Travelzoo 2025 Q3 Earnings Sharp Net Income Drop 94.5% Amid Revenue Growth

Travelzoo (TZOO) reported fiscal 2025 Q3 earnings on November 10, 2025, . The results highlight a divergence between top-line growth and profitability, driven by elevated sales and marketing expenses. The company emphasized strategic investments in member acquisition and new initiatives like its Metaverse travel platform, Travelzoo META, to fuel long-term expansion.

Revenue

Travelzoo’s total revenue rose 10.5% year-over-year to $22.17 million, driven by higher subscription fees from Travelzoo Club and Jack’s Flight Club members. The Advertising and Commerce segment, which includes travel publications, Getaways vouchers, and hotel partnerships, contributed the largest share of revenue. , with the U.S. as the primary contributor, while Europe and Jack’s Flight Club added 30% and 6%, respectively. Increased sales of Getaways and Local Deals vouchers further bolstered the Advertising and Commerce segment’s performance.

Earnings/Net Income

, . , reflecting higher operating expenses and reduced other income. The sharp decline underscores challenges in maintaining profitability amid aggressive growth strategies and rising costs.

Post-Earnings Price Action Review

Travelzoo’s stock price experienced sustained downward pressure in the wake of the earnings report, with a 1.18% dip during the latest trading day, a 6.22% decline over the preceding week, and a 24.14% drop month-to-date. The negative momentum suggests investor concerns over profitability and growth sustainability, despite revenue gains.

CEO Commentary

, CEO of Travelzoo, emphasized the company’s focus on expanding its membership base and launching innovative products like Travelzoo META. “While near-term profitability remains challenging, our investments in member acquisition and digital transformation are critical for long-term value creation,” Smith stated. He highlighted the potential of the Metaverse travel initiative to diversify revenue streams and enhance customer engagement.

Guidance

The company did not provide explicit forward-looking guidance during the earnings call but reiterated its commitment to efficient growth strategies, including targeted marketing and product innovation.

Additional News

Travelzoo recently filed its Q3 2025 10-Q report, revealing a strategic shift toward digital-first initiatives. The company announced the development of Travelzoo META, a subscription-based Metaverse travel platform, as part of its New Initiatives segment. Geographically, North America continued to dominate revenue contributions, while increased voucher sales in the Advertising and Commerce segment offset softer performance in other regions. The 10-Q also noted elevated sales and marketing expenses tied to member acquisition efforts, underscoring the company’s prioritization of growth over short-term margins.