Travelzoo Q2 revenue misses estimates as international conflicts impacted segments

Travelzoo

28/07/2026 13:45

Overview
Travel deals platform's Q2 revenue fell 3% yr/yr, missing analyst expectations
Q2 EPS was a loss, missing analyst expectations
Company repurchased 200,000 shares during the quarter

Outlook
Travelzoo expects Q3 2026 year-over-year revenue growth
Company expects ongoing revenue growth in subsequent quarters as membership fees are recognized
Travelzoo expects profitability to increase over time as recurring membership fees are recognized

Result Drivers
INTERNATIONAL CONFLICTS - Co said uncertainty from international conflicts negatively impacted all business segments
HIGHER MARKETING SPEND - Co said it invested significantly in growing Club Members and accelerated shift to recurring membership revenues, with marketing costs expensed immediately
MEMBERSHIP REVENUE TIMING - Co said membership fees revenue is recognized over 12 months, so increased renewals in Q2 did not fully offset revenue decline in the quarter

Company press release: ID:nPnbVQlhja

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$23.21 mln
$25.15 mln (4 Analysts)
Q2 EPS
Miss
-$0.21
$0.15 (4 Analysts)
Q2 Net Loss
 
$2.11 mln
 
Q2 Operating Income
Miss
-$2.76 mln
$2.08 mln (4 Analysts)
Q2 Gross Profit
 
$16.10 mln
 
Q2 Loss Per Basic Share
 
$0.21
 
Q2 Operating Expenses
 
$18.87 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 $21.50, about 110.6% above its July 27 closing price of $10.21
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 8 three months ago

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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.)