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Travelzoo

TZOO
40
Internet Content & Information · Communication Services
Exchange
NASDAQ
Winston Score
40
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Mixed
Growth
Weak
Cash Flow
Strong
Stability
Good
Valuation
Good

Winston Score History

The full picture

Travelzoo is a website and app that finds and publishes discounted deals on travel, entertainment, and local experiences. Its main products are the "Top 20" weekly email newsletter and an online deals platform where members can browse offers from airlines, hotels, resorts, and restaurants. The company serves roughly 30 million members worldwide who are looking for vetted, limited-time bargains.

Travelzoo makes money by charging travel and entertainment companies — like hotels and tour operators — to advertise their deals on the platform. It operates mainly in North America and Europe, with smaller operations in Asia-Pacific. Its moat comes from its curated, editorial approach: a small team hand-picks deals, which builds trust with subscribers and keeps them engaged. The main risk is that the business is small and competes against much larger platforms like Google, Expedia, and Groupon, which have far greater resources to attract both advertisers and deal-seekers.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-2.9% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-253.8% YoY

YoY Growth Rate

Earnings declining

Insider Activity

43.6%ownership

Flat

Insider ownership roughly steady over the past year

Cash Runway

~12 months

$7M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Adequate runway but may need to raise capital within 2 years

Revenue declining

Travelzoo's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Profit per sale
Gross Margin
69.4%
Premium pricing power — 69.4% gross margin
Profit after running costs
Operating Margin
-11.9%
Losing money on operations — -11.9%
Return on the money invested
ROCE
N/A
Data not available

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Growth

Sales growth
Sales YoY
+4.9%
Slow sales growth (+4.9% YoY)
Profit growth
EPS YoY
-95.5%
Earnings shrinking (-95.5% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

How steady the profit is
EPS Consistency
1/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
693%
Turns 693% of profit into real cash
Spare cash per sale
FCF Margin
3.5%
Thin free cash flow (3.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
100.00x
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
159.4x
no trend
Expensive — P/E 159.4

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+131.3
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (159.4 → 28.1)

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Dividends

Not applicable for this business.
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