the Group's free cancellation policy, where customers
retain the right to cancel and receive a refund. The remaining balance relates
to deferred revenue associated with the Featured Listing and Roamies products.
The deferred revenue balance is expected to unwind during 2026.
Development Labour
Hostelworld continues to prioritise innovation and invest in its platform and
capabilities. Capitalised development labour increased to €7.6 million
(2024: €5.5 million), supporting delivery of strategic initiatives,
including the launch of the Travel Plans pre-booking feature, the introduction
of social passes as an initial step in monetising the social platform, the
completion of a multi-year modernisation programme for our core technology
infrastructure and the integration of third-party inventory.
Development labour capitalised during the year comprised €5.5 million (2024:
€3.7 million) of internal staff costs and €2.1 million (2024: €1.8
million) relating to external contractors engaged for specialist technical
expertise.
Impact of New Accounting Standards
New accounting standards and amendments adopted during 2025 did not have a
material impact on the Group's financial position or performance.
The Group is currently assessing the impact of IFRS 18 Presentation and
Disclosure in Financial Statements, which is effective for annual periods
beginning on or after 1 January 2027 and will be applied retrospectively. IFRS
18 will introduce changes to the presentation and disaggregation of income and
expenses and will require non-IFRS KPIs (alternative performance measures) to
be included within the audited financial statements. The Group welcomes the
introduction of IFRS 18, which is expected to enhance the clarity, consistency
and transparency of financial reporting for investors, and will continue to
monitor its impact as implementation approaches.
Principle Risks and Uncertainties
The Board of Hostelworld Group plc holds overall responsibility for risk and
sets the Group risk appetite including determining the extent of risk that is
tolerable in pursuit of its strategic objectives. The Board, together with the
Audit Committee conduct a detailed formal half-year and full-year review of
the risk register, including emerging risks and the mitigating actions that
are in place.
Emerging risks are identified from areas of uncertainty, which may not have a
significant impact on the business currently but may have the potential to
adversely affect the Group in the future. No emerging risks warranting
disclosure have been identified. However, the risk of artificial intelligence,
identified as an emerging risk in 2024, remains and is considered to be at an
increased level of risk. This reflects the wide-ranging impacts that it has
across cyber and data security, competition, third party management, and
platform evolution and innovation, amongst others. The pace of change in
respect to artificial intelligence requires careful observation,
consideration, and management, with a particular focus recently on the impact
of generative AI tools such as search assistants, OS-level copilots and
super-apps which can impact how customers plan their trips.
The direction of the risk of the impact of uncontrollable events on the Group
has also increased reflecting heightened geopolitical tensions, including
recent Middle East developments impacting travel routes and demand, alongside
broader macroeconomic and climate-related volatility affecting global travel
patterns. Macroeconomic conditions are also considered an increased risk this
year reflecting the rapidly evolving and difficult to predict macroeconomic
environment. External demand factors and travel patterns can have substantial
impacts on the Group and require diligent efforts to manage.
Strategic and External Risk Technological, Cyber and Data Risk Financial Risk Operational and Regulatory Risk
Any external risks outside of the Group's control impacting our business. The systems we use to power our business, and the data we hold. Integrity of reporting and viability of the Group. The processes and people we use to power the Hostelworld model.
Increased level of risk · Macroeconomic Conditions · Artificial Intelligence
· Impact of Uncontrollable Events
Unchanged level of risk · Competition · Data Security · Tax · People
· Execution of Strategy · Cyber Security · Brand and Reputation
· Platform Evolution and Innovation · Third-party Reliance
· Marketing Optimisation · Climate Change and Sustainability
· Regulation
· Business Continuity
Investor Relations
The Group maintains a proactive and transparent investor relations programme,
designed to ensure regular, open dialogue with shareholders and the wider
investment community. Annual and interim results, together with quarterly
trading updates, are supported by detailed presentations, webcasts and
conference calls, providing stakeholders with timely insight into the Group's
performance and outlook.
In April 2025, Hostelworld hosted a Capital Markets Day to provide investors
and analysts with a detailed update on the Group's growth strategy, financial
priorities, and medium-term outlook. The event included presentations from the
executive team on strategic initiatives, product development, sustainability
targets, and operational performance. It also offered an opportunity for
direct engagement and Q&A with investors, reinforcing transparency, the
Group's long-term value proposition, and its commitment to sustainable growth.
In May 2025, the Company held its Annual General Meeting ("AGM"), with
facilities in place for shareholders to submit questions to the Board in
advance. Full details of the AGM and voting outcomes were published on the
Company's website.
Throughout the year, members of the management team engaged in a series of
investor roadshows and conferences, meeting with existing and prospective
investors and analysts. These engagements provided valuable opportunities for
focused discussion and direct feedback, which the Group considers carefully to
ensure its investor communications remain relevant, clear and aligned with
market expectations.
Share buyback
On 19 June 2025, the Group announced a £5 million share buyback programme and
by year-end had repurchased and subsequently cancelled 3,061,809 ordinary
shares for a total cost of £3.9 million. The programme is expected to be
completed on or before the 2026 Annual General Meeting.
Dividend
The Board reinstated a progressive dividend policy targeting a payout ratio of
20%-40% of adjusted profit after tax, in line with the capital allocation
framework outlined at the Capital Markets Day on 29 April 2025. The Board is
recommending a final dividend of 1.58 € cent per share, bringing the total
dividend for the year to 2.40 € cent per share. Subject to approval by
shareholders at the Annual General Meeting on 6 May 2026, the final dividend
will be paid on 12 May 2026 to shareholders on the register at the close of
business on 17 April 2026. The shares will be marked ex‑dividend on 16 April
2026.
