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Travelzoo Reports Second Quarter 2024 Results

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2 years ago

on

NEW YORK, July 25, 2024 /PRNewswire/ — Travelzoo® (NASDAQ: TZOO):

Revenue of $21.1 million, consistent year-over-yearConsolidated operating profit of $4.0 millionNon-GAAP consolidated operating profit of $4.8 millionCash flow from operations of $3.1 millionEarnings per share (EPS) of $0.23

Travelzoo, the club for travel enthusiasts, today announced financial results for the second quarter ended June 30, 2024. Consolidated revenue was $21.1 million, consistent year-over-year. In constant currencies, revenue was $21.2 million, up from $21.1 million year-over-year. Travelzoo’s reported revenue consists of advertising revenues and commissions, derived from and generated in connection with purchases made by Travelzoo members, and membership fees.

Net income attributable to Travelzoo was $2.9 million for Q2 2024, or $0.23 per share, compared with $0.17 in the prior-year period. Net income attributable to Travelzoo from continuing operations was $2.9 million for Q2 2024, or $0.23 per share, compared with $0.17 in the prior-year period.

Non-GAAP operating profit was $4.8 million. Non-GAAP operating profit excludes amortization of intangibles ($88,000), stock option expenses ($0.7 million) and severance-related expenses ($30,000). Please refer to “Non-GAAP Financial Measures” and the tabular reconciliation below.

“We will continue to leverage Travelzoo’s global reach, trusted brand, and strong relationships with top travel suppliers to negotiate more exclusive offers for members,” said Holger Bartel, Travelzoo’s Global CEO. “With more than 30 million members, 8 million mobile app users, and 4 million social media followers, Travelzoo is loved by travel enthusiasts who are affluent, active, and open to new experiences.”

Cash Position
As of June 30, 2024, consolidated cash, cash equivalents and restricted cash were $13.2 million. Net cash provided by operations was $3.1 million.

Travelzoo North America
North America business segment revenue remained consistent year-over-year at $14.1 million. Operating profit for Q2 2024 was $3.7 million, or 26% of revenue, compared to operating profit of $3.8 million in the prior-year period.

Travelzoo Europe
Europe business segment revenue increased 1% year-over-year to $6.0 million. In constant currencies, Europe business segment revenue increased 1% year-over-year. Operating profit for Q2 2024 was $512,000, or 9% of revenue, compared to operating loss of $239,000 in the prior-year period.

Jack’s Flight Club 
Jack’s Flight Club is a membership subscription service in which Travelzoo has a 60% ownership interest. Revenue from unaffiliated customers increased 9% year-over-year to $1.1 million. The number of premium subscribers increased 19% year-over-year. Jack’s Flight Club’s revenue from subscriptions is recognized ratably over the subscription period (quarterly, semi-annually, annually). Non-GAAP operating profit for Q2 2024 was $25,000. Non-GAAP operating profit excludes amortization of intangibles ($59,000) related to the acquisition of Travelzoo’s ownership interest in Jack’s Flight Club in 2020.

New Initiatives
New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was $23,000. Operating loss for Q2 2024 was $184,000.

In June 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Japan for the exclusive use of Travelzoo’s brand, business model, and members in Japan. In August of 2020, Travelzoo entered into a royalty-bearing licensing agreement with a local licensee in Australia for the exclusive use of Travelzoo’s brand, business models, and members in Australia, New Zealand, and Singapore. Under these arrangements, Travelzoo’s existing members in Australia, Japan, New Zealand, and Singapore will continue to be owned by Travelzoo as the licensor. Travelzoo recorded $7,000 in licensing revenue from the licensee in Japan in Q2 2024. Travelzoo recorded $11,000 in licensing revenue from the licensee in Australia, New Zealand, and Singapore in Q2 2024. Licensing revenue is expected to increase going forward.

Members and Subscribers 
As of June 30, 2024, we had 30.8 million members worldwide, consistent with June 30, 2023. In North America, Travelzoo had 16.1 million unduplicated members as of June 30, 2024, down from 16.2 million as of June 30, 2023. In Europe, Travelzoo had 9.2 million unduplicated members as of June 30, 2024, consistent with June 30, 2023. Jack’s Flight Club had 2.2 million subscribers, including premium subscribers, as of June 30, 2024, consistent with June 30, 2023.

