Travelzoo Inc. (TXM1)
XFRA 
Summary
TXM1 Chart
Travelzoo: The Hidden Growth Story Behind Margin Compression
Travelzoo is rated a buy with a 3-year target price of $24, reflecting strong fundamentals and market mispricing. TZOO's transition to a subscription travel club is driving recurring revenue growth, with positive unit economics and a rapidly expanding paid membership base. Short-term margin compression is due to strategic reinvestment, not structural weakness, and buybacks plus insider alignment further support the bullish thesis.
Travelzoo Continues To Show Worsening Economics, Cannot Be Explained By Investment Alone
Travelzoo reported 3Q25 results showing revenue growth but continued deterioration in operating margins, driven by its new membership model. Despite management's claims, the economics of the membership business appear weak, with higher CAC, low margins, and questionable profitability improvements. Significant insider selling by the largest shareholder, alongside ongoing share repurchases, raises concerns about confidence in TZOO's future prospects.
Travelzoo (TZOO) Q3 2025 Earnings Call Transcript
Travelzoo (NASDAQ:TZOO ) Q3 2025 Earnings Call October 28, 2025 11:00 AM EDT Company Participants Jeff Hoffman Holger Bartel - Global CEO & Director Christina Ciocca - Chairman, General Counsel, Head of Global Functions & Corporate Secretary Conference Call Participants Theodore O'Neill - Litchfield Hills Research, LLC Michael Kupinski - NOBLE Capital Markets, Inc., Research Division Patrick Sholl - Barrington Research Associates, Inc., Research Division Steven Silver - Argus Research Company Edward Woo - Ascendiant Capital Markets LLC, Research Division Presentation Operator Good morning, and welcome to the Travelzoo Third Quarter 2025 Earnings Call. Today's conference is being recorded.
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Travelzoo Inc. Profile
| Media Industry | Communication Services Sector | Holger Bartel CEO | XFRA Exchange | US89421Q2057 ISIN |
| US Country | 227 Employees | - Last Dividend | 7 Nov 2013 Last Split | 28 Aug 2002 IPO Date |
Overview
Travelzoo is a renowned Internet media company specializing in the travel and entertainment sectors. It excels in providing highly attractive deals sourced from various travel and entertainment companies, as well as local businesses across the globe, particularly in the Asia Pacific, Europe, and North America. Its core mission is to offer exceptional value to its members by carefully curating deals that meet stringent quality standards. Founded in 1998 and headquartered in New York, New York, Travelzoo has established a significant footprint in the travel industry, connecting airlines, hotels, cruise lines, vacation packagers, tour operators, destinations, car rental companies, travel agents, theater and performing arts groups, restaurants, spas, and activity companies with travelers looking for exclusive offerings.
Products and Services
Travelzoo's product suite is diverse, designed to cater to various aspects of travel and leisure needs of its members.
- Travelzoo Website
- Travelzoo iPhone and Android apps
- Travelzoo Top 20 email newsletter
- Newsflash email alert service
- Travelzoo Network
- Local Deals and Getaway listings
Acts as the primary portal for members to access a wide range of exclusive travel, entertainment, and local deal offerings. This user-friendly platform is constantly updated with the latest deals that pass Travelzoo's quality assurance tests.
Provide on-the-go access to Travelzoo's deals, allowing users to discover, purchase, and redeem offers directly from their smartphones. These apps extend the functionality of the website to mobile devices, ensuring that members can access deals anytime, anywhere.
Is a weekly newsletter that highlights the top 20 deals of the week, curated by Travelzoo's team of deal experts. It's a concise way for members to stay informed of the best available offers without needing to search for them.
Offers timely notifications about highly sought-after or limited-time deals, ensuring that members have the opportunity to book these exclusive offers before they sell out or expire.
A network of third-party websites that features travel deals published by Travelzoo. This extends the reach of Travelzoo’s deals, making them accessible on a wider range of platforms and thus reaching more potential members.
Allow members to purchase vouchers for deals from local businesses, such as spas, hotels, and restaurants. This component of Travelzoo’s service focuses on bringing localized deals to members, catering to those looking for leisure and relaxation opportunities near them or planning staycations.
Contact Information