Caroline Sherry
Chief Financial Officer
25 March 2026
Consolidated Income Statement for the Year Ended 31 December 2025
2025 Except 2025 2024
Total Total
Notes €m €m €m €m
Revenue 2 93.8 - 93.8 92.0
Operating expenses 3 (84.1) (1.3) (85.4) (80.9)
Other income - - - 1.3
Impairment of investment in associate - - - (1.2)
Share of results of associate - - - 0.1
Operating profit 9.7 (1.3) 8.4 11.3
Finance income 0.1 - 0.1 0.1
Finance costs (0.1) - (0.1) (0.3)
Profit before tax 9.7 (1.3) 8.4 11.1
Tax charge 6 (1.4) - (1.4) (2.0)
Profit for the year 8.3 (1.3) 7.0 9.1
Basic earnings per share (euro cent) 5.63 7.28
Diluted earnings per share (euro cent) 5.44 7.01
Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2025
2025 2024
€m €m
Profit for the year 7.0 9.1
Items that may be reclassified subsequently to profit or loss:
Nil - -
Total comprehensive income for the year 7.0 9.1
Consolidated Statement of Financial Position as at 31 December 2025
2025 2024
Notes €m €m
Non-current assets
Intangible assets 71.5 63.5
Property, plant and equipment 1.2 0.5
Deferred tax assets 6 13.7 13.8
86.4 77.8
Current assets
Trade and other receivables 9 4.2 4.5
Corporation tax 0.1 -
Cash and cash equivalents 12.2 8.2
16.5 12.7
Total assets 102.9 90.5
Issued capital and reserves
Share capital and share premium 10 1.2 1.3
Share premium 10 14.4 14.4
Other reserves 2.4 3.0
Retained earnings 55.1 51.4
Total equity 73.1 70.1
Non-current liabilities
Non-current debt
Debt warehoused 11 0.8 3.5
Borrowings 13 9.2 -
Lease liabilities 0.5 -
Deferred tax liability 8 1.2 -
11.7 3.5
Current liabilities
Current debt
Debt warehoused 11 2.7 2.7
Borrowings 13 1.1 -
Trade and other payables
Trade payables 12 3.7 4.1
Deferred revenue 12 3.2 3.5
Accruals and other payables 12 6.7 6.0
Lease liabilities 0.4 0.3
Corporation tax 6 0.3 0.3
18.1 16.9
Total liabilities 29.8 20.4
Total equity and liabilities 102.9 90.5
The financial statements were approved by the Board of Directors and
authorised for issue on 25 March 2026 and signed on its behalf by:
Gary Morrison Caroline Sherry
Chief Executive Officer Chief Financial Officer
Hostelworld Group plc registration number 9818705 (England and Wales)
Consolidated Statement of Changes in Equity for the Year Ended 31 December 2025
Share Capital Share Premium Treasury Shares Retained Earnings Other Reserves Total
€m €m €m €m €m €m
Balance at 01 January 2024 1.3 14.4 - 40.6 2.9 59.2
Issue of shares - - - - - -
Total comprehensive income - - - 9.1 - 9.1
Credit to equity for equity settled share-based payments - - - - 1.8 1.8
Transfer of exercise, vesting or expiry of warrants - - - 1.7 (1.7) -
Transfer of exercised and expired share-based awards
Balance at 31 December 2024 1.3 14.4 - 51.4 3.0 70.1
- - - 7.0 - 7.0
Total comprehensive income
Credit to equity for equity settled share- based payments - - - - 1.5 1.5
Transfer of exercised and expired share-based awards - - - 2.2 (2.2) -
Purchase of own shares - share buyback - - (4.5) - - (4.5)
Cancellation of own shares - share buyback (0.1) - 4.5 (4.5) 0.1 -
Dividend paid - - - (1.0) - (1.0)
Balance at 31 December 2025 1.2 14.4 - 55.1 2.4 73.1
Consolidated Statement of Cash Flows for the Year Ended 31 December 2025
Notes 2025 2024
€m €m
Cash flows from operating activities
Profit for the year 7.0 9.1
Tax charge 1.4 2.0
Profit before tax 8.4 11.1
Amortisation and depreciation 9.5 9.1
Share of results of associate - (0.1)
Impairment of investment in associate - 1.2
Non-cash movements in provisions - (1.3)
Financial income (0.1) (0.1)
Finance expense 0.1 0.3
Employee equity settled share-based payment expense 1.5 1.8
Changes in working capital items:
Decrease in trade and other payables (0.9) (0.2)
Decrease/(Increase) in trade and other receivables 0.3 (1.2)
Cash generated from operations 18.8 20.6
Interest paid (including lease interest) - (0.3)
Interest received 0.1 0.1
Income tax paid (0.3) (0.1)
Net cash generated from operating activities 18.6 20.3
Cash flows from investing activities
Acquisition / development of intangible assets (7.6) (5.5)
Payment for acquisition of subsidiary, net of cash acquired 8 (8.3) -
Purchases of property, plant and equipment (0.2) (0.1)
Net cash used in investing activities (16.1) (5.6)
Net cash from/(used in) financing activities
Drawdown of borrowings 13 10.3 -
Transaction costs relating to borrowings 13 (0.1) -
Repayment of borrowings 13 - (10.3)
Repayment of warehoused debt 11 (2.7) (3.2)
Purchase of own shares - share buyback 10 (4.5) -
Dividend paid 14 (1.0) -
Repayments of obligations under lease liabilities (0.5) (0.5)
Net cash from/(used in) financing activities 1.5 (14.0)
4.0 0.7
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year 8.2 7.5
Cash and cash equivalents at the end of the year 12.2 8.2
Notes to the Consolidated Financial Statements for the Year Ended 31 December 2025
1. Accounting Policies
General Information
Hostelworld Group plc is a public limited company domiciled in Ireland. The
Company's ordinary shares are listed on Euronext Dublin and the London Stock
Exchange. The Company was incorporated in the United Kingdom on 9 October 2015
under the Companies Act 2006 and is registered in England and Wales. The
Company's registered office is One Chamberlain Square, Birmingham B3 3AX,
United Kingdom. Hostelworld operate an online travel platform providing
technology, marketing and data processing services that facilitate hostel and
other accommodation bookings globally.
The consolidated financial statements for the year ended 31 December 2025 were
approved and authorised for issue by the Board of Directors on 25 March 2026.
The statutory financial statements for the year ended 31 December 2025 will be
filed with the Registrar of Companies following approval by shareholders at
the Company's Annual General Meeting on 6 May 2026.
New accounting standards and amendments effective in 2025 did not have a
material impact on the Group.
The auditor, KPMG, issued an unqualified audit opinion on the consolidated
financial statements for the year ended 31 December 2025. The report did not
include any emphasis of matter paragraph and did not contain any statement
under section 498(2) or 498(3) of the Companies Act 2006.
The financial information presented herein, comprising the consolidated income
statement, consolidated statement of comprehensive income, consolidated
statement of financial position, consolidated statement of changes in equity,
consolidated statement of cash flows and related notes, has been extracted
from the consolidated financial statements of the Group for the year ended 31
December 2025. This financial information does not constitute statutory
accounts within the meaning of sections 435(1) and 435(2) of the Companies Act
2006 and does not contain sufficient information to comply with the disclosure
requirements of International Financial Reporting Standards.
Going Concern
The Directors have assessed the Group's ability to continue as a going
concern, taking account of the Board-approved 2026 budget and two-year
outlook, together with management projections for a further two years. The
assessment considered the Group's strategy, risk register, historical trading
performance, current and forecast booking volumes, and potential downside
scenarios, including sensitivity to reductions in revenue, increases in
operating costs, and other external factors.
Forecast cash flows for at least 12 months from the date of approval of these
financial statements demonstrate that the Group has sufficient resources to
meet its obligations as they fall due. Key considerations included ensuring
that the Group had the ability to repay its three year bank debt facility and
remained in compliance with the banking covenants attached to the facility,
the agreed repayment plan with the Irish Revenue Commissioners for the
remaining warehoused facility (monthly instalments through April 2027),
current and projected cash balances and mitigating actions available to the
Group should trading volumes not materialise including the flexibility of the
Group to fully control its largest cost base direct marketing.
The Directors considered downside scenarios, including a material reduction in
booking volumes; geopolitical uncertainties, including ongoing conflicts in
Ukraine and the Middle East, and climate-related risks that may affect revenue
or operating costs. For each scenario, mitigating actions - such as adjusting
marketing spend, deferring non-essential investments, and optimising
operational efficiency were assessed. These measures provide additional
headroom in the Group's cash flow projections. The Group is particularly
mindful of the potential impact of the ongoing conflict in the Middle East on
traveller confidence and booking patterns. The impact to date has not been of
a magnitude that would cause any effects greater than the rigorous scenarios
applied in our going concern assessment. Management will continue to closely
monitor the situation and apply any mitigating actions as required.
After making appropriate enquiries and considering the factors above, the
Directors have a reasonable expectation that the Group and Company have
adequate resources to continue operating for the foreseeable future, being at
least 12 months from the date of approval of the financial statements.
Accordingly, the financial statements have been prepared on a going concern
basis.
2. Revenue and Segmental Analysis
The Group is managed as a single business unit providing software and data
processing services that facilitate hostel, hotel, and other accommodation
bookings worldwide.
Operating segments are determined and presented based on the information
provided to the Chief Executive Officer, who is the Company's Chief Operating
Decision Maker ("CODM"). In making resource allocation decisions, the CODM
evaluates booking numbers and average booking values ("ABVs"). Net ABV is
defined in Appendix 1 - Alternative Performance Measures. The objective of
these decisions is to maximise consolidated financial results. The CODM
assesses business performance based on consolidated adjusted profit after tax,
which excludes certain income and expense items that are unusual due to their
size or incidence, such as impairment of investments in associates or other
one-off costs, in the context of the Group's ongoing operations.
The acquisition of OccasionGenius Inc. did not result in a new reportable
segment in the current year, as its revenue, profit, and assets are not
material relative to the Group as a whole.
All revenue is generated from external customers and is spread across many
customers, with no single customer being individually significant. The Group's
primary revenue-generating assets are its software and data processing
services, which are directly attributable to the reportable segment. As the
Group is managed as a single business unit, all other assets and liabilities
are also allocated to this single segment. There have been no changes in the
basis of segmentation or in the measurement of segment profit or loss during
the year.
Revenue by country is determined by the location of the hostel or property.
