Interim Results 2026

Hostelworld Group PLC

29 July 2026

 

LEI:213800OC94PF2D675H41

Hostelworld Group plc ("Hostelworld" or the "Group" or the "Company")

Interim Results 2026

H1 2026 double-digit revenue and margin growth, FY 2026 guidance reiterated

Hostelworld is pleased to announce its interim results for the six months ended 30 June 2026 ("H1 2026"). 

Key highlights

Accelerating revenue and improved marketing efficiency

• Revenue acceleration: Net revenue¹ of €52.2m (+12% YoY), with net average transaction value of €14.9 (+11% YoY) and net transactions² of 3.8m (+1% YoY). Approximately 3% negative impact to volume due to the conflict in the Middle East.
• Marketplace monetisation: Effective commission rate increased to 17.7% in H1 2026 (H1 2025: 15.8%; H2 2025: 16.7%), demonstrating the continued demand for Elevate, our marketplace monetisation tool.
• Improved marketing efficiency: Direct marketing costs as a percentage of revenue³ totalled 49% in H1 2026, down from 51% in H1 2025, supporting a net margin growth to €22.9m (+16% YoY).
• Strong EBITDA returns: H1 2026 adj. EBITDA €8.2m (+11% YoY), adj. EBITDA margin 16% (flat YoY).

 From a single-product Online Travel Agent ("OTA") to a compounding, multi-stream social platform

• A structurally larger market: three revenue streams today - core hostel commission, budget accommodation and Social Passes Ð where a year ago there was only one.
• New engines adding customers at low cost: budget accommodation, Social Passes and Events are bringing in new customers at low-to-zero marketing cost and are accretive to the core hostel business.
• Our growth and margin engine: social members now lead on transactions, revenue and margin, and are our most efficient source of growth - so growing this base lifts both the pace and the profitability of growth.
• Investing behind our long-term growth drivers: attracting more social members, deepening engagement through AI-powered matching and discovery, and scaling budget accommodation and Social Passes - keeping us on track to deliver our targets as outlined in April 2025 Capital Markets Day (CMD).

Financial highlights

• Generated revenue³ of €56.1m (+13% YoY) with 3.8m net transactions² (+1% YoY) and a net average transaction value of €14.9 (+11% YoY).
• Net margin of €22.9m (+16% YoY), a combination of double-digit revenue growth and improved marketing efficiency.
• Operating costs⁴ totalled €14.7m, 28% of revenue (H1 2025: 27%), due to increased investment in development resources as outlined at our CMD.
• Adjusted EBITDA of €8.2m with deferred revenue of €3.2m (H1 2025 Adj. EBITDA of €7.4m, deferred revenue of €3.1m)
• Adjusted profit after tax of €4.9m (H1 2025: €5.1m)
• Adjusted EPS of 3.95 cent, -2% year on year (H1 2025: 4.02 cent).

Disciplined capital allocation

• 30 June 2026 cash balance of €15.0m (31 December 2025: €12.2m) and a net cash position of €2.5m (31 December 2025: net debt position of €1.6m).
• Interim Dividend of 0.83 € cent per share (2025: Interim Dividend of 0.82 € cent per share) approved by the Board, payable on 18 September 2026.
• £5m share buyback programme concluded on 1 April 2026, with a total of 4.1m shares repurchased and cancelled, representing 3.2% of issued share capital.

Gary Morrison, Chief Executive Officer, commented:  

"Hostelworld delivered strong revenue growth in the first half of 2026. Net revenue rose 12% year-on-year to €52.2m, and adjusted EBITDA rose 11% to €8.2m. Growth was led by Elevate, our marketplace monetisation tool, which lifted our effective commission rate to 17.7%, up from 15.8% a year earlier and 16.7% in the second half of 2025. Direct marketing improved to 49% of generated revenue, from 51% in H1 2025. Transaction volumes rose 1%. We estimate that the conflict in the Middle East, which we flagged at our full-year results, held volume growth back by around three percentage points, principally in longer-haul demand into Asia and Oceania. Demand across our core European and North American markets was more resilient and more profitable.

These are the results of a business building for growth. Where a year ago we had a single revenue engine, we now have three: our core hostel business, budget accommodation and Social Passes. Together they give us a materially larger addressable market and a proprietary social network that compounds in value as it grows. Engagement continues to accelerate, with in-app chat messages sent up 65% year-on-year. Our cohort analysis shows that, on a like-for-like basis, social members transact more frequently and at a materially higher margin than non-members. The social base is now the primary driver of our transactions, revenue and margin, and we have significant scope to deepen that engagement further.

Our proprietary dataset, spanning more than 4 million social members, 19 million+ messages and 19 million+ bookings, positions us well for the shift towards AI-powered travel discovery. As discovery becomes more conversational, travellers increasingly want to know who is there, what is happening, and whether a destination is right for them. The data to answer these questions, and the tools to connect traveller while they are in-trip, is uniquely ours. And as the network grows, that data becomes richer, our matching and recommendations improve, and our advantage compounds over time.

Having completed our multi-year platform modernisation programme at the end of 2025, we invested through the first half of 2026, to build on that foundation, focusing on our growth drivers. Reflecting our confidence in the business and our disciplined approach to capital allocation, the Board has approved paying an interim dividend in the second half. I look forward to setting out our progress and priorities in more detail at our half-year results presentation. We remain confident in delivering the low-double-digit revenue growth targets set out at our CMD."

Trading update

Net revenue for the first half rose 12% year-on-year to €52.2m, and revenue per transaction rose 11% to €14.9. This was driven primarily by Elevate, our marketplace monetisation tool. Elevate lifted our effective commission rate to 17.7% in H1 2026, from 15.8% in H1 2025 and 16.7% in H2 2025. It gives hostel partners greater flexibility to capture the value they place on our high-intent, predominantly international customer base. This has more than offset the impact of a weaker US dollar.

Net transactions grew 1% year-on-year to 3.8 million. We estimate that the conflict in the Middle East held volume growth back by approximately three percentage points across the first half. We had flagged this at our full-year results, and its impact intensified through the second quarter, concentrated in longer-haul demand to Asia and Oceania. Demand in our core European and North American markets was more resilient.

Direct marketing improved to 49% of generated revenue, from 51% in H1 2025. Together with revenue growth, this lifted net margin to €22.9m, a growth of 16%. Adjusted EBITDA rose 11% to €8.2m, with an adjusted EBITDA margin of 16%. Engagement in our social network continued to build, with in-app chat messages sent up 65% year-on-year.

We continued to make good progress on our growth strategy. Budget accommodation, launched in December 2025 through a third-party inventory supplier, continues to expand across iOS, Android and mobile web, and into additional languages. Following our acquisition of OccasionGenius Inc., event discovery is now live across the platform, with deeper integration into our social network on track in the third quarter. In addition, Social Passes are broadening our addressable market. The Group maintains a robust balance sheet and net cash position.

Outlook

The Board remains confident in the Group's differentiated growth strategy, and in delivering the low-double-digit revenue growth targets set out at our 2025 Capital Markets Day. Our full-year guidance currently assumes that the disruption from the conflict in the Middle East eases through the second half and that broader trading conditions stabilise. It also assumes a growing contribution from our growth initiatives as the year progresses. On that basis, we reiterate our full-year guidance, in line with market expectations.

¹ Net revenue is gross revenue less cancellations, deferred revenue, rebates and accounting adjustments.

² Net transactions includes bookings paid via directly contracted inventory, third-party contracted inventory and Social Pass purchases.

³ Generated revenue is gross revenue less cancellations and excludes impact of deferred revenue.

⁴ 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.

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, please join directly via the webcast link provided below.

Webcast link: https://brrmedia.news/HSW_HY26

For further information please contact:  

Hostelworld Group plc                                           [e-mail]  

Gary Morrison, Chief Executive Officer 

Caroline Sherry, Chief Financial Officer 

David Brady, Head of Commercial Finance  

Sodali & Co                                                             [e-mail]  

Eavan Gannon                                                         [phone] 

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 Ñ 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 4.0 million social members, with engagement growing faster than stays booked. Social members book approximately twice as frequently as non-members and are three times more likely to use the app, demonstrating the platform's utility and its contribution to customer lifetime value.

