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what it is
Travelzoo sends travel and entertainment deals through emails, apps, and websites.
how it gets paid
FY 2025 consolidated revenue was ~$91.7M. Geographic mix is dominated by North America (~$60M) and Europe (~$26M) per segment tables in the Feb 19, 2026 release.
why it's growing
FY 2025 revenue grew ~9.3%, but Q4 EPS went to $0.00 while the company spent hard on Club Member acquisition— the income statement can look worse than the membership strategy.
what just happened
Q4 2025 revenue was $22.5M (+9% YoY); diluted EPS was $0.00 (prior-year Q4 was $0.26)— marketing for Club Members was expensed immediately.
At a glance
B balance sheet — gets the job done, barely
25/100 earnings predictability — expect surprises
~14x trailing P/E on FY diluted ~$0.41— verify vs. your feed
284.4% return on capital — a money-printing machine
$1.06 fy2024 eps est
xvary composite: 34/100 — weak
What they do
Travelzoo sends travel and entertainment deals through emails, apps, and websites.
Travelzoo sells attention, not seats. Membership fee was raised toward $50 in 2026 (from $40) per the Q4 call materials— check IR slides for the exact policy. FY 2025 gross margin was ~80.3% (73.6M gross profit / 91.7M revenue); Q4 gross margin ~78%.
How they make money
~$91.7M
FY 2025 revenue · +9.3% YoY (company release)
North America
~$60.3M
Europe
~$26.0M
Jack's Flight Club
~$5.4M
New initiatives (META, licensing)
~$0.08M
The products that matter
paid deals membership
Travelzoo Membership
$40 per year
Membership fees are recognized over 12 months— Q4 EPS was crushed by upfront marketing. Treat any “% of 2026 revenue” goal as management aspiration until you reconcile to filings.
transition story
travel voucher marketplace
Getaway & Local Deals
core revenue engine
Core deal flow still sits in the North America + Europe lines (~$86M combined FY 2025). There is no $69M single quarter— that was bad data.
legacy cash flow
experimental side project
Travelzoo META
$16k revenue (Q4)
New Initiatives (incl. META) did ~$16k revenue and ~$34k operating loss in Q4 2025 per the release— rounding error with a budget.
capital distractor
Key numbers
284.4%
return on capital
Return on capital means profit per dollar of capital. At 284.4%, the business squeezes more out of a small base than most public companies ever do.
~80.3%
FY gross margin
FY 2025: ~$73.6M gross profit on ~$91.7M revenue. Q4 was ~78%— still high, but not the old “81% everywhere” shorthand.
~14x
trailing p/e
Order-of-magnitude: FY 2025 diluted EPS was ~$0.41 on the face statements— recalc with live price and fully diluted share count.
$4M
long debt
Debt means money owed. $4M against a $69M market cap is small, so leverage is not the drama.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- price stability 10 / 100
- long-term debt $4M (6% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for TZOO right now.
source: institutional data · return history unavailable
What just happened
Q4 2025
Q4 revenue $22.5M (+9% YoY); diluted EPS $0.00 (vs. $0.26 prior-year Q4).
FY 2025 revenue ~$91.7M (+9.3%); net income attributable to Travelzoo ~$4.7M vs. ~$13.6M FY 2024— membership acquisition spend hit the quarterly P&L faster than deferred revenue recognition helps.
$22.5M
Q4 2025 revenue
$0.00
Q4 diluted EPS
~78%
Q4 gross margin
the number that mattered
Marketing expensed immediately vs. membership fees recognized over 12 months— the P&L will look noisy even when the strategy is working.
source: Travelzoo Q4/FY 2025 release (Feb 19, 2026) · PRNewswire
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What could go wrong
The top risk here is the membership transition failing to offset fading confidence in the legacy deals business.
med
The new membership push may not convert
Management is pushing paid Club Membership (fee stepped up toward $50 in 2026 per Q4 materials). If conversion stalls, the model stays a legacy deals email.
If users keep treating Travelzoo like a free deals email instead of a paid club, the re-rating case disappears and the stock stays cheap for a reason.
med
Profit expectations are collapsing faster than the multiple
One analyst cut FY2026 EPS to $0.44 from $1.63 on Mar 5, 2026. A low p/e stops looking cheap when the E keeps moving down.
That kind of reset pressures confidence, narrows valuation support, and raises the odds that future quarters get judged against a lower bar for the wrong reason: distrust.
med
The META project is small enough to be irrelevant and costly enough to annoy people
Travelzoo META produced $16k of revenue and lost $34k in Q4 2025. That means the side project lost more than twice what it brought in.
The dollars are tiny today, but the signal matters. Investors in a $69M company do not want management cosplaying as a venture studio while the core story needs proof.
The risk stack is simple: a 72% EPS estimate cut, a membership target that starts from zero, and a side project with $16k of revenue. This is a stock that needs proof, not adjectives.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
Q1 2026 earnings report
Estimated for April 28–29, 2026. Analysts expect EPS of $0.31 and revenue of $25.8M. After the last estimate reset, even a small miss will feel larger.
membership
Any evidence the $40 fee is becoming a real revenue line
Management wants membership fees to be 25% of 2026 revenue. You do not need perfection. You do need visible progress from zero.
estimates
Whether earnings expectations stabilize after the cut to $0.44
Cheap stocks get re-rated when numbers stop falling. If estimates keep sliding, the p/e multiple is not your friend.
buyback
Repurchase execution, not just authorization
The board approved up to 1 million shares on Mar 5, 2026. For a stock this small, actual purchases could matter. Silence would also tell you something.
Analyst rankings
earnings predictability
25 / 100
Low predictability means quarterly results can move around more than you want. In human-speak: do not assume a smooth story.
risk rank
4
This is safer than 20% of stocks. Plain English: it is riskier than most of the market.
price stability
10 / 100
The stock has not behaved like a steady compounder. It has behaved like a small cap people argue with.
source: institutional data
Institutional activity
institutional ownership data for TZOO is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$6
current price
n/a
target midpoint · n/a from current
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