Revenue arising within Ireland, the country of domicile, amounted to €1.9
million (2024: €1.8 million). No individual country accounts for 10% or more
of total revenue in any year; accordingly, revenue by country is not
disclosed. The Group's top five countries accounted for 34% of total revenue
in 2025 (2024: 34%), including Australia, Thailand, the USA, and key European
destinations. Revenue by continent is presented as follows:
2025 2024
€m €m
Europe 49.9 51.6
Americas 16.9 17.0
Asia, Africa and Oceania 27.0 23.4
Total 93.8 92.0
Disaggregation of revenue is presented as follows:
2025 2024
€m €m
Technology and data processing fees 92.2 90.0
Provision of event data services (OG) 0.2 -
Advertising revenue and ancillary services 1.4 2.0
Total 93.8 92.0
In the year ended 31 December 2025, the Group generated 98% (2024: 98%) of its
revenues from the technology and data processing fees that it charged to
accommodation providers. As at 31 December 2025, €3.5 million of revenue
relating to free cancellation bookings has been deferred (2024: €3.2
million).
The Group's non-current assets are disaggregated below. The Group has a small
amount of non-current assets in other locations including United Kingdom,
Thailand and China which are deemed immaterial to disclose individually.
2025 2024
€m €m
Total non-current assets 86.4 77.8
Analysed as:
Ireland 75.9 77.7
USA 10.4 -
Portugal 0.1 0.1
3. Operating Expenses
Profit for the year has been arrived at after charging the following operating
costs:
2025 2024
Notes €m €m
Marketing expenses - direct 45.3 42.5
Marketing expenses - brand 1.0 0.8
Staff costs 19.1 19.0
Credit card and other processing fees 2.8 2.9
Platform operating costs 3.5 3.2
External contractor costs 2.3 1.7
Exceptional items 4 1.3 -
FX loss - 0.1
Other administrative costs 0.6 1.6
Total administrative expenses 75.9 71.8
Depreciation of tangible fixed assets 0.5 0.6
Amortisation of intangible fixed assets 9.0 8.5
Total 85.4 80.9
Other administrative costs are net of external contractor costs capitalised of
€1.7 million (2024: €1.2 million) and include rent and rates, legal and
professional and training and recruitment.
Included within operating expenses is a total credit of €0.8 million (2024:
€0.2 million) of which €0.5 million (2024: €0.2 million) is in relation
to a research and development ("R&D") tax credit claimed in respect of
projects completed in 2024, 2023 and 2022. The remaining €0.3 million (2024:
€nil) relates to an Enterprise Ireland grant received in 2025 for the
Group's platform modernisation project. This has been recognised in line with
the Group's accounting policy where grants receivable are recognised in the
period in which there is reasonable assurance that Group have complied with
the conditions attaching to the grant.
4. Exceptional Items
2025 2024
€m €m
Acquisition and integration costs 1.3 -
Total 1.3 -
Exceptional items in the current year relate to acquisition and integration
costs incurred following the acquisition of OccasionGenius Inc., a US-based
B2B event discovery platform in October 2025. These costs primarily comprise
of acquisition costs relating to professional and advisory fees of €1.2m and
integration costs of €0.1m incurred to date.
5. Staff Costs
The average monthly number of people employed (including Executive Directors)
was as follows:
2025 2024
Average number of persons employed:
Sales and enabling 103 94
Technical 157 134
Total 260 228
The aggregate remuneration costs of these employees is analysed as follows:
2025 2024
€m €m
Staff costs comprise:
Wages and salaries 19.1 17.7
Social security costs 2.7 2.2
Pensions costs 0.6 0.5
Other benefits 0.7 0.5
Share option charge 1.5 1.8
Capitalised development labour (5.5) (3.7)
Total 19.1 19.0
6. Tax
Corporation tax
2025 2024
€m €m
Current year charge 0.3 0.3
Origination and reversal of temporary differences 1.1 1.7
Total tax charge for the year 1.4 2.0
Corporation tax is calculated at 12.5% (2024: 12.5%) of the taxable profit for
the year. The Irish 12.5% corporation tax rate has been used as this is the
rate at which most of the Group's profits are taxed. Taxation for other
jurisdictions is calculated at the rates prevailing in the respective
jurisdictions. The corporation tax charge that arises relates primarily to
international operations where tax losses from our Irish operations cannot be
utilised.
Deferred tax
The following are the major deferred taxation assets and liabilities
recognised by the Group and movements thereon during the current and prior
reporting year.
Intangible Assets Losses and Interest Relief Total Deferred Tax Asset Intangible assets acquired in a business combination Total Deferred Tax Liability
€m €m €m €m €m
At 01 January 2024 10.0 5.5 15.5 - -
Charge to income statement (1.3) (0.4) (1.7) - -
At 01 January 2024 8.7 5.1 13.8 - -
- 1.0 1.0 (1.2) (1.2)
Initial recognition on business combination
Charge to income statement (0.8) (0.3) (1.1) - -
At 31 December 2025 7.9 5.8 13.7 (1.2) (1.2)
Deferred tax assets primarily relate to the carry forward of unused tax losses
and capital allowances. In connection with the acquisition of OccasionGenius
Inc., the Group recognised a deferred tax asset of €1.0 million (2024:
€nil) in respect of historic US trading losses. These losses have no expiry
date.
7. Intangible assets - development labour
Additions to capitalised development costs during the year comprised internal
staff costs of €5.5 million (2024: €3.7 million) and other internally
generated additions of €2.1 million (2024: €1.8 million).
