Travelzoo

Q2 FY2026 EarningsQ2 FY26 results significantly missed consensus across all key profitability metrics, reporting a GAAP EPS loss of $(0.21) compared to the expected $0.12 profit. Revenue of $23.2M fell 7.7% short of the $25.2M consensus, primarily due to international conflicts impacting advertiser demand and a shift toward ratable membership revenue. Operating loss was $(2.8)M vs. the expected $1.7M EBIT, driven by a sharp decline in gross margin (69.4% vs. 78.6% expected) and increased marketing spend for the new membership model. While management expects revenue growth in Q3 and beyond as membership fees vest, short-term earnings volatility remains high.