EX-99.1 2 ex-99109x30x20258xk.htm EX-99.1 Document

Exhibit 99.1
travellogo11062017a13.jpg
Travelzoo
590 Madison Avenue
35th Floor
New York, NY 10022

Investor Relations:
ir@travelzoo.com

FOR IMMEDIATE RELEASE

Travelzoo Reports Third Quarter 2025 Results

NEW YORK, October 28, 2025 — Travelzoo® (NASDAQ: TZOO):

•Revenue of $22.2 million, up 10% year-over-year
•Consolidated operating profit of $0.5 million
•Non-GAAP consolidated operating profit of $1.1 million
•Cash flow from operations of ($0.4) million
•Earnings per share (EPS) of $0.01

Travelzoo, the club for travel enthusiasts, today announced financial results for the third quarter ended September 30, 2025. Consolidated revenue was $22.2 million, up 10% from $20.1 million year-over-year. In constant currencies, revenue was $21.9 million, up 9% 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.

In Q3, Travelzoo continued to invest significantly in acquiring more Club Members when we saw that we can achieve a payback and positive return on investment (ROI) within a quarter. Marketing costs were expensed immediately. Membership fees revenue is recognized ratably over the subscription period of 12 months. The effect is a sizable reduction in EPS. We refer to our investor presentation.

Net income attributable to Travelzoo was $0.2 million for Q3 2025, or $0.01 per share, compared with $0.26 per share in the prior-year period.

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Non-GAAP operating profit was $1.1 million. Non-GAAP operating profit excludes amortization of intangibles ($2,000), stock option expenses ($399,000), and severance-related expenses ($167,000). 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 Club Offers for Club Members and add new benefits, such as our popular complementary airport lounge access worldwide in case of a delayed flight,” said Holger Bartel, Travelzoo's Global CEO. “Travelzoo members are affluent, active, and open to new experiences. We inspire travel enthusiasts to travel to places they never imagined they could. Travelzoo is the must-have membership for those who love to travel as much as we do."

Travelzoo North America
North America business segment revenue increased 11% year-over-year to $14.2 million. Operating profit for Q3 2025 was $1.1 million, or 8% of revenue, compared to operating profit of $3.2 million or 25% of revenue in the prior-year period.

Travelzoo Europe
Europe business segment revenue increased 9% year-over-year to $6.6 million. Operating loss for Q3 2025 was $640,000, or 10% of revenue, compared to operating profit of $1.0 million, or 17% of revenue in the prior-year period. The reported operating loss occurred because we acquired more Club Members.

Jack’s Flight Club
Jack’s Flight Club is a membership subscription service in which Travelzoo has a 60% ownership interest. Revenue increased 12% year-over-year to $1.4 million. The number of premium subscribers increased 8% year-over-year. Jack’s Flight Club’s revenue from subscriptions is recognized ratably over the subscription period (quarterly, semi-annually, annually). Operating profit for Q3 2025 was $20,000, compared to operating profit of $27,000 in the prior-year period.

New Initiatives
New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was $27,000. Operating loss for Q3 2025 was $20,000.

In 2020, Travelzoo entered into royalty-bearing licensing agreements with local licensees for the exclusive use of Travelzoo’s brand, business model, and members in Australia, Japan, New Zealand, and Singapore. Under these arrangements, Travelzoo’s existing members in Australia, Japan, New
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Zealand, and Singapore will continue to be owned by Travelzoo as the licensor. Licensing revenue from the licensee in Australia was $9,000 for Q3 2025. Licensing revenue from the licensee in Japan was $7,000 for in Q3 2025. Licensing revenue is expected to increase going forward.

Reach
Travelzoo reaches 30 million travelers. This includes Jack's Flight Club. Comparisons to prior periods are no longer meaningful due to strategic developments of the Travelzoo membership.

Income Taxes
The reported income tax provision and reserves for Q3 2025 are $244,000. Travelzoo intends to utilize available net operating losses (NOLs) to largely offset its tax liability for Q3 2025.

Balance Sheet
As of September 30, 2025, cash, cash equivalents and restricted cash were $9.2 million. Cash flow from operations was ($0.4) million.

