Trading Statement

Reaffirming FY adjusted EBITDA guidance in line with expectations.

Hostelworld is pleased to provide an update on trading for the nine months up to 30 September 2025 ("YTD").

Key highlights:

Q3 performance demonstrates positive momentum:

• Q3 Generated Revenue¹ grew 5% year-on-year (YoY), driven by a 2% increase in bookings and a 3% rise in Average Booking Value (ABV).
• Performance was boosted by an improved effective commission rate, which increased to 16.3% from 15.2% in Q3 2024, primarily due to the successful adoption of our 'Elevate' marketplace tool.
• Direct marketing costs as a percentage of revenue² totalled 47% in Q3, down from 49% in Q3 2024 and 51% in the first half of 2025.

Year-to-date summary and outlook:

• YTD Net Revenue² was €72.6m. This is broadly flat YoY, reflecting 1% growth in net bookings offset by lower deferred revenue benefits compared to the prior year.
• YTD Adjusted EBITDA for the period was €15.4m with a 21% margin (YTD 2024: €17.8m and 25%), reflecting planned investments in growth initiatives and the timing of deferred revenue.
• The Group maintains a robust balance sheet with a closing cash position of €10.9m and net cash of €6.6m. Share buy-back programme progressing, with £2.2m shares purchased YTD. Progressive dividend reinstated and interim dividend of 0.82€ cent per share paid on 19th September 2025.
• We reiterate our full-year 2025 adjusted EBITDA guidance, which remains in line with the current market consensus³ of €19.8m.
• Generated revenue is gross revenue less cancellations and excludes impact of deferred revenue
• Company compiled market consensus FY 2025 adjusted EBITDA is €19.8M as of 09 October 2025.

Gary Morrison, Group Chief Executive Officer, commented:

"Our third-quarter results show that the strategic plan we announced at our Capital Markets Day is delivering positive results.

Revenue grew by 5% YoY. This was supported by a rise in our commission rate to 16.3%, up from 15.2% this time last year, mainly due to our 'Elevate' programme. This increased commission rate boosted our Average Booking Value (ABV) by 3% YoY, which successfully offset the impact of a weaker US dollar and the continued popularity of low-cost destinations. At the same time, our marketing efficiency improved, with costs falling from 49% of revenue in Q3'24 to 47% in Q3'25.

Looking ahead, we are on schedule to launch our social network monetisation and the provision of budget accommodation initiatives in the fourth quarter. The timely delivery of these foundational initiatives is a key step towards delivering our growth strategy, as set out at our Capital Markets Day."