Development costs have been capitalised in accordance with IAS 38 Intangible
Assets and, for dividend purposes, are not treated as a realised loss. The
carrying value of capitalised development costs at 31 December 2025 was
€12.4 million (2024: €9.7 million).
The useful life of development costs varies by project, ranging from 2-5
years. An annual impairment review is performed to ensure that the expected
economic benefits of each project are being realised. Steps involved within
the impairment review include consideration of whether the project remains
aligned to the Group's strategic objectives and roadmaps, assessment of actual
performance of the related product or functionality compared to original
forecasts, review of key performance indicators (e.g. booking volumes,
conversion rates, customer engagement metrics or cost efficiencies achieved,
as applicable), consideration of technological obsolescence, platform changes
or replacement initiatives and assessment of any changes in the competitive,
regulatory or economic environment that may adversely affect expected future
benefits. Where indicators of impairment are identified, the recoverable
amount is determined as the higher of value in use and fair value less costs
of disposal. No impairment indicators were identified in the current or the
prior year, and no impairment losses were recognised.
8. Business Combinations
On 20 October 2025, the Group acquired 100% of the issued share capital of
OccasionGenius Inc., a US-based B2B event discovery platform. The acquisition
was completed for total cash consideration of $12.0 million (€10.3 million),
subsequently reduced to $11.7 million (€10.1 million) following customary
post-closing adjustments.
Included in the share purchase agreement is a holdback of €0.8 million in
respect of potential claims or post-closing liabilities. This amount is
payable in two equal instalments on the first and second anniversaries of the
acquisition date, subject to the absence of unresolved claims. The holdback is
fixed in nature and contains no contingent or performance-related features.
The amount has been classified as purchase consideration. The notional value
at which it has been recognised materially approximates its fair value.
In addition, the share purchase agreement includes an employment retention
arrangement with the Chief Executive Officer amounting to €0.7 million. This
amount is payable in two equal instalments on the first and second
anniversaries of the acquisition date, subject to the CEO's continued
employment and intended to support ongoing business stability. This amount has
not been classified as purchase consideration and is recognised as an expense
in the Consolidated Income Statement over the two-year service period, in
accordance with IFRS.
€m
Agreed purchase price 10.3
Employer retention arrangement (0.7)
Closing Adjustments (0.3)
Total purchase consideration 9.3
Goodwill arising on acquisition reflects the value of the assembled workforce
and the expected synergies from increased growth in social members, bookings
and social network revenues, together with the anticipated expansion of
OccasionGenius Inc.'s existing revenues beyond its current customer base. The
goodwill recognised is not expected to be deductible for tax purposes.
€m
Cash paid 8.5
Add: provision for holdback of proceeds 0.8
Total purchase consideration 9.3
Less: fair value of net assets acquired (7.2)
Goodwill 2.1
The table below presents the provisional fair values of the identifiable
assets acquired and liabilities assumed at the acquisition date.
€m
Intangible assets - Technology 6.2
Intangible assets - Customer contracts 0.5
Intangible assets - Trade name 0.6
Cash and cash equivalents 0.2
Trade and other receivables 0.1
Deferred tax asset 1.0
Accruals and other payables (0.2)
Deferred tax liability (1.2)
Fair value of net assets acquired 7.2
The deferred tax liability recognised on acquisition arises from taxable
temporary differences associated with the identifiable intangible assets
recognised as part of the purchase price allocation. A blended tax rate of 17%
has been applied, reflecting the expected geographic mix of future taxable
profits, which are anticipated to be subject to corporate income tax at 25% in
the United States and 12.5% in Ireland.
From the acquisition date to the reporting date, OccasionGenius Inc.
contributed revenue of €0.2 million and a loss of €0.1m. Had the
acquisition occurred on 01 January 2025, Group revenue and Group profit for
the year ended 31 December 2025 would have been €94.8 million and €7.3
million, respectively.
9. Trade and Other Receivables
2025 2024
€m €m
Amounts falling due within one year
Trade receivables 0.5 1.2
Prepayments and other receivables 2.1 1.8
Value added tax 1.6 1.5
Total 4.2 4.5
The carrying value of trade and other receivables is considered to approximate
their fair value due to their short-term nature. Trade receivables are
non-interest bearing, with an average collection period of 4 days (2024: 4
days), and primarily relate to amounts due from the Group's payment processing
agents, payable within 5 days.
Value added tax is an amount recoverable from the Irish Revenue Commissioners,
relating to vat recoverable on services paid to vendors.
10. Share Capital
No of shares of €0.01 each Ordinary shares Share premium Total
(thousands) €m €m €m
At 31 December 2024 124,990 1.3 14.4 15.7
Share issue - RSU 2,288 - - -
Cancellation of own shares - share buyback (3,062) (0.1) - (0.1)
At 31 December 2025 124,216 1.2 14.4 15.6
The Group has one class of ordinary shares, which carry no right to fixed
income. All shares are allotted, called up, fully paid, and listed on the
London Stock Exchange and Euronext Dublin. Share capital is represented by the
share capital of the parent company, Hostelworld Group plc.
During the year, 2,287,540 shares were issued on 1 May 2025 to satisfy RSU
2022 awards at €0.01 per share, with a total value of €23k.
