Hostelworld Group Reports Strong First-Half Financial Performance Amid Travel Disruptions
Hostelworld Group reported a strong first-half performance in 2026, with net revenue rising by 12% to €52.2 million and adjusted EBITDA increasing by 11% to €8.2 million. The growth was driven primarily by higher revenue per transaction—up 11% year-over-year—which offset only a modest increase in transactions (1%) due to travel disruptions caused by the Middle East conflict, particularly affecting Asia and Oceania markets. The company improved its cash generation, returning to a net cash position of €2.5 million with free-cash-flow conversion at 74%. Hostelworld also executed a £5 million share buyback, paid a final dividend, and declared an interim dividend as part of shareholder returns initiatives. The firm's social travel strategy showed positive results in member engagement and new customer acquisition through budget accommodations and the Social Pass offering. Management reiterated its outlook for low-double-digit revenue growth in 2026, with adjusted EBITDA margins expected to remain above 16% and free-cash-flow conversion exceeding 70%. The company attributed improved efficiency to higher commission rates via its Elevate product and better marketing cost management.
Topics: cash flow EBITDA financial performance revenue growth share buybacks