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Travelzoo (TZOO) Q1 2026 earnings results (first quarter 2026)

10-Q filed May 14, 2026

Travelzoo (TZOO) reported revenue of $24.3M for the first quarter 2026 (Q1 2026), +5% from a year earlier and +8% from the quarter before. Operating margin was 14.2%, net earnings $2.5M (10.2% of revenue).

Revenue$24.3M
Year over year+5%
Quarter over quarter+8%
Operating margin14.2%
Net earnings$2.5M

Travelzoo, Q1 2026: revenue $24.3M (+5% year over year), operating margin 14.2%, net earnings $2.5M, operating cash flow $3.9M. The chart follows the revenue to costs, profit and cash.

Q1 2026AmountQ/QY/Y
Revenue$24.3M+8%+5%
Gross profit$19.0M+9%+0.4%
Operating profit$3.4M+524%-9%
Net earnings$2.5M—-22%
Operating cash flow$3.9M+165%+17%
Free cash flow$3.8M+168%+18%

What changed

Revenue was $24.3M in Q1 2026, up 5% year over year and up 8% from the previous quarter. Travelzoo North America was the largest line at 65% of revenue. Travelzoo Europe added $565K year over year (up 8%), 50% of the total change.

Gross margin was 78.4%, down 3.5 points from Q1 2025. Operating profit was $3.4M, a 14.2% margin (down 2.2 points year over year). Operating profit fell $359K even though revenue rose $1.1M versus Q1 2025, so costs grew faster than sales. Operating expenses grew 3% against revenue growth of 5%. Net earnings were $2.5M, down 22% year over year. The effective tax rate was 27.4%.

Operating cash flow was $3.9M (up 17% year over year), 154% of net earnings. Non-cash charges added back $56K of depreciation and amortization and $35K of share-based compensation. Working capital and other items added $1.3M. Capital expenditures of $8K left free cash flow of $3.8M.

Questions

What was Travelzoo's revenue in the first quarter 2026?

Travelzoo (TZOO) reported revenue of $24.3M for the first quarter 2026 (Q1 2026), +5% from a year earlier and +8% from the quarter before.

Was Travelzoo profitable in the first quarter 2026?

Operating profit was $3.4M (14.2% of revenue) and net earnings $2.5M.

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Source: Travelzoo 10-Q on SEC EDGAR.