On 19 June 2025, the Group announced a share buyback programme in line with
its capital allocation framework. By 31 December 2025, 3,061,809 shares had
been repurchased at a cost of €4.5 million and cancelled in accordance with
the programme. The total nominal value of ordinary shares repurchased and
subsequently cancelled is €31k.
11. Warehoused Payroll Taxes
2025 2024
€m €m
Opening balance 6.2 9.6
Repayments made (2.7) (3.2)
Finance costs (unwind)/costs - (0.2)
Closing balance 3.5 6.2
The Group participated in the Irish Revenue tax warehousing scheme, deferring
employer taxes arising from February 2021 to March 2022. The total warehoused
liability at 31 December 2025 was €3.5 million (2024: €6.2 million). An
initial 15% payment was made in May 2024, with subsequent monthly payments of
€0.2 million over a three-year period to April 2027.
2025 2024
€m €m
Non-current liability 0.8 3.5
Current liability 2.7 2.7
Total 3.5 6.2
12. Trade and Other Payables
Notes 2025 2024
€m €m
Trade payables 3.7 4.1
Accruals and other payables 5.0 5.2
Customer provisions 0.1 0.1
Holdback provision 8 0.9 -
Deferred revenue 3.2 3.5
Payroll taxes (non-warehoused) 0.7 0.7
Total 13.6 13.6
The Group's average credit period for trade payables is 18 days (2024: 21
days). The Directors consider the carrying amount of trade and other payables
to approximate their fair value. At 31 December 2025, deferred revenue
comprised €3.1 million for free cancellation bookings (2024: €3.2
million), €0.1 million for featured listings (2024: €0.2 million), and
€nil for Roamies (2024: €0.1 million).
13. Borrowings
2025 2024
€m €m
Opening balance - 10.2
Drawdown 10.3 -
Repayments - (10.3)
Transaction costs (0.1) -
Finance costs 0.1 0.4
Finance interest paid - (0.3)
Total 10.3 -
On 20 October 2025, the Group entered a three-year facility with AIB,
comprising a €10.3 million term loan drawn to fund the acquisition of
OccasionGenius Inc. The term loan bears interest at a fixed margin of 2.2%
over EURIBOR. Transaction costs of €0.1 million incurred in connection with
the debt facility have been capitalised and are being amortised over the term
of the facility.
The new debt facility has two covenants included.
1. Cashflow Cover - defined as the ratio of Cashflow to Debt Service
for the relevant period. This ratio must not be less than 1.2:1.
2. Adjusted Leverage - defined as the ratio of Net Debt as at the last
day of the relevant period to Adjusted EBITDA for that period. This ratio must
not exceed 3.0:1.
The initial covenant testing period is the twelve months ending 30 June 2026.
Thereafter, the covenants are tested on a rolling twelve-month basis, with
each testing date falling on or around the last day of each financial
half-year. The Group monitors compliance with these covenants on an ongoing
basis through its forecasting and budgeting processes. At the reporting date,
the Directors are satisfied that the Group is expected to remain in compliance
with its covenant requirements for the foreseeable future.
The Group continues to maintain an undrawn €2.5 million overdraft facility
with AIB, which is retained for liquidity and operational flexibility.
14. Dividends
Amounts recognised as distributions to equity holders in the financial year:
2025 2024
€m €m
Interim 2025 dividend of 0.82 € cent per share (paid 19 September 2025) 1.0 -
Total 1.0 -
In accordance with the Group's dividend policy, on 25 March 2026, the
Directors approved a final dividend of 1.58 € cent per ordinary share. This
brings the total dividend for the year ended 31 December 2025 (2024: nil) to
2.4 € cent per ordinary share.
The proposed final dividend amounts to approximately €3.0 million and is
subject to shareholder approval at the Company's Annual General Meeting. If
approved, the final dividend will be paid on 12 May 2026 to shareholders on
the register at the close of business on 17 April 2026. The shares will be
marked ex‑dividend on 16 April 2026.
All future cash dividend payments will be subject to the Group continuing to
generate a profit after tax, the Group's cash position, any restrictions in
the Group's banking facilities and compliance with Companies Act 2006
requirements regarding ensuring sufficiency of distributable reserves at the
time of paying the dividend.
15. Events After the Balance Sheet Date
On 25 March 2026, the Directors approved a final dividend of 1.58 € cent per
ordinary share. This brings the total dividend for the year ended 31 December
2025 (2024: nil) to 2.40 € cent per ordinary share. The proposed final
dividend amounts to approximately €3.0 million and is subject to shareholder
approval at the Company's Annual General Meeting. In accordance with IAS 10
Events after the Reporting Period, the proposed final dividend has not been
recognised as a liability in the consolidated financial statements at 31
December 2025.
There have been no other significant events, outside the ordinary course of
business, affecting the Company since 31 December 2025.
Appendix 1: Glossary of Alternative Performance Measures
In addition to IFRS measures, the Group uses certain alternative performance
measures ("APMs") to provide additional insight into underlying operational
performance and cash generation. APMs are not a substitute for, or superior
to, IFRS measures, but they help management and investors monitor the Group's
performance over time.
APM Closest IFRS Measure Definition/Purpose Reconciliation/
Calculation
Adjusted EBITDA Operating profit Earnings before interest, tax, depreciation, amortisation, share-based payment See note (a)
expenses, other income, impairment of associate, results of associates, and
items classified by management as exceptional. Adjusted EBITDA excludes
non-trading items to provide a clearer view of baseline operating
profitability.
