Travelzoo Common Stock (TZOO)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital and sell at sensible prices. Travelzoo is an asset-light internet media company with 249 employees, $91.7M of revenue in fiscal 2025, the year ended 2025-12-31, and a niche in travel, entertainment, and local experiences. But the quality is mixed. In fiscal 2025, the year ended 2025-12-31, net income was $4.7M, down sharply from $13.6M in fiscal 2024, the year ended 2024-12-31, and diluted EPS fell to $0.41 from $1.06. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $23.2M but net income was -$2.1M, a -9.2% margin, after positive net income of $2.5M in fiscal Q1 2026, the quarter ended 2026-03-31. That volatility argues against a durable moat. Financial health is not comforting: FairStock's Altman Z-Score is 0.62, Piotroski is 4/9, ROCE is 2.28%, and the ROE of 515.59% reflects a tiny equity base rather than wonderful economics. On the positive side, trailing free cash flow is $3.2M, a 5.9% FCF yield on the $54.2M market cap, so the business still converts something to cash. Valuation, however, discounts better days: at the 2026-10-13 close of $5.31, the P/E is 106.20 and EV/EBITDA is 27.32. FairStock classifies it as a Stalwart based on four-year profit and revenue growth, but the recent trajectory is downward. Mr. Market is neither paying a bargain price nor clearly overpaying for a proven compounder; this is a small, cyclical, cash-generative but uneven business that needs proof of sustainable profit before I would call it compelling.

In plain English: Travelzoo runs websites and email newsletters that offer travel, entertainment, and local deals. The business looks mixed: sales are growing only slowly, and it lost money in the latest quarter even though it had been profitable earlier in the year. At $5.31, the price looks expensive compared with the small profit the company currently earns, though it still produces some cash.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer