Travelzoo (TZOO) Stock Forecast & Price Target

Travelzoo is positioned to benefit from a still-favorable travel backdrop, where some softness in travel demand and pricing this year can actually improve its ability to surface compelling deals and drive engagement across North America, Europe, and Jack’s Flight Club. Its first-quarter 2026 results showed resilience, with revenue of $24 million, up 5% year over year, and pro forma EPS of $0.23, while management guided qualitatively for continued revenue growth in Q2 2026 and Q3 2026. Longer term, the new membership fee should be a major margin driver, with fees expected to reach 20% of 2026 total revenues and 30% of 2027 total revenues, supported by a solid balance sheet with $7 million in cash and no debt plus a 1 million-share repurchase program.

Travelzoo is facing a negative fundamental setup after fiscal Q2 2026 revenue of $23 million fell 3% year over year and missed both estimates, while pro forma EPS swung to a loss of $(0.14) from $0.15 a year earlier and the company posted a $1.5 million pro forma net loss instead of the expected income. The absence of specific Q2 2026 guidance, combined with management’s only qualitative comment that revenue will continue to grow, signals limited visibility and weak near-term operating momentum. The repeated downward revisions to 2026 and 2027 revenue and EPS estimates, along with no longer providing subscriber information, suggest deteriorating business transparency and slower earnings power across Travelzoo’s core segments.