Deferred revenue increased because membership fees revenue is recognized ratably over the subscription period.

Share Repurchase Program
During Q3 2025, the Company repurchased 148,602 shares of its outstanding common stock.

Looking Ahead
For Q4 2025, we expect year-over-year revenue growth to continue. We expect revenue growth to accelerate as a trend in subsequent quarters, as membership fees revenue is recognized ratably over the subscription period of 12 months, as we acquire new members, and as more Legacy Members become Club Members. Over time, we expect profitability to substantially increase as recurring membership fees revenue will be recognized. In the short-term, fluctuations in reported net income are possible. We might see attractive opportunities to increase marketing. We expense marketing costs immediately.

In 2024, we introduced a membership fee for Travelzoo. Legacy Members, who joined prior to 2024, continue to receive certain travel offers. However, Club Offers and new benefits are only available to Club Members, who pay the membership fee. Therefore, we are seeing many Legacy Members become Club Members over time—in addition to new members who join.

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Non-GAAP Financial Measures
Management calculates non-GAAP operating income when evaluating the financial performance of the business. 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 third quarter 2025 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 call
•access the webcast.

About Travelzoo
We, Travelzoo®, are the club for travel enthusiasts. We reach 30 million travelers. Club Members receive Club Offers 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 thousands of top travel suppliers—our long-standing relationships give us 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.


