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Travelzoo
(NASDAQ:TZOO)
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Rating:44Neutral
Price Target:
$7.50
▼(-25.15% Downside)
Action:Reiterated
Date:07/29/26
The score is held back primarily by weakened financial performance (near-breakeven profitability, sharp revenue decline, and persistently negative equity) and bearish technicals (price below 20/50/100/200-day averages). Valuation is also a headwind due to the very high P/E. Partially offsetting these risks, the latest earnings call outlined a credible path to renewed revenue growth starting in Q3 2026 via scaling recurring membership revenue, though near-term earnings pressure from elevated marketing spend remains significant.
Positive Factors
Recurring membership revenue
A deliberate shift toward ratably recognized membership fees increases revenue predictability and reduces reliance on lumpy advertising sales. As membership share grows, revenue visibility and renewals can stabilize top-line volatility and support longer-term planning and investment decisions.
Negative Factors
Negative shareholder equity
Persistently negative equity is a structural balance-sheet weakness that constrains borrowing capacity, heightens counterparty concern, and limits financial flexibility. That fragility increases risk if cash generation weakens or marketing investments require additional capital to sustain growth initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring membership revenue
A deliberate shift toward ratably recognized membership fees increases revenue predictability and reduces reliance on lumpy advertising sales. As membership share grows, revenue visibility and renewals can stabilize top-line volatility and support longer-term planning and investment decisions.
Read all positive factors
Travelzoo (TZOO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$74.32M
Dividend YieldN/A
Average Volume (3M)118.59K
Price to Earnings (P/E)172.6
Beta (1Y)1.34
Revenue Growth4.93%
EPS Growth-96.38%
CountryUS
Employees249
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.04
Shares Outstanding10,279,709
10 Day Avg. Volume69,592
30 Day Avg. Volume118,589
Financial Highlights & Ratios
PEG Ratio-0.28
Price to Book (P/B)-10.59
Price to Sales (P/S)0.87
P/FCF Ratio14.22
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$12.75Price Target Upside27.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.26
Revenue Forecast (FY)$96.58M
Travelzoo Business Overview & Revenue Model
Company Description
Travelzoo is an online media platform dedicated to sourcing and disseminating attractive promotions across the travel, entertainment, and local services sectors. It partners with various travel and entertainment companies, as well as local busines...
How the Company Makes Money
Travelzoo primarily makes money by monetizing its curated deal distribution platform for travel and local entertainment suppliers. Its core revenue model is marketing/advertising-driven: partners (e.g., hotels, resorts, cruise lines, tour operator...
Travelzoo Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: near‑term financials were weak (Q2 revenue down 3%, GAAP operating margin -12%, reported and non‑GAAP operating losses) driven by temporary market softness and a deliberate, sizable increase in marketing to scale paid Club Members. Management framed the investments as strategic and expects membership revenue to become a larger, more predictable share (>20% in 2026) and to drive revenue growth starting in Q3 with an incremental EPS benefit in 2027. Operational highlights include strong advertising & commerce revenue, attractive unit economics (average acquisition cost $62, $50 annual fee, $15 average transaction revenue), new member benefits (lounge access, Allianz hotline), and upcoming product launches including Travelzoo META. Given the significant but intentional near‑term pain that management expects to convert into recurring revenue and improved profitability over time, the call is neither outright positive nor outright negative.Positive Updates
Membership Revenue Growth and Mix Shift
Membership fee revenue rose to $5.0 million in Q2 and management expects membership fees to account for over 20% of total revenue in 2026, representing a deliberate shift toward more stable, recurring revenue recognized ratably over the 12-month subscription period.
Negative Updates
Revenue Decline Year‑over‑Year
Consolidated revenue was $23.2 million in Q2, a decline of 3% year‑over‑year (constant currency revenue $23.1 million), with management attributing part of the shortfall to international conflicts and temporary demand softness.
Read all updates
Q2-2026 Updates
Positive
Negative
Membership Revenue Growth and Mix Shift
Membership fee revenue rose to $5.0 million in Q2 and management expects membership fees to account for over 20% of total revenue in 2026, representing a deliberate shift toward more stable, recurring revenue recognized ratably over the 12-month subscription period.