Adjusted EBITDA Margin No direct equivalent Adjusted EBITDA as a percentage of net revenue, providing insight into the See note (a)
Group's ability to convert revenue into operating profit by removing items
which do not impact underlying trading performance.
Adjusted Profit after Tax ("PAT") Profit after tax Profit excluding exceptional items, amortisation of acquired intangibles, See note (b)
share-based payment expenses, deferred tax, impairment of associate, and other
income, as these items can have a large impact on the reported result in the
year and can make underlying trends difficult to interpret. Used by management
for performance assessment and to determine dividend capacity.
Adjusted Earnings per Share ("EPS") Basic earnings per share Adjusted PAT divided by the weighted average number of shares. Reflects See note (b)
underlying profitability per above explanation. Adjusted EPS is a metric
included in the Executive Director and Senior Management remuneration for the
current and prior year LTIP plan being struck.
Dividend per Share No direct equivalent Total dividends declared in respect of the financial year divided by the See note (c)
weighted average number of ordinary shares in issue during the year (excluding
shares held in treasury, where applicable). The Board uses Dividend per Share
to communicate returns to shareholders.
Adjusted Free Cashflow ("FCF") Net cash from operating activities Cash generated from operations adjusted for capital expenditure, intangible See note (d)
investments, lease payments, exceptional cash items, and other items impacting
cash flow which do not relate to core trading activity.
Measure used by group management and external readers, including investors, to
assess the amount of cash the Group is generating from its trade and assess
cash available for debt repayment, dividends, share repurchases, and
acquisitions.
Adjusted FCF Conversion No direct equivalent Adjusted free cash flow divided by Adjusted EBITDA. As above, adjusted free See note (d)
cash flow conversion is a measure which group management and external readers
including investors can use to measure the Group's ability to convert Adjusted
EBITDA into free cash flow.
Net (Debt)/Cash Total borrowings and cash and cash equivalents Total debt (including warehoused and external borrowings) less cash and cash See note (e)
equivalents. Used to monitor leverage and liquidity which assists in
management's assessment of financial stability and strategic decision making.
Market Capitalisation No direct equivalent Number of shares in issue multiplied by share price. Market capitalisation is See note (f)
the markets assessment of the value of a Company. Market capitalisation is
used by the Group's management as a factor in considering if there is any
impairment to the Group or Company Balance Sheet.
Net Average Booking Value ("ABV") No direct equivalent Net ABV represents the average value paid by a customer for a net booking See note (g)
calculated as generated revenue divided by total net bookings.
Direct Marketing Costs as a % of Generated Revenue No direct equivalent Direct marketing costs as a percentage of generated revenue is an APM which See note (h)
looks at the efficiency of marketing spend relative to revenue from booking.
This APM is used by the Group's management to identify how efficient the
Groups marketing channels are.
Net Margin Operating profit Net margin is an APM which is calculated by deducting direct costs from See note (i)
generated revenue. Direct costs are comprised of direct marketing costs and
credit card and other processing fees. Provides insight into trading
profitability before overheads and other operating expenses.
See note (b)
Adjusted Earnings per Share ("EPS")
Basic earnings per share
Adjusted PAT divided by the weighted average number of shares. Reflects
underlying profitability per above explanation. Adjusted EPS is a metric
included in the Executive Director and Senior Management remuneration for the
current and prior year LTIP plan being struck.
See note (b)
Dividend per Share
No direct equivalent
Total dividends declared in respect of the financial year divided by the
weighted average number of ordinary shares in issue during the year (excluding
shares held in treasury, where applicable). The Board uses Dividend per Share
to communicate returns to shareholders.
See note (c)
Adjusted Free Cashflow ("FCF")
Net cash from operating activities
Cash generated from operations adjusted for capital expenditure, intangible
investments, lease payments, exceptional cash items, and other items impacting
cash flow which do not relate to core trading activity.
Measure used by group management and external readers, including investors, to
assess the amount of cash the Group is generating from its trade and assess
cash available for debt repayment, dividends, share repurchases, and
acquisitions.
See note (d)
Adjusted FCF Conversion
No direct equivalent
Adjusted free cash flow divided by Adjusted EBITDA. As above, adjusted free
cash flow conversion is a measure which group management and external readers
including investors can use to measure the Group's ability to convert Adjusted
EBITDA into free cash flow.
See note (d)
Net (Debt)/Cash
Total borrowings and cash and cash equivalents
Total debt (including warehoused and external borrowings) less cash and cash
equivalents. Used to monitor leverage and liquidity which assists in
management's assessment of financial stability and strategic decision making.
See note (e)
Market Capitalisation
No direct equivalent
Number of shares in issue multiplied by share price. Market capitalisation is
the markets assessment of the value of a Company. Market capitalisation is
used by the Group's management as a factor in considering if there is any
impairment to the Group or Company Balance Sheet.
See note (f)
Net Average Booking Value ("ABV")
No direct equivalent
Net ABV represents the average value paid by a customer for a net booking
calculated as generated revenue divided by total net bookings.
See note (g)
Direct Marketing Costs as a % of Generated Revenue
No direct equivalent
Direct marketing costs as a percentage of generated revenue is an APM which
looks at the efficiency of marketing spend relative to revenue from booking.
This APM is used by the Group's management to identify how efficient the
Groups marketing channels are.
See note (h)
Net Margin
Operating profit
Net margin is an APM which is calculated by deducting direct costs from
generated revenue. Direct costs are comprised of direct marketing costs and
credit card and other processing fees. Provides insight into trading
profitability before overheads and other operating expenses.
