Travelzoo Q3 revenue up 3%, slightly misses estimates

Travelzoo

27/10/2026 11:18

Overview
Online travel deals platform's Q3 revenue rose 3% yr/yr, slightly missing analyst expectations
Company reported bigger-than-expected loss per share
Company's Club Members grew 65% yr/yr as it invested in membership growth

Outlook
Travelzoo expects Q4 2026 revenue to grow year-over-year
Company expects revenue growth in subsequent quarters as membership fees and Club Members increase
Travelzoo expects long-term profitability to increase, but short-term net income to fluctuate

Result Drivers
MEMBERSHIP GROWTH INVESTMENT - Co said increased investment in growing Club Members and marketing contributed to higher operating expenses and losses
MEMBERSHIP FEES RECOGNITION - Co said shift to membership fees revenue, recognized over 12 months, impacted reported revenue growth
EUROPE SEGMENT LOSSES - Co said higher operating losses in Europe offset revenue growth

Company press release: ID:nPn61ggJGa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
$22.91 mln
$22.96 mln (4 Analysts)
Q3 Loss Per Share
Miss
$0.20
$0.12 (3 Analysts)
Q3 Net Loss
 
$1.96 mln
 
Q3 Operating Income
Miss
-$2.56 mln
-$1.32 mln (4 Analysts)
Q3 Gross Profit
 
$17.16 mln
 
Q3 Loss Per Basic Share
 
$0.20
 
Q3 Operating Expenses
 
$19.72 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 $18.00, about 251.9% above its October 26 closing price of $5.12
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads
Oct 27 - Royal Caribbean Q3 profit beat expectations on booking volumes; outlook raised
Oct 27 - Hilton beats Q3 adjusted EPS estimates, net income rises
Oct 27 - Travel + Leisure Q3 revenue tops estimates; raises EBITDA guidance

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.)