The company’s revenue slipped 2.9% to $23.2 million, falling short of the $25 million mean estimate projected by FactSet analysts. This decline spanned key markets, with North American revenue dropping 3% to $15.7 million and European operations contracting 2% to $6.2 million. The shift marks a stark reversal from the same period last year, when the firm posted a $1.4 million profit.

Despite the immediate financial setback, management pointed to record-high membership renewals during the quarter as a signal of long-term stability. With the company forecasting revenue growth for the third quarter, Travelzoo is betting on its expanding member base to offset current market volatility and restore its previous upward trajectory.