Revenue growth has decelerated to 4.9% in 2026Q1 while gross margins have contracted from a 2024Q2 peak of 88.1% to 78.4%, reflecting mounting pressure on the company's core advertising-driven business model.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 |
|---|
| Sales/Revenue | 92.85M | 91.72M | 83.9M | 84.48M | 70.6M | 62.71M | 53.6M | 104.92M | 111.32M | 106.52M | 128.55M | 141.72M | 142.08M | 158.23M | 151.17M | 148.34M | 112.78M | 93.97M | 81.4M | 78.91M | 69.53M | 50.77M | 33.68M | 17.99M | 9.85M | 6.15M |
| Revenue Growth % | 9.16% | 9.32% | -0.68% | 19.66% | 12.58% | 17% | -48.91% | -5.75% | 4.5% | -17.14% | -9.29% | -0.25% | -10.21% | 4.67% | 1.91% | 31.53% | 20.02% | 15.44% | 3.16% | 13.5% | 36.94% | 50.75% | 87.2% | 82.69% | 60.18% | - |
| Cost of Goods Sold | 19.14M | 18.08M | 10.47M | 10.93M | 10M | 11.39M | 10.56M | 11.44M | 12.27M | 12.91M | 14.31M | 18.82M | 17.91M | 17.4M | 15.74M | 13.28M | 7.25M | 5.63M | 3M | 2.1M | 1.04M | 878.1K | 694.71K | 399.04K | 351.17K | 304.08K |
| COGS % of Revenue | - | 19.71% | 12.48% | 12.94% | 14.17% | 18.16% | 19.71% | 10.9% | 11.02% | 12.12% | 11.13% | 13.28% | 12.6% | 11% | 10.42% | 8.95% | 6.43% | 5.99% | 3.68% | 2.66% | 1.49% | 1.73% | 2.06% | 2.22% | 3.57% | 4.95% |
| Gross Profit | 73.71M | 73.64M | 73.43M | 73.54M | 60.6M | 51.32M | 43.04M | 93.49M | 99.05M | 93.61M | 114.24M | 122.89M | 124.17M | 140.83M | 135.42M | 135.06M | 105.53M | 88.34M | 78.41M | 76.81M | 68.49M | 49.89M | 32.98M | 17.59M | 9.5M | 5.84M |
| Gross Margin % | 79.39% | 80.29% | 87.52% | 87.06% | 85.83% | 81.84% | 80.29% | 89.1% | 88.98% | 87.88% | 88.87% | 86.72% | 87.4% | 89% | 89.58% | 91.05% | 93.57% | 94.01% | 96.32% | 97.34% | 98.51% | 98.27% | 97.94% | 97.78% | 96.43% | 95.05% |
| Gross Profit Growth % | - | 0.29% | -0.15% | 21.37% | 18.07% | 19.25% | -53.97% | -5.62% | 5.81% | -18.05% | -7.04% | -1.03% | -11.83% | 3.99% | 0.27% | 27.98% | 19.45% | 12.67% | 2.08% | 12.16% | 37.26% | 51.27% | 87.5% | 85.25% | 62.51% | - |
| Operating Expenses | 67.16M | 66.74M | 54.94M | 57.97M | 53.04M | 52.64M | 57.11M | 76.45M | 90.82M | 89.07M | 103.17M | 115.75M | 103.12M | 138.55M | 109.93M | 120.04M | 82.02M | 74.64M | 75.3M | 56.19M | 38.73M | 35.02M | 21.95M | 13.85M | 8.02M | 4.63M |
| OpEx % of Revenue | - | 72.76% | 65.48% | 68.62% | 75.13% | 83.93% | 106.55% | 72.86% | 81.58% | 83.61% | 80.26% | 81.67% | 72.58% | 87.56% | 72.72% | 80.92% | 72.72% | 79.42% | 92.5% | 71.21% | 55.71% | 68.98% | 65.18% | 77% | 81.44% | 75.29% |
| Selling, General & Admin | 64.58M | 64.19M | 52.53M | 55.86M | 50.98M | 50.05M | 51.11M | 69.74M | 81.82M | 79.85M | 93.73M | 103.22M | 110.7M | 116.55M | 106.93M | 120.04M | 82.02M | 74.64M | 75.3M | 56.19M | 38.73M | 35.02M | 21.95M | 13.85M | 8.02M | 4.63M |
| SG&A % of Revenue | - | 69.98% | 62.61% | 66.12% | 72.2% | 79.8% | 95.35% | 66.47% | 73.5% | 74.96% | 72.91% | 72.83% | 77.92% | 73.66% | 70.74% | 80.92% | 72.72% | 79.42% | 92.5% | 71.21% | 55.71% | 68.98% | 65.18% | 77% | 81.44% | 75.29% |
