Travelzoo (NASDAQ:TZOO) Issues Earnings Results

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

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

Shares of NASDAQ:TZOO traded up $0.08 during midday trading on Friday, reaching $5.13. The company’s 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 price of $6.31 and a two-hundred day moving average price of $8.06. Travelzoo has a fifty-two week low of $4.72 and a fifty-two week high of $18.62. The firm has a market capitalization of $56.07 million, a price-to-earnings ratio of 7.99 and a beta of 0.89.

Wall Street Analyst Weigh In

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

Insider Transactions at Travelzoo

In other Travelzoo news, major shareholder Azzurro Capital Inc sold 40,000 shares of the stock in a transaction that occurred 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 transaction, the insider directly owned 3,662,696 shares in the company, valued at approximately $25,528,991.12. This represents a 1.08% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders sold 107,500 shares of company stock valued at $762,200 over the last quarter. 43.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in TZOO. Quarry LP bought a new stake in Travelzoo during the 3rd quarter worth approximately $26,000. Bank of America Corp DE lifted its position in shares of Travelzoo by 1,242.5% during 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. boosted its holdings 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 worth $38,000 after purchasing an additional 3,003 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new stake in Travelzoo in the 2nd quarter worth about $44,000. Finally, Wells Fargo & Company MN lifted its holdings in Travelzoo by 76.2% during the fourth quarter. Wells Fargo & Company MN now owns 6,787 shares of the information services provider’s stock worth $48,000 after acquiring an additional 2,935 shares during the period. 27.39% of the stock is owned by institutional investors.

Key Headlines Impacting Travelzoo

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

About Travelzoo

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.