Travelzoo Q4 revenue up 9%, slightly misses estimates

Travelzoo

19/02/2026 13:26

Overview

Travel club's Q4 revenue rose 9% yr/yr, slightly missing analyst expectations

Q4 operating income missed analyst expectations

Company continues investing in acquiring more Club Members, impacting EPS

Outlook

Travelzoo expects continued revenue growth in Q1 2026

Company anticipates profitability increase as membership fees are recognized

Travelzoo sees fluctuations in net income due to immediate marketing expenses

Result Drivers

MEMBER ACQUISITION COSTS - Travelzoo's increased marketing expenses to acquire more Club Members impacted earnings per share

NORTH AMERICA REVENUE GROWTH - North America segment revenue increased 6% yr/yr, but operating profit decreased due to higher marketing costs

EUROPE REVENUE INCREASE - Europe segment revenue rose 16% yr/yr, but operating loss occurred due to investments in member acquisition

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Miss*
$22.47 mln
$22.54 mln (4 Analysts)
Q4 Net Income
$60,000
Q4 Operating Income
Miss
$554,000
$1.59 mln (4 Analysts)
Q4 Gross Profit
$17.53 mln
Q4 Operating Expenses
$16.98 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 $22.00, about 288% above its February 18 closing price of $5.67

The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nPndnfzKa

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.)