Overview
Travelzoo Q3 revenue up 10% yr/yr but missed analyst expectations
EPS for Q3 was $0.01, missing analyst estimates
Company repurchased 148,602 shares during Q3 2025
Outlook
Travelzoo expects Q4 2025 revenue growth to continue year-over-year
Company anticipates accelerated revenue growth in subsequent quarters
Travelzoo foresees increased profitability as membership fees are recognized
Result Drivers
MEMBERSHIP INVESTMENT - Co invested heavily in acquiring more Club Members, impacting short-term profitability
NORTH AMERICA GROWTH - North America segment revenue increased 11% yr/yr, driven by advertising and membership fees
EUROPEAN LOSS - Europe segment reported operating loss due to costs of acquiring new members
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $22.2 mln | $23.16 mln (4 Analysts) |
Q3 EPS | Miss | $0.01 | $0.19 (4 Analysts) |
Q3 Net Income | $180,000 | ||
Q3 Operating Income | Miss | $488,000 | $2.95 mln (4 Analysts) |
Q3 Basic EPS | $0.01 | ||
Q3 Gross Profit | $17.67 mln | ||
Q3 Operating Expenses | $17.19 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 $26.00, about 61.4% above its October 27 closing price of $10.04
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release: ID:nPn62Z3Yma
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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.)