Travelzoo (TZOO) AI Stock Analysis

Travelzoo, based in New York, New York, operates as an Internet media company specializing in travel, entertainment, and local deals sourced from travel companies and local businesses across Europe and North America. Established in 1998, the company delivers services through platforms such as the Travelzoo Website, mobile apps, the Travelzoo Top 20 email newsletter, and the Newsflash email alert service. Its Travelzoo Network features deals published across third-party websites, alongside Local Deals and Getaways voucher listings. Clients include airlines, hotels, cruise lines, tour operators, car rental firms, theaters, restaurants, and activity providers.

Travelzoo expanded revenue from $62.7M in FY2021 to $91.7M in FY2025, recording a 5-year revenue CAGR of 11.3%. Net income peaked at $13.6M in FY2024 with a net margin of 16.2%, but decreased to $4.7M in FY2025 with a net margin of 5.1%. Gross margin stood at 80.3% in FY2025 compared to 87.5% in FY2024. Over the trailing twelve months, revenue reached $92.2M, with a net profit margin of 0.5% and an operating margin of -11.9%. In the latest quarter ended June 30, 2026, quarterly revenue declined 2.9% year-over-year, while quarterly earnings fell 12.1%.

As of June 30, 2026, Travelzoo held $6.8M in cash and short-term investments alongside total debt of $6.1M, yielding net cash of $738,000. Total assets were $47.8M, while shareholders' equity was -$11.7M, reflecting negative equity. The company reported a current ratio of 0.64. In FY2025, Travelzoo generated operating cash flow of $5.7M and free cash flow of $5.6M. Capital expenditures totaled $65,000, while the company allocated $13.1M to share buybacks.

Travelzoo trades at a trailing price-to-earnings multiple of 100.6x, compared to 16.2x for the median of its US-listed Communication Services peers. Its forward price-to-earnings ratio is 7.2x versus the peer group median of 14.1x. The company has an enterprise value to EBITDA ratio of 28.7x, above the peer median of 10.0x, and a price-to-sales multiple of 0.6x against the peer median of 0.8x. Over the past year, TZOO shares declined 49.8%, while the S&P 500 (SPY) returned 16.8%. Over five years, the stock fell 55.9% compared to an 83.0% gain for SPY.

Travelzoo holds 3 Strong Buy ratings and 1 Buy rating from Wall Street analysts, with 0 Hold or Sell recommendations. The mean price target is $18.88, which stands 275.2% above its last close of $5.03. For the fiscal year ending December 31, 2026, consensus estimates project an EPS of -$0.14 on revenue of $94.4M. For the next fiscal year, 5 analysts project EPS of $0.80 on revenue of $104.8M. Over the last four quarters, Travelzoo recorded 0 EPS beats. The next earnings date is October 27, 2026.

This page is an AI-written research summary of Travelzoo (TZOO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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