Travelzoo Inc. (NASDAQ: TZOO) has authorized a new share repurchase program that allows the company to buy back up to 1 million shares of its common stock from the open market, using available cash. The program is designed to be flexible, with the number of shares and timing of purchases determined by the company’s cash balances, general business and market conditions, and other factors such as alternative investment opportunities.
The decision comes shortly after Travelzoo reported its Q4 2025 earnings on February 19 2026. The company posted revenue of $22.5 million and earnings per share of $0.10, missing analyst expectations of $0.11 and a revenue target of $22.79 million. The earnings miss was largely driven by increased marketing spend aimed at accelerating member acquisition for the company’s new membership‑based business model, which is expected to generate about 25 % of total revenue in 2026.
Travelzoo’s cash position as of December 31 2025 was $10.8 million in cash, cash equivalents, and restricted cash, while the company reported a stockholders’ deficit. The available cash base will support the new buyback program, but the company must balance the program against ongoing investments in marketing and the transition to a recurring revenue model.
The new program follows a history of share repurchases. In April 2024, the board authorized a buyback of up to 1 million shares, and the company repurchased over 10 % of its shares for $20.7 million that year. In 2025, Travelzoo repurchased more than 900,000 shares for $13 million, a 7 % reduction in shares outstanding. These actions demonstrate a consistent strategy of returning capital to shareholders while pursuing growth initiatives.
Management’s approval of the new program signals confidence that the stock is undervalued and that the company can generate sufficient cash flow to fund the buyback while continuing to invest in its membership platform. The program is intended to enhance shareholder value by reducing the share count and potentially increasing earnings per share, while also providing flexibility to adjust the pace of repurchases as the company’s financial position evolves.
The announcement was well received by investors, reflecting confidence in the buyback program and the company’s broader strategy to balance capital allocation with growth investments.
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