See note (i)
Note on rounding: Figures are rounded to the nearest €m, and small differences may occur in calculations; sufficient detail is provided for transparency.
Note (a) Adjusted EBITDA and Adjusted EBITDA Margin
2025 2024
€'m €'m
Operating profit 8.4 11.3
Depreciation 0.5 0.6
Amortisation of development costs 4.9 3.6
Amortisation of acquired intangible assets 4.1 4.9
Tax credit (0.8) (0.2)
Other income - (1.3)
Impairment of investment in associate - 1.2
Share of result of associate - (0.1)
Exceptional items 1.3 -
Share based payment expense 1.5 1.8
Adjusted EBITDA 19.9 21.8
2025 2024
€'m €'m
Adjusted EBITDA 19.9 21.8
Net revenue 93.8 92.0
Adjusted EBITDA margin % 21% 24%
Note (b) Adjusted PAT and Adjusted EPS
Reconciliation between Profit for the year and Adjusted PAT:
2025 2024
€'m €'m
Profit for the year 7.0 9.1
Exceptional items 1.3 -
Amortisation of acquired intangible assets 4.1 4.9
Share based payment expense 1.5 1.8
Deferred tax 1.1 1.7
Other income - (1.3)
Impairment of investment in associate - 1.2
Adjusted PAT 15.0 17.4
2025 2024
Adjusted profit after tax (€'m) 15.0 17.4
Weighted average shares in issue ('m) (note 10 to financial statements) 125.4 124.5
Adjusted EPS (cent) 11.91 13.97
Note (c) Dividend per Share
2025 2024
€'m €'m
Interim Dividend (€'m) 1.0 -
Final Dividend (€'m) 2.0 -
Total dividend (€'m) 3.0 -
Weighted average shares in issue ('m) 125.4 -
Dividend per share (cent) 2.40 -
Note (d) Adjusted FCF and Adjusted FCF Conversion
2025 2024
€'m €'m
Opening Cash 8.2 7.5
Closing Cash 12.2 8.2
Net increase in cash and cash equivalents 4.0 0.7
Add back
Repayment of debt warehoused 2.7 3.2
Repayment of borrowings - 10.3
Proceeds from borrowings (10.3) -
Transaction costs capitalised 0.1 -
Repurchase of own shares - share buyback 4.5
Payment for acquisition of subsidiary 8.3 -
Exceptional items 0.8 0.2
Adjusted FCF 10.1 14.4
Prior year exceptional items relate to 2023 exceptional costs paid in 2024,
accounted for as a creditor liability at 31 December 2023.
2025 2024
€'m €'m
Adjusted FCF 10.1 14.4
Adjusted EBITDA 19.9 21.8
Adjusted FCF conversion % 51% 66%
Reconciliation between Adjusted FCF and Net Cash from Operating Activities for the Year:
2025 2024
€'000 €'000
Adjusted FCF 10.1 14.4
Exceptional items (0.8) (0.2)
Lease liability payments 0.5 0.5
Acquisition/capitalisation of intangible assets 7.6 5.5
Purchases of property, plant and equipment 0.2 0.1
Dividend paid 1.0 -
Net cash from operating activities 18.6 20.3
Note (e) Net (Debt)/Cash
2025 2024
€'m €'m
Cash and cash equivalents 12.2 8.2
Borrowings (10.3) -
Debt warehoused (3.5) (6.2)
Net (debt)/cash (1.6) 2.0
Note (f) Market Capitalisation
2025 2024
Share price (€ cent per share) 1.43 1.63
Ordinary shares in issue ('m) 124.2 125.0
Market capitalisation (€'m) 177.9 203.5
Note (g) Net ABV and Generated Revenue
Reconciliation from Generated Revenue to Net Revenue for the year:
2025 2024
€'m €'m
Gross revenue 106.8 105.0
Cancellations (13.0) (13.5)
Generated revenue 93.8 91.5
Deferred revenue movement (0.3) 0.2
Refunds, chargebacks and cost of discounts and vouchers (1.3) (1.5)
Other revenue 0.2 0.3
Advertising income (featured listings) 1.4 2.0
Volume incentive rebates - (0.5)
Net revenue 93.8 92.0
2025 2024
Generated revenue (€'m) 93.8 91.5
Net bookings (#'m) 7.0 6.9
Net ABV generated (€) 13.43 13.21
Note (h) Direct Marketing Costs as a % of Generated Revenue
2025 2024
€'m €'m
Direct marketing costs 45.3 42.5
Generated revenue 93.8 91.5
Direct marketing costs as a % of generated revenue 48% 46%
Note (i) Net Margin
2025 2024
€'m €'m
Net revenue 93.8 92.0
Direct marketing costs (45.3) (42.5)
Credit card and other processing fees (2.8) (2.9)
Net margin 45.7 46.6
Reconciliation between Net Margin and Operating Profit:
2025 2024
€'m €'m
Net margin 45.7 46.6
Other operating costs (37.3) (35.5)
Other income - 1.3
Share of result of associate - 0.1
Impairment in investment of associate - (1.2)
Operating profit 8.4 11.3
1 Year-over-year growth rates calculated using the average of the 12
individual monthly growth rates through 2025
2 An App bednight is defined by a user opening the App themselves (either
organically or via a push notification) and completing the booking and
bednight(s) on the App.
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