Travelzoo (NASDAQ:TZOO) Issues Earnings Results

Travelzoo (NASDAQ:TZOO) issued its quarterly earnings results on Thursday. The information services provider reported $0.00 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.11 by ($0.11), reports. The company had revenue of $22.47 million for the quarter, compared to analysts’ expectations of $22.54 million. Travelzoo had a negative return on equity of 446.70% and a net margin of 8.66%.

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

• Q4 revenue was $22.5 million, up 9% year-over-year (7% in constant currency), showing continued top-line growth.
• GAAP operating profit fell to $0.6 million (3% margin) from $4.9 million a year ago and non-GAAP operating profit declined to $0.9 million, as higher marketing/member-acquisition spend reduced EPS by about $0.08.
• Management is aggressively scaling paid membership — club membership growth is ~180% YTD and Q4 acquisition cost averaged ~$34 versus the US annual fee (~$40 in Q4, increased to $50 in 2026), producing a quick payback and recurring revenue upside.
• Financial flexibility appears intact with consolidated cash of $10.8 million and Q4 operating cash flow of $1.5 million; management says upfront membership receipts help fund further acquisition investment planned for 2026.

Travelzoo Stock Performance

NASDAQ TZOO traded up $0.08 on Friday, hitting $5.13. The stock had a trading volume of 89,999 shares, compared to its average volume of 170,620. The firm has a 50-day moving average of $6.31 and a 200-day moving average of $8.06. Travelzoo has a 52-week low of $4.72 and a 52-week high of $18.62. The company has a market capitalization of $56.07 million, a price-to-earnings ratio of 7.99 and a beta of 0.89.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on TZOO. Weiss Ratings reissued a “hold (c)” rating on shares of Travelzoo in a report on Friday, January 9th. Zacks Research raised shares of Travelzoo from a “strong sell” rating to a “hold” rating in a research report on Friday, January 30th. UBS Group set a $23.00 price objective on shares of Travelzoo in a report on Wednesday, November 19th. Barrington Research lowered their target price on shares of Travelzoo from $13.00 to $8.00 and set an “outperform” rating on the stock in a report on Friday. Finally, Ascendiant Capital Markets cut their price target on Travelzoo from $26.00 to $23.00 and set a “buy” rating for the company in a report on Wednesday, November 19th. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Travelzoo has an average rating of “Moderate Buy” and a consensus price target of $18.00.

Insider Buying and Selling at Travelzoo

In related news, major shareholder Azzurro Capital Inc sold 40,000 shares of Travelzoo stock in a transaction on Friday, December 26th. The stock was sold at an average price of $6.97, for a total transaction of $278,800.00. Following the completion of the sale, the insider owned 3,662,696 shares of the company’s stock, valued at approximately $25,528,991.12. This trade represents a 1.08% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders have sold a total of 107,500 shares of company stock valued at $762,200 over the last quarter. Corporate insiders own 43.20% of the company’s stock.

Institutional Trading of Travelzoo

Several institutional investors and hedge funds have recently modified their holdings of TZOO. Quarry LP purchased a new position in shares of Travelzoo during the third quarter worth about $26,000. Bank of America Corp DE raised its stake in Travelzoo by 1,242.5% in the second quarter. Bank of America Corp DE now owns 2,148 shares of the information services provider’s stock valued at $27,000 after purchasing an additional 1,988 shares in the last quarter. JPMorgan Chase & Co. lifted its position in Travelzoo by 42,900.0% during the second quarter. JPMorgan Chase & Co. now owns 3,010 shares of the information services provider’s stock valued at $38,000 after purchasing an additional 3,003 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new position in Travelzoo in the 2nd quarter worth approximately $44,000. Finally, Wells Fargo & Company MN increased its holdings in shares of Travelzoo by 76.2% in the 4th quarter. Wells Fargo & Company MN now owns 6,787 shares of the information services provider’s stock worth $48,000 after buying an additional 2,935 shares during the last quarter. Hedge funds and other institutional investors own 27.39% of the company’s stock.

Travelzoo News Roundup

Here are the key news stories impacting Travelzoo this week:

• Positive Sentiment: Revenue grew 9% year-over-year to $22.5M in Q4 and the company reported consolidated operating profit, positive non‑GAAP operating profit and $1.5M cash from operations — evidence of improving top-line traction and cash generation. Travelzoo Q4 results
• Positive Sentiment: Barrington Research lowered its price target (from $13 to $8) but retained an “outperform” rating, implying meaningful upside from current levels — an analyst vote of confidence that can support the equity if execution accelerates. Barrington Research note
• Neutral Sentiment: Management is pushing a strategic shift toward recurring revenue — targeting 25% of revenue from membership fees in 2026 — which could improve long‑term margins but requires near‑term investment and user conversion. Membership strategy
• Neutral Sentiment: Product/marketing activity continues (new Club Offers in the U.S.), supporting member engagement and revenue diversification but with unclear near‑term margin impact. Club offers PR
• Negative Sentiment: Q4 EPS came in at $0.00 vs. consensus $0.11 (a miss) and management highlighted increased marketing and membership investments that weighed on margins; this earnings shortfall is the primary near‑term downward pressure on the stock. Earnings report and call
• Negative Sentiment: Some financial metrics remain concerning for value investors: the company reported a negative return on equity (large on a percentage basis) and EPS has declined from the prior year, increasing short‑term execution risk. Zacks summary

Travelzoo Company Profile

Travelzoo (NASDAQ: TZOO) is a global internet media company specializing in publishing curated travel, entertainment and local deals to a subscriber base of millions. Through its website, mobile applications and weekly email newsletters, Travelzoo partners with airlines, hotels, cruise lines, tour operators and local merchants to promote time-sensitive offers at discounted rates. The company generates revenue primarily from media commissions, advertising arrangements and marketing services provided to its hotel and resort partners.

Founded in 1998, Travelzoo went public on the NASDAQ in 2003 under the ticker symbol TZOO.