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Stock impact report

Travelzoo targets 25% of revenue from membership fees in 2026 while increasing marketing spend [Seeking Alpha]

Travelzoo (TZOO) 
US:NASDAQ Investor Relations: ir.travelzoo.com
Company Research Source: Seeking Alpha
Jeff Hoffman reported that "Travelzoo's consolidated Q4 revenue was $22.5 million, up 9% from the prior year" and that operating profit was $0.6 million or 3% of revenue, which was down from $4.9 million in the prior year due to Quick Insights Near-term profitability is expected to decline due to increased marketing spend for Club Member acquisition, with management acknowledging short-term EPS pressure but anticipating improvement as recurring membership revenue grows. Risks include revenue softness in advertising/commerce, potential churn in new cohorts, and uncertainties regarding renewal rates after fee increases; management is enhancing member benefits to support retention but admits it is too early to assess churn impacts. Advertising and commerce revenue was soft in Q4 and is expected to remain soft in the near term, with slower growth in membership fees but management expects stronger membership revenue growth in 2026 as recurring fees become a larger revenue share. Show less Read more
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