 Our proprietary dataset, spanning over 4.0 million social members, 19.0 million+ chat messages and 19.0 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 275 employees, with 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 ÒTaking 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.

Cautionary statement

This Interim Management Report (IMR) has been prepared to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed.  The IMR should not be relied on by any other party or for any other purpose. The IMR contains certain forward-looking statements. These statements are made by the directors in good faith based on the information available to them up to the time of their approval of this report but such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

This interim management report has been prepared for the Group as a whole and therefore gives greater emphasis to those matters which are significant to Hostelworld Group plc and its subsidiary undertakings when viewed as a whole.

CHIEF EXECUTIVE'S REVIEW: GARY MORRISON

Throughout the first half of 2026 we continued to execute the differentiated growth strategy we set out at our Capital Markets Day, in service of our Vision to be the world's leading social travel platform. It was a period of building for growth. We delivered accelerating revenue, improved marketing efficiency and continued to build out the three revenue engines that now power the business. Where a year ago there was a single engine, we now have three: our core hostel offering, budget hotel accommodation and Social Passes. Reported volume growth of 1% understates the underlying trajectory. The conflict in the Middle East was a sector-wide drag that, we estimate, reduced our volume growth by around three percentage points in the half.  

Executing our growth strategy

Our social network remains the cornerstone of our strategy, and it continues to accelerate. In the first half, unique social members grew 7% year-on-year, and unique chat users grew 26%. In-app chat messages sent grew 65%, and messages per user grew 30%. This deeper engagement is the leading indicator of a higher-value customer base.

That value is increasingly visible in our economics. We track fixed acquisition cohorts, each followed for a full year, which strips out acquisition-mix effects and isolates the value the network creates. On this like-for-like basis, a newly acquired social member¹ transacts more frequently than a non-member and generates materially more revenue and direct margin. The social base has now overtaken the non-social base on transactions, on revenue and on direct margin, even as the non-social base declines. Our priority is therefore simple: grow the social base, and especially its engaged core. Volume, revenue and margin then compound behind it.

Elevate, our marketplace monetisation tool, continued to perform strongly. It lifted our effective commission rate to 17.7% in the first half, from 15.8% a year earlier. Elevate gives hostel partners a more granular way to reflect the value they place on our high-intent, predominantly international customer base. This has more than offset the impact of a weaker US dollar. Direct marketing also improved, to 49% of generated revenue from 51% a year earlier.

We continued to expand the addressable market beyond our core. Budget accommodation, launched in December 2025 through a third-party inventory supplier, extends our offer into stays where hostel options are limited. It now spans some 18,000 destinations and is rolling out across iOS, Android and mobile web, and into additional languages. This inventory is bringing customers new to Hostelworld, and it is not cannibalising our core: it converts primarily where hostels are unavailable, and customers who book it join our social network in the same way as our core guests. Social Passes provide time-bound paid access to the social network without a booking. They are broadening the top of our funnel and recruiting members who go on to book accommodation with us. Following our acquisition of OccasionGenius Inc., event discovery is now live across the platform. Deeper integration of its structured, global catalogue of events into the social network is on track for early in the third quarter.

We also continued to grow and support our supply. Improvements to hostel onboarding, together with our local marketsÕ teams, sustained healthy property activations. Our partner engagement programme, including our regional conferences, continues to deepen relationships with the hostels at the heart of our marketplace.

Well positioned for AI-powered discovery

Travel discovery is becoming more conversational, and we believe this shift plays to our strengths. Travellers increasingly want to know not just where to stay, but who is there, what is happening and whether a destination is right for them. The dataset we have built answers those questions, and it is uniquely ours: more than 4 million social members, 19 million+ messages and 19 million+ bookings. During the first half we put in place the enabling layer for AI-powered discovery. We improved the way our content is surfaced to AI systems and advanced the recommendation models that power social matching, while the deeper and most valuable social layer remains available only within our app. In the second half our focus moves from readiness to measurement. We will bring personalised recommendations into the mobile experience and begin to quantify AI-referred demand. As our network grows, the data it generates becomes richer, our matching improves, and it attracts more members. This compounding dynamic positions Hostelworld to benefit as AI-powered discovery scales.

Investing in our platform

We completed our multi-year platform modernisation programme at the end of 2025. We now operate a flexible, cloud-native architecture that scales on demand and provides the foundation for our AI capabilities. With that investment cycle complete, our focus in 2026 is targeted investment behind the drivers where our cohort economics show the strongest returns. These include activating more social members to use the network, extending our marketing from lower-funnel search into more targeted upper- and mid-funnel awareness, and embedding AI across the business. Internal adoption of AI is now mainstream, with the great majority of our teams using AI tools in their day-to-day work. They are supported by a proprietary analytics layer that gives them natural-language access to customer economics, and that increasingly informs product and marketing decisions. Because we operate an asset-light model, these efficiency gains flow through to profitability.

Board Changes

Following the period end, Karen Myers and Wais Shaifta have been appointed to the Board as independent Non-Executive Directors, with effect from 24 July 2026. Karen will succeed Paul Duffy as Chair of the Remuneration Committee and has been appointed to the Audit and Nominations Committees. Wais will succeed Carl G. Shepard as Senior Independent Directors and has been appointed to the Audit, Nomination and Renumeration Committees. Paul Duffy has assumed the role of Chair of the Audit Committee. We extend a warm welcome to Karen and Wais and look forward to benefiting from their experience and insight as we continue to execute our strategy and deliver on our long-term growth ambitions. On behalf of the Board, I would also like to thank Carl G. Shepherd and ƒimear Moloney for their valued contributions during their tenure and wish them every success in the future.

Progressing our ESG agenda

We remain committed to improving the sustainability of the hostelling category. Our Staircase to Sustainability framework, developed with the Global Sustainable Tourism Council, continues to see strong adoption among our partners, and gives travellers clearer information to make more responsible choices. We remain the only OTA on the GSTC working group for micro and small enterprises. For the fifth consecutive year we retained the 'Taking Climate Action' label from South Pole, and customers can continue to offset the emissions associated with their trips. Building a culture where our people thrive remains central to how we operate as a remote-first organisation. Our continued focus on inclusion is reflected in strong employee engagement and retention.

Summary

The first half of 2026 was a period of building for growth. We delivered accelerating revenue and improved marketing efficiency, expanded our addressable market across three revenue engines, and continued to grow a proprietary social network that becomes more valuable as it scales. The social base is now our growth and margin engine. Our priority is to grow that base, and especially its engaged core. I would like to thank our employees for their commitment and our shareholders for their continued support. We remain confident in delivering the growth trajectory we set out at our Capital Markets Day.

Gary Morrison

Chief Executive

28 July 2026

¹ Social Member is defined as newly acquired customer who signs up to the social network before the expiry of the chat window on their first trip, equal to their booking check out date + one day

FINANCIAL REVIEW: CAROLINE SHERRY, CHIEF FINANCIAL OFFICER

Financial Highlights
Net Transactions 3.8m H1 2025: 3.7m	Generated Revenue* €56.1m H1 2025: €49.7m	Net Revenue €52.2m H1 2025: €46.7m
Net Average Transaction Value (ÒATVÓ)* €14.91 H1 2025: €13.40	Direct Marketing as a % of Revenue* 49% H1 2025: 51%	Administration Expenses €45.5m H1 2025: €40.0m
Profit for the Period €0.5m H1 2025: €1.1m	Basic Earnings Per Share (ÒEPSÓ) 0.43 cent H1 2025: 0.88 cent	Interim Dividend per Share 0.83 cent H1 2025: 0.82 cent
Adjusted EBITDA* €8.2m H1 2025: €7.4m	Adjusted EBITDA Margin* 16% H1 2025: 16%	Adjusted Profit after Tax* €4.9m H1 2025: €5.1m
Adjusted EPS* 3.95 cent H1 2025: 4.02 cent	Cash €15.0m Dec 2025: €12.2m	Net Cash/(Debt) €2.5m Dec 2025: (€1.6m)
Adjusted Free Cash Flow Conversion* 74% H1 2025: 65%

*The Group uses Alternative Performance Measures (ÒAPMsÓ) 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.