| Research & Development | 2.58M | 2.55M | 2.41M | 2.11M | 2.06M | 2.59M | 3.08M | 6.71M | 8.99M | 9.22M | 9.45M | 12.53M | 11.57M | 8.83M | 31K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 2.78% | 2.87% | 2.5% | 2.92% | 4.13% | 5.75% | 6.39% | 8.08% | 8.66% | 7.35% | 8.84% | 8.15% | 5.58% | 0.02% | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | -15K | 0 | 2.92M | 0 | 48K | 173K | -187K | 0 | 141K | 429K | 309K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 6.55M | 6.91M | 18.5M | 15.57M | 7.56M | -1.31M | -14.07M | 17.04M | 8.24M | 4.54M | 11.07M | 7.15M | 21.05M | 2.28M | 25.49M | 15.02M | 23.51M | 13.71M | 3.11M | 20.62M | 29.75M | 14.87M | 11.03M | 3.74M | 1.42M | 882.3K |
| Operating Margin % | 7.05% | 7.53% | 22.05% | 18.43% | 10.7% | -2.09% | -26.26% | 16.24% | 7.4% | 4.27% | 8.61% | 5.04% | 14.82% | 1.44% | 16.86% | 10.13% | 20.85% | 14.59% | 3.82% | 26.14% | 42.79% | 29.29% | 32.76% | 20.78% | 14.44% | 14.35% |
| Operating Income Growth % | - | -62.67% | 18.79% | 106.06% | 675.55% | 90.67% | -182.58% | 106.86% | 81.25% | -58.94% | 54.88% | -66.05% | 824.06% | -91.06% | 69.68% | -36.11% | 71.52% | 340.63% | -84.92% | -30.68% | 100.09% | 34.78% | 195.09% | 162.98% | 61.14% | - |
| EBITDA | 6.78M | 7.21M | 19.41M | 17.46M | 9.75M | 505K | -11.87M | 18.2M | 10.07M | 6.62M | 13.6M | 9.93M | 23.87M | 5.26M | 28.03M | 17.75M | 25.9M | 15.7M | 3.78M | 20.82M | 29.88M | 15.04M | 11.19M | 3.9M | 1.62M | 1.02M |
| EBITDA Margin % | 7.3% | 7.86% | 23.13% | 20.67% | 13.8% | 0.81% | -22.14% | 17.35% | 9.04% | 6.21% | 10.58% | 7.01% | 16.8% | 3.32% | 18.54% | 11.96% | 22.97% | 16.71% | 4.64% | 26.38% | 42.98% | 29.62% | 33.24% | 21.69% | 16.41% | 16.61% |
| EBITDA Growth % | -60.86% | -62.85% | 11.11% | 79.2% | 1829.9% | 104.26% | -165.19% | 80.83% | 52.05% | -51.32% | 36.88% | -58.39% | 354.05% | -81.24% | 57.93% | -31.48% | 64.97% | 315.56% | -81.85% | -30.34% | 98.74% | 34.33% | 186.88% | 141.46% | 58.3% | - |
| D&A (Non-Cash Add-back) | 227K | 303K | 907K | 1.89M | 2.19M | 1.82M | 2.21M | 1.16M | 1.83M | 2.08M | 2.53M | 2.79M | 2.82M | 2.98M | 2.54M | 2.73M | 2.39M | 1.99M | 667K | 193K | 131K | 166.96K | 161.33K | 163.28K | 194.37K | 138.63K |
| EBIT | 3.23M | 7.66M | 18.5M | 15.57M | 7.56M | -1.31M | -11.15M | 17.04M | 8.24M | 4.54M | 10.19M | 3.82M | 17.81M | 1.16M | 25.49M | 15.02M | 23.51M | 13.71M | 13.31M | 20.62M | 29.75M | 15.82M | 11.03M | 3.74M | 1.48M | 1.22M |
| Net Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 167K | 0 | 0 | 0 | 0 | 0 | 141K | 429K | 305K | 383K | 166K | 61K | 284K | 1.31M | 1.25M | 960.77K | 126.5K | 13.19K | 3.97K | 2.7K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 167K | 0 | 0 | 0 | 0 | 0 | 141K | 429K | 305K | 383K | 166K | 61K | 298K | 1.31M | 1.25M | 960.77K | 126.5K | 13.19K | 3.97K | 2.7K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 120K | 753K | 588K | 1.54M | 2.4M | 4.01M | 455K | -42K | 48K | 173K | -187K | -1.24M | -3.15M | -25K | 309K | 302K | -31K | -17K | 798K | 1.49M | 1.25M | 946.08K | 126.82K | 13.19K | 3.97K | 2.7K |
| Pretax Income | 6.67M | 7.66M | 19.09M | 17.11M | 9.96M | 2.69M | -13.62M | 17M | 8.29M | 4.72M | 10.88M | 5.9M | 21.19M | 2.71M | 25.8M | 15.32M | 23.48M | 13.69M | 3.91M | 22.11M | 31M | 15.82M | 11.16M | 3.75M | 1.43M | 885K |
