Overview

* Travelzoo Q2 2025 revenue grows 13% yr/yr, beating analyst expectations

* EPS of $0.12 misses analyst estimates, impacted by marketing costs

* Operating income misses estimates; company repurchased 172,088 shares

Outlook

* Travelzoo expects Q3 2025 revenue growth to continue year-over-year

* Company anticipates accelerated revenue growth in subsequent quarters

* Travelzoo ( TZOO ) expects increased profitability from recurring membership fees

* Short-term fluctuations in net income are possible

Result Drivers

* MEMBER ACQUISITION - Significant investment in acquiring new Club Members, with a focus on achieving quick ROI, impacted EPS

* NORTH AMERICA GROWTH - North America segment revenue increased 14% yr/yr, contributing significantly to overall revenue growth

* EUROPEAN LOSSES - European segment reported an operating loss due to increased spending on acquiring more Club Members

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $23.91 $23.30

Revenue mln mln (4

Analysts

)

Q2 EPS Miss $0.12 $0.23 (4

Analysts

)

Q2 Net $1.48

Income mln

Q2 Miss $2.06 $3.62

Operatin mln mln (4

g Income Analysts

)

Q2 Basic $0.13

EPS

Q2 Gross $18.74

Profit mln

Q2 $16.68

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 $26.50, about 48.3% above its July 22 closing price of $13.70

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

(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.)