Revenue and operating profit

Net transactions increased by 1% to 3.8 million (H1 2025: 3.7 million). The Group estimates that booking volumes were impacted by an estimated 3% due to travel disruption arising from the conflict in the Middle East, with Asia and Oceania experiencing the most pronounced regional impacts.

Net ATV grew by 11% to €14.91, primarily driven by the continued adoption of Elevate, which increased the GroupÕs effective commission rate to 17.7% (H1 2025: 15.8%).

Group revenue increased 12% to €52.2 million (H1 2025: €46.7 million), reflecting:

•      Continued growth in the Group's core Online Travel Agent business;
•      The first full half-year contribution from OccasionGenius Inc., acquired in October 2025; and
•      Initial revenue contribution from the Group's Third-Party Inventory ("3PI") and Social Passes initiatives.

Total operating expenses increased to €50.8 million (H1 2025: €44.6 million), comprising administration expenses of €45.5 million (H1 2025: €40.0 million) and depreciation and amortisation of €5.3 million (H1 2025: €4.6 million). The increase in depreciation and amortisation reflects the amortisation of intangible assets recognised on acquisition of OccasionGenius Inc., with intangible assets of Û9.4m recognised on acquisition of OccasionGenius Inc. in 2025 and increased development costs amortisation.

The €5.5m increase in administration expenses was driven by three main factors:

•      An additional €2.3 million of marketing investment to support revenue growth. Direct marketing costs improving to 49% of generated revenue (H1 2025: 51%), demonstrating greater marketing efficiency;
•      A €1.0 million increase in net staff costs, driven by targeted headcount expansion and salary inflation; and
•      €0.7 million of exceptional items (detailed below) and continued investment in the GroupÕs platform and product capabilities following the OccasionGenius Inc. acquisition.

Operating profit for the period was €1.4 million (H1 2025: €2.1 million). Adjusted EBITDA increased 11% to €8.2 million (H1 2025: €7.4 million), with the Adjusted EBITDA margin maintained at 16%, demonstrating the Group's operating leverage and ability to deliver revenue growth, funding strategic growth initiatives from cash generation.

Exceptional items

Exceptional items are disclosed separately where their size or nature is considered material and relevant to an understanding of the Group's underlying performance.

During the period, the Group recognised exceptional items of €0.7 million (H1 2025: €0.3 million), primarily comprising of integration costs relating to the OccasionGenius Inc. acquisition, which completed in Q4 2025. The prior period exceptional charge of €0.3 million related to transaction professional fees. Excluding exceptional items, operating profit was €2.1 million (H1 2025: €2.4 million) and profit attributable to equity holders was €1.2 million (H1 2025: Û1.4 million).

Share-based payment

The equity-settled share-based payment expense for the period was €1.0m (H1 2025: €0.8m), relating to awards granted under the GroupÕs Restricted Share Unit (ÒRSUÓ) and Long-Term Incentive Plan (ÒLTIPÓ) arrangements. All LTIP and RSU awards are granted as nil-cost options.

During H1 2026, 0.7 million ordinary shares were issued to satisfy the vesting of RSU awards (H1 2025: 2.3 million ordinary shares).

Current and deferred tax

The current tax charge for the period was €0.2 million (H1 2025: €0.2 million), relating primarily to taxable profits generated in overseas jurisdictions where the Group's historic Irish tax losses and allowances are not available for offset.

The deferred tax charge was €0.5 million (H1 2025: €0.9 million), primarily reflecting the utilisation of deferred tax assets as capital allowances, tax losses and interest relief recognised against taxable profits.

The total tax charge for the period was €0.7 million (H1 2025: €1.1 million).

Earnings per share

Basic earnings per share for the period was 0.43 euro cents (H1 2025: 0.88 euro cents), based on a weighted average of 123.4 million ordinary shares in issue (H1 2025: 125.7 million). Diluted earnings per share was 0.41 euro cents (H1 2025: 0.85 euro cents), based on a diluted weighted average of 129.9 million ordinary shares (H1 2025: 130.2 million).

Adjusted earnings per share, based on Adjusted Profit After Tax of Û4.9 million (H1 2025: Û5.1 million), was 3.95 euro cents (H1 2025: 4.02 euro cents).

Net debt and financing

The Group transitioned to a net cash position of €2.5 million as of 30 June 2026 (31 December 2025: net debt of €1.6 million). Cash and cash equivalents totalled €15.0 million as of 30 June 2026 (31 December 2025: €12.2 million).

In October 2025, the Group entered into a €10.3 million three-year term loan facility with Allied Irish Banks, plc to fund the acquisition of OccasionGenius Inc., bearing interest at EURIBOR plus 2.0%. As of 30 June 2026 an outstanding balance of €10.3 million remained (€9.0 million non-current; €1.3 million current), with scheduled principal repayments having commenced in July 2026.

The Group remained in full compliance with its financial covenants throughout the period, with both covenants tested on a rolling twelve-month basis:

á      Cashflow Cover: defined as the ratio of Cashflow to Debt Service for the relevant period. The ratio must be at least 1.2 : 1. At 30 June 2026, the Group's Cashflow Cover ratio was 3.3 : 1.

á      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. As at 30 June 2026 the Group was in a net cash position; the adjusted leverage was less than 0.0 : 1 and in full compliance with the Group's financing covenants.

Warehoused payroll taxes reduced to €2.2 million (31 December 2025: €3.5 million). The remaining balance is interest-free and will be repaid in full by April 2027.

Capitalised development costs

Hostelworld continues to invest in our proprietary social platform and product offering. Capitalised development additions to intangible assets during the period were €4.6 million (H1 2025: €3.6 million), comprising €3.2 million of internal development labour (H1 2025: €2.6 million) and €1.4 million of external development costs (H1 2025: €1.0 million). These investments primarily support the scaling of our social platform and integration of third-party inventory to expand the Group's accommodation offering in low-hostel density destinations.

Investor relations

The Group maintains proactive and regular dialogue with the investment community. Our full year results presentation was held on 26 March 2026, followed by our Annual General Meeting on 6 May 2026, which provided shareholders with the opportunity to submit questions to the Board in advance, with full details published on the Company's website. We issued a H1 2026 trading update on 9 July 2026, providing shareholders with an additional point of engagement between our full year and interim results.

During the period, the management team participated in a number of shareholder roadshows and investor conferences, providing opportunities to engage directly with existing and prospective investors and analysts. Feedback from these engagements continues to inform the Group's approach to investor communications, ensuring these remain clear, balanced and effective.

Principal risks and uncertainties

A review of the Group's principal risks was performed during H1 2026. No new or emerging principal risks were identified; however, the risk profile of five principal risks (as defined in Appendix 2) increased during the period, driven primarily by the accelerating adoption of artificial intelligence and heightened geopolitical uncertainty.

Artificial Intelligence is a standalone principal risk, reflecting its growing strategic importance and pervasive impact across the Group's risk landscape. It also contributed to an increased assessment of the Group's Cyber Security and Competition principal risks.

Heightened geopolitical uncertainty resulted in increased assessments for the Group's Macroeconomic Conditions and Impact of Uncontrollable Events principal risks, reflecting continued inflationary pressures, foreign exchange volatility and the potential for geopolitical events to disrupt travel demand.

The Group's remaining principal risks are unchanged from those set out in the 2025 Annual Report. Further details of the principal risks and the actions taken to mitigate them are set out in Appendix 2.

Share buyback

The Group operated a share buyback programme from June 2025 to April 2026. As at 30 June 2026, a cumulative 4,085,827 ordinary shares had been repurchased under the programme (31 December 2025: 3,061,809) at a total cost of Û5.8 million (31 December 2025: Û4.5 million).

Dividend

In accordance with the Group's dividend policy, which targets a 20%Ð40% Adjusted Profit After Tax payout ratio, on 25 March 2026 the Board recommended a final dividend of 1.58 euro cents per ordinary share in respect of the year ended 31 December 2025. The dividend was approved by shareholders at the Annual General Meeting on 6 May 2026 and, totalling Û2.0 million, was paid on 12 May 2026.Subsequent to the reporting period, the Board approved an interim dividend of 0.83 euro cents per ordinary share in respect of the six months ended 30 June 2026 (H1 2025: 0.82 euro cents per ordinary share), amounting to a total distribution of Û1.0 million. The dividend will be paid on 18 September 2026 to shareholders on the register at the close of business on 28 August 2026. The shares will trade ex-dividend from 27 August 2026.