| Pretax Margin % | 7.18% | 8.35% | 22.75% | 20.26% | 14.11% | 4.29% | -25.41% | 16.2% | 7.44% | 4.43% | 8.46% | 4.17% | 14.92% | 1.71% | 17.07% | 10.33% | 20.82% | 14.57% | 4.8% | 28.02% | 44.6% | 31.15% | 33.14% | 20.85% | 14.48% | 14.4% |
| Income Tax | 2.45M | 2.68M | 5.4M | 5.11M | 3.27M | 1.78M | -2.44M | 4.71M | 3.63M | 3.13M | 4.25M | -4.96M | 4.84M | 7.72M | 7.6M | 12.01M | 10.32M | 7.27M | 8.03M | 13M | 14.2M | 7.85M | 5.12M | 1.7M | 572.61K | 521.27K |
| Effective Tax Rate % | 36.7% | 34.98% | 28.31% | 29.83% | 32.84% | 66.02% | 17.9% | 27.72% | 43.75% | 66.26% | 39.06% | -84.01% | 22.84% | 285.11% | 29.46% | 78.34% | 43.97% | 53.12% | 205.3% | 58.8% | 45.81% | 49.65% | 45.9% | 45.36% | 40.16% | 58.9% |
| Net Income | 4.01M | 4.7M | 13.56M | 12.37M | 6.63M | 911K | -13.42M | 4.16M | 4.66M | 3.53M | 6.63M | 10.86M | 16.35M | -5.01M | 18.2M | 3.32M | 13.16M | 8.62M | -4.12M | 9.11M | 16.8M | 7.96M | 6.04M | 2.05M | 853.07K | 363.74K |
| Net Margin % | 4.32% | 5.12% | 16.17% | 14.64% | 9.4% | 1.45% | -25.04% | 3.96% | 4.19% | 3.31% | 5.16% | 7.67% | 11.51% | -3.17% | 12.04% | 2.24% | 11.67% | 9.17% | -5.06% | 11.54% | 24.17% | 15.68% | 17.93% | 11.4% | 8.66% | 5.92% |
| Net Income Growth % | -67.9% | -65.35% | 9.69% | 86.4% | 628.21% | 106.79% | -423.06% | -10.86% | 32.04% | -46.77% | -38.96% | -33.56% | 426.32% | -127.54% | 448.3% | -74.77% | 52.67% | 309.38% | -145.19% | -45.79% | 111.01% | 31.9% | 194.49% | 140.32% | 134.53% | - |
| Net Income (Continuing) | 4.2M | 4.98M | 13.68M | 12.01M | 6.69M | 915K | -11.18M | 12.29M | 4.66M | 1.59M | 6.01M | 8.52M | 13.06M | -5.01M | 18.2M | 3.32M | 13.16M | 13.71M | 5.91M | 9.11M | 16.8M | 7.96M | 6.04M | 2.05M | 853.07K | 363.74K |
| Discontinued Operations | 0 | 0 | 0 | 460K | -59K | -13K | -3.39M | -8.13M | 0 | 1.94M | 624K | 2.34M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 5.11M | 5.09M | 4.82M | 4.7M | 4.59M | 4.6M | 4.61M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.37 | 0.41 | 1.06 | 0.83 | 0.53 | 0.07 | -1.18 | 0.35 | 0.37 | 0.27 | 0.47 | 0.74 | 1.10 | -0.33 | 1.14 | 0.20 | 0.80 | 0.52 | -0.25 | 0.57 | 1.01 | 0.45 | 0.33 | 0.10 | 0.04 | 0.02 |
| EPS Growth % | -64.19% | -61.32% | 27.71% | 56.6% | 645.43% | 106.03% | -437.14% | -5.41% | 37.04% | -42.55% | -36.49% | -32.73% | 433.33% | -128.95% | 470% | -75% | 53.85% | 308% | -143.86% | -43.56% | 124.44% | 36.36% | 230% | 150% | 113.9% | - |
| EPS (Basic) | - | 0.42 | 1.08 | 0.83 | 0.54 | 0.08 | -1.18 | 0.35 | 0.38 | 0.27 | 0.47 | 0.74 | 1.11 | -0.33 | 1.15 | 0.20 | 0.80 | 0.53 | -0.29 | 0.61 | 1.08 | 0.49 | 0.36 | 0.11 | 0.04 | 0.02 |
| Diluted Shares Outstanding | 10.84M | 11.48M | 12.85M | 14.96M | 12.56M | 12.99M | 11.34M | 12.04M | 12.51M | 12.89M | 14M | 14.72M | 14.81M | 15.27M | 15.9M | 16.41M | 16.45M | 16.42M | 16.19M | 16.07M | 16.71M | 17.73M | 18.47M | 20.53M | 19.9M | 19.43M |
| Basic Shares Outstanding | 10.84M | 11.18M | 12.59M | 14.9M | 12.37M | 11.65M | 11.34M | 11.81M | 12.32M | 12.88M | 14M | 14.72M | 14.77M | 15.27M | 15.87M | 16.32M | 16.44M | 16.41M | 14.27M | 14.85M | 15.5M | 16.25M | 16.88M | 19.43M | 19.43M | 19.43M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Rising Customer Acquisition Costs
