Hostelworld Group (HSW) Q3 2026 TU earnings summary

Q3 performance

• Net revenue €27.9m, up 7% YoY; net average transaction value €15.3, up 11%.

• Effective commission rate reached a record 17.8%, versus 16.3% in Q3 2025, supported by Elevate adoption.

• Net transactions fell 2% YoY to 1.6m; the Middle East conflict reduced volume growth by an estimated 4 percentage points, with long-haul routes most affected.

• Adjusted EBITDA was €8.3m versus €7.9m; margin was 30% versus 31%, reflecting continued product and technology investment.

Year-to-date performance

• YTD net revenue €80.1m, up 10% YoY; net transactions were flat at 5.4m, while net average transaction value rose 11% to €15.1.

• YTD effective commission rate rose to 17.7% from 16.0%; adjusted EBITDA increased to €16.5m from €15.4m, at a 21% margin.

• Direct marketing costs were 49% of generated revenue YTD versus 50%; full-year costs are expected within guidance range.

• Closing cash was €14.6m and net cash €3.0m; an interim dividend of 0.83 euro cent per share was paid after a £5m share buyback in April.

Platform and strategic initiatives

• App bookings represented 64% of net bed-nights, versus 62% in Q3 2025; chat users grew 37% and messages sent 77% YoY.

• Social-member net transactions grew 10% YoY and reached almost two-thirds of total transactions; non-member transactions declined.

• Third-party budget accommodation and Social Passes increased their contribution to net transactions; OccasionGenius event discovery was integrated across the platform in Q3.

• Paid social investment supported member growth; AI features power traveller matching, trending conversations, review summaries and property-related answers.