Discontinued Operations
In March 2020, Travelzoo decided to exit its Asia Pacific business and operate it as a licensing business going forward. Consequently, the Asia Pacific business has been classified as discontinued operations.

Income Taxes
A provision of $1.3 million for income taxes was recorded for Q2 2024, compared to an income tax expense of $1.1 million in the prior-year period. Travelzoo intends to utilize available net operating losses (NOLs) to largely offset its actual tax liability for Q2 2024.

Share Repurchase Program
During Q2 2024, the Company repurchased 800,000 of its outstanding common stock.

Looking Ahead 
For Q3 2024, we expect growth in revenue year-over-year, albeit at a smaller pace than in 2023. However, there could be unexpected fluctuations. We also expect for Q3 2024 higher profitability year-over-year. For 2025, we expect substantial growth in revenue as a result of additional revenue from membership fees.

In December 2023, we announced the introduction of a membership fee for Travelzoo beginning January 1, 2024. We recognize membership fee revenue ratably over the subscription period. Legacy Travelzoo members as of December 31, 2023, which represent more than 95% of members, are exempt from the fee during 2024. Therefore, we do not anticipate membership fee revenue from these members before 2025.

Non-GAAP Financial Measures
Management calculates non-GAAP operating income when evaluating the financial performance of the business. Travelzoo’s calculation of non-GAAP operating income, also called “non-GAAP operating profit” in this press release and today’s earnings conference call, excludes the following items: amortization of intangibles, stock option expenses and severance-related expenses. This press release includes a table which reconciles GAAP operating income to the calculation of non-GAAP operating income. Non-GAAP operating income is not required by, or presented in accordance with, generally accepted accounting principles in the United States of America (“GAAP”). This information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies.

Conference Call
Travelzoo will host a conference call to discuss second quarter 2024 results today at 11:00 a.m. ET. Please visit http://ir.travelzoo.com/events-presentations to

download the management presentation (PDF format) to be discussed in the conference callaccess the webcast

About Travelzoo
We, Travelzoo®, are the club for travel enthusiasts. Our 30 million members receive exclusive offers and one-of-a-kind experiences personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with more than 5,000 top travel suppliers—our long-standing relationships give Travelzoo members access to irresistible deals.

Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect”, “predict”, “project”, “anticipate”, “believe”, “estimate”, “intend”, “plan”, “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.

Travelzoo
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

Three months ended

Six months ended

June 30,

June 30,

2024

2023

2024

2023

Revenues

$         21,141

$         21,128

$    43,126

$    42,729

Cost of revenues

2,520

2,880

5,160

5,571

Gross profit

18,621

18,248

37,966

37,158

Operating expenses:

Sales and marketing

9,386

10,142

17,984

19,438

Product development

603

518

1,169

1,008

General and administrative

4,621

4,315

9,211

8,728

Total operating expenses

14,610

14,975

28,364

29,174

Operating income

4,011

3,273

9,602

7,984

Other income, net

176

479

315

829

Income from continuing operations before income taxes

4,187

3,752

9,917

8,813

Income tax expense

1,267

1,091

2,772

2,469

Income from continuing operations

2,920

2,661

7,145

6,344

Income from discontinued operations, net of tax

—

2

—

—

Net income

2,920

2,663

7,145

6,344

Net income (loss) attributable to non-controlling interest

(7)

37

(18)

45

Net income attributable to Travelzoo

$           2,927

$           2,626

$      7,163

$      6,299

Net income attributable to Travelzoo—continuing operations

$           2,927

$           2,624

$      7,163

$      6,299

Net income attributable to Travelzoo—discontinued operations

$                —

$                  2

$           —

$           —

Income per share—basic

Continuing operations

$             0.23

$             0.17

$        0.54

$        0.41

Discontinued operations

$                —

$                —

$            —

$           —

Net income per share—basic

$             0.23

$             0.17

$        0.54

$        0.41

Income per share—diluted

Continuing operations

$             0.23

$             0.17

$        0.54

$        0.40

Discontinued operations

$                —

$                —

$           —

$           —

Net income per share—diluted

$             0.23

$             0.17

$        0.54

$        0.40

Shares used in per share calculation from continuing operations—basic

12,895

15,275

13,191

15,485

Shares used in per share calculation from discontinued operations—basic

12,895

15,275

13,191

15,485

Shares used in per share calculation from continuing operations—diluted

12,976

15,337

13,300

15,557

Shares used in per share calculation from discontinued operations—diluted

12,976

15,337

13,300

15,557

 