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Travelzoo
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
 Three months endedNine months ended
 September 30,September 30,
 2025202420252024
Revenues$22,198 $20,098 $69,245 $63,224 
Cost of revenues4,519 2,548 13,132 7,708 
Gross profit17,679 17,550 56,113 55,516 
Operating expenses:
Sales and marketing12,198 8,247 34,378 26,231 
Product development 631 594 1,963 1,763 
General and administrative4,362 4,664 13,419 13,875 
Total operating expenses17,191 13,505 49,760 41,869 
Operating income 488 4,045 6,353 13,647 
Other income (loss), net(64)359 727 674 
Income from operations before income taxes424 4,404 7,080 14,321 
Income tax expense 244 1,148 2,157 3,920 
Net income 180 3,256 4,923 10,401 
Net income attributable to non-controlling interest29 72 201 54 
Net income attributable to Travelzoo$151 $3,184 $4,722 $10,347 
Net income per share—basic$0.01 $0.26 $0.41 $0.81 
Net income per share—diluted$0.01 $0.26 $0.39 $0.79 
Shares used in per share calculation—basic10,987 12,176 11,585 12,851 
Shares used in per share calculation—diluted11,213 12,386 11,974 13,035 
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Travelzoo
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
September 30,
2025		December 31,
2024
Assets
Current assets:
Cash and cash equivalents$8,491 $17,064 
Accounts receivable, net12,460 12,825 
Prepaid income taxes 654 736 
Income taxes receivable887 — 
Prepaid expenses and other1,931 1,148 
Total current assets24,423 31,773 
Deposits and other302 374 
Deferred tax assets3,469 3,380 
Restricted cash756 675 
Operating lease right-of-use assets4,540 5,655 
Property and equipment, net278 423 
Intangible assets, net1,452 1,498 
Goodwill10,944 10,944 
Total assets$46,164 $54,722 
Liabilities and Equity
Current liabilities:
Accounts payable$8,405 $6,162 
Merchant payables11,767 16,294 
Accrued expenses and other 4,557 3,404 
Deferred revenue9,060 6,545 
Income tax payable— 1,619 
Operating lease liabilities2,058 2,472 
Total current liabilities35,847 36,496 
Long-term tax liability8,906 7,851 
Long-term operating lease liabilities4,494 5,646 
Other long-term liabilities— 376 
Total liabilities49,247 50,369 
Common stock109 118 
Tax indemnification(9,537)(9,537)
Retained earnings 6,925 14,284 
Accumulated other comprehensive loss(5,596)(5,327)
Total Travelzoo stockholders’ equity (deficit)(8,099)(462)
Non-controlling interest5,016 4,815 
Total stockholder's equity (deficit)(3,083)4,353 
Total liabilities and stockholder's equity$46,164 $54,722 
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Travelzoo
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
 Three months endedNine months ended
 September 30,September 30,
 2025202420252024
Cash flows from operating activities:
Net income $180 $3,256 $4,923 $10,401 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization57 179 239 737 
Stock-based compensation399 457 1,108 1,240 
Deferred income tax(1)(12)4 (39)
Net foreign currency effects71 (154)(224)(165)
Provision of loss (net recoveries) on accounts receivable and refund reserve(93)128 30 121 
Changes in operating assets and liabilities:
Accounts receivable(988)127 756 (258)
Prepaid income taxes(154)(134)84 (461)
Prepaid expenses, deposits and other (560)(69)(703)464 
Accounts payable2,314 (284)2,134 430 
Merchant payables(612)431 (5,053)(3,348)
Accrued expenses and other(981)463 859 2,162 
Deferred revenue643 — 2,363 — 
Income tax payable(576)315 (2,584)593 
Other liabilities(73)628 273 1,381 
Net cash provided by operating activities(374)5,331 4,209 13,258 
Cash flows from investing activities:
Purchases of property and equipment(15)(46)(49)(129)
Net cash used in investing activities(15)(46)(49)(129)
Cash flows from financing activities:
Repurchase of common stock(1,545)(6,183)(12,964)(16,605)
Exercise of stock options and taxes paid for net share settlement of equity awards— (335)(104)(592)
Net cash used in financing activities(1,545)(6,518)(13,068)(17,197)
Effect of exchange rate on cash, cash equivalents and restricted cash(17)96 415 (215)
Net increase in cash, cash equivalents and restricted cash(1,951)(1,137)(8,493)(4,283)
Cash, cash equivalents and restricted cash at beginning of period11,198 13,243 17,740 16,389 
Cash, cash equivalents and restricted cash at end of period$9,247 $12,106 $9,247 $12,106 
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Travelzoo
Segment Information from Continuing Operations
(Unaudited)
(In thousands)
Three months ended September 30, 2025Travelzoo North
America		Travelzoo EuropeJack's Flight ClubNew 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 expenses6,998 4,549 651 — 12,198 
Other expenses 6,104 2,656 704 48 9,512 
Operating profit (loss)1,128 (640)20 (20)488 
Other income (loss), net(64)
Income from operations before income taxes424 
Three months ended September 30, 2024Travelzoo North
America		Travelzoo EuropeJack's Flight ClubNew 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 expenses4,557 3,038 511 145 8,251 
Other expenses5,115 1,952 687 48 7,802 
Operating profit (loss)3,150 1,028 27 (160)4,045 
Other income, net359 
Income from operations before income taxes4,404 
Nine months ended September 30, 2025Travelzoo North
America		Travelzoo EuropeJack's Flight ClubNew 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 expenses19,400 13,101 1,877 — 34,378 
Other expenses18,550 7,856 1,963 145 28,514 
Operating profit (loss)7,542 (1,296)188 (81)6,353 
Other income, net727 
Income from operations before income taxes7,080 
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Nine months ended September 30, 2024Travelzoo North
America		Travelzoo EuropeJack's Flight ClubNew 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 expenses15,107 9,429 1,393 280 26,209 
Other expenses14,772 6,280 2,034 282 23,368 
Operating profit (loss)11,305 2,922 (106)(474)13,647 
Other income, net674 
Income from operations before income taxes14,321 

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Travelzoo
Reconciliation of GAAP to Non-GAAP Information
(Unaudited)
(In thousands, except per share amounts)

 Three months endedNine months ended
 September 30,September 30,
 2025202420252024
GAAP operating expense$17,191 $13,505 $49,760 $41,869 
Non-GAAP adjustments:
Amortization of intangibles (A)2 95 45 500 
Stock option expenses (B)399 456 1,108 1,239 
Severance-related expenses (C)167 330 395 360 
Non-GAAP operating expense16,623 12,624 48,212 39,770 
GAAP operating income 488 4,045 6,353 13,647 
Non-GAAP adjustments (A through C)568 881 1,548 2,099 
Non-GAAP operating income 1,056 4,926 7,901 15,746 





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