Travelzoo Financials
This page shows Travelzoo (TZOO) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 17 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Travelzoo’s model now depends on protecting gross profit while buybacks drain cash faster than profits rebuild equity.
Across recent annual periods, gross profit stayed pinned near$74M even as sales rose, so the latest earnings drop reflects cost-of-revenue pressure rather than a demand shortfall alone. Because SG&A was still only$18.9M , the margin squeeze appears to come mainly from weaker contribution on each dollar sold, not from a suddenly larger overhead base.
Cash conversion remained intact: operating cash flow of
Balance-sheet tightness reflects distribution choices more than borrowing: no long-term debt is reported, yet equity is
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Travelzoo's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Travelzoo has an operating margin of 7.5%, meaning the company retains $8 of operating profit per $100 of revenue. This results in a moderate score of 53/100, indicating healthy but not exceptional operating efficiency. This is down from 22.1% the prior year.
Travelzoo's revenue grew 9.3% year-over-year to $91.7M, a solid pace of expansion. This earns a growth score of 40/100.
Travelzoo has elevated debt relative to equity (D/E of -6.33), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 0/100, reflecting increased financial risk.
Travelzoo's current ratio of 0.68 is below the typical benchmark, resulting in a score of 8/100. This tight liquidity could limit financial flexibility if cash inflows slow.
Travelzoo has a free cash flow margin of 6.1%, earning a moderate score of 57/100. The company generates positive cash flow after capital investments, but with room for improvement.
Travelzoo scores 3.68, well above the 2.99 safe threshold. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Travelzoo passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Travelzoo generates $1.20 in operating cash flow ($5.7M OCF vs $4.7M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Key Financial Metrics
Earnings & Revenue
Travelzoo generated $91.7M in revenue in fiscal year 2025. This represents an increase of 9.3% from the prior year.
Travelzoo's EBITDA was $7.2M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 62.8% from the prior year.
Travelzoo reported $4.7M in net income in fiscal year 2025. This represents a decrease of 65.4% from the prior year.
Travelzoo earned $0.41 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 61.3% from the prior year.
Cash & Balance Sheet
Travelzoo generated $5.6M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 73.3% from the prior year.
Travelzoo held $10.0M in cash against $0 in long-term debt as of fiscal year 2025.
Travelzoo had 11M shares outstanding in fiscal year 2025. This represents a decrease of 7.6% from the prior year.
Margins & Returns
Travelzoo's gross margin was 80.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 7.2 percentage points from the prior year.
Travelzoo's operating margin was 7.5% in fiscal year 2025, reflecting core business profitability. This is down 14.5 percentage points from the prior year.
Travelzoo's net profit margin was 5.1% in fiscal year 2025, showing the share of revenue converted to profit. This is down 11.1 percentage points from the prior year.
Capital Allocation
Travelzoo invested $2.6M in research and development in fiscal year 2025. This represents an increase of 6.0% from the prior year.
Travelzoo spent $13.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 31.5% from the prior year.
Travelzoo invested $65K in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 63.3% from the prior year.
