Travelzoo (NASDAQ:TZOO) Reports Mixed Q2 2025 Earnings with Revenue Beat but EPS Miss, Stock Drops 11.7%

Travelzoo (NASDAQ:TZOO) reported its second-quarter 2025 earnings, revealing mixed results compared to analyst expectations. The company posted revenue of $23.9 million, a 13% increase year-over-year, slightly surpassing the estimated $23.8 million. However, the earnings per share (EPS) of $0.12 fell significantly short of the $0.24 consensus estimate, which appears to have triggered a negative market reaction. In pre-market trading, the stock dropped nearly 11.7%, reflecting investor disappointment over the earnings miss.

Key Takeaways from the Earnings Report

• Revenue Growth: Travelzoo’s revenue climbed to $23.9 million, up from $21.1 million in the prior-year quarter, demonstrating continued demand for its travel and entertainment deals. On a constant-currency basis, revenue grew 12%.
• Operating Profit: The company reported a consolidated operating profit of $2.1 million, though specific comparisons to estimates were not provided in the press release.
• EPS Shortfall: The reported EPS of $0.12 was roughly half of what analysts had projected ($0.24), likely due to higher costs or lower-than-expected margins.

Market Reaction and Performance

The sharp pre-market decline suggests that investors were particularly focused on the earnings miss rather than the modest revenue beat. Over the past month, Travelzoo’s stock had gained about 11.7%, but the post-earnings drop erased much of that momentum. The lack of a significant movement in the stock over the past two weeks indicates that the market was waiting for earnings results before making a decisive move.

Looking Ahead

Analysts currently estimate Q3 2025 revenue at $24.8 million, with an EPS forecast of $0.33. For the full year, revenue is projected at $98.1 million, with earnings expected to reach $1.21. Travelzoo did not provide explicit guidance in its press release, leaving investors to rely on these external estimates.

For a deeper dive into Travelzoo’s earnings and analyst projections, visit the earnings estimates page.

Disclaimer: This article is not investment advice. Investors should conduct their own research or consult a financial advisor before making any decisions.