Online travel agency Travelzoo's Q3 revenue misses on costs for getting new members

Travelzoo

28/10/2025 13:57

Overview

Travelzoo Q3 revenue up 10% yr/yr but missed analyst expectations

EPS for Q3 was $0.01, missing analyst estimates

Company repurchased 148,602 shares during Q3 2025

Outlook

Travelzoo expects Q4 2025 revenue growth to continue year-over-year

Company anticipates accelerated revenue growth in subsequent quarters

Travelzoo foresees increased profitability as membership fees are recognized

Result Drivers

MEMBERSHIP INVESTMENT - Co invested heavily in acquiring more Club Members, impacting short-term profitability

NORTH AMERICA GROWTH - North America segment revenue increased 11% yr/yr, driven by advertising and membership fees

EUROPEAN LOSS - Europe segment reported operating loss due to costs of acquiring new members

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$22.2 mln
$23.16 mln (4 Analysts)
Q3 EPS
Miss
$0.01
$0.19 (4 Analysts)
Q3 Net Income
$180,000
Q3 Operating Income
Miss
$488,000
$2.95 mln (4 Analysts)
Q3 Basic EPS
$0.01
Q3 Gross Profit
$17.67 mln
Q3 Operating Expenses
$17.19 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the leisure & recreation peer group is "buy"

Wall Street's median 12-month price target for Travelzoo is $26.00, about 61.4% above its October 27 closing price of $10.04

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nPn62Z3Yma

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)