TZOO Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $24.3M+8.0% | $22.5M+1.2% | $22.2M-7.1% | $23.9M+3.3% | $23.1M+11.9% | $20.7M+2.9% | $20.1M-4.9% | $21.1M |
| Cost of Revenue | $5.2M+24.0% | $4.2M-6.6% | $4.5M-12.5% | $5.2M+23.8% | $4.2M+51.1% | $2.8M+8.4% | $2.5M+1.1% | $2.5M |
| Gross Profit | $19.0M+4.3% | $18.3M+3.2% | $17.7M-5.7% | $18.7M-1.2% | $19.0M+5.9% | $17.9M+2.1% | $17.6M-5.8% | $18.6M |
| R&D Expenses | $664K+12.9% | $588K-6.8% | $631K-9.6% | $698K+10.1% | $634K-1.6% | $644K+8.4% | $594K-1.5% | $603K |
| SG&A Expenses | $3.8M-33.7% | $5.8M+31.9% | $4.4M-3.1% | $4.5M+4.6% | $4.3M+2.9% | $4.2M-10.3% | $4.7M+0.9% | $4.6M |
| Operating Income | $3.4M+524.1% | $552K+13.1% | $488K-76.3% | $2.1M-45.8% | $3.8M-21.6% | $4.9M+19.9% | $4.0M+0.8% | $4.0M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $942K+80.8% | $521K+112.7% | $245K-66.9% | $740K-36.9% | $1.2M-21.0% | $1.5M+29.3% | $1.1M-9.4% | $1.3M |
| Net Income | $2.5M+12490.0% | -$20K-113.3% | $150K-89.3% | $1.4M-55.7% | $3.2M-1.6% | $3.2M+1.0% | $3.2M+8.8% | $2.9M |
| EPS (Diluted) | $0.23 | N/A | $0.01-91.7% | $0.12-53.8% | $0.26 | N/A | $0.26+13.0% | $0.23 |
TZOO Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $50.9M+12.6% | $45.2M-2.1% | $46.2M-1.2% | $46.7M-5.0% | $49.2M-10.1% | $54.7M+8.3% | $50.5M-1.9% | $51.5M |
| Current Assets | $28.4M+21.5% | $23.4M-4.2% | $24.4M+1.1% | $24.2M-8.2% | $26.3M-17.1% | $31.8M+16.2% | $27.3M-4.1% | $28.5M |
| Cash & Equivalents | $10.6M+5.6% | $10.0M+17.9% | $8.5M-18.7% | $10.4M-9.0% | $11.5M-32.8% | $17.1M+49.3% | $11.4M-9.1% | $12.6M |
| Inventory | N/A | $124K | N/A | N/A | N/A | $0 | N/A | N/A |
| Accounts Receivable | $13.5M+26.2% | $10.7M-13.9% | $12.5M+8.3% | $11.5M-7.2% | $12.4M-3.4% | $12.8M-2.6% | $13.2M-0.4% | $13.2M |
| Goodwill | $10.9M0.0% | $10.9M0.0% | $10.9M0.0% | $10.9M0.0% | $10.9M0.0% | $10.9M0.0% | $10.9M0.0% | $10.9M |
| Total Liabilities | $54.0M+13.5% | $47.6M-3.3% | $49.2M+0.9% | $48.8M-3.0% | $50.3M0.0% | $50.4M+4.9% | $48.0M+4.7% | $45.9M |
| Current Liabilities | $39.2M+14.7% | $34.2M-4.7% | $35.8M+1.9% | $35.2M-3.9% | $36.6M+0.3% | $36.5M+6.2% | $34.4M+4.7% | $32.8M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | -$8.3M-10.0% | -$7.5M+7.2% | -$8.1M-14.6% | -$7.1M-16.8% | -$6.1M-1210.2% | -$462K+79.3% | -$2.2M-331.0% | $966K |
| Retained Earnings | $6.5M-10.8% | $7.2M+4.6% | $6.9M-12.7% | $7.9M-10.0% | $8.8M-38.3% | $14.3M+0.6% | $14.2M-16.9% | $17.1M |
TZOO Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $3.9M+165.2% | $1.5M+489.3% | -$373K-128.7% | $1.3M-60.5% | $3.3M-58.1% | $7.8M+47.1% | $5.3M+61.2% | $3.3M |
| Capital Expenditures | $8K-50.0% | $16K+6.7% | $15K+15.4% | $13K-38.1% | $21K-56.3% | $48K+4.3% | $46K-4.2% | $48K |
| Free Cash Flow | $3.8M+167.6% | $1.4M+470.1% | -$388K-130.2% | $1.3M-60.6% | $3.3M-58.1% | $7.8M+47.5% | $5.3M+62.2% | $3.3M |
| Investing Cash Flow | -$8K+50.0% | -$16K-6.7% | -$15K-15.4% | -$13K+38.1% | -$21K+56.3% | -$48K-4.3% | -$46K+4.2% | -$48K |
| Financing Cash Flow | -$3.3M | $0+100.0% | -$1.5M+40.6% | -$2.6M+70.8% | -$8.9M-402.1% | -$1.8M+72.8% | -$6.5M+4.2% | -$6.8M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $3.3M | $0-100.0% | $1.5M-38.2% | $2.5M-72.0% | $8.9M+283.7% | $2.3M-62.4% | $6.2M-5.6% | $6.5M |
TZOO Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 78.4%-2.8pp | 81.2%+1.6pp | 79.6%+1.2pp | 78.4%-3.6pp | 82.0%-4.7pp | 86.7%-0.7pp | 87.3%-0.8pp | 88.1% |
| Operating Margin | 14.2%+11.7pp | 2.5%+0.3pp | 2.2%-6.4pp | 8.6%-7.8pp | 16.4%-7.0pp | 23.5%+3.3pp | 20.1%+1.2pp | 19.0% |
| Net Margin | 10.2%+10.3pp | -0.1%-0.8pp | 0.7%-5.2pp | 5.9%-7.8pp | 13.7%-1.9pp | 15.6%-0.3pp | 15.8%+2.0pp | 13.9% |
