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

Travelzoo (NASDAQ:TZOO) released its earnings results on Thursday. The information services provider reported $0.00 earnings per share for the quarter, missing the consensus estimate 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 company 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 Up 0.1%

NASDAQ TZOO traded up $0.01 on Friday, reaching $5.06. The company had a trading volume of 96,003 shares, compared to its average volume of 170,620. Travelzoo has a 52 week low of $4.72 and a 52 week high of $18.62. The stock’s 50 day moving average is $6.31 and its 200-day moving average is $8.06. The stock has a market cap of $55.25 million, a price-to-earnings ratio of 7.94 and a beta of 0.89.

Insider Activity

In related news, major shareholder Azzurro Capital Inc sold 40,000 shares of the stock in a transaction that occurred on Friday, December 26th. The shares were sold at an average price of $6.97, for a total value of $278,800.00. Following the sale, the insider directly owned 3,662,696 shares in the company, valued at $25,528,991.12. This trade represents a 1.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. In the last three months, insiders sold 107,500 shares of company stock worth $762,200. 43.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Travelzoo

Several hedge funds have recently bought and sold shares of TZOO. Cubist Systematic Strategies LLC acquired a new position in shares of Travelzoo in the 1st quarter valued at approximately $120,000. Millennium Management LLC lifted its stake in Travelzoo by 299.8% in the first quarter. Millennium Management LLC now owns 309,097 shares of the information services provider’s stock valued at $4,213,000 after acquiring an additional 231,790 shares during the last quarter. Goldman Sachs Group Inc. grew its position in shares of Travelzoo by 60.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 45,528 shares of the information services provider’s stock valued at $621,000 after acquiring an additional 17,146 shares during the period. Jane Street Group LLC increased its stake in shares of Travelzoo by 63.6% during the 1st quarter. Jane Street Group LLC now owns 28,779 shares of the information services provider’s stock worth $392,000 after purchasing an additional 11,189 shares during the last quarter. Finally, Geode Capital Management LLC raised its holdings in shares of Travelzoo by 113.8% in the 2nd quarter. Geode Capital Management LLC now owns 157,267 shares of the information services provider’s stock valued at $2,002,000 after purchasing an additional 83,719 shares during the period. 27.39% of the stock is currently owned by institutional investors and hedge funds.

Travelzoo News Summary

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

Analyst Ratings Changes

TZOO has been the topic of a number of research reports. Barrington Research lowered their price objective on Travelzoo from $13.00 to $8.00 and set an “outperform” rating on the stock in a research report on Friday. Ascendiant Capital Markets cut their target price on 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 reaffirmed a “hold (c)” rating on shares of Travelzoo in a research note on Friday, January 9th. Zacks Research upgraded Travelzoo from a “strong sell” rating to a “hold” rating in a research note on Friday, January 30th. Finally, UBS Group set a $23.00 target price on shares of Travelzoo in a research note on Wednesday, November 19th. Three analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $18.00.

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.