Bear of the Day: Travelzoo (TZOO)

Travelzoo (TZOO) reported a significant Q2 2026 earnings miss, posting a loss of $0.21 versus consensus of $0.15, with revenue declining 3% to $23.2 million due to international conflicts impacting all business segments. The company increased marketing spend to grow its membership business, but analysts have cut earnings estimates for both 2026 and 2027. Despite the challenges, Travelzoo trades at a cheap valuation with a P/S ratio of 0.6 and maintains a cash balance of $7.6 million.