Travelzoo Q4 revenue up 9%, slightly misses estimates

Overview

• Travel club's Q4 revenue rose 9% yr/yr, slightly missing analyst expectations

• Q4 operating income missed analyst expectations

• Company continues investing in acquiring more Club Members, impacting EPS

Outlook

• Travelzoo expects continued revenue growth in Q1 2026

• Company anticipates profitability increase as membership fees are recognized

• Travelzoo sees fluctuations in net income due to immediate marketing expenses

Result Drivers

• MEMBER ACQUISITION COSTS - Travelzoo's increased marketing expenses to acquire more Club Members impacted earnings per share

• NORTH AMERICA REVENUE GROWTH - North America segment revenue increased 6% yr/yr, but operating profit decreased due to higher marketing costs

• EUROPE REVENUE INCREASE - Europe segment revenue rose 16% yr/yr, but operating loss occurred due to investments in member acquisition

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 $22.00, about 288% above its February 18 closing price of $5.67

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nPndnfzKa

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