Travelzoo
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)

June 30,
2024

December 31,
2023

Assets

Current assets:

Cash and cash equivalents

$             12,567

$            15,713

Accounts receivable, net

13,220

12,965

Prepaid income taxes

998

629

Prepaid expenses and other

1,726

1,461

Total current assets

28,511

30,768

Deposits and other

223

1,115

Deferred tax assets

3,102

3,196

Restricted cash

675

675

Operating lease right-of-use assets

5,873

6,015

Property and equipment, net

499

578

Intangible assets, net

1,686

2,091

Goodwill

10,944

10,944

Total assets

$             51,513

$            55,382

Liabilities and Equity

Current liabilities:

Accounts payable

$               5,212

$              4,546

Merchant payables

16,708

20,622

Accrued expenses and other

4,217

3,658

Deferred revenue

3,207

2,044

Income tax payable

1,070

766

Operating lease liabilities

2,389

2,530

Liabilities from discontinued operations

24

24

Total current liabilities

32,827

34,190

Long-term tax liabilities

6,323

4,681

Long-term operating lease liabilities

6,342

6,717

Other long-term liabilities

376

911

Total liabilities

45,868

46,499

Common stock

124

136

Tax indemnification

(9,537)

(9,537)

Note receivable from shareholder

(1,753)

(1,753)

Additional paid-in capital

—

439

Retained earnings

17,083

19,508

Accumulated other comprehensive loss

(4,951)

(4,607)

Total Travelzoo stockholders’ equity

966

4,186

Non-controlling interest

4,679

4,697

Total stockholder’s equity

5,645

8,883

Total liabilities and equity

$             51,513

$            55,382

 

Travelzoo
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)

Three months ended

Six months ended

June 30,

June 30,

2024

2023

2024

2023

Cash flows from operating activities:

Net income

$            2,920

$            2,663

$     7,145

$     6,344

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

175

467

558

945

Stock-based compensation

688

432

783

828

Deferred income tax

(12)

30

(27)

(38)

Loss on long-lived assets

—

10

—

10

Net foreign currency effects

(14)

(36)

(11)

(33)

Provision of loss (net recoveries) on accounts receivable and refund reserves

26

(117)

(7)

(829)

Changes in operating assets and liabilities:

Accounts receivable

(150)

3,516

(385)

3,888

Prepaid income taxes

(390)

610

(327)

1,017

Prepaid expenses, deposits and other

(49)

2,325

533

2,485

Accounts payable

(295)

(1,072)

713

(2,393)

Merchant payables

(1,101)

(4,013)

(3,779)

(8,604)

Accrued expenses and other

478

(534)

1,450

377

Income tax payable

224

234

278

234

Other liabilities

556

600

753

1,419

Net cash provided by operating activities

3,056

5,115

7,677

5,650

Cash flows from investing activities:

Proceeds from repayment of note receivable

—

74

—

113

Purchases of property and equipment

(48)

(46)

(83)

(157)

Net cash provided by (used in) investing activities

(48)

28

(83)

(44)

Cash flows from financing activities:

Repurchase of common stock

(6,557)

(4,684)

(10,429)

(4,870)

Exercise of stock options and taxes paid for net share settlement of equity awards

—

(299)

—

(299)

Net cash used in financing activities

(6,557)

(4,983)

(10,429)

(5,169)

Effect of exchange rate on cash, cash equivalents and restricted cash

(73)

211

(311)

382

Net increase (decrease) in cash, cash equivalents and restricted cash

(3,622)

371

(3,146)

819

Cash, cash equivalents and restricted cash at beginning of period

16,865

19,826

16,389

19,378

Cash, cash equivalents and restricted cash at end of period

$          13,243

$          20,197

$   13,243

$   20,197

 

Travelzoo

Segment Information from Continuing Operations

(Unaudited)

(In thousands)

 

Three months ended June 30, 2024

Travelzoo North

America

Travelzoo
Europe

Jack’s
Flight Club

New
Initiatives

Consolidated

Revenues from unaffiliated customers

$       14,015

$         6,004

$         1,099

$              23

$          21,141

Intersegment revenues

119

(53)

(66)

