Travelzoo (TZOO) Stock Forecast & Price Target

Travelzoo is well positioned by a resilient travel backdrop, where strong demand, supply, and pricing over the past 4 years have been punctuated by some softness this year that supports its deal-promotion model. The shift to paid membership in December 2023 should materially improve monetization, with fees expected to reach 20% of 2026 total revenues and 30% of 2027 total revenues, while management also expects revenue growth in Q2 2026 and Q3 2026 and substantial growth in 2027. Q1 2026 showed the underlying business remains healthy, with revenue of $24 million, North America up 4% and Europe up 8%, plus a solid balance sheet with $11 million in cash and no debt and an active 1 million-share repurchase program.

Travelzoo is facing a deteriorating fundamental backdrop as Q2 2026 revenue fell 3% year over year to $23 million, below both the $25 million estimate and consensus, while pro forma EPS swung to a $(0.14) loss versus $0.15 a year earlier. The $1.5 million pro forma net loss, combined with management’s lack of specific Q2 2026 guidance, suggests weak visibility and insufficient operating leverage despite the company’s claim that revenue will continue to grow. Outlook is further pressured by sharply reduced estimates for 2026 and 2027, and the lack of meaningful subscriber comparisons after strategic changes limits transparency around the core membership base.