Travelzoo: Q2 Does Not Shed Clarity On New Business Model Profitability Yet

  • Travelzoo's 2Q25 results show continued revenue growth from new paying members, but profitability is pressured by higher advertising and discounted package sales. Customer acquisition costs rose, churn appears significant, and the economics of the new business model remain uncertain and potentially unattractive. Gross profits are flat despite higher revenues, with operating margins deteriorating both year-over-year and sequentially, raising concerns about sustainable profitability.