—

—

Total net revenues

14,134

5,951

1,033

23

21,141

Operating profit (loss)

$         3,717

$            512

$            (34)

$          (184)

$            4,011

Three months ended June 30, 2023

Travelzoo North

America

Travelzoo
Europe

Jack’s
Flight Club

New
Initiatives

Consolidated

Revenues from unaffiliated customers

$       13,642

$         6,462

$         1,011

$              13

$          21,128

Intersegment revenues

491

(575)

84

—

—

Total net revenues

14,133

5,887

1,095

13

21,128

Operating profit (loss)

$         3,753

$          (239)

$              97

$          (338)

$            3,273

Six months ended June 30,
2024

Travelzoo North

America

Travelzoo
Europe

Jack’s
Flight Club

New
Initiatives

Consolidated

Revenues from unaffiliated customers

$       28,288

$       12,584

$         2,199

$              55

$          43,126

Intersegment revenues

74

29

(103)

—

—

Total net revenues

28,362

12,613

2,096

55

43,126

Operating profit (loss)

$         8,155

$         1,894

$          (133)

$          (314)

$            9,602

Six months ended June 30,
2023

Travelzoo North

America

Travelzoo Europe

Jack’s Flight Club

New Initiatives

Consolidated

Revenues from unaffiliated customers

$       28,209

$       12,540

$         1,959

$              21

$          42,729

Intersegment revenues

682

(766)

84

—

—

Total net revenues

28,891

11,774

2,043

21

42,729

Operating profit (loss)

$         8,269

$            218

$              52

$          (555)

$            7,984

 

Travelzoo

Reconciliation of GAAP to Non-GAAP Information

(Unaudited)

(In thousands, except per share amounts)

Three months ended

Six months ended

June 30,

June 30,

2024

2023

2024

2023

GAAP operating expense

$   14,610

$   14,975

$   28,364

$   29,174

Non-GAAP adjustments:

Amortization of intangibles (A)

88

389

405

787

Stock option expenses (B)

688

431

783

827

Severance-related expenses (C)

30

56

30

95

Non-GAAP operating expense

13,804

14,099

27,146

27,465

GAAP operating profit

4,011

3,273

9,602

7,984

Non-GAAP adjustments (A through C)

806

876

1,218

1,709

Non-GAAP operating profit

4,817

4,149

10,820

9,693

Media Contact:
Investor Relations:
ir@travelzoo.com

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SOURCE Travelzoo

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In HelloNation, Real Estate Expert Lee Malcom Explains Why Local Knowledge Matters When Buying Older Homes

Published

41 minutes ago

on

October 26, 2026

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The article outlines key inspection priorities and explains how local expertise helps buyers evaluate older properties.

MONROE, Ga., Oct. 26, 2026 /PRNewswire/ — What should buyers look for when purchasing an older home?

HelloNation published an article that answers this question, drawing on insights from Lee Malcom, real estate expert at Malcom & Malcom Realty Professionals LLC in Monroe, Georgia.

The article examines the unique opportunities and responsibilities of buying older homes. While many buyers are drawn to historic details, mature landscaping, and established neighborhoods, the article explains that age can also bring maintenance concerns that deserve careful evaluation before a purchase.

According to a HelloNation article, one of the most important areas to assess during an older-home inspection is the roof. Roofing systems naturally deteriorate over time, and replacement costs can be substantial. The article notes that understanding the roof’s age, condition, and maintenance history can help buyers anticipate future expenses and avoid unexpected repairs. Professional evaluations can also reveal leaks, damaged materials, and ventilation issues that may not show up during a casual walkthrough.

The article also highlights the importance of reviewing plumbing systems. Many older homes contain materials and components installed decades ago that may no longer meet modern standards. Corrosion, leaks, and reduced water pressure can create challenges for homeowners. The article explains that evaluating plumbing systems before purchase allows buyers to better understand potential upgrade or repair needs.

Electrical systems represent another key area of focus. The article explains that older wiring, electrical panels, and outlets may have been designed for households with much lower power demands than today. Modern families often rely on many electronic devices and appliances, so it’s important to determine whether existing electrical systems can safely support current usage.

The article also discusses foundation concerns as part of a comprehensive evaluation process. The article explains that while minor cracks may be common in some homes, larger issues can signal structural problems. Uneven floors, sticking doors, and visible foundation movement may warrant additional professional assessment before buyers decide to purchase.

