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Segment Reporting and Significant Customer Information
9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segments Reporting and Significant Customer Information Segment Reporting and Significant Customer Information
The Company determines its reportable segments based upon the chief operating decision maker’s management of the business. The Company currently has four reportable operating segments: Travelzoo North America, Travelzoo Europe, Jack’s Flight Club and New Initiatives. Travelzoo North America consists of the Company’s operations in the U.S. and Canada. Travelzoo Europe consists of the Company’s operations in France, Germany, Spain and the U.K. Jack’s Flight Club consists of subscription revenues from Premium members. New Initiatives consists of Travelzoo’s licensing activities in certain Asia Pacific territories, Travelzoo META and MTE.
Our chief operating decision maker ("CODM") is our Global Chief Executive Officer. The CODM primarily uses operating income (loss) to evaluate each segment's performance, allocate resources and make capital investments. We allocate certain software and license costs, such as IT and customer support, across all segments but do not allocate expenses such as legal-related costs or income taxes. Financial information is utilized along with forecasts to enable the CODM to manage our business across all operating segments.
For the three months ended September 30, 2025, Travelzoo North America operations comprised 64% of revenues, Travelzoo Europe operations comprised 30% of revenues and Jack's Flight Club comprised 6% of revenues.
The following is a summary of operating results by business segment (in thousands):
Three Months Ended September 30, 2025Travelzoo North
America
Travelzoo EuropeJack’s Flight Club New InitiativesConsolidated
Revenues from unaffiliated customers$13,728 $7,036 $1,407 $27 $22,198 
Intersegment revenues503 (471)(32)— — 
Total net revenues14,231 6,565 1,375 27 22,198 
Sales and marketing (1)6,998 4,549 651 — 12,198 
Other costs and expenses (2)6,104 2,655 704 48 9,511 
Operating profit (loss)$1,128 $(640)$20 $(20)$488 
Other income, net(64)
Income from continuing operations before income taxes424

(1) Includes advertising and promotional costs, employee-related expenses for sales, marketing, and production teams, conference participation costs, professional services, public relations expenses, and facilities costs.

(2) Includes costs and expenses related to cost of revenues, product development, and general and administrative. Travelzoo North America and Travelzoo Europe general and administrative expenses include stock based compensation of $339,000 and $0, respectively.
Three Months Ended September 30, 2024Travelzoo North
America
Travelzoo EuropeJack’s Flight Club New InitiativesConsolidated
Revenues from unaffiliated customers$12,846 $6,021 $1,198 $33 $20,098 
Intersegment revenues(24)(3)27 — — 
Total net revenues12,822 6,018 1,225 33 20,098 
Sales and marketing (1)4,557 3,038 511 145 8,251 
Other costs and expenses (2)5,115 1,952 687 48 7,802 
Operating profit (loss)$3,150 $1,028 $27 $(160)$4,045 
Other income, net359 
Income from continuing operations before income taxes4,404
(1) Includes advertising and promotional costs, employee-related expenses for sales, marketing, and production teams, conference participation costs, professional services, public relations expenses, and facilities costs.
(2) Includes costs and expenses related to cost of revenues, product development, and general and administrative. Travelzoo North America and Travelzoo Europe general and administrative expenses include stock based compensation of $331,000 and $0, respectively.
Nine Months Ended September 30, 2025Travelzoo North
America
Travelzoo EuropeJack’s Flight Club New InitiativesConsolidated
Revenues from unaffiliated customers$44,296 $20,745 $4,140 $64 $69,245 
Intersegment revenues1,196 (1,084)(112)— — 
Total net revenues45,492 19,661 4,028 64 69,245 
Sales and marketing (1)19,400 13,101 1,877 — 34,378 
Other costs and expenses (2)18,551 7,856 1,963 145 28,515 
Operating profit (loss)$7,541 $(1,296)$188 $(81)$6,352 
Other income, net727 
Income from continuing operations before income taxes7,079
(1) Includes advertising and promotional costs, employee-related expenses for sales, marketing, and production teams, conference participation costs, professional services, public relations expenses, and facilities costs.

(2) Includes costs and expenses related to cost of revenues, product development, and general and administrative. Travelzoo North America and Travelzoo Europe general and administrative expenses include stock based compensation of $1 million and $0, respectively.
Nine Months Ended September 30, 2024Travelzoo North
America
Travelzoo EuropeJack’s Flight Club New InitiativesConsolidated
Revenues from unaffiliated customers$41,134 $18,605 $3,397 88$63,224 
Intersegment revenues50 26 (76)— — 
Total net revenues41,184 18,631 3,321 88 63,224 
Sales and marketing (1)$15,107 $9,429 $1,393 $280 26,209 
Other costs and expenses (2)$14,772 $6,280 $2,034 $282 23,368 
Operating profit (loss)$11,305 $2,922 $(106)$(474)$13,647 
Other income, net674 
Income from continuing operations before income taxes14,321
(1) Includes advertising and promotional costs, employee-related expenses for sales, marketing, and production teams, conference participation costs, professional services, public relations expenses, and facilities costs.
(2) Includes costs and expenses related to cost of revenues, product development, and general and administrative. Travelzoo North America and Travelzoo Europe general and administrative expenses include stock based compensation of $1 million and $0, respectively.

A measure of segment assets is not currently provided to the Chief Operating Decision Maker and has therefore not been provided.
For the three months ended September 30, 2025 and 2024, the Company did not have any customers that accounted for 10% or more of revenue.
The following table sets forth the breakdown of revenues (in thousands) by category: Advertising and Commerce, Membership Fees, and Other. Advertising and Commerce includes travel publications (Top 20, Travelzoo website, Standalone email newsletters, Travelzoo Network), Getaways vouchers, hotel platform, vacation packages, Local Deals vouchers and entertainment offers (vouchers and direct bookings). Membership Fees includes subscription fees paid by Travelzoo and Jack's Flight Club members. Other includes licensing fees from license agreements and the existing retail business acquired by the Company in the MTE transaction.
Three Months EndedNine Months Ended
 September 30,September 30,
 2025202420252024
Advertising and Commerce$18,580 $18,619 $60,135 $59,426 
Membership Fees3,591 1,446 9,047 3,711 
Other27 33 63 87 
Total revenues$22,198 $20,098 $69,245 $63,224 

The following table sets forth revenues for individual countries that comprised 10% or more of total revenue (in thousands):
Three Months EndedNine Months Ended
September 30,September 30,
 2025202420252024
Revenue
United States $13,282 $11,666 $42,712 $37,242 
United Kingdom4,888 5,199 14,639 15,569 
Rest of the world4,028 3,233 11,894 10,413 
Total revenues$22,198 $20,098 $69,245 $63,224