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: -34.29%
• 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: 54 Neutral
• Price Target: $8.50 ▼(-16.58% Downside)

Travelzoo's overall stock score is primarily influenced by its financial performance and technical analysis. The company's strong revenue growth and profitability are offset by significant balance sheet challenges and bearish technical indicators. While the valuation suggests potential undervaluation, the stock's current technical weakness and financial instability are key concerns.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a strong market position and effective business model, supporting long-term financial health.

Membership Growth

Significant membership growth enhances revenue predictability and customer loyalty, strengthening the company's competitive advantage.

Strategic Shift to Membership Fees

Shifting to membership fees provides a more stable revenue stream, reducing reliance on volatile advertising income.

Negative Factors

Decline in Operating Profit

Decreased operating profit due to higher marketing costs could strain profitability, impacting long-term financial performance.

Negative Cash Flow

Negative cash flow indicates potential liquidity issues, which could limit the company's ability to invest in growth opportunities.

High Leverage and Negative Equity

High leverage and negative equity suggest financial instability, posing risks to long-term sustainability and growth.

Travelzoo Business Overview & Revenue Model

Company Description

Travelzoo (TZOO) is a global Internet media company that publishes travel and entertainment deals from hundreds of companies, including airlines, hotels, and entertainment providers. Established in 1998, Travelzoo operates in the online travel sector and focuses on providing its subscribers with curated offers and promotions, primarily through its website and mobile platforms. The company aims to enhance the travel experience by connecting consumers with exclusive deals and valuable travel information.

How the Company Makes Money

Travelzoo generates revenue primarily through advertising and publishing fees from travel and entertainment companies that want to promote their offers to Travelzoo's large subscriber base. The company partners with various service providers, including hotels, airlines, and travel agencies, to feature their deals on its platform. Travelzoo earns commissions for every sale generated through its website, a revenue model known as affiliate marketing. Additionally, the company may also earn revenue through sponsored content and advertising placements. The quality and exclusivity of the deals offered, coupled with its large user base and partnerships with reputable companies in the travel industry, contribute significantly to its earnings.

Travelzoo Financial Statement Overview

Summary

Travelzoo demonstrates solid revenue growth and profitability, but faces significant balance sheet challenges with high leverage and negative equity. Cash flow management is relatively strong, though recent declines in free cash flow growth warrant attention. Overall, the company shows potential but must address financial stability concerns.

Income Statement

Travelzoo has shown a consistent revenue growth trend, with a TTM revenue increase of 3.25%. The company maintains strong gross and net profit margins, indicating effective cost management and profitability. However, the EBIT and EBITDA margins have slightly decreased in the TTM period, suggesting some operational challenges.

Balance Sheet

The balance sheet reveals a concerning negative stockholders' equity, leading to a negative debt-to-equity ratio. This indicates high leverage and potential financial instability. Return on equity is also negative, reflecting challenges in generating returns for shareholders.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, but the company maintains a strong free cash flow to net income ratio, indicating efficient cash generation relative to earnings. The operating cash flow to net income ratio is moderate, suggesting room for improvement in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	87.82M	83.90M	84.48M	70.60M	62.71M	53.60M
Gross Profit	73.18M	73.43M	73.54M	60.60M	51.66M	43.04M
EBITDA	15.35M	19.41M	17.46M	9.95M	507.00K	-8.95M
Net Income	10.97M	13.56M	12.37M	6.63M	911.00K	-13.42M
Balance Sheet
Total Assets	46.73M	54.72M	55.38M	67.27M	99.73M	102.40M
Cash, Cash Equivalents and Short-Term Investments	10.44M	17.06M	15.71M	18.69M	43.81M	63.06M
Total Debt	7.42M	8.12M	9.25M	11.30M	12.29M	18.02M
Total Liabilities	48.82M	50.37M	46.50M	58.42M	99.36M	95.90M
Stockholders Equity	-7.07M	-462.00K	4.19M	4.26M	-4.23M	1.89M
Cash Flow
Free Cash Flow	17.62M	20.92M	10.42M	-24.63M	-8.11M	46.77M
Operating Cash Flow	17.75M	21.10M	10.68M	-23.12M	-8.08M	47.02M
Investing Cash Flow	-128.00K	-177.00K	-39.00K	-1.31M	104.00K	2.07M
Financing Cash Flow	-19.82M	-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: Positive
• RSI: Positive
• STOCH: 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 10.19 is above the 20-day moving average (MA) of 9.12, above the 50-day MA of 9.57, and below the 200-day MA of 12.78, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 27.83 is Positive, neither overbought nor oversold. The STOCH value of 5.53 is Positive, 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	54 Neutral	$81.59M	11.44	―	―	6.58%	-34.29%
FLNT	44 Neutral	$56.99M	-1.47	-115.36%	―	-12.84%	63.95%
MCHX	42 Neutral	$76.43M	-16.17	-13.93%	―	-2.64%	6.48%
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.

Travelzoo’s Mixed Earnings Call: Growth Amid Challenges

The recent earnings call of Travelzoo presented a mixed outlook, reflecting both achievements and challenges. While the company reported significant revenue growth and an increase in member acquisition, these positive aspects were counterbalanced by a decrease in operating profit and the negative impact of marketing expenses on earnings per share (EPS). The company’s strategic focus on marketing investments for future growth indicates potential for increased profitability, yet current financial metrics suggest a cautious approach balancing investment with immediate returns.