Caroline Sherry

Chief Financial Officer

28 July 2026

RESPONSIBILITY STATEMENT

Each of the Directors of Hostelworld Group plc, whose names and functions are listed on the GroupÕs website (www.hostelworldgroup.com), confirm that, to the best of each personÕs knowledge and belief:

1.     The condensed set of Group financial statements has been prepared in accordance with UK-adopted International Accounting Standard 34 ÒInterim Financial ReportingÓ;

2.     The interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months, their impact on the condensed Group interim financial statements, and description of principal risks and uncertainties for the remaining six months of the year); and

3.     The interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related partiesÕ transactions and changes therein).

By order of the Board

Gary Morrison                                                                        Caroline Sherry

Chief Executive Officer                                                           Chief Financial Officer           

28 July 2026                                                                            28 July 2026

CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2026

		6 months ended 30 June 2026	6 months ended 30 June 2025	Year ended 31 December 2025
	Notes	€'m	€'m	€'m
		Unaudited	Unaudited	Audited
Revenue	3	52.2	46.7	93.8
Operating expenses*	4	(50.8)	(44.6)	(85.4)
Operating profit		1.4	2.1	8.4
Finance income		0.1	0.1	0.1
Finance costs		(0.3)	-	(0.1)
Profit before tax*		1.2	2.2	8.4
Tax cost	6	(0.7)	(1.1)	(1.4)
Profit for the period/year attributable to the equity owners of the parent Company*		0.5	1.1	7.0
Basic earnings per share (euro cent)	7	0.43	0.88	5.63
Diluted earnings per share (euro cent)	7	0.41	0.85	5.44

* Operating expenses include exceptional items of Û0.7 million (H1 2025: Û0.3 million) as detailed in note 5. Excluding these exceptional items, operating profit was Û2.1 million (H1 2025: Û2.4 million), profit before tax was Û1.9 million (H1 2025: Û2.5 million), and profit for the period attributable to equity holders of the parent Company was Û1.2 million (H1 2025: Û1.4 million).

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2026

	6 months ended 30 June 2026	6 months ended 30 June 2025	Year ended 31 December 2025
	€'m	€'m	€'m
	Unaudited	Unaudited	Audited
Profit for the period/year	0.5	1.1	7.0
Items that may be reclassified subsequently to profit or loss:
	0.1	-	-
Total comprehensive income for the period/year attributable to equity owners of the Parent Company	0.6	1.1	7.0

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2026

	Notes	30 June 2026	30 June 2025	31 December 2025
		€'m	€'m	€'m
		Unaudited	Unaudited	Audited
Non-current assets
Intangible assets	8	71.0	62.8	71.5
Property, plant and equipment		1.1	0.4	1.2
Deferred tax assets		13.2	12.9	13.7
		85.3	76.1	86.4
Current assets
Trade and other receivables	9	5.7	6.2	4.2
Current tax assets		0.1	-	0.1
Cash and cash equivalents		15.0	11.0	12.2
		20.8	17.2	16.5
Total assets		106.1	93.3	102.9
Issued capital and reserves
Share capital	10	1.2	1.3	1.2
Share premium	10	14.4	14.4	14.4
Treasury shares	10	-	(0.4)	-
Other reserves		3.5	3.8	2.4
Retained earnings		52.3	51.6	55.1
Total equity attributable to owners of the parent Company		71.4	70.7	73.1
Non-current liabilities
Non-current debt
Warehoused payroll taxes	11	-	2.2	0.8
Bank borrowings	13	9.0	-	9.2
Lease liabilities		0.4	-	0.5
Deferred tax liabilities		1.1	-	1.2
		10.5	2.2	11.7
Current liabilities Current debt    Warehoused payroll taxes    Bank borrowings	11 13	2.2 1.3	2.7 -	2.7 1.1
Trade and other payables
Trade payables    Deferred revenue    Accruals and other payables	12 12 12	5.5 6.4 8.1	4.8 6.6 5.9	3.7 3.2 6.7
Lease liabilities		0.3	0.1	0.4
Current tax liabilities		0.4	0.3	0.3
		24.2	20.4	18.1
Total liabilities		34.7	22.6	29.8
Total equity and liabilities		106.1	93.3	102.9

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2026

		Share capital	Share premium	Treasury shares	Retained earnings		Other reserves	Total
	Notes	€'m	€'m	€'m	€'m	€'m		€'m
Balance at 31 December 2024 (audited)		1.3	14.4	-	51.4	3.0		70.1
Total comprehensive income for the period		-	-	-	1.1	-		1.1
Equity-settled share-based payment expense		-	-	-	-	0.8		0.8
Purchase of own shares Ð share buyback		-	-	(0.4)	(0.9)	-		(1.3)
Balance at 30 June 2025 (unaudited)		1.3	14.4	(0.4)	51.6	3.8		70.7
Total comprehensive income for the period		-	-	-	5.9	-		5.9
Equity-settled share-based payment expense		-	-	-	-	0.7		0.7
Transfer of exercised and expired share-based awards		-	-	-	2.2	(2.2)		-
Purchase of own shares		-	-	(4.1)	0.9	-		(3.2)
Cancellation of own shares		(0.1)	-	4.5	(4.5)	0.1		-
Dividend paid		-	-	-	(1.0)	-		(1.0)
Balance at 31 December 2025 (audited)		1.2	14.4	-	55.1	2.4		73.1
Total comprehensive income for the period		-	-	-	0.5	0.1		0.6
Equity-settled share-based payment expense		-	-	-	-	1.0		1.0
Purchase of own shares		-	-	(1.3)	-	-		(1.3)
Cancellation of own shares		-	-	1.3	(1.3)	-		-
Dividend paid		-	-	-	(2.0)	-		(2.0)
Balance at 30 June 2026 (unaudited)		1.2	14.4	-	52.3	3.5		71.4

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2026

	Notes	Six months ended 30 June 2026	Six months ended 30 June 2025	Year ended 31 December 2025
		€'m	€'m	€'m
		Unaudited	Unaudited	Audited
Cash flows from operating activities
Profit for the period/year		0.5	1.1	7.0
Tax		0.7	1.1	1.4
Profit before tax		1.2	2.2	8.4
Amortisation and depreciation	4	5.3	4.6	9.5
Finance income		(0.1)	(0.1)	(0.1)
Finance costs		0.3	-	0.1
Equity settled share-based payment expense		1.0	0.8	1.5
Changes in working capital items:
Increase/(decrease) in trade and other payables	12	6.4	2.8	(0.9)
(Increase)/decrease in trade and other receivables	9	(1.5)	(1.7)	0.3
		12.6	8.6	18.8
Interest paid (including lease interest)		(0.3)	-	-
Interest received		0.1	0.1	0.1
Income tax paid		(0.2)	(0.2)	(0.3)
Net cash generated from operating activities		12.2	8.5	18.6
Cash flows from investing activities
Acquisition/development of intangible assets	8	(4.6)	(3.6)	(7.6)
Acquisition of subsidiary, net of cash acquired		-	-	(8.3)
Purchases of property, plant and equipment		(0.1)	(0.1)	(0.2)
Net cash used in investing activities		(4.7)	(3.7)	(16.1)
Cash flows from financing activities
Drawdown of borrowings		-	-	10.3
Transaction costs relating to borrowings		-	-	(0.1)
Repayment of warehoused payroll taxes	11	(1.3)	(1.3)	(2.7)
Purchases of own shares		(1.3)	(0.4)	(4.5)
Dividend paid		(2.0)	-	(1.0)
Repayments of lease liabilities		(0.1)	(0.3)	(0.5)
Net cash used in financing activities		(4.7)	(2.0)	1.5
Net increase in cash and cash equivalents		2.8	2.8	4.0
Cash and cash equivalents at the beginning of the period/year		12.2	8.2	8.2
Cash and cash equivalents at the end of the period/year		15.0	11.0	12.2

NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS

1.     General information

Hostelworld Group plc is a public limited company incorporated in the United Kingdom. The registered office of the Company is One Chamberlain Square, Birmingham, B3 3AX. The Company is the ultimate parent company of the Group and its ordinary shares are listed on the London Stock Exchange and Euronext Dublin. These condensed Group interim financial statements for the six months ended 30 June 2026 (Òthe interim financial statementsÓ) were approved for issue by the Board of Directors on 28 July 2026.

