Online travel agency Travelzoo's Q3 revenue misses on costs for getting new members

Reuters10-28
Online travel agency Travelzoo's Q3 revenue misses on costs for getting new members

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

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@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.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment