Travelzoo Q2 revenue misses estimates as international conflicts impacted segments

Overview

• Travel deals platform's Q2 revenue fell 3% yr/yr, missing analyst expectations

• Q2 EPS was a loss, missing analyst expectations

• Company repurchased 200,000 shares during the quarter

Outlook

• Travelzoo expects Q3 2026 year-over-year revenue growth

• Company expects ongoing revenue growth in subsequent quarters as membership fees are recognized

• Travelzoo expects profitability to increase over time as recurring membership fees are recognized

Result Drivers

• INTERNATIONAL CONFLICTS - Co said uncertainty from international conflicts negatively impacted all business segments

• HIGHER MARKETING SPEND - Co said it invested significantly in growing Club Members and accelerated shift to recurring membership revenues, with marketing costs expensed immediately

• MEMBERSHIP REVENUE TIMING - Co said membership fees revenue is recognized over 12 months, so increased renewals in Q2 did not fully offset revenue decline in the quarter

Company press release: ID:nPnbVQlhja

Key Details

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 $21.50, about 110.6% above its July 27 closing price of $10.21

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• July 28 - Royal Caribbean trims revenue forecast on booking hit from geopolitical tensions

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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.)