Travelzoo

Q2 FY2026 EarningsQ2 FY2026 results significantly missed consensus across all key financial metrics. Revenue of $23.2M fell 7.73% short of the $25.2M expectation, while GAAP EPS plummeted to -$0.21 compared to a positive $0.12 forecast. The underperformance was driven by a strategic shift toward paid memberships which cannibalized advertising revenue, coupled with a sharp contraction in gross margin to 69.4% (vs. 78.6% expected) and elevated member acquisition costs.