Travelzoo (NASDAQ:TZOO) Stock Plummets 14% After Q3 Earnings Miss

Travelzoo (NASDAQ:TZOO), the global media commerce company, has released its financial results for the third quarter of 2025. The report reveals a company experiencing revenue growth but facing significant challenges in meeting analyst expectations for profitability, a dynamic that appears to be reflected in the stock's immediate market performance.

Summary of Q3 2025 Results

The company reported consolidated revenue of $22.2 million for the quarter, representing a 10% increase compared to the $20.1 million reported in the same period last year. This growth was primarily driven by advertising revenues and commissions generated from purchases made by its member base. Travelzoo also reported a consolidated operating profit of $0.5 million. The press release underscores the company's ongoing position as a club for travel enthusiasts, though it does not provide a specific financial outlook for the coming quarters.

Earnings vs. Estimates Analysis

A closer examination of the figures shows a clear divergence between the company's reported numbers and Wall Street's forecasts. While revenue showed healthy year-over-year growth, it fell short of what analysts had projected. The miss on earnings per share was particularly pronounced.

• Revenue: The company reported $22.2 million, which fell short of the analyst estimate of approximately $23.63 million.
• Earnings Per Share (EPS): Travelzoo reported a non-GAAP EPS of $0.01. This was substantially below the analyst consensus estimate of $0.19 per share.

This dual miss on both top-line revenue and bottom-line profitability is a key focal point for investors assessing the quarter's performance.

Market Reaction

The market's reaction to the earnings report has been decisively negative. Following the release, the stock experienced a sharp decline. The current performance shows a drop of over 14%, a move that can be directly attributed to investor disappointment with the earnings results. This sell-off erases the modest gains the stock had accumulated over the past month, highlighting the high level of scrutiny on the company's ability to meet financial targets.

Looking Ahead

With the Q3 report now public, attention turns to the future. Analysts have already established estimates for the next quarter and the full 2025 fiscal year. For the fourth quarter of 2025, the consensus estimates are for revenue of approximately $24.58 million and earnings per share of $0.26. The full-year 2025 estimates project sales of about $96.05 million. Investors will be watching closely to see if Travelzoo can align its performance with these forecasts in the upcoming periods.

For a more detailed breakdown of past earnings and future analyst estimates for Travelzoo, you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. The author has no position in the stock mentioned. All investment decisions should be based on your own research, financial circumstances, and risk tolerance.