The HelloNation article emphasizes that a detailed inspection of an older home can uncover concerns early and provide valuable information about future maintenance responsibilities. Understanding the condition of major systems allows buyers to make more informed decisions and prepare for potential ownership costs.

Beyond physical inspections, the article explains why local real estate knowledge matters when buying an older property. Experienced professionals often understand neighborhood histories, regional building practices, and long-term housing trends that may not appear in standard property disclosures. This knowledge helps buyers better evaluate the risks and opportunities associated with older homes.

For those exploring Walton County real estate, local expertise can provide important context regarding construction methods, neighborhood development patterns, and common maintenance issues found throughout the area. The article notes that this understanding helps buyers approach purchasing decisions with greater confidence and a clearer understanding of long-term ownership expectations.

The article also discusses the value of working with professionals who maintain strong local networks. Access to trusted inspectors, roofing specialists, contractors, and foundation experts can help buyers obtain reliable assessments and accurate information before finalizing a transaction.

Why Local Knowledge Matters When Buying Older Homes features insights from Lee Malcom, real estate expert in Monroe, Georgia, in HelloNation.

About HelloNation

HelloNation is America’s Good News Network, a premier media platform built on the idea that good news travels faster when real people tell real stories. Through its community-focused publications and innovative “edvertising” approach, HelloNation delivers content that informs, inspires, and spotlights the leaders making a meaningful impact in their communities.

www.hellonation.com

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SOURCE HelloNation

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EZRA, the coaching arm of the Adecco Group, launches Loop – the first connected human and AI coaching experience

Published

42 minutes ago

on

October 26, 2026

By

The first connected coaching experience pairs a dedicated ICF-accredited coach and Cai, an AI development partner that remembers conversations, priorities and organizational context to enable manager performance enhancement

ZURICH, Oct. 26, 2026 /PRNewswire/ — EZRA, the enterprise coaching arm of the Adecco Group (SIX: ADEN), today launched EZRA Loop, a first-of-its-kind fully connected coaching experience that combines human expertise with AI to help managers build the skills needed to lead in the age of AI.

As AI becomes part of everyday work, hybrid workforce orchestration is about redesigning work so people and AI agents each contribute where they create the most value and impact.

In this new environment, managers are under increasing pressure to lead change, navigate complexity and develop their teams. Yet coaching remains out of reach for most employees. EZRA Loop democratizes coaching: businesses can now provide managers with an always-on AI development partner that knows exactly when to loop in a dedicated, accredited human coach.

Denis Machuel, CEO of the Adecco Group: “As AI changes how work gets done, organizations need to bring their people along with them. Loop shows how human expertise and AI support can work together to make coaching more accessible, in the flow of work. This is an excellent example of how to leverage technology, while retaining a human touch, judgement and trust that only people can provide. In the hybrid – human-AI – workplace, it is essential to intentionally design how people and technology interact.”

Research shows that teams led by coached managers resolved customer problems 18% faster. Drawing on insights from more than a million coaching sessions with 200,000 people across its customers including companies like Microsoft, Spotify, Mastercard, HSBC, Eli Lilly and KPMG, EZRA found that AI and human coaching each excel in different areas. It noticed that AI support outperformed human coaches on task skills such as prioritization and goal setting, while human coaching outperformed on interpersonal skills like emotional intelligence and executive presence. Together, humans and AI, outperform either alone, driving a 37% increased chance of behavioral changes. 

This combination reflects a broader shift across organizations where the greatest value is increasingly created not by humans or AI working independently, but by orchestrating the interaction between people and technology.

To access the full text of the press release, click here: https://www.adeccogroup.com/our-group/media/press-releases/ezra-launch-loop-human-ai-coahing

About The Adecco Group

The Adecco Group is the world’s leading talent and technology expertise company. Our purpose is making the future work for everyone. Through our three global business units – Adecco, Akkodis and LHH – across 60 countries, we enable sustainable and lifelong employability for individuals, deliver digital engineering consulting to innovate and accelerate business transformation and empower organizations to optimize their workforces. The Adecco Group leads by example and is committed to fostering sustainable employability and supporting resilient economies and communities. The Adecco Group AG is headquartered in Zurich, Switzerland (ISIN: CH0012138605) and listed on the SIX Swiss Exchange (ADEN). https://www.adeccogroup.com/

About EZRA

EZRA is the connected coaching company that gives every manager a coach. Founded in 2019 as part of The Adecco Group, EZRA has delivered more than a million coaching sessions to over 200,000 people in 120 countries and 75 languages. EZRA combines behavioral science with 4,500 ICF-accredited human coaches and Cai, its AI development partner, to deliver coaching that drives behavior changes, leadership development and better performance. Companies like Microsoft, Spotify, Mastercard, HSBC, Eli Lilly, KPMG and ServiceNow rely on EZRA coaching. 