2.     Accounting policies

Basis of preparation

The interim financial statements should be read in conjunction with the financial statements for the year ended 31 December 2025 (the "2025 Annual Report"). They do not include all the information required for a complete set of IFRS financial statements and have not been audited or reviewed by the Group's auditor.

The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with UK-adopted International Accounting Standard 34 ÒInterim Financial ReportingÓ. The accounting policies and methods of computation adopted are consistent with those applied in the 2025 Annual Report, except as described below.

The auditors reported on the 2025 Annual Report and their report was unqualified, did not include an emphasis of matter paragraph and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

Going concern

The Directors, after making enquiries, have a reasonable expectation that the Group has adequate resources to continue as a going concern for the foreseeable future.

At 30 June 2026, the Group had cash and cash equivalents of Û15.0 million (31 December 2025: Û12.2 million) and net cash of Û2.5 million (31 December 2025: net debt of Û1.6 million). In October 2025, the Group entered into a Û10.3 million three-year term loan facility with Allied Irish Banks, plc (ÒAIBÓ) to finance the acquisition of OccasionGenius Inc. Repayment of the loan principal commenced in July 2026 through quarterly instalments. At 30 June 2026, the outstanding balance of the term loan was Û10.3 million (31 December 2025: Û10.3 million). The Group also continued to repay its warehoused payroll taxes in line with the agreed repayment schedule with the Irish Revenue Commissioners, with an outstanding balance of Û2.2 million at 30 June 2026 (31 December 2025: Û3.5 million).

In assessing the appropriateness of the going concern basis of preparation, the Directors considered the principal risks and uncertainties described on pages 66 to 76 of the 2025 Annual Report as updated in Appendix 2, together with the Group's cash flow forecasts and current and anticipated trading performance. Downside scenarios considered included a material reduction in booking volumes, geopolitical uncertainty, including the ongoing conflicts in Ukraine and the Middle East, and climate-related risks that could affect revenue or operating costs. The assessment incorporated a range of mitigating actions, including adjusting marketing spend, deferring non-essential investment and optimising operational efficiency, which provide additional headroom within the Group's cash flow forecasts.

The Directors estimate that booking volumes in the first half of 2026 were approximately 3% lower as a result of the conflict in the Middle East, with the impact experienced to date modelled within the downside scenarios considered as part of the going concern assessment. Management will continue to monitor the situation closely and implement mitigating actions where appropriate.

Based on this assessment, the Directors are satisfied that the Group has sufficient resources to continue in operation for a period of at least 12 months from the date of approval of these condensed Group interim financial statements. Accordingly, the Directors continue to adopt the going concern basis of accounting in preparing the condensed Group interim financial statements.

Changes in accounting policies

Since the 2025 Annual Report there are a number of amendments to existing accounting standards that have become effective. These amendments do not have a material impact on the condensed Group interim financial statements. Accordingly, the accounting policies and methods of computation adopted are consistent with those applied in the consolidated financial statements for the year ended 31 December 2025.

Key judgements and sources of estimation uncertainty

In preparing these condensed Group interim financial statements, the Directors have exercised judgement in applying the GroupÕs accounting policies and there are key sources of estimation uncertainty which affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from estimates. The significant judgements and key sources of estimation uncertainty were unchanged from those applied to the consolidated financial statements for the year ended 31 December 2025.

3.     Revenue

Revenue is disaggregated as follows:

	Six months ended 30 June 2026	Six months ended 30 June 2025	Year ended 31 December 2025
	€'m	€'m	€'m
	(Unaudited)	(Unaudited)	(Audited)
Technology and data processing fees	51.7	46.0	92.2
Provision of event data services (OccasionGenius Inc.)	0.4	-	0.2
Ancillary services and advertising revenue	0.1	0.7	1.4
Total revenue	52.2	46.7	93.8

The year-on-year reduction in ancillary services and advertising revenue reflects the Group's transition away from its featured listings revenue stream with hostels. At 30 June 2026, an amount of Û3.2 million was deferred to the balance sheet (30 June 2025: Û3.1 million) which is expected to be recognised as revenue primarily in the second half of 2026. Please see Note 12 for deferred revenue liability at balance sheet date.

There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss. Reportable segment information is presented as follows:

	Six months ended 30 June 2026	Six months ended 30 June 2025	Year ended 31 December 2025
	€'m	€'m	€'m
	(Unaudited)	(Unaudited)	(Audited)
Europe	26.0	23.4	49.9
Americas	9.8	8.7	16.9
Asia, Africa and Oceania	16.4	14.6	27.0
Total revenue	52.2	46.7	93.8

4.     Operating expenses

Profit for the period/year has been arrived at after charging the following operating costs*:

		Six months ended 30 June 2026	Six months ended 30 June 2025	Year ended 31 December 2025
		€'m	€'m	€'m
		(Unaudited)	(Unaudited)	(Audited)
Marketing expenses Ð direct		27.7	25.4	45.3
Marketing expenses Ð brand		0.6	0.5	1.0
Credit card and other processing fees		1.6	1.5	2.8
Staff costs		10.2	9.2	19.1
External contractor costs		1.9	0.9	2.3
Platform operating costs		2.3	1.7	3.5
Other administration expenses		1.2	0.8	1.9
Total administration expenses		45.5	40.0	75.9
Depreciation of property, plant and equipment		0.2	0.3	0.5
Amortisation of intangible assets		5.1	4.3	9.0
Total operating expenses		50.8	44.6	85.4

Other administration expenses include Û0.7 million of exceptional items incurred during the six months ended 30 June 2026 (30 June 2025: Û0.3 million). Further details are provided in Note 5.

Total administration expenses increased by Û5.5 million to Û45.5 million (30 June 2025: Û40.0 million), reflecting increased marketing costs as revenue grew 12% year on year and investment in the Group's platform and product development. Administration expenses include a credit of Û0.2 million (30 June 2025: Û0.4 million) in respect of the Research and Development ("R&D") tax credits relating to projects completed in prior years.

5.     Exceptional items

Exceptional items of Û0.7 million were recognised during the period, relating to integration activities following the acquisition of OccasionGenius Inc. and internal restructuring activities. These costs have been recognised in accordance with the GroupÕs accounting policy for exceptional items, which permits recognition across multiple financial periods. The comparative period included Û0.3 million of acquisition costs.

6.     Tax

	Six months ended 30 June 2026	Six months ended 30 June 2025	Year ended 31 December 2025
	€'m	€'m	€'m
	(Unaudited)	(Unaudited)	(Audited)
Current tax cost Deferred tax cost	0.2 0.5	0.2 0.9	0.3 1.1
Tax cost	0.7	1.1	1.4

The current tax charge for the six-month period primarily relates to the Group's overseas operations, where historic Irish tax losses and capital allowances are not available to offset taxable profits. The income tax charge has been determined by applying the estimated annual effective tax rate to the pre-tax profit or loss of each Group entity for the period. The estimated annual effective tax rate is based on forecast full-year taxable profits and losses for each entity.

The deferred tax charge of Û0.5 million (30 June 2025: Û0.9 million) primarily reflects the utilisation of capital allowances, tax losses and interest relief, resulting in the reversal of the related deferred tax asset.

7.     Earnings per share

Basic earnings per share is calculated by dividing the profit attributable to the equity owners of the parent Company by the weighted average number of ordinary shares in issue during the period:

	Six months ended 30 June 2026	Six months ended 30 June 2025	Year ended 31 December 2025
	(Unaudited)	(Unaudited)	(Audited)
Weighted average number of shares in issue (Ôm)	123.4	125.7	125.4
Profit for the period (ÛÕm)	0.5	1.1	7.0
Basic earnings per share (euro cent)	0.43	0.88	5.63

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue for the assumed conversion of all potentially dilutive ordinary shares. Share options and share awards are the CompanyÕs only potential dilutive ordinary shares.

