Travelzoo Reports Second Quarter 2026 Results

Travelzoo Reports Second Quarter 2026 Results

PR Newswire

NEW YORK, July 28, 2026

NEW YORK, July 28, 2026 /PRNewswire/ -- Travelzoo® (NASDAQ: TZOO):

Revenue of $23.2 million, down 3% year-over-yearConsolidated operating loss of $2.8 millionNon-GAAP consolidated operating loss of $2.1 millionCash flow from operations of $(1.7) millionEarnings per share (EPS) of $(0.21)Travelzoo, the club for travel enthusiasts, today announced financial results for the second quarter ended June 30, 2026. Consolidated revenue was $23.2 million, down 3% from $23.9 million year-over-year. In constant currencies, revenue was $23.1 million. 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.During Q2, international conflicts created uncertainty among advertisers and travelers. All of Travelzoo's business segments were negatively impacted. Management considers this a temporary effect. In Q2, we continued to invest significantly in growing Club Members and accelerated the shift towards recurring membership revenues. Marketing costs were expensed immediately. Membership fees revenue is recognized ratably over the subscription period of 12 months. In Q2, the number of renewals of memberships jumped to the highest ever. Going forward, we expect renewals of memberships to further increase because of a growing base of members. We refer to our investor presentation.Net Loss attributable to Travelzoo was $2.1 million for Q2 2026, or $(0.21) per share, compared with $0.12 per share in the prior-year period.Non-GAAP operating loss was $2.1 million. Non-GAAP operating loss excludes stock option expenses ($684,000). 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 complimentary 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 decreased 3% year-over-year to $15.7 million. Operating loss for Q2 2026 was $1.5 million, or 10% of revenue, compared to operating profit of $2.8 million or 17% of revenue in the prior-year period.Travelzoo Europe Europe business segment revenue decreased 2% year-over-year to $6.2 million. Operating loss for Q2 2026 was $1.2 million, or 19% of revenue, compared to operating loss of $0.9, or 14% of revenue 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 decreased 7% year-over-year to $1.3 million. Jack's Flight Club's revenue from subscriptions is recognized ratably over the subscription period (quarterly, semi-annually, annually). Operating loss for Q2 2026 was $34,000, compared to operating profit of $156,000 in the prior-year period.New Initiatives New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was $17,000. Operating loss for Q2 2026 was $35,000.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 Zealand, and Singapore will continue to be owned by Travelzoo as the licensor. Licensing revenue from the licensee in Australia was $10,000 for Q2 2026. Licensing revenue from the licensee in Japan was $7,000 for Q2 2026. 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 benefit for Q2 2026 was $(382,000).Balance Sheet As of June 30, 2026, cash, cash equivalents and restricted cash were $7.6 million. Cash flow from operations was $(1.7) million.Deferred revenue increased because membership fees are earned over the subscription period. Membership fees revenue is recognized ratably over the subscription period.Share Repurchase Program During Q2 2026, the Company repurchased 200,000 shares of its outstanding common stock.Looking Ahead For Q3 2026, we expect year-over-year revenue growth. We also expect revenue growth in subsequent quarters, as membership fees revenue is recognized ratably over the subscription period of 12 months, as we grow Club Members, and as more Legacy Members become Club Members. Over time, we expect profitability to increase as recurring membership fees revenue will be recognized. In the short-term, fluctuations in reported net income are likely.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.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 second quarter 2026 results today at 11:00 a.m. ET. Please visit http://ir.travelzoo.com/events-presentations todownload the management presentation (PDF format) to be discussed in the conference callaccess the webcast.About Travelzoo We, Travelzoo®, are the club for travel enthusiasts. We reach 30 million travelers. Club Members receive Club Offers negotiated and rigorously vetted by our deal experts around the globe. Our relationships with thousands of top travel companies give us access to irresistible deals. Our club and its benefits are built around the lifestyle of a modern travel enthusiast.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.TravelzooCondensed Consolidated Statements of Operations(Unaudited)(In thousands, except per share amounts)Three months endedSix months endedJune 30,June 30,2026202520262025Revenues$ 23,208$ 23,906$ 47,481$ 47,046Cost of revenues7,1045,16312,3409,335Gross profit16,10418,74335,14137,711Operating expenses:Sales and marketing13,73411,48324,85021,708Product development6026981,2661,332General and administrative4,5304,5028,3438,807Total operating expenses18,86616,68334,45931,847Operating income (loss)(2,762)2,0606825,864Other income, net274161270790Income (loss) before income taxes(2,488)2,2219526,654Income tax expense (benefit)(382)7405611,912Net income (loss)(2,106)1,4813914,742Net income attributable to non-controlling interest307951172Net income (loss) attributable to Travelzoo$ (2,136)$ 1,402$ 340$ 4,570Net income (loss) per share—basic$ (0.21)$ 0.13$ 0.03$ 0.39Net income (loss) per share—diluted$ (0.21)$ 0.12$ 0.03$ 0.38Shares