The sharp deterioration in profitability and cash burn is concerning. With only $6.8M in cash and negative operating cash flow, the company may need to cut costs or raise capital soon. Watch Q3 revenue closely for confirmation of management's growth guidance — a continued decline would signal the membership transition is not compensating for lost advertising revenue fast enough.
Price Chart
Executive Summary
Travelzoo reported a disastrous Q2 2026, with EPS of -$0.21 missing the $0.12 consensus by 275% and revenue of $23.2M falling 8% short of the $25.2M estimate. Revenue declined 3% YoY and the company swung from an operating profit of $2.1M to an operating loss of $2.8M, while cash flow from operations was -$1.7M. Management guided for year-over-year revenue growth in Q3 but the current quarter's deterioration makes a near-term recovery uncertain.
Key Financial Metrics
Key Facts
- EPS of -$0.21 missed consensus $0.12 (-275% surprise)
- Revenue $23.2M vs consensus $25.2M (-7.9% miss), down 3% YoY from $23.9M
- Operating loss of $2.8M vs operating profit of $2.1M in Q2 2025
- Net loss attributable to Travelzoo of $2.1M vs net income of $1.4M a year ago
- Cash flow from operations was -$1.7M, cash and equivalents fell to $6.8M from $10.0M at year-end
- Company repurchased 200,000 shares during the quarter
Financial Impact
Revenue miss of ~$2.0M (8% below consensus) and EPS swing from +$0.12 consensus to -$0.21 actual, a ~$0.33 per-share miss
Risk Factors
- Continued cash burn could force dilutive financing or asset sales
- Membership fee transition may not offset declining advertising revenue in the near term
- International conflicts and advertiser uncertainty could persist, further pressuring revenue
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302836478 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | 8-K | $5.16 | awaiting T+60 | — | $4.98 (+3.49%) |
Oct 27, 2026 today | Press Release | $5.01 | awaiting T+60 | — | $4.98 (+0.60%) |
Oct 23, 2026 4d ago | Press Release | $5.04 | awaiting T+60 | — | $4.98 (−1.19%) |
Jul 28, 2026 13w ago | Press Release | $7.57 $5.24 | ▲ +30.78% | ▲ +35.13% | $4.98 (+34.21%) |
Apr 23, 2026 26w ago | 8-K | $9.48 $10.99 | ▲ +15.88% | ▲ +10.86% | $4.98 (−47.47%) |
Apr 20, 2026 27w ago | 8-K | $7.36 $11.08 | ▲ +50.54% | ▲ +43.77% | $4.98 (−32.34%) |
US Market Status
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