Read all positive updates
Company Guidance
Management guided that they expect year‑over‑year revenue growth in Q3 2026 and continued revenue growth in subsequent quarters as membership fees (Q2: $5.0M) — forecast to account for over 20% of revenue this year — are recognized ratably over 12 months and Legacy Members convert to paying Club Members. They reiterated Q2 results of consolidated revenue $23.2M (‑3% YoY; $23.1M constant currency), advertising & commerce revenue $18.2M, a reported GAAP operating loss of $2.8M (GAAP operating margin ‑12%), a non‑GAAP operating loss of $2.1M (vs. prior‑year non‑GAAP op profit $2.4M), marketing spend of $4.6M in Q2, average Club Member acquisition cost of $62, a $1 U.S. trial and $50 annual membership fee, and $15 average transaction revenue per member in Q2. Management said the elevated marketing cadence will depress 2026 EPS (an incremental drag of roughly $0.60) but is expected to drive an incremental EPS lift of about $1.20 in 2027; they reported cash, cash equivalents and restricted cash of $7.6M as of June 30 (after reducing merchant payables by $2.7M and $1.9M of share repurchases) and said cash should rebound in Q3.Travelzoo Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
27
Negative
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 92.15M | 91.72M | 83.90M | 84.48M | 70.60M | 62.71M |
| Gross Profit | 71.07M | 73.64M | 73.43M | 73.54M | 60.60M | 51.32M |
| EBITDA | 1.81M | 7.96M | 19.99M | 19.01M | 12.15M | 4.51M |
| Net Income | 471.00K | 4.70M | 13.56M | 12.37M | 6.63M | 911.00K |
Balance Sheet | ||||||
| Total Assets | 47.82M | 45.11M | 54.72M | 58.27M | 73.59M | 101.79M |
| Cash, Cash Equivalents and Short-Term Investments | 6.84M | 10.01M | 17.06M | 15.71M | 18.69M | 43.81M |
| Total Debt | 6.10M | 10.18M | 8.12M | 9.25M | 11.30M | 12.29M |
| Total Liabilities | 54.42M | 47.53M | 50.37M | 47.64M | 59.98M | 101.42M |
| Stockholders Equity | -11.74M | -7.51M | -462.00K | 5.94M | 9.01M | -4.23M |
Cash Flow | ||||||
| Free Cash Flow | 3.22M | 5.60M | 20.92M | 10.42M | -24.63M | -8.11M |
| Operating Cash Flow | 3.26M | 5.66M | 21.10M | 10.68M | -23.12M | -8.08M |
| Investing Cash Flow | -45.00K | -65.00K | -177.00K | -39.00K | -1.31M | 104.00K |
| Financing Cash Flow | -6.75M | -13.07M | -18.97M | -14.15M | 1.28M | -11.16M |
Travelzoo Technical Analysis
Negative
10.02
Price Trends
10.35
Negative
8.96
Negative
7.96
Negative
Market Momentum
-0.88
Positive
24.59
Positive
13.78
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TZOO, the sentiment is Negative. The current price of 10.02 is above the 20-day moving average (MA) of 9.89, below the 50-day MA of 10.35, and above the 200-day MA of 7.96, indicating a bearish trend. The MACD of -0.88 indicates Positive momentum. The RSI at 24.59 is Positive, neither overbought nor oversold. The STOCH value of 13.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TZOO.
Travelzoo Risk Analysis
Travelzoo disclosed 43 risk factors in its most recent earnings report. Travelzoo reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Travelzoo Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $76.23M | -15.17 | -16.19% | ― | -6.92% | 10.29% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $22.06M | 0.36 | 16.76% | ― | -21.90% | 523.40% | |
50 Neutral | $101.67M | -3.92 | -134.35% | ― | -18.64% | 51.79% | |
44 Neutral | $74.32M | 172.55 | -5.29% | ― | 4.93% | -96.38% | |
31 Underperform | $3.54M | -3.05 | -43.19% | ― | -8.74% | 88.46% |
* Communication Services Sector Average
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Travelzoo Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Travelzoo Posts Q2 Loss Amid Subscription Transition
Negative
Jul 28, 2026
Travelzoo reported that for the second quarter ended June 30, 2026, revenue declined 3% year over year to $23.2 million, with a consolidated operating loss of $2.8 million and a net loss of $2.1 million, or $0.21 per share. The company cited inter...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.