Web Travel Group (ASX: WEB) Plunges 30% on Spanish Tax Audit- Is This the Buying Opportunity of 2026?

Web Travel drops due to the Spanish tax audit

Web Travel Group (ASX: WEB) crashed as much as 41 per cent on Friday, hitting a multi-year low of A$2.47 before closing at A$2.96, roughly 30 per cent below its previous close of A$4.20. The trigger was news that Spain’s tax authority had started an audit of the company’s Spanish subsidiary. The audit covers direct taxes from April 2021 to March 2024 and indirect taxes from January 2022 to December 2025.

In our view, the sell-off looks excessive given what we actually know. Web Travel called the disclosure “not market sensitive” and confirmed its full-year earnings outlook has not changed. This feels like a case of investors selling first and asking questions later, driven more by fear than facts.

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Why the Spanish Tax Audit Spooked Investors

On its own, a tax audit is not unusual for a global business. Companies operating across borders deal with these regularly. What turned a routine-sounding announcement into a 30 per cent crash was timing and trust.

Web Travel has a credibility problem. After the 2024 demerger from Webjet Group, the company dealt with delayed results and accounting restatements. Management said those issues were not material, but the damage to investor confidence was real. So when a tax audit appeared with few details and a broad four-year scope, the market assumed the worst.

The company responded to an ASX price query by confirming there is no undisclosed information behind the drop and that FY26 earnings should be in line with guidance. That is reassuring, but until investors get more details on what the audit is actually about, uncertainty will likely hang over the stock.

The Business Behind the Headlines – Record Growth Continues

Here is what has not changed. Just ten weeks ago, Web Travel reported record first-half results. Revenue reached AUD 204.6 million, up 20 per cent for the half-year (1H26). WebBeds EBITDA came in at AUD 94 million with a strong 45.9 per cent margin, comfortably within its guided range. The company sits on AUD 481 million in cash with AUD 699 million in total liquidity, giving it more than enough buffer to handle a difficult outcome if one arises.

Management expects full-year EBITDA of AUD 147 to 155 million and says second-half trading is running 23 per cent ahead of last year. This is a business firing on all cylinders operationally, which makes the scale of the sell-off even more striking.

The Investor’s Takeaway

At A$2.96, Web Travel trades at roughly 12 times forward earnings for a business growing at over 20 per cent a year. Before the crash, it sat around 17 to 18 times, which was already modest for this growth profile. Analyst consensus heading into the selloff had 14 buy ratings with an average target of around AUD 6.21, more than double the current price.

We believe this could be one of those rare moments where fear creates genuine opportunity. The balance sheet is strong, the growth is real, and the business model is working. If the audit turns out to be manageable, this stock looks heavily oversold.

That said, the risks are real. We do not know what triggered the audit or how large any potential tax bill could be. The CFO is also leaving in May 2026, and the company has not yet declared a dividend since the demerger. For conservative investors, waiting for more clarity before acting is a sensible approach. The next update should come with FY26 results on 27 May 2026.