Filing Flows › Travelzoo (TZOO) › Q1 2025
Travelzoo (TZOO) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 13, 2025
Travelzoo (TZOO) reported revenue of $23.1M for the first quarter 2025 (Q1 2025), +5% from a year earlier and +12% from the quarter before. Operating margin was 16.4%, net earnings $3.2M (13.7% of revenue).
Travelzoo, Q1 2025: revenue $23.1M (+5% year over year), operating margin 16.4%, net earnings $3.2M, operating cash flow $3.3M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $23.1M | +12% | +5% |
| Gross profit | $19.0M | +6% | -2% |
| Operating profit | $3.8M | -22% | -32% |
| Net earnings | $3.2M | -2% | -25% |
| Operating cash flow | $3.3M | -58% | -29% |
| Free cash flow | $3.3M | -58% | -29% |
What changed
Revenue was $23.1M in Q1 2025, up 5% year over year and up 12% from the previous quarter. Travelzoo North America was the largest line at 65% of revenue. Travelzoo North America added $900K year over year (up 6%), 78% of the total change. New Initiatives declined 47%.
Gross margin was 82.0%, down 6.0 points from a year earlier. Operating profit was $3.8M, a 16.4% margin (down 9.0 points year over year). Operating profit fell $1.8M even though revenue rose $1.2M versus a year earlier, so costs grew faster than sales. Operating expenses grew 10% against revenue growth of 5%. The fastest-growing cost line was Sales & marketing (+19%). Net earnings were $3.2M, down 25% year over year. The effective tax rate was 26.5%.
Operating cash flow was $3.3M (down 29% year over year), 101% of net income including minority interests. Non-cash charges added back $76K of depreciation and amortization and $369K of share-based compensation. Working capital and other items used $421K. Capital expenditures of $21K left free cash flow of $3.3M.
Questions
What was Travelzoo's revenue in the first quarter 2025?
Travelzoo (TZOO) reported revenue of $23.1M for the first quarter 2025 (Q1 2025), +5% from a year earlier and +12% from the quarter before.
Was Travelzoo profitable in the first quarter 2025?
Operating profit was $3.8M (16.4% of revenue) and net earnings $3.2M.
Source: Travelzoo 10-Q on SEC EDGAR.