Travelzoo Inc (TZOO)
NASDAQ:TZOO
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Travelzoo
(NASDAQ:TZOO)
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Rating:53Neutral
Price Target:
$6.00
▼(-10.85% Downside)
Action:ReiteratedDate:03/06/26
The score is held back primarily by balance-sheet weakness (negative equity) and the sharp step-down in profitability/cash generation in 2025 despite strong revenue growth. Technicals add modest support via improving short-term momentum, but the longer-term trend remains weak. Valuation is a drag because the negative P/E makes earnings-based valuation unreliable and no dividend yield is indicated. Earnings-call messaging is mixed: growth and recurring-revenue shift look promising, but near-term margin/EPS volatility and renewal uncertainty temper confidence.
Positive Factors
Very high gross margins
Sustained ~80%+ gross margins indicate structurally attractive unit economics for Travelzoo’s curated-distribution model. High gross margins provide long-term capacity to fund marketing and product investment while preserving operating leverage as recurring membership revenue grows.
Negative Factors
Negative shareholders' equity
Negative equity is a persistent structural balance-sheet weakness that limits financial flexibility, complicates access to unsecured capital, and increases vulnerability to shocks. Over a multi-month horizon it raises refinancing and covenant risk if cash generation weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Very high gross margins
Sustained ~80%+ gross margins indicate structurally attractive unit economics for Travelzoo’s curated-distribution model. High gross margins provide long-term capacity to fund marketing and product investment while preserving operating leverage as recurring membership revenue grows.
Read all positive factors
Travelzoo (TZOO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$69.97M
Dividend YieldN/A
Average Volume (3M)129.28K
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth6.58%
EPS Growth-34.30%
CountryUS
Employees227
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.00
Shares Outstanding10,932,337
10 Day Avg. Volume69,868
30 Day Avg. Volume129,275
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 Cap1.05
Enterprise Value/Revenue0.80
Enterprise Value/Gross Profit1.00
Enterprise Value/Ebitda10.05
Forecast
1Y Price Target
$14.00Price Target Upside108.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.55
Revenue Forecast (FY)$99.82M
Travelzoo Business Overview & Revenue Model
Company Description
Travelzoo, an Internet media company, provides travel, entertainment, and local deals from travel and entertainment companies, and local businesses in the Asia Pacific, Europe, and North America. Its publications and products include Travelzoo Web...
How the Company Makes Money
Travelzoo primarily makes money by monetizing its audience through marketing and commerce arrangements with travel and entertainment suppliers. Key revenue streams include: (1) Advertising/listing and promotional fees: suppliers pay to have their ...
Travelzoo Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Neutral
The call communicated a strategic shift toward aggressive, ROI-driven investment in paid Club Member acquisition that is driving meaningful top-line growth (9% revenue growth, 180% membership growth YTD) and a larger share of recurring membership revenue, while materially compressing near-term profitability (GAAP and non-GAAP operating profits declined ~88% and ~83%, respectively). Management emphasized the economics of member acquisition (quick payback, Q4 CPA $34 vs $40 membership fee in the U.S.), healthy cash ($10.8M) and upcoming product launches (Travelzoo META Q2 2026), but flagged short-term volatility in advertising & commerce, one-time G&A items, and uncertainty around renewal/churn timing for the new member cohort.Positive Updates
Consolidated Revenue Growth
Q4 consolidated revenue was $22.5M, up 9% year-over-year (7% in constant currencies, $22.1M). Advertising & commerce revenue was $18.3M and membership fees grew to $4.1M.
Negative Updates
Sharp Decline in GAAP Operating Profit
Q4 GAAP operating profit fell to $0.6M (3% of revenue) from $4.9M a year earlier — an ~88% decrease, driven by higher marketing/acquisition spending.
Read all updates
Q4-2025 Updates
Positive
Negative
Consolidated Revenue Growth
Q4 consolidated revenue was $22.5M, up 9% year-over-year (7% in constant currencies, $22.1M). Advertising & commerce revenue was $18.3M and membership fees grew to $4.1M.