	Six months ended 30 June 2026	Six months ended 30 June 2025	Year ended 31 December 2025
	(Unaudited)	(Unaudited)	(Audited)
Weighted average number of shares in issue (Ôm)	123.4	125.7	125.4
Share options (Õm)	6.5	4.5	4.3
Weighted average number of ordinary shares for the purpose of diluted earnings per share (Õm)	129.9	130.2	129.7
Diluted earnings per share (euro cent)	0.41	0.85	5.44

8.     Intangible assets

Additions to intangible assets during the period totalled Û4.6 million (30 June 2025: Û3.6 million) comprising capitalised development costs of Û3.2 million (30 June 2025: Û2.6 million) relating to internal staff costs and Û1.4 million (30 June 2025: Û1.0 million) of other externally generated development costs. Capitalised projects during the period primarily relate to the continued development of the Group's social features and the integration of third-party inventory to expand the Group's accommodation offering into destinations with limited hostel availability. Amortisation of intangible assets for the period amounted to Û5.1 million (30 June 2025: Û4.3 million).

9.     Trade and other receivables

	30 June 2026	30 June 2025	31 December 2025
	€'m	€'m	€'m
	(Unaudited)	(Unaudited)	(Audited)
Amounts falling due within one year
Trade receivables	1.7	1.8	0.5
Prepayments and accrued income	1.8	2.4	2.1
Value added tax due from Revenue Commissioners	2.2	2.0	1.6
Total trade and other receivables	5.7	6.2	4.2

Trade receivables primarily relate to amounts due from the GroupÕs payment processing agents, which are typically settled within 5 days. The increase compared with 31 December 2025 reflects the seasonal nature of the Group's trading.

Included in prepayments and accrued income is an amount due from the Irish Revenue Commissioners in respect of R&D tax credit claims made of Û0.6 million (31 December 2025: Û0.6 million).

10.   Share capital

The Group has one class of ordinary shares which carry no right to fixed income. All shares are allotted, called up, fully paid and quoted on the London Stock Exchange and Euronext Dublin. The GroupÕs share capital is represented by the issued share capital of the parent company, Hostelworld Group plc.

RSU awards granted in 2023 vested on 1 February 2026, resulting in the issuance of 565,794 shares. RSU awards granted in 2025 vested on 25 March 2026, resulting in the issuance of 97,472 shares.

The Group operated a share buyback programme from June 2025 to April 2026. As at 30 June 2026, 4,085,827 (31 December 2025: 3,061,809) number of ordinary shares were repurchased under the programme at a total cost of Û5.8 million (31 December 2025: Û4.5 million).

11.   Warehoused payroll taxes

	30 June 2026	30 June 2025	31 December 2025
	€'m	€'m	€'m
	(Unaudited)	(Unaudited)	(Audited)
Opening balance	3.5	6.2	6.2
Repayments made	(1.3)	(1.3)	(2.7)
Closing balance	2.2	4.9	3.5

The Group participated in the Irish Revenue Debt Warehousing Scheme, under which payment of certain Irish employer tax liabilities arising between February 2020 and March 2022 was deferred. Repayments are made in accordance with the agreed monthly repayment schedule, with the outstanding balance expected to be repaid in full by April 2027. In accordance with the terms of the scheme, no interest is payable.

	30 June 2026	30 June 2025	31 December 2025
	€'m	€'m	€'m
	(Unaudited)	(Unaudited)	(Audited)
Non-current liability	-	2.2	0.8
Current liability	2.2	2.7	2.7
Total warehoused payroll taxes	2.2	4.9	3.5

12.   Trade and other payables

	30 June 2026	30 June 2025	31 December 2025
	€'m	€'m	€'m
	(Unaudited)	(Unaudited)	(Audited)
Current liabilities
Trade payables	5.5	4.8	3.7
Accruals and other payables	6.2	5.2	5.1
Holdback provision	1.1	-	0.9
Deferred revenue	6.4	6.6	3.2
Payroll taxes (non-warehoused)	0.8	0.7	0.7
Total trade and other payables	20.0	17.3	13.6

The holdback provision of Û1.1 million (31 December 2025: Û0.9 million) comprises Û0.8 million (31 December 2025: Û0.8 million) relating to potential claims and post-closing liabilities associated with the acquisition of OccasionGenius Inc. on 20 October 2025, and Û0.3 million (31 December 2025: Û0.1 million) relating to an employee retention arrangement for the Chief Executive Officer of OccasionGenius Inc., which is recognised as an expense over the two-year period from the acquisition date.

At 30 June 2026, deferred revenue of Û6.2 million related to free cancellation bookings (31 December 2025: Û3.1 million), Û0.1 million related to hostel advertising revenue (31 December 2025: Û0.1 million), and Û0.1 million related to 3PI revenue (31 December 2025: Ûnil). The majority of this balance is expected to be recognised as revenue during the second half of 2026.

13.   Borrowings

	30 June 2026	30 June 2025	31 December 2025
	€'m	€'m	€'m
	(Unaudited)	(Unaudited)	(Audited)
Opening balance	10.3	-	-
Drawdowns	-	-	10.3
Transaction costs	-	-	(0.1)
Finance interest expensed	0.2	-	0.1
Finance interest paid	(0.2)	-	-
Total borrowings	10.3	-	10.3

In October 2025, the Group entered into a three-year facility with Allied Irish Banks, plc comprising a Û10.3 million term loan drawn to fund the acquisition of OccasionGenius Inc, bearing interest at EURIBOR plus 2.0%. During the period, the Group incurred interest payments of Û0.2 million in respect of the facility. Repayment of the principal will commence through quarterly instalments beginning in July 2026. The debt facility is subject to the following two covenants:

1.     Cashflow Cover: defined as the ratio of Cashflow to Debt Service for the relevant period. The ratio must be at least 1.2 : 1. At 30 June 2026, the Group's Cashflow Cover ratio was 3.3 : 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. As at 30 June 2026 the Group was in a net cash position, the adjusted leverage was less than 0.0 : 1 and in full compliance with the Group's financing covenants.

The covenants are tested on a rolling twelve-month basis, with testing dates falling on or around the end of each financial half-year.  As at 30 June 2026, the Directors were satisfied that the Group was in compliance with its covenant requirements and expected to remain compliant for the foreseeable future.

14.   Group structure and related party transactions

On 24 July 2026, the Group announced the resignation of Carl G. Shepherd and ƒimear Moloney as Non-Executive Directors, effective from 23 July 2026. Karen Myers and Wais Shaifta were appointed as Non-Executive Directors with effect from 24 July 2026. Karen Myers was also appointed Chair of the Remuneration Committee, and Paul Duffy was appointed Chair of the Audit Committee, each with effect from 24 July 2026. Wais Shaifta was also appointed as Senior Independent Director.

There have been no other changes to the Group's structure or related party transactions since the Annual Report that have had, or are expected to have, a material effect on the financial position or performance of the Group.

15.   Dividends

	30 June 2026	30 June 2025	31 December 2025
	€'m	€'m	€'m
	(Unaudited)	(Unaudited)	(Audited)
Interim 2025 dividend of 0.82 Û cent per share (paid 19 September 2025)	-	-	1.0
Final 2025 dividend of 1.58 Û cent per share (paid 12 May 2026)	2.0	-	-
Dividends paid	2.0	-	1.0
Interim 2026 dividend payable of 0.83 Û cent per share (payable 18 September 2026)	1.0	-	-
Dividends paid and payable	3.0	-	1.0

16.   Events after the reporting date

Subsequent to the reporting period, the Board approved an interim dividend of 0.83 euro cents per ordinary share in respect of the six months ended 30 June 2026 (H1 2025: 0.82 euro cents per ordinary share), amounting to a total distribution of Û1.0 million. The dividend will be paid on 18 September 2026 to shareholders on the register at the close of business on 28 August 2026. The shares will trade ex-dividend from 27 August 2026.

In addition, there were a number of changes to the composition and governance of the Board, as set out in Note 14.There have been no other significant events, outside the ordinary course of business, affecting the Group since 30 June 2026.

