Travelzoo (NASDAQ:TZOO) Releases Earnings Results

Travelzoo (NASDAQ:TZOO) posted its earnings results on Tuesday. The information services provider reported ($0.20) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.11), RTT News reports. The business had revenue of $22.91 million during the quarter, compared to the consensus estimate of $22.97 million. During the same period last year, the business posted $0.01 earnings per share.

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 Trading Down 0.2%

NASDAQ:TZOO traded down $0.01 during trading hours on Wednesday, hitting $4.97. 3,955 shares of the company traded hands, compared to its average volume of 146,984. The firm has a 50-day moving average of $5.77 and a 200 day moving average of $7.44. The stock has a market capitalization of $50.69 million, a price-to-earnings ratio of 165.63 and a beta of 1.36. Travelzoo has a twelve month low of $4.72 and a twelve month high of $12.39.

Wall Street Analysts Forecast Growth

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

More Travelzoo News

Here are the key news stories impacting Travelzoo this week:

• Positive Sentiment: Travelzoo reported that Club Members increased 65% year over year and outlined expectations for more than $30 million in membership revenue during 2027. The growth supports management’s strategy of shifting toward recurring membership revenue. Travelzoo outlines more than $30M 2027 membership revenue as Club Members rise 65%
• Positive Sentiment: Travelzoo announced an update to its equity buyback plan. Repurchases can support the stock by reducing shares outstanding and signaling management’s confidence in the company’s long-term value. Tranche Update on Travelzoo’s Equity Buyback Plan
• Neutral Sentiment: Management’s third-quarter earnings call focused on membership expansion and the company’s longer-term growth strategy. Investors will likely look for evidence that membership gains can translate into stronger profitability. Travelzoo Q3 2026 Earnings Call Transcript
• Negative Sentiment: Travelzoo posted third-quarter revenue of $22.9 million, up 3% year over year but slightly below the $22.97 million consensus estimate. The company reported a $2.6 million operating loss, a $2.1 million non-GAAP operating loss and EPS of negative $0.20, missing the expected negative $0.09 and falling from positive EPS of $0.01 a year earlier. Travelzoo Reports Third Quarter 2026 Results

Travelzoo Company Profile

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.