For further information please contact:

The Adecco Group Corporate Press Office
media@adeccogroup.com
Rodrigo Sánchez Flórez – Tel: +34 658 06 54 02 / Jürg Schneider – Tel: +41 79 876 09 21
r.sanchezflores@adecco.com / Juerg.Schneider@adeccogroup.com

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EaseUS Software Releases Disk Health Insights Report 2026 H1 from 440K Disk Samples, Finding HDDs Show a 20x Higher Share of Caution/Bad Ratings Than SSDs

Published

42 minutes ago

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October 26, 2026

By

NEW YORK, Oct. 26, 2026 /PRNewswire/ — EaseUS Software released the Disk Health Insights Report 2026 H1 from 444,282 disk samples, highlighting differences in HDD and SSD health ratings, key warning indicators, and storage characteristics that may warrant closer monitoring.

According to this report, HDD samples were substantially more likely than SSD samples to receive a Caution or Bad health rating: 24.83% of sampled HDDs received one of these ratings, compared with 1.22% of sampled SSDs – a difference of approximately 20 times in the share of health warnings.

The findings highlight the importance of regular disk health checks and proactive data protection, particularly for users who continue to rely on hard disk drives.

How Did EaseUS Lab Conduct This Disk Health Report?

EaseUS Lab, in collaboration with the EaseUS Partition Master R&D and technical support teams, conducted this study and analyzed 444,828 HDD and SSD samples collected from February 1 through July 31, 2026.

The EaseUS Lab examined disk health ratings and S.M.A.R.T. diagnostic indicators, as well as drive capacity, power-on hours (POH), partition styles, and Windows system drive configurations. Rather than measuring actual failure rates or predicting the remaining lifespan of individual drives, the report identifies patterns in observed health ratings and characteristics associated with a higher share of warnings in the dataset.

Alongside the differences between HDDs and SSDs, the findings revealed several noteworthy patterns, including:

HDDs with capacities below 500 GB showed a 35.89% share of Caution/Bad ratings, while those with more than 5,000 power-on hours recorded a 28.10% share.MBR HDDs also showed a higher share of Caution/Bad ratings than GPT HDDs, at 34.14% versus 19.29%.The share of HDDs receiving Caution/Bad ratings was nearly identical when C: drive utilization reached 90% or higher.

These findings help Windows users identify key disk health warning signs, protect important data, and prepare for migration or replacement when needed.

The following key findings offer a more thorough look at the report’s most notable disk health patterns and the factors that may warrant closer attention.

Core Findings: Five Key Insights Into Windows Disk Health

According to the report, EaseUS Lab identified five key findings to help users better understand disk health and prioritize maintenance.

1. HDDs Show a Higher Share of Caution and Bad Health Ratings

Among sampled HDDs, 74.73% were rated Good, 23.04% Caution, and 1.78% Bad. By comparison, 98.26% of sampled SSDs were rated Good, while 0.21% were rated Caution and 1.01% Bad.

Overall, 24.83% of HDDs were rated Caution or Bad, compared with 1.22% of SSDs.

Although SSDs show a much lower risk of getting Caution/Bad ratings, it still matters to run regular SSD health checks and take timely action when significant warnings remain.

2. Reallocated Sectors and Read Errors Stand Out Among HDD Warning Indicators

The report identifies S.M.A.R.T. attribute 05, Reallocated Sectors Count, and attribute 01, Read Error Rate, as notable HDD warning indicators.

Reallocated Sectors Count was reported in 5.06% of HDD samples, while Read Error Rate was reported in 1.62%. Among the warning indicators recorded in HDDs rated Bad, these attributes accounted for 70.00% and 22.47%, respectively.

