Travelzoo Q2 revenue beats but EPS misses on marketing costs

Travelzoo

23/07/2025 12:43

Overview

Travelzoo Q2 2025 revenue grows 13% yr/yr, beating analyst expectations

EPS of $0.12 misses analyst estimates, impacted by marketing costs

Operating income misses estimates; company repurchased 172,088 shares

Outlook

Travelzoo expects Q3 2025 revenue growth to continue year-over-year

Company anticipates accelerated revenue growth in subsequent quarters

Travelzoo expects increased profitability from recurring membership fees

Short-term fluctuations in net income are possible

Result Drivers

MEMBER ACQUISITION - Significant investment in acquiring new Club Members, with a focus on achieving quick ROI, impacted EPS

NORTH AMERICA GROWTH - North America segment revenue increased 14% yr/yr, contributing significantly to overall revenue growth

EUROPEAN LOSSES - European segment reported an operating loss due to increased spending on acquiring more Club Members

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$23.91 mln
$23.30 mln (4 Analysts)
Q2 EPS
Miss
$0.12
$0.23 (4 Analysts)
Q2 Net Income
$1.48 mln
Q2 Operating Income
Miss
$2.06 mln
$3.62 mln (4 Analysts)
Q2 Basic EPS
$0.13
Q2 Gross Profit
$18.74 mln
Q2 Operating Expenses
$16.68 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 $26.50, about 48.3% above its July 22 closing price of $13.70

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nPn6CnxrLa

(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.)