Travelzoo (TZOO) AI Stock Analysis

• Market Cap: $81.59M
• Dividend Yield: N/A
• Average Volume (3M): 105.73K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 1.13
• Revenue Growth: 6.58%
• EPS Growth: -34.30%
• Country: US
• Employees: 227
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.01
• Shares Outstanding: 10,980,939
• 10 Day Avg. Volume: 105,890
• 30 Day Avg. Volume: 105,728
• PEG Ratio: 0.61
• Price to Book (P/B): -543.83
• Price to Sales (P/S): 2.99
• P/FCF Ratio: 12.01
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $19.50
• Price Target Upside: 91.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $7.00 ▼(-31.31% Downside)

Travelzoo's overall stock score is driven by mixed financial performance and bearish technical indicators. While the company shows potential with revenue and membership growth, significant financial instability and weak market momentum present challenges. The reasonable valuation provides some support, but operational and financial risks weigh heavily on the score.

Positive Factors

Member Growth

Significant member growth indicates strong demand and potential for recurring revenue, enhancing long-term revenue stability as membership fees are expected to account for about 25% of revenue next year.

Revenue Growth

Consistent revenue growth reflects effective business strategies and market demand, supporting future financial stability and expansion opportunities.

Exclusive Offers

Exclusive offers enhance brand differentiation and customer loyalty, potentially driving higher engagement and revenue through unique value propositions.

Negative Factors

Decline in Operating Profit

A decline in operating profit indicates challenges in cost management and profitability, which could impact long-term financial health if not addressed.

Negative Cash Flow

Negative cash flow suggests potential liquidity issues, limiting the company's ability to invest in growth and manage financial obligations effectively.

Increased Acquisition Costs

Rising acquisition costs can strain profitability and reduce the return on investment for new members, challenging sustainable growth.

Travelzoo Business Overview & Revenue Model

Company Description

Travelzoo (TZOO) is a global media company that connects travelers with the best deals on travel, entertainment, and local activities. Operating primarily in the online travel sector, Travelzoo offers a variety of services including curated travel deals, vacation packages, hotel bookings, and experiences through its website and mobile app. The company focuses on providing users with exclusive offers from travel suppliers and local businesses, enhancing the travel planning experience.

How the Company Makes Money

Travelzoo generates revenue primarily through advertising and affiliate marketing. The company partners with travel and entertainment providers to offer exclusive deals to its subscribers, earning commissions on bookings made through its platform. Key revenue streams include the sale of advertising space on its website and email newsletters, as well as performance-based commissions from partners for each transaction facilitated via Travelzoo. Additionally, Travelzoo may generate income through partnerships with local businesses that seek to promote their services to a broad audience of travelers. The company leverages its large subscriber base to attract advertisers and partners, enhancing its earnings potential.

Travelzoo Financial Statement Overview

Summary

Travelzoo shows mixed financial performance with moderate revenue growth but declining profitability margins. The balance sheet is weak with negative equity and high leverage, while cash flow generation is moderate but declining.

Income Statement

Travelzoo's income statement shows a moderate performance with a gross profit margin of 82.3% and a net profit margin of 8.8% for the TTM period. While revenue has grown by 2.4% in the TTM, the EBIT and EBITDA margins have decreased compared to the previous year, indicating some pressure on operational efficiency. The company has shown resilience with positive revenue growth, but profitability margins have declined, suggesting potential challenges in cost management.

Balance Sheet

The balance sheet reveals significant weaknesses, with a negative stockholders' equity and a concerning debt-to-equity ratio of -0.81 in the TTM. The return on equity is also negative, indicating that the company is not generating sufficient returns on shareholder investments. The equity ratio is negative, highlighting financial instability and potential risks associated with high leverage.

Cash Flow

Cash flow analysis shows a mixed picture. The operating cash flow to net income ratio is 0.34, indicating moderate cash generation relative to net income. However, free cash flow has decreased by 32.2% in the TTM, suggesting challenges in maintaining cash reserves. The free cash flow to net income ratio is strong at 0.99, indicating efficient cash conversion, but the overall decline in free cash flow growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	89.92M	83.90M	84.48M	70.60M	62.71M	53.60M
Gross Profit	74.03M	73.43M	73.54M	60.60M	51.32M	43.04M
EBITDA	11.61M	19.41M	17.46M	9.75M	505.00K	-8.95M
Net Income	7.94M	13.56M	12.37M	6.63M	911.00K	-13.42M
Balance Sheet
Total Assets	46.16M	54.72M	58.27M	73.59M	101.79M	102.40M
Cash, Cash Equivalents and Short-Term Investments	8.49M	17.06M	15.71M	18.69M	43.81M	63.06M
Total Debt	6.55M	8.12M	9.25M	11.30M	12.29M	18.02M
Total Liabilities	49.25M	50.37M	47.64M	59.98M	101.42M	95.90M
Stockholders Equity	-8.10M	-462.00K	5.94M	9.01M	-4.23M	1.89M
Cash Flow
Free Cash Flow	11.95M	20.92M	10.42M	-24.63M	-8.11M	46.77M
Operating Cash Flow	12.05M	21.10M	10.68M	-23.12M	-8.08M	47.02M
Investing Cash Flow	-97.00K	-177.00K	-39.00K	-1.31M	104.00K	2.07M
Financing Cash Flow	-14.84M	-18.97M	-14.15M	1.28M	-11.16M	-6.98M

Travelzoo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 10.19 is above the 20-day moving average (MA) of 7.37, above the 50-day MA of 8.93, and below the 200-day MA of 11.88, indicating a bearish trend. The MACD of -0.58 indicates Negative momentum. The RSI at 34.40 is Neutral, neither overbought nor oversold. The STOCH value of 50.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TZOO.

Travelzoo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
WIMI	56 Neutral	$70.07M	3.14	15.20%	―	-27.98%	―
TZOO	55 Neutral	$81.59M	11.44	―	―	6.58%	-34.30%
MCHX	45 Neutral	$76.43M	-16.17	-14.61%	―	-4.32%	-13.99%
FLNT	38 Underperform	$56.99M	-1.47	-127.41%	―	-18.94%	37.05%
VSME	31 Underperform	$25.55M	-6.87	-194.72%	―	-11.51%	74.52%

Travelzoo Corporate Events

Travelzoo Reports Revenue Growth Amid Membership Expansion

Travelzoo is a prominent travel and entertainment company, offering exclusive deals and experiences to its members worldwide, primarily operating in the travel industry.

Travelzoo’s Earnings Call: Growth Amid Challenges

During Travelzoo’s recent earnings call, the sentiment was mixed, reflecting both optimism and challenges. The company reported notable revenue and membership growth, driven by exclusive offers that have piqued consumer interest. However, concerns were raised about the decline in operating profit, negative cash flow, and increased member acquisition costs. Additionally, advertising revenue, particularly in the U.K., remains a significant hurdle for the company.

Travelzoo Reports Q3 2025 Revenue Growth

Travelzoo reported its third-quarter 2025 financial results, showing a 10% year-over-year increase in revenue to $22.2 million. Despite a slight decrease in net income per share compared to the previous year, the company continues to invest in acquiring new Club Members, which has impacted short-term earnings but is expected to enhance long-term profitability. The North America segment showed revenue growth, while Europe experienced an operating loss due to increased member acquisition costs. Travelzoo’s strategic focus remains on expanding its membership base and enhancing member benefits, which is anticipated to drive future revenue growth.

The most recent analyst rating on (TZOO) stock is a Hold with a $10.50 price target. To see the full list of analyst forecasts on Travelzoo stock, see the TZOO Stock Forecast page.