These findings highlight the importance of combining overall health rating with significant diagnostic indicators. When significant warnings appear, users should prioritize protecting important data and determine whether disk cloning, migration, or replacement is appropriate.

3. Smaller-Capacity, Longer-Running, and MBR HDDs Show Higher Shares of Health Warnings

The report found higher Caution/Bad shares in several HDD groups:

35.89% of HDDs with capacities below 500 GB were rated Caution or Bad.28.10% of HDDs with more than 5,000 power-on hours (POH) were rated Caution or Bad.34.14% of MBR HDDs were rated Caution or Bad, compared with 19.29% of GPT HDDs.

These patterns identify scenarios that may warrant closer monitoring. However, the findings do not indicate that smaller capacity, longer operating hours, or MBR partitioning style may directly cause disk health to decline. Users should consider these characteristics alongside diagnostic results, device configuration, and usage history when planning maintenance or migration.

4. Low C: Drive Space Does Not Necessarily Indicate Poor HDD Health

This study also examined the relationship between C: drive utilization and disk health, using 90% utilization as the threshold for high storage pressure.

Among HDDs, 29.04% of samples with C: drive utilization at or above 90% were rated Caution or Bad, compared with 29.32% of those below 90%. The similar result doesn’t show a direct relationship between C: drive utilization and poorer HDD health in this dataset.Among SSDs, the Caution/Bad share was 1.83% in the high-utilization group and 0.89% in the lower-utilization group. Although the high-utilization group showed a higher share of Caution/Bad ratings, the data do not show a causal relationship.

For Windows users, low disk space and disk health issues are distinct concerns and should be evaluated separately, even when both issues affect the same device.

5. HDDs Continue to Power a Meaningful Share of Windows Systems

Despite the growing adoption of SSDs, HDDs accounted for 17.79% of sampled Windows system drives. GPT accounted for 75.46% of system drives, while MBR remained in use on 24.54%.

These findings show effective disk health management requires more than mere disk diagnostics. Windows users with HDDs should also consider storage capacity, data protection, partition compatibility, and SSD migration operations.

Industry Implications: Disk Health Detection Is Shifting to Proactive Management

According to this report, disk health diagnostics are taking a broader role in Windows storage management.

A single health rating can indicate whether a further investigation is needed, but it can’t provide a complete picture of storage readiness or determine the remaining lifespan of a disk drive.

This report highlights three practical priorities for disk management providers, PC support teams, and individual users:

Don’t ignore and check for early warning signs. Review overall health status along with S.M.A.R.T. indicators, power-on hours, and other drive details rather than relying on a single indicator.Back up data in advance. When a drive receives a Caution or Bad rating, confirm the reported issue and back up important files before making further decisions.Prepare for disk drive upgrade. If a drive is aging or running out of space, check the new drive’s capacity, partition style, and BIOS/UEFI compatibility before migrating or replacing a system drive.

This approach helps users understand disk health warnings and take appropriate action without assuming every warning signals an immediate drive failure.

Actionable Suggestions to Protect HDD and SSD Health in Windows

Based on the report’s findings, EaseUS Lab recommends a practical approach to disk health management tailored to the condition of each drive.

Drives in Good Status: Continue normal use, back up data regularly, and check disk health periodically.Drives in Caution Status: Review warning indicators, back up important files, and monitor disk health.Drives in Bad Status: Back up data first and consider drive replacement or data recovery if needed.Using small or aging HDDs: Monitor disk health and consider upgrading to an SSD if appropriate.Disk with low C: drive space issue: Free up space or expand the partition; low space alone does not indicate disk failure.HDD-to-SSD migration: Check disk health, target capacity, and boot compatibility before migrating.

The report emphasizes a complete process to take as long as a user is using a disk drive on their devices: Check Disk Health → Protect Data → Prepare New Disk → Migrate or Replace Disk. The goal is not simply to label a drive as healthy or unhealthy, but to help users respond appropriately to the available evidence.

The full report, including detailed findings and practical recommendations, is available at: https://www.easeus.com/whitepapers/disk-health-insights-report-2026-h1.html

About EaseUS Software

Founded in 2004, EaseUS is a software provider specializing in data recovery, disk management, data backup, and multimedia solutions. Trusted by users in more than 160 countries and regions, EaseUS develops accessible software to help individuals and businesses manage, protect, and make the most of their digital data. For more information, visit https://www.easeus.com.

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