New York, May 26, 2026, 16:06 (EDT)
- Travelzoo was last up 0.8% at $10.11 in late Nasdaq trade, after an earlier move to $10.35.
- U.S. markets reopened after the May 25 Memorial Day holiday, prompting the move.
- Travelzoo’s move to paid memberships is still getting attention from investors, with revenue spread over a year but marketing costs hitting earnings right away.
Travelzoo TZOO stock ticked up Tuesday, hovering just over $10 after the U.S. holiday break. Investors stayed focused on the travel-deals firm’s paid membership plans. Shares changed hands lately at $10.11, gaining 0.8%. Volume was around 89,600 shares.
Travelzoo’s small cap means price shifts quickly; the company is valued at around $109.6 million. Even small trades can have an outsize effect. U.S. stock markets were shut Monday for Memorial Day. Regular trading goes from 9:30 a.m. to 4:00 p.m. Eastern.
Travelzoo hasn’t released a new statement in the last 24 to 48 hours. The most recent catalyst is still the company’s first-quarter report and its May 14 quarterly filing, which covered numbers on membership and buybacks.
Travelzoo said first-quarter revenue reached $24.3 million, a 5% increase from last year, with earnings per share at 23 cents. EPS measures profit for each common share and is a common way to look at profitability.
Travelzoo said in its earnings release, “In Q1, we continued to invest significantly in acquiring more Club Members when we saw that we can achieve a positive return on investment.” The company records membership-fee revenue “ratably” over 12 months, booking it over time instead of up front, but expenses marketing costs right away. PR Newswire
Accounting choices are a key part of the Travelzoo story. When Travelzoo pays to bring in members, that can push down short-term earnings. But management says it doesn’t have to spend on renewals, so that should lift profit later.
Travelzoo global CEO Holger Bartel said the company plans to use its “global reach, trusted brand, and strong relationships with top travel suppliers” to get more Club Offers and bring new perks, like free airport lounge access if a flight is delayed. Bartel called Travelzoo members “affluent, active, and open to new experiences.” PR Newswire
Operating income at the company dropped to $3.45 million in the first quarter, down from $3.80 million last year, according to its filing. Revenue increased, but sales and marketing expense also went up, hitting $11.1 million from $10.2 million.
Travelzoo repurchased 500,000 shares last quarter at an average of $6.53, putting about $3.2 million into the buyback, not counting excise tax. At quarter-end, it still had 500,000 shares left in its March 5 program for potential repurchase.
Balance sheet numbers offer support to both views. Cash, cash equivalents and restricted cash came in at $11.3 million, up from $10.8 million at 2025’s close, thanks in part to $3.9 million in operating cash. But the filing also listed negative net working capital of $10.8 million, with merchant payables booked as current liabilities.
Travel stocks were mixed. Expedia Group was up 3.5% and Booking Holdings added 1.3%. Tripadvisor fell 1.0%. Travelzoo’s modest move tracked the wider online travel space, but the action didn’t point to a sector-wide rally as the sole driver.
Travelzoo faces risks if its membership strategy takes longer to pay off. The company said marketing spending swings from period to period and “will continue to have a significant impact” on results. If membership renewals cool or paid members don’t convert as management expects, recent acquisition costs could hit financials again. SEC