APPENDIX 1: ALTERNATIVE PERFORMANCE MEASURES

In reporting financial information, the Group uses the following alternative performance measures (ÒAPMsÓ) which are non-IFRS measures which provide useful additional information to monitor the performance of its operations and of the Group as a whole. APMs are not a substitute for, or superior to, IFRS measurements.

APM	Closest Equivalent IFRS Measure	Definition/Purpose	Reconciliation/Calculation
Adjusted EBITDA	Operating profit	Earnings before interest, tax, depreciation, amortisation, share-based payment expenses, other income, and items classified by management as exceptional. Adjusted EBITDA excludes non-trading items to provide a clearer view of baseline operating profitability	See note (a)
Adjusted EBITDA margin	No direct equivalent	Adjusted EBITDA as a percentage of net revenue, providing insight into the GroupÕs ability to convert revenue into operating profit by removing items which do not impact underlying trading performance.	See note (a)
Adjusted profit after tax (ÒPATÓ)	Profit after tax	Profit excluding exceptional items, amortisation of acquired intangibles, share-based payment expenses, deferred tax, 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.	See note (b)
Adjusted earnings per share (ÒEPSÓ)	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)
Adjusted free cashflow (ÒFCFÓ)	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 (c)
Adjusted free cashflow 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 GroupÕs ability to convert Adjusted EBITDA into free cash flow.	See note (c)
Net cash/(debt)	Total borrowings and cash and cash equivalents	Total debt (including warehoused payroll taxes and external borrowings) less cash and cash equivalents. Used to monitor leverage and liquidity which assists in managementÕs assessment of financial stability and strategic decision making.	See note (d)
Commission share	No direct equivalent	Commission share is the percentage of the gross booking value retained by the Group as commission revenue from accommodation providers for bookings made through its platform.	See note (e)
Generated revenue	Net revenue	Generated revenue represents bookings net of cancellations, excluding refunds, chargebacks, vouchers, deferred revenue, and ancillary income. Generated revenue is used by Group and external readers including investors to identify total revenue earned, excluding any accounting adjustments.	See note (e)
Net ATV	No direct equivalent	Net ATV is calculated as Generated Revenue divided by Net Transactions, where Generated Revenue is gross revenue less cancellations and excludes impact of deferred revenue.	See note (e)
Direct marketing costs as a % of revenue	No direct equivalent	Direct marketing costs as a percentage of generated revenue is an APM which looks at the efficiency of marketing spend. Generated revenue is utilised here to understand the relationship between transactions/revenue and the direct marketing costs for those transactions. This APM is used by the GroupÕs management to identify how efficient the Group's marketing channels are.	See note (f)
Net margin	Operating profit	Net margin is an APM which is calculated by deducting direct costs from net revenue. Direct costs are comprised of direct marketing costs and credit card and other processing fees. This APM is used by the GroupÕs management to identify the trading profit margin, excluding administration costs/day to day expenses.	See note (g)
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 (h)
Operating profit before exceptional items	Operating profit	Operating profit before exceptional items is an APM which is calculated by deducting exceptional items from operating profit.	See note (i)
Market capitalisation	No direct equivalents	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 GroupÕs management as a factor in considering if there is any impairment to the Group or Company Balance Sheet.	See note (j)
Operating Costs as a % of revenue	No direct equivalent	Operating costs as a percentage of net revenue is an APM that measures the efficiency of the GroupÕs operating cost base as a percentage of revenue.  Operating costs are presented excluding paid marketing costs, credit card and other processing fees, and items below adjusted EBITDA. This APM is used by Group management to monitor cost efficiency across the Group.	See note (k)

Note on rounding: Figures are rounded to the nearest Ûm, and small differences may occur in calculations; sufficient detail is provided for transparency.

Note (a) Adjusted EBITDA and adjusted EBITDA margin

Reconciliation between operating profit for the year and adjusted EBITDA:

	30 June 2026 €'m	30 June 2025 €'m
Operating profit	1.4	2.1
Depreciation	0.2	0.3
Amortisation of development costs	2.8	2.3
Amortisation of acquired intangible assets	2.3	2.0
R&D tax credit	(0.2)	(0.4)
Exceptional items	0.7	0.3
Share based payment expense	1.0	0.8
Adjusted EBITDA	8.2	7.4

Research and development (R&D) tax credits are included in Note 4. The amount of Û0.2 million (30 June 2025: Û0.4 million) relates to the amortisation of capitalised development costs for which R&D tax assistance has been received.

Calculation of adjusted EBITDA margin:

	30 June 2026 €'m	30 June 2025 €'m
Adjusted EBITDA	8.2	7.4
Net revenue	52.2	46.7
Adjusted EBITDA Margin %	16%	16%

Note (b) Adjusted profit after tax (Adjusted PAT) and adjusted earnings per share

Reconciliation between profit after tax and adjusted profit after tax:

Profit for the period	0.5	1.1
Exceptional items	0.7	0.3
Amortisation of acquired intangible assets	2.3	2.0
Share based payment expense	1.0	0.8
Deferred tax	0.5	0.9
Adjusted profit after tax	4.9	5.1

Calculation of adjusted earnings per share:

Adjusted profit after tax (ÛÕm)	4.9	5.1
Weighted average shares in issue (Ôm)	123.4	125.7
Adjusted earnings per share (cent)	3.95	4.02

Note (c) Adjusted free cash flow and adjusted free cashflow conversion

Calculation of adjusted free cash flow:

	30 June 2026 €'m	30 June 2025 €'m
Opening Cash	12.2	8.2
Closing Cash	15.0	11.0
Net increase in cash and cash equivalents	2.8	2.8
Add back
Repayment of warehoused payroll taxes	1.3	1.3
Repayment of interest on borrowings	0.2	-
Repurchase of own shares Ð share buyback	1.3	0.4
Exceptional items paid	0.5	0.3
Adjusted free cash flow	6.1	4.8

Current year exceptional items relate to 2026 costs accounted for and paid as at 30 June 2026. Prior year exceptionals relate to items accounted for as a creditor liability at 31 December 2024 and paid in 2025.

Calculation of adjusted free cash flow conversion:

	30 June 2026 €'m	30 June 2025 €'m
Adjusted free cash flow	6.1	4.8
Adjusted EBITDA	8.2	7.4
Adjusted free cash flow conversion %	74%	65%

Reconciliation between adjusted free cash flow and net cash from operating activities for the period:

	30 June 2026 €'m	30 June 2025 €'m
Adjusted free cash flow	6.1	4.8
Exceptional items paid	(0.5)	(0.3)
Lease liability payments	0.1	0.3
Repayment of interest on borrowings	(0.2)	-
Acquisition/capitalisation of intangible assets	4.6	3.6
Purchases of property, plant and equipment	0.1	0.1
Dividend paid	2.0	-
Net cash from operating activities	12.2	8.5

Note (d) Net cash/ (debt)

Calculation of net cash:

	30 June 2026 €'m	31 December 2025 €'m
Cash and cash equivalents	15.0	12.2
Borrowings	(10.3)	(10.3)
Warehoused payroll taxes	(2.2)	(3.5)
Net cash/(debt)	2.5	(1.6)

Note (e) Commission Share, net ATV and generated revenue

Reconciliation from generated revenue to net revenue for the period:

	30 June 2026 €'m	30 June 2025 €'m
Generated revenue	56.1	49.7
Commission share generated revenue represents	17.7%	15.8%
Deferred revenue movement	(3.2)	(3.1)
Refunds, chargebacks and cost of discounts and vouchers	(1.0)	(0.6)
Other revenue	0.2	0.1
Advertising income (featured listings)	0.1	0.7
Volume incentive rebates	-	(0.1)
Net revenue	52.2	46.7

Calculation of net ATV:

	30 June 2026	30 June 2025
Generated revenue (ÛÕm)	56.1	49.7
Net transactions (#Õm)	3.8	3.7
Net ATV (Û)	14.91	13.40

Note (f) Direct marketing costs as a % of revenue

Calculation of direct marketing costs as a % of revenue:

	30 June 2026 €'m	30 June 2025 €'m
Direct marketing costs	27.7	25.4
Generated revenue	56.1	49.7
Direct marketing costs as a % of revenue	49%	51%

Note (g) Net margin

Calculation of net margin:

	30 June 2026 €'m	30 June 2025 €'m
Net revenue	52.2	46.7
Direct marketing costs	(27.7)	(25.4)
Credit card and other processing fees	(1.6)	(1.5)
Net margin	22.9	19.8

Reconciliation between net margin and operating profit:

	30 June 2026 €'m	30 June 2025 €'m
Net margin	22.9	19.8
Other operating costs	(21.5)	(17.7)
Operating profit	1.4	2.1

Other operating costs are total operating expenses as set out within Note 4, less items included in net margin calculation set out above relating to paid marketing costs and credit card and other processing fees.

