Travelzoo (NASDAQ:TZOO) Releases Earnings Results, Misses Expectations By $0.11 EPS

Travelzoo (NASDAQ:TZOO) announced its quarterly earnings data on Thursday. The information services provider reported $0.00 earnings per share (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 company had revenue of $22.47 million for the quarter, compared to analysts’ expectations 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 TZOO traded up $0.06 during midday trading on Friday, hitting $5.11. 114,352 shares of the company traded hands, compared to its average volume of 171,292. The stock has a market cap of $55.85 million, a price-to-earnings ratio of 7.95 and a beta of 0.89. 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.

Insider Activity at Travelzoo

In related news, major shareholder Azzurro Capital Inc sold 40,000 shares of the company’s stock in a transaction on Friday, December 26th. The shares were sold at an average price of $6.97, for a total transaction of $278,800.00. Following the sale, the insider owned 3,662,696 shares of the company’s stock, valued at $25,528,991.12. This represents a 1.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. In the last ninety days, insiders sold 107,500 shares of company stock worth $762,200. 43.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Travelzoo

Several large investors have recently added to or reduced their stakes in TZOO. Quarry LP bought a new position in shares of Travelzoo in the third quarter worth about $26,000. Bank of America Corp DE grew its stake in Travelzoo by 1,242.5% in the 2nd quarter. Bank of America Corp DE now owns 2,148 shares of the information services provider’s stock worth $27,000 after acquiring an additional 1,988 shares in the last quarter. JPMorgan Chase & Co. grew its stake in Travelzoo by 42,900.0% in the 2nd quarter. JPMorgan Chase & Co. now owns 3,010 shares of the information services provider’s stock worth $38,000 after acquiring an additional 3,003 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new position in shares of Travelzoo during the second quarter worth approximately $44,000. Finally, Wells Fargo & Company MN increased its position in shares of 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.

Travelzoo News Roundup

Here are the key news stories impacting Travelzoo this week:

• Positive Sentiment: Q4 revenue growth and operating cash flow — Travelzoo reported Q4 revenue of $22.5M (up 9% YoY), consolidated operating profit of $0.6M, non-GAAP operating profit of $0.9M and $1.5M cash from operations, signaling improving top-line momentum and positive cash generation. PR Newswire: Travelzoo Reports Fourth Quarter 2025 Results
• Positive Sentiment: Strategic shift toward membership revenue — Management is targeting 25% of revenue from membership fees in 2026, which could improve recurring revenue and lifetime value if adoption scales as planned. Seeking Alpha: Travelzoo targets 25% of revenue from membership fees in 2026
• Neutral Sentiment: Company materials and call available — Management provided a slide deck and conference-call transcript for Q4, giving investors more detail to assess the membership pivot and margin outlook. Q4 Slide Deck / Press Release
• Negative Sentiment: EPS miss and profitability concerns — Travelzoo reported break-even EPS ($0.00) vs. a $0.11 consensus, with a large negative return on equity reported; the miss raises near-term profit concerns. Zacks: Travelzoo Reports Break-Even Earnings for Q4
• Negative Sentiment: Membership push is weighing on margins — Management is increasing marketing spend to grow memberships, which boosted revenue but compressed margins in Q4 and may limit near-term profitability. MSN: Travelzoo posts higher Q4 revenue as membership push weighs on margins
• Negative Sentiment: Barrington cuts price target — Barrington lowered its price target from $13 to $8 (but kept an Outperform rating), reducing the implied upside and signaling more conservative near-term expectations from analysts. The Fly / Benzinga: Barrington lowers price target

Analyst Upgrades and Downgrades

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

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.