Filing Flows › Travelzoo (TZOO) › Q3 2025
Travelzoo (TZOO) Q3 2025 earnings results (third quarter 2025)
10-Q filed Nov 10, 2025
Travelzoo (TZOO) reported revenue of $22.2M for the third quarter 2025 (Q3 2025), +10% from a year earlier and -7% from the quarter before. Operating margin was 2.2%, net earnings $150K (0.7% of revenue).
Travelzoo, Q3 2025: revenue $22.2M (+10% year over year), operating margin 2.2%, net earnings $150K, operating cash flow −$373K. The chart follows the revenue to costs, profit and cash.
| Q3 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $22.2M | -7% | +10% |
| Gross profit | $17.7M | -6% | +0.7% |
| Operating profit | $488K | -76% | -88% |
| Net earnings | $150K | -89% | -95% |
| Operating cash flow | −$373K | -129% | — |
What changed
Revenue was $22.2M in Q3 2025, up 10% year over year and down 7% from the previous quarter. Travelzoo North America was the largest line at 64% of revenue. Travelzoo North America added $1.4M year over year (up 11%), 67% of the total change. New Initiatives declined 18%.
Gross margin was 79.6%, down 7.7 points from a year earlier. Operating profit was $488K, a 2.2% margin (down 17.9 points year over year). Operating profit fell $3.6M even though revenue rose $2.1M versus a year earlier, so costs grew faster than sales. Operating expenses grew 27% against revenue growth of 10%. The fastest-growing cost line was Sales & marketing (+48%). Net earnings were $150K, down 95% year over year. The effective tax rate was 57.8%.
Operating cash flow was −$373K. Non-cash charges added back $57K of depreciation and amortization and $400K of share-based compensation. Working capital and other items used $1.0M. Capital expenditures of $15K exceeded it, leaving free cash flow of −$388K.
Questions
What was Travelzoo's revenue in the third quarter 2025?
Travelzoo (TZOO) reported revenue of $22.2M for the third quarter 2025 (Q3 2025), +10% from a year earlier and -7% from the quarter before.
Was Travelzoo profitable in the third quarter 2025?
Operating profit was $488K (2.2% of revenue) and net earnings $150K.
Source: Travelzoo 10-Q on SEC EDGAR.