According to the provided quarterly data, Travelzoo's revenue growth has fluctuated significantly, moving from a 13.7% year-over-year increase in 2023Q4 to a more modest 4.9% in 2026Q1, suggesting that the company's transition toward a subscription-based model has yet to yield a stable, accelerating top-line trajectory.
The inconsistency in revenue growth suggests that the company is struggling to balance its legacy advertising-driven model with the newer membership fee strategy. Investors should monitor whether the recent deceleration reflects a genuine churn in the user base or merely a temporary friction point caused by the implementation of paywalls.
As reported in financial statements, Travelzoo's gross margins have contracted from a peak of 88.1% in 2024Q2 to 78.4% in 2026Q1, indicating that the cost of delivering services is rising faster than the company's ability to maintain its historical pricing power in a competitive digital landscape.
The erosion of gross margin is particularly concerning for a digital-first business that should theoretically benefit from high operating leverage. This trend suggests that the company may be forced to incur higher direct costs to maintain its curated content quality or to support the infrastructure required for its evolving membership platform.
Based on the income statement data, operating margins have compressed sharply from 25.4% in 2024Q1 to 14.2% in 2026Q1, demonstrating that SG&A expenses are scaling disproportionately relative to gross profit, which may indicate inefficiencies in the company's current customer acquisition and retention efforts.
The inability to protect operating margins during periods of revenue growth suggests that the company's cost structure is becoming increasingly rigid. This warrants further investigation into whether the current SG&A spend is effectively driving long-term member value or if it is simply a defensive measure against rising digital advertising costs.
Financial data reveals that net income has become increasingly volatile, with the company reporting a net loss in 2025Q4, which highlights the fragility of the current earnings profile and raises questions about the long-term viability of the business model without significant improvements in operational efficiency.
Short-sellers would likely focus on the erratic nature of the bottom line and the reliance on non-operating items to bolster net income in certain quarters. The transition to a subscription model appears to be a high-stakes pivot that has yet to demonstrate a clear path toward consistent, high-quality earnings growth.
Quick answers to the most common questions about buying TZOO stock.
For fiscal year 2025, Travelzoo (TZOO) reported total revenue of $91.7M. This represents a 1391.9% increase compared to $6.1M in 2001.
Travelzoo (TZOO) is profitable, generating $4.7M in net income for the fiscal year ending 2025 with a net profit margin of 5.1%.
Travelzoo (TZOO) reported an operating income of $6.9M, resulting in an operating profit margin of 7.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Travelzoo (TZOO) generated $73.6M in gross profit for the year, representing a gross profit margin of 80.3%. This demonstrates the company's core pricing power and production efficiency.