Travelzoo (TZOO) AI Stock Analysis

Compare

325 Followers

Top Page

Travelzoo

(NASDAQ:TZOO)

Select Model

Neutral 55 (OpenAI - 4o)

Rating:55Neutral

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.

Travelzoo (TZOO) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$78.49M

Dividend YieldN/A

Average Volume (3M)105.73K

Price to Earnings (P/E)11.0

Beta (1Y)1.02

Revenue Growth6.58%

EPS Growth-34.30%

CountryUS

Employees227

SectorN/A

Sector StrengthN/A

IndustryAdvertising Agencies

Share Statistics

EPS (TTM)0.01

Shares Outstanding10,932,337

10 Day Avg. Volume105,890

30 Day Avg. Volume105,728

Financial Highlights & Ratios

PEG Ratio0.61

Price to Book (P/B)-543.83

Price to Sales (P/S)2.99

P/FCF Ratio12.01

Enterprise Value/Market Cap0.00

Enterprise Value/Revenue0.00

Enterprise Value/Gross Profit0.00

Enterprise Value/Ebitda0.00

Forecast

1Y Price Target

$19.50

Price Target Upside91.36% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

Travelzoo Business Overview & Revenue Model

Company DescriptionTravelzoo (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 MoneyTravelzoo 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 Earnings Call Summary

Earnings Call Date:Oct 28, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Mar 04, 2026

Earnings Call Sentiment Neutral

While there is notable revenue and membership growth alongside exclusive offers driving interest, the decline in operating profit, negative cash flow, and increased member acquisition costs present significant challenges. The advertising revenue concerns, particularly in the U.K., also add to the hurdles they face.

Q3-2025 Updates

Positive Updates

Revenue Growth

Travelzoo's consolidated Q3 2025 revenue was $22.2 million, up 10% from the prior year. In constant currencies, revenue was $21.9 million, up 9% from the prior year.

Member Growth

The strategy is fueling member growth at a rate of 135% year-to-date. Revenue from membership fees increased to $3.6 million. Membership fees are expected to account for about 25% of revenue next year.

Jack's Flight Club Performance

Jack's Flight Club revenue increased 12% year-over-year, and the number of premium subscribers increased 8%.

Exclusive Offers

Travelzoo has provided exclusive offers such as an all-inclusive Caribbean vacation for $399, including flights, and a stay at a 4-star hotel in Rome for EUR 99 for 2 nights.

Negative Updates

Decline in Operating Profit

Q3 operating profit was $0.5 million or 2% of revenue, down from $4 million in the prior year, due to increased marketing expenses.

Negative Cash Flow and Reduced Cash Reserves

Cash flow from operations was negative $0.4 million, and consolidated cash, cash equivalents, and restricted cash were $9.2 million.

Increased Acquisition Costs

The average acquisition cost for Club Members increased from $28 in Q1 to $40 in Q3.

Advertising Revenue Concerns

The advertising revenue was slower than expected, particularly in the U.K., due to economic uncertainties.

Company Guidance

During the Travelzoo Third Quarter 2025 Earnings Call, the company provided guidance indicating that they expect year-over-year revenue growth to continue into Q4 2025, with an anticipated acceleration in subsequent quarters. This growth is driven by the recognition of membership fees over a 12-month subscription period, alongside the acquisition of new members and the conversion of Legacy Members to Club Members. The company emphasized that while short-term fluctuations in reported net income are possible due to immediate expensing of marketing costs, they expect long-term profitability to substantially increase as recurring membership fee revenue is recognized. Travelzoo's strategy includes investing in member acquisition, which has shown a favorable return on investment, contributing to a 135% year-to-date growth in Club Members. Additionally, the company anticipates membership fees to account for about 25% of total revenue next year, highlighting the shift towards a more predictable revenue stream. The management remains optimistic about further growth opportunities, despite short-term impacts on GAAP operating margins and EPS due to increased marketing expenses.

Travelzoo Financial Statement Overview

Summary

Income Statement

Positive

Balance Sheet

Negative

Cash Flow

Neutral

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Travelzoo Technical Analysis

Technical Analysis Sentiment

Negative

Last Price10.19

Price Trends

50DMA

7.98

Negative

100DMA

8.92

Negative

200DMA

11.05

Negative

Market Momentum

MACD

-0.12

Negative

RSI

45.05

Neutral

STOCH

58.25

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 7.11, above the 50-day MA of 7.98, and below the 200-day MA of 11.05, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 45.05 is Neutral, neither overbought nor oversold. The STOCH value of 58.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TZOO.

Travelzoo Peers Comparison

Overall Rating

UnderperformOutperform

Sector (―)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	―	―	―	―	―	―
WIMI	56 Neutral	$69.23M	2.70	15.20%	―	-27.98%	―
TZOO	55 Neutral	$78.49M	11.00	―	―	6.58%	-34.30%
MCHX	55 Neutral	$73.76M	-15.14	-14.61%	―	-4.32%	-13.99%
FLNT	38 Underperform	$61.48M	-1.77	-127.41%	―	-18.94%	37.05%
VSME	31 Underperform	$4.28M	-1.15	-194.72%	―	-11.51%	74.52%

* Sector Average

Performance Comparison

TZOO

Travelzoo

7.18

-12.46

-63.44%

MCHX

Marchex

1.68

-0.35

-17.24%

FLNT

Fluent

2.03

-0.65

-24.25%

WIMI

WiMi Hologram Cloud

2.92

-9.08

-75.67%

VSME

VS Media Holdings Limited Class A

0.09

-1.08

-92.31%

TZUP

Thumzup Media Corporation

3.35

-0.08

-2.33%

Travelzoo Corporate Events

Business Operations and StrategyFinancial Disclosures

Travelzoo Reports Q3 2025 Revenue Growth

Neutral

Oct 28, 2025

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.

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.Date of analysis: Nov 21, 2025