| Return on Equity | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 303.0% |
| Return on Assets | 4.9%+4.9pp | -0.0%-0.4pp | 0.3%-2.7pp | 3.0%-3.4pp | 6.4%+0.6pp | 5.9%-0.4pp | 6.3%+0.6pp | 5.7% |
| Current Ratio | 0.72+0.0 | 0.680.0 | 0.680.0 | 0.69-0.0 | 0.72-0.2 | 0.87+0.1 | 0.80-0.1 | 0.87 |
| Debt-to-Equity | -6.53-0.2 | -6.33-0.3 | -6.08+0.8 | -6.91+1.4 | -8.32+100.7 | -109.02-87.5 | -21.52-69.0 | 47.48 |
| FCF Margin | 15.8%+9.4pp | 6.4%+8.1pp | -1.8%-7.1pp | 5.4%-8.7pp | 14.1%-23.6pp | 37.7%+11.4pp | 26.3%+10.9pp | 15.4% |
Note: Shareholder equity is negative (-$7.5M), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.
Note: The current ratio is below 1.0 (0.68), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.
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Frequently Asked Questions
What is Travelzoo's annual revenue?
Travelzoo (TZOO) reported $91.7M in total revenue for fiscal year 2025. This represents a 9.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Travelzoo's revenue growing?
Travelzoo (TZOO) revenue grew by 9.3% year-over-year, from $83.9M to $91.7M in fiscal year 2025.
Is Travelzoo profitable?
Yes, Travelzoo (TZOO) reported a net income of $4.7M in fiscal year 2025, with a net profit margin of 5.1%.
What is Travelzoo's EBITDA?
Travelzoo (TZOO) had EBITDA of $7.2M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Travelzoo's gross margin?
Travelzoo (TZOO) had a gross margin of 80.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Travelzoo's operating margin?
Travelzoo (TZOO) had an operating margin of 7.5% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Travelzoo's net profit margin?
Travelzoo (TZOO) had a net profit margin of 5.1% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Travelzoo's free cash flow?
Travelzoo (TZOO) generated $5.6M in free cash flow during fiscal year 2025. This represents a -73.3% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Travelzoo's operating cash flow?
Travelzoo (TZOO) generated $5.7M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Travelzoo's total assets?
Travelzoo (TZOO) had $45.2M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Travelzoo's capital expenditures?
Travelzoo (TZOO) invested $65K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Travelzoo spend on research and development?
Travelzoo (TZOO) invested $2.6M in research and development during fiscal year 2025.
What is Travelzoo's current ratio?
Travelzoo (TZOO) had a current ratio of 0.68 as of fiscal year 2025, which is below 1.0, which may suggest potential liquidity concerns.
What is Travelzoo's debt-to-equity ratio?
Travelzoo (TZOO) had a debt-to-equity ratio of -6.33 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Travelzoo's return on assets (ROA)?
Travelzoo (TZOO) had a return on assets of 10.4% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
Why is Travelzoo's debt-to-equity ratio negative or unusual?
Travelzoo (TZOO) has negative shareholder equity of -$7.5M as of fiscal year 2025, which causes the debt-to-equity ratio to appear negative or not meaningful. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.
What is Travelzoo's Altman Z-Score?
Travelzoo (TZOO) has an Altman Z-Score of 3.68, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Travelzoo's Piotroski F-Score?
Travelzoo (TZOO) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Travelzoo's earnings high quality?
Travelzoo (TZOO) has an earnings quality ratio of 1.20x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Travelzoo?
Travelzoo (TZOO) scores 43 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.