Travelzoo Reports 13% Revenue Growth to $23.9 Million in Q2 2025

Travelzoo reported its financial results for the second quarter of 2025, revealing a revenue increase to $23.9 million, up from $21.1 million in the same period last year, marking a growth of approximately 13%. For the first half of 2025, total revenues reached $47.0 million, compared to $43.1 million in the first half of 2024, reflecting a 9% increase. However, the company experienced a decline in net income, which fell to $1.4 million, or $0.13 per share, from $2.9 million, or $0.23 per share, in the prior year’s quarter. The decrease in profitability was attributed to higher operating expenses, which rose to $16.7 million from $14.6 million year-over-year.

The company’s operating income for the second quarter was $2.1 million, down from $4.0 million in the same quarter of 2024. The increase in operating expenses was primarily driven by higher sales and marketing costs, which surged to $11.5 million from $9.4 million, as Travelzoo invested in promotional activities to attract more customers. Additionally, general and administrative expenses remained relatively stable, totaling $4.5 million compared to $4.6 million in the previous year. The company’s gross profit for the quarter was $18.7 million, slightly up from $18.6 million in the prior year.

Travelzoo's customer base and engagement metrics showed positive trends, with the company reaching approximately 30 million travelers across various regions, including the U.S., Canada, and Europe. The company has also been expanding its product offerings, including the recent development of Travelzoo META, a subscription service aimed at providing Metaverse travel experiences. This initiative is part of the company's strategy to diversify its revenue streams and enhance customer engagement. The company continues to maintain a strong presence in the travel industry, with significant revenues generated from advertising and commerce, which accounted for $20.9 million in the second quarter.

In terms of financial health, Travelzoo reported total assets of $46.7 million as of June 30, 2025, down from $54.7 million at the end of 2024. The decrease in assets was primarily due to a reduction in cash and cash equivalents, which fell to $10.4 million from $17.1 million. The company’s liabilities also decreased slightly to $48.8 million from $50.4 million, resulting in a stockholders' equity deficit of $2.1 million, compared to a positive equity of $4.4 million at the end of 2024. The company’s management expressed confidence in its ability to navigate current market conditions and expects to leverage its strategic initiatives to drive future growth.

Looking ahead, Travelzoo anticipates continued revenue growth driven by its expanding customer base and new product offerings. The company is focused on enhancing its marketing efforts and optimizing operational efficiencies to improve profitability. Management remains optimistic about the potential of Travelzoo META and other initiatives to contribute positively to the company’s financial performance in the coming quarters.