📊 TZOO Key Takeaways
Is Travelzoo (TZOO) a Good Investment?
Travelzoo demonstrates strong operational profitability with 80% gross margins and positive 9.3% revenue growth, but this is severely undermined by a critically distressed balance sheet with negative stockholders' equity of -$7.5M and inadequate liquidity (0.68x current ratio). The company's 61% EPS decline despite revenue growth signals deteriorating operational efficiency, and the technical insolvency position creates material financial risk despite positive free cash flow generation.
Why Buy Travelzoo Stock? TZOO Key Strengths
- High gross margin of 80.3% reflecting pricing power and business model quality in digital advertising
- Revenue growth of 9.3% YoY demonstrating market demand and business resilience
- Positive operating cash flow of $5.7M and free cash flow of $5.6M providing near-term liquidity buffer
TZOO Stock Risks: Travelzoo Investment Risks
- Negative stockholders' equity of -$7.5M indicates accumulated losses and technical insolvency; liabilities exceed assets by $2.4M
- Current ratio of 0.68x and quick ratio of 0.68x signal liquidity constraints and inability to cover short-term obligations from current assets
- Net income declined 5.6% YoY while EPS collapsed 61.3%, indicating deteriorating profitability despite revenue growth
Key Metrics to Watch
- Stockholders' equity trajectory - must return to positive territory for solvency
- Current ratio improvement - needs to exceed 1.0x to ensure adequate liquidity
- Net income and EPS trends - whether declines stabilize or accelerate further
Travelzoo (TZOO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
TZOO Profit Margin, ROE & Profitability Analysis
TZOO vs Services Sector: How Travelzoo Compares
How Travelzoo compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Travelzoo Stock Overvalued? TZOO Valuation Analysis 2026
Based on fundamental analysis, Travelzoo has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Travelzoo Balance Sheet: TZOO Debt, Cash & Liquidity
TZOO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Travelzoo's revenue has grown significantly by 46% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.06 reflects profitable operations.
TZOO Revenue Growth, EPS Growth & YoY Performance
TZOO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $20.1M | $150.0K | $0.01 |
| Q2 2025 | $21.1M | $1.4M | $0.12 |
| Q1 2025 | $22.0M | $3.2M | $0.26 |
| Q3 2024 | $20.1M | $2.3M | $0.16 |
| Q2 2024 | $21.1M | $2.6M | $0.17 |
| Q1 2024 | $21.6M | $3.7M | $0.23 |
| Q3 2023 | $15.8M | $795.0K | $0.06 |
| Q2 2023 | $17.7M | $1.0M | $0.08 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Travelzoo Dividends, Buybacks & Capital Allocation
TZOO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Travelzoo (CIK: 0001133311)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TZOO
What is the AI rating for TZOO?
Travelzoo (TZOO) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TZOO's key strengths?
Claude: High gross margin of 80.3% reflecting pricing power and business model quality in digital advertising. Revenue growth of 9.3% YoY demonstrating market demand and business resilience.
What are the risks of investing in TZOO?
Claude: Negative stockholders' equity of -$7.5M indicates accumulated losses and technical insolvency; liabilities exceed assets by $2.4M. Current ratio of 0.68x and quick ratio of 0.68x signal liquidity constraints and inability to cover short-term obligations from current assets.
What is TZOO's revenue and growth?
Travelzoo reported revenue of $91.7M.
Does TZOO pay dividends?
Travelzoo does not currently pay dividends.
Where can I find TZOO SEC filings?
Official SEC filings for Travelzoo (CIK: 0001133311) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TZOO's EPS?
Travelzoo has a diluted EPS of $0.41.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is TZOO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Travelzoo has a SELL rating with 78% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is TZOO stock overvalued or undervalued?
Valuation metrics for TZOO: ROE of N/A (sector avg: 16%), net margin of 5.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy TZOO stock in 2026?
Our dual AI analysis gives Travelzoo a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TZOO's free cash flow?
Travelzoo's operating cash flow is $5.7M, with capital expenditures of $65.0K. FCF margin is 6.1%.
How does TZOO compare to other Services stocks?
Vs Services sector averages: Net margin 5.1% (avg: 10%), ROE N/A (avg: 16%), current ratio 0.68 (avg: 1.5).