Travelzoo Q1 profit beats expectations on record membership renewals

Travelzoo

23/04/2026 11:48

Overview

US travel deals platform's Q1 revenue rose 5% but missed analyst expectations

EPS for Q1 beat analyst expectations, helped by record membership renewals

Company repurchased 500,000 shares during the quarter

Outlook

Travelzoo expects year-over-year revenue growth to continue in Q2 and subsequent quarters

Company anticipates profitability to increase over time as recurring membership fees revenue is recognized

Travelzoo says short-term fluctuations in reported net income are possible due to immediate marketing expense

Result Drivers

MEMBERSHIP RENEWALS - Record renewals of memberships in Q1, which have no acquisition costs, positively impacted EPS

MARKETING INVESTMENT - Continued significant investment in acquiring new Club Members, with marketing costs expensed immediately

SEGMENT PERFORMANCE - Europe segment revenue grew 8% year-over-year, outpacing North America's 4% growth, but North America remained the largest profit contributor

Company press release: ID:nPnbqyhBma

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$24.27 mln
$24.52 mln (4 Analysts)
Q1 EPS
Beat
$0.23
$0.16 (4 Analysts)
Q1 Net Income
$2.50 mln
Q1 Operating Income
Beat
$3.45 mln
$2.27 mln (4 Analysts)
Q1 Basic EPS
$0.23
Q1 Gross Profit
$19.04 mln
Q1 Operating Expenses
$15.59 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 $21.00, about 180.4% above its April 22 closing price of $7.49

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 6 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)