used in per share calculation—basic10,31911,13910,57711,617Shares used in per share calculation—diluted10,31911,50510,65812,088TravelzooCondensed Consolidated Balance Sheets(Unaudited)(In thousands)June 30,2026December 31,2025AssetsCurrent assets:Cash and cash equivalents$ 6,838$ 10,007Accounts receivable, net14,54310,723Prepaid income taxes 1,8271,364Prepaid expenses and other2,0641,302Total current assets25,27223,396Deposits and other193166Deferred tax assets4,7444,202Restricted cash754756Operating lease right-of-use assets4,3344,047Property and equipment, net132231Intangible assets, net1,4501,450Goodwill10,94410,944Total assets$ 47,823$ 45,192Liabilities and EquityCurrent liabilities:Accounts payable$ 7,811$ 7,761Merchant payables10,72311,665Accrued expenses and other5,5443,926Deferred revenue13,4008,728Income tax payable71279Operating lease liabilities2,0261,811Total current liabilities39,57534,170Long-term tax liability10,7709,260Long-term operating lease liabilities4,0744,184Total liabilities54,41947,614Common stock102109Tax indemnification(9,537)(9,537)Retained earnings 3,1057,243Accumulated other comprehensive loss(5,410)(5,331)Total Travelzoo stockholders' equity (deficit)(11,740)(7,516)Non-controlling interest5,1445,094Total stockholders' equity (deficit)(6,596)(2,422)Total liabilities and stockholders' equity$ 47,823$ 45,192TravelzooCondensed Consolidated Statements of Cash Flows(Unaudited)(In thousands)Three months endedSix months endedJune 30,June 30,2026202520262025Cash flows from operating activities:Net income (loss)$ (2,106)$ 1,481$ 391$ 4,742Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization54106110182Stock-based compensation684339719708Deferred income tax(728)1(753)5Net foreign currency effects(24)(188)52(295)Provision of loss (net recoveries) on accounts receivable and refund reserve(157)(83)(146)124Changes in operating assets and liabilities:Accounts receivable(1,039)1,309(3,857)1,743Prepaid income taxes(322)301(575)238Prepaid expenses, deposits and other 1,008277(521)(144)Accounts payable(492)(36)18(180)Merchant payables(2,723)(2,790)(814)(4,441)Accrued expenses and other1,1799751,7331,842Deferred revenue2,7804784,7631,720Income tax payable(57)(1,058)(121)(2,007)Other liabilities2761881,186345Net cash (used) provided by operating activities(1,667)1,3002,1854,582Cash flows from investing activities:Purchases of property and equipment(6)(14)(14)(34)Net cash used in investing activities(6)(14)(14)(34)Cash flows from financing activities:Repurchase of common stock(1,938)(2,500)(5,205)(11,418)Exercise of stock options and taxes paid for net share settlement of equity awards—(104)—(104)Net cash used in financing activities(1,938)(2,604)(5,205)(11,522)Effect of exchange rate on cash, cash equivalents and restricted cash(122)289(137)432Net increase (decrease) in cash, cash equivalents and restricted cash(3,733)(1,029)(3,171)(6,542)Cash, cash equivalents and restricted cash at beginning of period11,32512,22710,76317,740Cash, cash equivalents and restricted cash at end of period$ 7,592$ 11,198$ 7,592$ 11,198TravelzooSegment Information from Continuing Operations(Unaudited)(In thousands)Three months ended June 30, 2026Travelzoo NorthAmericaTravelzoo EuropeJack's Flight ClubNew InitiativesConsolidatedRevenues from unaffiliated customers$ 15,548$ 6,376$ 1,267$ 17$ 23,208Intersegment revenues131(139)8——Total net revenues15,6796,2371,2751723,208Sales and marketing expenses8,3074,821606—13,734Other expenses 8,8662,6157035212,236Operating profit (loss)(1,494)(1,199)(34)(35)(2,762)Other income, net274Income (loss) from operations before income taxes(2,488)Three months ended June 30, 2025Travelzoo NorthAmericaTravelzoo EuropeJack's Flight ClubNew InitiativesConsolidatedRevenues from unaffiliated customers$ 15,737$ 6,740$ 1,410$ 19$ 23,906Intersegment revenues395(355)(40)——Total net revenues16,1326,3851,3701923,906Sales and marketing expenses6,4534,427603—11,483Other expenses6,8612,8416115010,363Operating profit (loss)2,818(883)156(31)2,060Other income, net161Income from operations before income taxes2,221Six months ended June 30, 2026Travelzoo NorthAmericaTravelzoo EuropeJack's Flight ClubNew InitiativesConsolidatedRevenues from unaffiliated customers$ 30,875$ 13,961$ 2,611$ 34$ 47,481Intersegment revenues473(448)(25)——Total net revenues31,34813,5132,5863447,481Sales and marketing expenses14,3109,3421,198—24,850Other expenses 15,2855,0911,47010321,949Operating profit (loss)1,753(920)(82)(69)682Other income, net270Income from operations before income taxes952Six months ended June 30, 2025Travelzoo NorthAmericaTravelzoo EuropeJack's Flight ClubNew InitiativesConsolidatedRevenues from unaffiliated customers$ 30,567$ 13,710$ 2,733$ 36$ 47,046Intersegment revenues693(613)(80)——Total net revenues31,26013,0972,6533647,046Sales and marketing expenses12,1538,3291,226—21,708Other expenses12,6955,4231,2599719,474Operating profit (loss)6,412(655)168(61)5,864Other income, net790Income from operations before income taxes6,654TravelzooReconciliation of GAAP to Non-GAAP Information(Unaudited)(In thousands, except per share amounts)Three months endedSix months endedJune 30,June 30,2026202520262025GAAP operating expense$ 18,866$ 16,683$ 34,459$ 31,847Non-GAAP adjustments:Amortization of intangibles (A)—16—42Stock option expenses (B)684339719709Severance-related expenses (C)—615227Non-GAAP operating expense18,18216,32233,72530,869GAAP operating income (loss)(2,762)2,0606825,864Non-GAAP adjustments (A through C)684361734978Non-GAAP operating income (loss)(2,078)2,4211,4166,842Investor Relations:ir@travelzoo.com