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Hostelworld (HSW) AI Stock Analysis

16 Followers
GB:HSW

Hostelworld

(LSE:HSW)

Select Model
Rating:61Neutral
Price Target:GBX 87.00â–²(1.40% Upside)
Action:reiterated
Date:11/07/26

The score is supported primarily by improving profitability and strong recent cash generation, indicating a healthier post-2022 financial profile. However, the overall rating is held back by clear technical weakness (price below all key moving averages and bearish momentum) and recent revenue contraction, which raises uncertainty about near-term growth and profit resilience. Valuation is roughly fair with a modest dividend yield, providing limited offset.

Positive Factors
Improved profitabilitySustained positive operating profit and net income across 2023–2025 indicate a materially stronger earnings base than in prior years. The sharp gross-margin expansion and improved EBITDA margin could support reinvestment, resilience, and more durable profitability if revenue stabilises.
Negative Factors
Revenue contractionRevenue contraction in two consecutive years, including an approximately 17% decline in 2025, weakens the foundation for sustained earnings growth. Lower booking-related revenue can limit operating leverage and make recent margin improvements harder to maintain without a durable recovery in demand.

Hostelworld (HSW) vs. iShares MSCI United Kingdom ETF (EWC)

-40%-30%-20%-10%0%10%20%30%GB:HSW-36.20%EWC+19.77%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
GBP 105.78M
Dividend Yield
2.43%
Average Volume (3M)
198.32K
Price to Earnings (P/E)
19.9
Beta (1Y)
0.36
Revenue Growth
11.27%
EPS Growth
-13.59%
Country
UK
Employees
269
Sector
Consumer Cyclical
Sector Strength
61
Industry
Travel Services

Hostelworld Business Overview & Revenue Model

Company Description

Hostelworld Group Plc engages in a hostel-focused online booking platform for young and independent travelers. The company was founded in 1999 and is headquartered in Dublin, Ireland.

How the Company Makes Money

Hostelworld primarily makes money by earning a commission on accommodation bookings made through its platform. When a customer reserves a stay, the booking value (room/bed price) is split into a portion that Hostelworld retains as platform revenue (a...

Hostelworld Financial Statement Overview

Summary

Financial health is improving: profitability is positive in 2023–2025 with sharply higher gross margin and improved EBITDA margin (~23% in 2025), and cash generation is strong (solid operating cash flow and a large free-cash-flow rebound in 2025). Offsetting this, revenue has contracted in 2024–2025 (down ~17% in 2025), net margin weakened in 2025 vs 2024, and both cash flow and balance sheet metrics show some year-to-year volatility.

Income Statement

72Positive

Balance Sheet

64Positive

Cash Flow

78Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue99.87M93.80M92.00M93.26M69.69M16.90M
Gross Profit89.62M74.70M73.00M52.64M57.11M5.79M
EBITDA22.48M18.00M21.60M16.80M-2.01M-20.67M
Net Income6.40M7.00M9.10M5.14M-17.26M-36.02M
Balance Sheet
Total Assets106.10M103.03M90.50M94.83M106.48M116.51M
Cash, Cash Equivalents and Short-Term Investments15.00M12.21M8.20M6.71M18.21M24.52M
Total Debt11.00M14.72M300.00K10.73M31.66M28.30M
Total Liabilities34.70M29.84M20.40M35.65M54.23M49.40M
Stockholders Equity71.40M73.19M70.10M59.18M52.24M67.11M
Cash Flow
Free Cash Flow22.51M18.07M14.70M17.32M-5.54M-18.22M
Operating Cash Flow22.71M18.26M20.30M17.43M-749.00K-13.75M
Investing Cash Flow-17.26M-15.81M-5.60M-4.09M-4.79M-4.47M
Financing Cash Flow-1.33M1.47M-14.00M-24.81M-752.00K25.27M

Hostelworld Technical Analysis

Technical Analysis SentimentNeutral
Last Price85.80

Price Trends

50DMA94.20Negative
100DMA101.32Negative
200DMA103.79Negative

Market Momentum

MACD-2.47Negative
RSI46.80Neutral
STOCH87.59Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HSW, the sentiment is Neutral. The current price of 85.80 is above the 20-day moving average (MA) of 83.56, below the 50-day MA of 94.20, and below the 200-day MA of 103.79, indicating a neutral trend. The MACD of -2.47 indicates Negative momentum. The RSI at 46.80 is Neutral, neither overbought nor oversold. The STOCH value of 87.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:HSW.

Hostelworld Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

GB:HSW against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
GB:JET2GB:JET275OutperformGBP 2.71B7.1519.92%1.11%4.30%-4.51%
GB:WTBGB:WTB68NeutralGBP 4.72B81.101.85%3.46%1.99%-75.93%
GB:TRNGB:TRN64NeutralGBP 640.35M10.1939.23%―0.78%12.79%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
GB:HSWGB:HSW61NeutralGBP 106.76M19.918.85%2.43%11.27%-13.59%
GB:OTBGB:OTB61NeutralGBP 233.03M84.332.40%0.58%-1.97%-77.68%
GB:SSTYGB:SSTY43NeutralGBP 3.90M-0.32-90.56%―-13.56%-2481.08%

* Consumer Cyclical Sector Average

Performance Comparison

-50%-25%0%25%GB:HSWGB:JET2GB:OTBGB:SSTYGB:WTBGB:TRNDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
GB:HSW and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
GB:HSWHostelworld Group plc85.80-44.27-34.04%
GB:JET2Jet2 Plc1516.00211.6116.22%
GB:OTBOn The Beach171.20-31.04-15.35%
GB:SSTYSafestay plc6.00-12.50-67.57%
GB:WTBWhitbread plc2806.00134.385.03%
GB:TRNTrainline Plc192.00-71.80-27.22%

Hostelworld Corporate Events

Business Operations and StrategyFinancial DisclosuresShareholder Meetings

Hostelworld lifts revenue and commissions but flags long-haul travel headwinds

Positive
Oct 7, 2026

Hostelworld reported resilient trading for Q3 2026, with net revenue up 7% year on year to €27.9m and effective commission rates reaching a record 17.8%, despite a 2% decline in net transactions caused by Middle East conflict and softer long-haul dem...

Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance

Hostelworld Reshapes Board Committees to Strengthen Governance

Neutral
Aug 11, 2026

Hostelworld Group plc has revised the memberships of its Audit, Remuneration, and Nomination Committees following a review of board committee composition, effective 10 August 2026. The Audit Committee will now be chaired by Paul Duffy, the Remunerati...

Business Operations and Strategy

Hostelworld Adds Berenberg as Joint Corporate Broker to Bolster Market Support

Positive
Aug 11, 2026

Hostelworld Group plc, the online hostel-focused booking platform, has strengthened its capital markets support by appointing Joh. Berenberg, Gossler & Co KG in London as a joint corporate broker alongside its existing adviser Goodbody Stockbrokers U...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 06, 2026