Filing Flows › Travelzoo (TZOO) › Q2 2025
Travelzoo (TZOO) Q2 2025 earnings results (second quarter 2025)
10-Q filed Aug 12, 2025
Travelzoo (TZOO) reported revenue of $23.9M for the second quarter 2025 (Q2 2025), +13% from a year earlier and +3% from the quarter before. Operating margin was 8.6%, net earnings $1.4M (5.9% of revenue).
Travelzoo, Q2 2025: revenue $23.9M (+13% year over year), operating margin 8.6%, net earnings $1.4M, operating cash flow $1.3M. The chart follows the revenue to costs, profit and cash.
| Q2 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $23.9M | +3% | +13% |
| Gross profit | $18.7M | -1% | +0.7% |
| Operating profit | $2.1M | -46% | -49% |
| Net earnings | $1.4M | -56% | -52% |
| Operating cash flow | $1.3M | -60% | -61% |
| Free cash flow | $1.3M | -61% | -61% |
What changed
Revenue was $23.9M in Q2 2025, up 13% year over year and up 3% from the previous quarter. Travelzoo North America was the largest line at 67% of revenue. Travelzoo North America added $2.0M year over year (up 14%), 72% of the total change. New Initiatives declined 17%.
Gross margin was 78.4%, down 9.7 points from a year earlier. Operating profit was $2.1M, a 8.6% margin (down 10.4 points year over year). Operating profit fell $2.0M even though revenue rose $2.8M versus a year earlier, so costs grew faster than sales. Operating expenses grew 14% against revenue growth of 13%. The fastest-growing cost line was Sales & marketing (+22%). Net earnings were $1.4M, down 52% year over year. The effective tax rate was 33.3%.
Operating cash flow was $1.3M (down 61% year over year), 88% of net income including minority interests. Non-cash charges added back $106K of depreciation and amortization and $339K of share-based compensation. Working capital and other items used $628K. Capital expenditures of $13K left free cash flow of $1.3M.
Questions
What was Travelzoo's revenue in the second quarter 2025?
Travelzoo (TZOO) reported revenue of $23.9M for the second quarter 2025 (Q2 2025), +13% from a year earlier and +3% from the quarter before.
Was Travelzoo profitable in the second quarter 2025?
Operating profit was $2.1M (8.6% of revenue) and net earnings $1.4M.
Source: Travelzoo 10-Q on SEC EDGAR.