Travelzoo (NASDAQ:TZOO) Posts Quarterly Earnings Results, Misses Estimates By $0.11 EPS

Travelzoo (NASDAQ:TZOO) announced its quarterly earnings results on Tuesday. The information services provider reported ($0.20) EPS for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.11), RTT News reports. The firm had revenue of $22.91 million during the quarter, compared to analyst estimates of $22.97 million. Travelzoo had a net margin of 0.51% and a negative return on equity of 9.35%. During the same quarter in the prior year, the business earned $0.01 EPS.

Here are the key takeaways from Travelzoo’s conference call:

• Club Members increased 65% year over year, with Q3 adding the company’s largest number of members yet. Management said roughly half of growth came from converting legacy members and half from new members, with new additions slightly higher in Q3.
• Travelzoo reported a $2.6 million operating loss, compared with a $0.5 million profit a year earlier, as it accelerated marketing investment to acquire members. Non-GAAP operating loss was $2.1 million versus a $1.1 million profit in the prior-year quarter.
• Average U.S. member acquisition cost improved to $54 in Q3 from $62 in Q2 despite significantly higher spending. Management attributed the improvement to scaling high-performing offers across channels such as Facebook and expects the investment to support stronger profitability in 2027 and beyond.
• The company expects year-over-year revenue growth in Q4 2026 and subsequent quarters, supported by ratable recognition of membership fees, renewals, and new member additions. Management is targeting approximately $30 million in 2027 membership revenue, supported partly by about $13 million of deferred revenue already on the balance sheet.
• Travelzoo expects to launch its first Travelzoo META experiences in Q4 2026 as an exclusive Club Membership benefit and is incorporating AI to improve offer discovery and personalization. Jack’s Flight Club is also prioritizing member and subscription revenue growth, although its Q3 revenue declined because of lower deferred revenue from earlier member acquisition.

Travelzoo Stock Performance

Shares of TZOO traded up $0.22 on Thursday, reaching $5.13. The stock had a trading volume of 19,140 shares, compared to its average volume of 146,765. Travelzoo has a 12-month low of $4.72 and a 12-month high of $12.39. The company has a 50-day simple moving average of $5.72 and a 200-day simple moving average of $7.43. The firm has a market capitalization of $52.38 million, a price-to-earnings ratio of 171.10 and a beta of 1.36.

Analyst Upgrades and Downgrades

Several equities analysts have commented on TZOO shares. UBS Group set a $9.50 price objective on shares of Travelzoo in a report on Wednesday, July 29th. Zacks Research upgraded shares of Travelzoo from a “strong sell” rating to a “hold” rating in a research note on Tuesday, October 20th. Ascendiant Capital Markets dropped their price target on Travelzoo from $23.00 to $20.00 and set a “buy” rating for the company in a report on Thursday, August 20th. Weiss Ratings lowered shares of Travelzoo from a “sell (d+)” rating to a “sell (d)” rating in a research report on Tuesday, September 29th. Finally, Wall Street Zen cut shares of Travelzoo from a “hold” rating to a “sell” rating in a research note on Saturday, August 22nd. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $13.83.

About Travelzoo

Travelzoo (NASDAQ: TZOO) is an internet media company that publishes travel and entertainment offers for consumers. Its platform features deals on hotels, vacations, cruises, flights, restaurants, spas, events and other leisure activities, connecting participating businesses with an audience of members and website visitors.

The company’s products and services include its travel and local-deals publications, destination and deal guides, and online tools that help users discover and compare travel opportunities.