Note (h) Dividend per share

Calculation of dividend per share:

	30 June 2026	30 June 2025
Interim Dividend (ÛÕ000)	1,027	1,033
Weighted average shares in issue (Ôm)	123.4	125.7
Dividend per share (cent)	0.83	0.82

Note (i) Operating profit before exceptional items

Calculation of operating profit before exceptional items

	30 June 2026 €'m	30 June 2025 €'m
Operating profit	1.4	2.1
Exceptional items	0.7	0.3
Operating profit before exceptional items	2.1	2.4

Note (j) Market capitalisation

Calculation of market capitalisation:

	30 June 2026	31 December 2025
Share price	1.30	1.43
Ordinary shares in issue (Ôm)	123.9	124.2
Market capitalisation (Ûm)	161.1	177.9

Note share price has been translated from GBP to EUR using rate as at balance sheet date per Central Bank, and calculation is impacted by rounding.

Note (k) Operating costs as a % of revenue

Calculation of operating costs as a % of revenue

	30 June 2026 €'m	30 June 2025 €'m
Operating costs	50.8	44.6
Paid marketing costs	(27.7)	(25.4)
Credit card and other processing fees	(1.6)	(1.5)
Depreciation and amortisation	(5.3)	(4.6)
R&D tax credit	0.2	0.4
Exceptional items	(0.7)	(0.3)
Share based payment expense	(1.0)	(0.8)
Adjusted operating costs	14.7	12.4
Revenue	52.2	46.7
Operating costs as a % of revenue	28%	27%

Paid marketing costs, together with credit card and other processing fees, are excluded from the calculation of operating costs above as they are directly associated with revenue. Amounts falling below Adjusted EBITDA are also excluded as they are not reflective of the GroupÕs underlying cost base.

APPENDIX 2: PRINCIPAL RISKS AND UNCERTAINTIES

The GroupÕs risk register identifies key risks including any emerging risks, and monitors progress in managing and mitigating these risks. Each risk identified is subject to an assessment incorporating likelihood of occurrence and potential impact on the Group. The GroupÕs risk register is subject to review by the Executive Leadership Team prior to reporting to the Audit Committee and Board.

The principal risks and uncertainties faced by the Group are reported annually within the Annual Report and Financial Statements for the year ended 31 December 2025, published on 31 March 2026. A review was performed of the risk register during H1 2026.

	Strategic & external risk	Technological, Cyber & Data risk	Financial risk	Operational & Regulatory risk
Increased level of risk	á      Macroeconomic conditions á      Impact of uncontrollable events á      Competition	á      Artificial intelligence á      Cyber security	None identified	None identified
Unchanged level of risk	á      Execution of strategy	á      Data security á      Marketing optimisation á      Platform evolution and innovation	á      Taxation	á      People á      Brand and reputation á      Third-party reliance á      Climate change and sustainability á      Regulation á      Business continuity

Two overarching themes were identified as primary drivers of increased risk in the period: geopolitical uncertainty and artificial intelligence. The effects of these impact a number of risk categories, with five risks noted to be at an increased level:

1.     Macroeconomic conditions: Assessed as increased, reflecting a markedly more unpredictable geopolitical backdrop. Geopolitical-driven currency volatility, inflation and cost of living pressures, together with changes in external demand factors and travel patterns, may negatively impact the Group's booking volumes, average booking values and results.

2.     Impact of uncontrollable events: Assessed as increased, reflecting heightened geopolitical uncertainty. Conflicts may escalate and affect travel routes with little warning, suppressing or redirecting travel demand, as long-standing assumptions around stable trade, open borders and safe travel corridors can no longer be held with the same confidence.

3.     Artificial intelligence (ÓAIÓ): The risk profile of AI has increased, reflecting the continued rapid advancement of generative models and the mainstreaming of AI assistants and AI-driven search, which are increasingly shaping how consumers discover and plan travel. AI carries potential cyber security, competition, data security, operational and compliance impacts for the Group.

4.     Cyber security: Assessed as increased, driven by AI. AI has the potential to lower the barrier to sophisticated attacks, enabling faster, more automated and more convincing threats at greater scale, which may raise both the likelihood and severity of attacks on the Group's platform.

5.     Competition: Assessed as increased, driven by AI. AI-driven search and emerging agentic booking models are reshaping how travel demand is captured, with discovery increasingly mediated by AI assistants. Early integrators may establish a durable advantage, heightening the threat of disintermediation and reduced visibility in AI-led discovery.

The other risks included have not materially changed from those reported within the annual report. The principal risks and uncertainties which are applicable for the second half of the year are summarised below.

Material risks

• Macroeconomic conditions

Global travel demand is sensitive to economic conditions, inflation, interest rates, currency movements, and cost of living pressures. Volatility may impact booking volumes and average booking values. Our diversified customer base and cost flexibility mitigate impacts.

• Impact of uncontrollable events

Geopolitical tensions, conflicts, climate events and travel restrictions may disrupt demand and travel patterns. Diversified destinations and flexible traveller demographics help mitigate impacts.

• AI

Rapid AI development may disrupt how travellers search and book, intensify competition and introduce cyber, regulatory and operational risks. A governance framework, controlled deployment and security oversight are in place to manage these risks.

• Cyber security

As a technology-led platform, the Group is exposed to evolving cyber threats and attacks on its systems and infrastructure. A robust security framework, third-party controls and continuous monitoring mitigate this risk.

• Competition

The OTA market is highly competitive with shifting customer preferences and new entrants. Continuous investment in platform differentiation, partnerships and customer experience supports the Group's market position.

• Data security

The Group processes significant volumes of personal and customer data, creating risk of breach or misuse. GDPR compliance, data governance, third-party controls and access management protect the integrity and confidentiality of that data.

• Marketing optimisation

Heavy reliance on search platforms and paid channels exposes the Group to rising acquisition costs and algorithm or policy changes. Diversified marketing channels, brand investment and ongoing performance optimisation mitigate this exposure.

• Execution of strategy

Delivery of the GroupÕs growth strategy, including the integration of OccasionGenius, requires effective execution and investment. Performance is monitored closely by the Executive Leadership Team.

• Platform evolution and innovation

Rapid technological change requires continuous product innovation to maintain relevance and competitiveness. Ongoing investment in technology and partnerships supports development.

• People

Competition for skilled talent and rising delivery demands may impact the ability to execute strategy. Workforce planning, competitive reward, flexible working and AI upskilling support retention and delivery.

• Brand and reputation

Brand trust is critical and may be affected by user content, cyber incidents or partner issues. Governance frameworks, moderation controls and crisis management processes mitigate risk.

• Third-party reliance

Dependence on hostel partners, payment providers and technology vendors may impact supply and operations. Relationships, due diligence and service monitoring mitigate exposure.

• Climate change and sustainability

Stakeholder expectations and regulatory requirements relating to sustainability and climate disclosures continue to evolve. ESG governance and reporting frameworks are in place and kept under review to adapt to changing standards.

• Regulation

The Group operates in a complex regulatory environment covering digital services, data protection, payments and travel regulations. Legal oversight and external advisors support compliance.

• Business continuity

Dependence on IT systems and cloud infrastructure exposes the Group to operational disruption risk. Disaster recovery and business continuity frameworks are maintained and tested.

• Taxation

Evolving international tax regimes and compliance obligations for digital businesses increase complexity. Dedicated tax function and external advisors monitor developments and ensure compliance.

 

END