Overview

* Travelzoo ( TZOO ) 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 ( TZOO ) 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/Mis Actual Consensu

s s

Estimate

Q3 Miss $22.2 $23.16

Revenue mln mln (4

Analysts

)

Q3 EPS Miss $0.01 $0.19 (4

Analysts

)

Q3 Net $180,000

Income

Q3 Miss $488,000 $2.95

Operatin mln (4

g Income Analysts

)

Q3 Basic $0.01

EPS

Q3 Gross $17.67

Profit mln

Q3 $17.19

Operatin mln

g

Expenses

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 ( TZOO ) 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:

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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.)