Read all positive updates
Company Guidance
Management guided that they expect year‑over‑year revenue growth to continue into Q1 2026 and beyond as membership fee revenue (recognized ratably over a 12‑month subscription) ramps — membership fees are expected to be roughly 25% of revenue this year — and they will spend more on member acquisition in 2026 provided the attractive, quick payback holds. Key metrics cited: consolidated Q4 2025 revenue $22.5M (constant‑currency $22.1M), advertising & commerce $18.3M, membership fees $4.1M, Q4 operating profit $0.6M (3% of revenue), GAAP operating margin 2%, non‑GAAP operating profit $0.9M (4%), Club Member growth 180% YTD, average acquisition costs $28 (Q1), $38 (Q2), $40 (Q3) and $34 (Q4) with the Q4 example of a $40 membership fee plus $10 of same‑quarter transaction revenue, cash and restricted cash $10.8M (12/31/25) and operating cash flow $1.5M; they warned short‑term EPS/net‑income volatility (Q4 acquisition spend reduced EPS by ~$0.08), noted the U.S. membership fee increase to $50 effective Jan 1, 2026, and expect the first Travelzoo META experiences in Q2 2026.Travelzoo Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
38
Negative
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 91.72M | 83.90M | 84.48M | 70.60M | 62.71M |
| Gross Profit | 73.64M | 73.43M | 73.54M | 60.60M | 51.32M |
| EBITDA | 7.96M | 19.41M | 17.46M | 9.75M | 505.00K |
| Net Income | 4.70M | 13.56M | 12.37M | 6.63M | 911.00K |
Balance Sheet | |||||
| Total Assets | 45.11M | 54.72M | 58.27M | 73.59M | 101.79M |
| Cash, Cash Equivalents and Short-Term Investments | 10.01M | 17.06M | 15.71M | 18.69M | 43.81M |
| Total Debt | 10.18M | 8.12M | 9.25M | 11.30M | 12.29M |
| Total Liabilities | 47.53M | 50.37M | 47.64M | 59.98M | 101.42M |
| Stockholders Equity | -7.51M | -462.00K | 5.94M | 9.01M | -4.23M |
Cash Flow | |||||
| Free Cash Flow | 5.60M | 20.92M | 10.42M | -24.63M | -8.11M |
| Operating Cash Flow | 5.66M | 21.10M | 10.68M | -23.12M | -8.08M |
| Investing Cash Flow | -65.00K | -177.00K | -39.00K | -1.31M | 104.00K |
| Financing Cash Flow | -13.07M | -18.97M | -14.15M | 1.28M | -11.16M |
Travelzoo Technical Analysis
Positive
6.73
Price Trends
6.03
Positive
6.38
Positive
8.29
Negative
Market Momentum
0.05
Negative
61.50
Neutral
92.20
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TZOO, the sentiment is Positive. The current price of 6.73 is above the 20-day moving average (MA) of 6.16, above the 50-day MA of 6.03, and below the 200-day MA of 8.29, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 61.50 is Neutral, neither overbought nor oversold. The STOCH value of 92.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TZOO.
Travelzoo Risk Analysis
Travelzoo disclosed 42 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $46.00M | 2.19 | 10.47% | ― | -27.98% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | $69.97M | -1,024.16 | -65.43% | ― | 6.58% | -34.30% | |
50 Neutral | $65.43M | -13.92 | -15.09% | ― | -4.32% | -13.99% | |
47 Neutral | $92.11M | -2.29 | -134.23% | ― | -18.94% | 37.05% | |
| ― | $2.72M | -22.59 | -194.72% | ― | -11.51% | 74.52% |
* Communication Services Sector Average
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Travelzoo Corporate Events
Business Operations and StrategyFinancial Disclosures
Travelzoo Posts Q4 Revenue Growth Amid Investment Phase
Positive
Feb 19, 2026
Travelzoo reported fourth-quarter 2025 revenue of $22.5 million, a 9% year-over-year increase, with constant-currency growth of 7%, while consolidated operating profit reached $0.6 million and non-GAAP operating profit $0.9 million. Despite a net ...
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.