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Jun 30, 2025
Travelzoo Q2 2025 Earnings Report
Travelzoo reported a 13% increase in revenue year-over-year, reaching $23.9 million, with consolidated operating profit of $2.1 million and EPS of $0.12 for the second quarter of 2025.
Key Takeaways
Travelzoo announced strong second quarter 2025 results, with revenue increasing 13% year-over-year to $23.9 million. The company reported a consolidated operating profit of $2.1 million and earnings per share of $0.12. Significant investment in acquiring new Club Members impacted EPS, as marketing costs were expensed immediately while membership fees are recognized ratably.
Revenue increased by 13% year-over-year to $23.9 million.
Consolidated operating profit stood at $2.1 million, with non-GAAP consolidated operating profit at $2.4 million.
Earnings per share (EPS) was $0.12, impacted by immediate expensing of marketing costs for new Club Members.
Cash flow from operations was $1.3 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Travelzoo expects continued year-over-year revenue growth for Q3 2025, with acceleration in subsequent quarters as membership fees are recognized and new members join. Profitability is expected to increase substantially over time, though short-term fluctuations in net income are possible due to immediate expensing of marketing costs.
Positive Outlook
- Expect year-over-year revenue growth to continue in Q3 2025.
- Revenue growth is expected to accelerate in subsequent quarters.
- Membership fees revenue will be recognized ratably over the 12-month subscription period.
- Expect profitability to substantially increase over time as recurring membership fees revenue is recognized.
- Many Legacy Members are becoming Club Members, in addition to new members joining.
Challenges Ahead
- Marketing costs are expensed immediately, which can impact EPS.
- Short-term fluctuations in reported net income are possible.
- Attractive opportunities to increase marketing might lead to higher expenses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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