Travelzoo Reports First Quarter 2026 Results

Resumen Rhea-AI

Travelzoo (NASDAQ: TZOO) informó resultados de Q1 2026: ingresos de 24,3M$ (+5% interanual), beneficio operativo consolidado 3,4M$, beneficio operativo no-GAAP 3,5M$, beneficio neto atribuible 2,5M$ y EPS 0,23$. La tesorería, equivalentes de caja y efectivo restringido fueron 11,3M$ y el flujo de caja operativo fue 3,9M$. La compañía recompró 500.000 acciones en el Q1. Los ingresos de Norteamérica fueron 15,7M$; los de Europa, 7,3M$. Los ingresos de Jack's Flight Club fueron 1,3M$ con una pérdida operativa de 48k$. Las renovaciones de membresías alcanzaron su nivel más alto, impulsando el reconocimiento de ingresos recurrentes.

Positivo

• Ingresos de 24,3M$, un 5% más interanual
• Beneficio operativo consolidado de 3,4M$
• Beneficio operativo no-GAAP de 3,5M$
• Tesorería, equivalentes de caja y efectivo restringido de 11,3M$
• Flujo de caja operativo de 3,9M$
• Recompró 500.000 acciones en Q1 de 2026

Negativo

• El margen operativo en Norteamérica cayó de 24% a 21%
• Pérdida operativa de Jack's Flight Club de 48.000$ en Q1
• Pérdida operativa de New Initiatives de 34.000$ en Q1
• Provisión por impuesto sobre la renta y reservas por 942.000$

Key Figures

Q1 2026 revenue: $24.3 million Q1 2026 EPS: $0.23 Operating profit: $3.4 million +5 more

8 metrics

Q1 2026 revenue $24.3 million Consolidated revenue, up 5% year-over-year

Q1 2026 EPS $0.23 Net income per share; prior-year period was $0.26

Operating profit $3.4 million Q1 2026 consolidated operating profit

Non-GAAP operating profit $3.5 million Q1 2026, excludes stock option and severance expenses

Cash flow from operations $3.9 million Q1 2026 operating cash flow

North America revenue $15.7 million Q1 2026 segment revenue, up 4% year-over-year

Europe revenue $7.3 million Q1 2026 segment revenue, up 8% year-over-year

Share repurchases 500,000 shares Common stock repurchased during Q1 2026

Market Reality Check

Price: $7.49 Vol: Volume 89,319 is slightly...

normal vol

$7.49 Last Close

Volume Volume 89,319 is slightly below the 20-day average of 97,339 (relative volume 0.92x). normal

Technical Price $7.49 is trading below the 200-day MA of $8.11 and 54.76% under the 52-week high.

Peers on Argus

TZOO is up 2.46% while peers show mixed moves: two down (e.g., SOGP -0.2%, MNY -...

TZOO is up 2.46% while peers show mixed moves: two down (e.g., SOGP -0.2%, MNY -0.74%), two up (ASST +1.59%, CCG +5.65%), and one flat (BZFD +0.03%). This points to a stock-specific reaction to earnings rather than a broad sector move.

Previous Earnings Reports

5 past events · Latest: Feb 19 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 19	Q4 2025 earnings	Negative	-10.9%	Revenue grew but GAAP profit fell sharply, resulting in a small net loss.
Oct 28	Q3 2025 earnings	Negative	-17.2%	Higher revenue but much lower profit and cash outflow amid rising costs.
Apr 29	Q1 2025 earnings	Positive	+28.8%	Strong revenue growth, higher operating profit and solid net income per share.
Feb 25	Q4 2024 earnings	Neutral	-17.1%	Revenue dipped slightly but operating profit and EPS improved versus prior year.
Oct 23	Q3 2024 earnings	Neutral	+12.9%	Revenue declined modestly while operating profit and cash flow remained solid.

Pattern Detected

Recent earnings reports often showed revenue growth but uneven profitability, with an average next-day move of -0.73% and several sharp downside reactions.

Recent Company History

Over the past five earnings releases, Travelzoo has consistently grown revenue, such as Q3 2025 at $22.2M and Q1 2025 at $23.1M, while profitability fluctuated from small losses to solid EPS of $0.26. Cash flow has generally remained positive and the company has invested heavily in member acquisition and share repurchases. Today’s Q1 2026 results, with continued top-line growth and profitability, fit this pattern of balancing expansion with margin pressure.

Historical Comparison

-0.7% avg move · Over the last five earnings releases, TZOO’s average next‑day move was -0.73%, reflecting mixed reac...

earnings

-0.7%

Average Historical Move earnings

Over the last five earnings releases, TZOO’s average next‑day move was -0.73%, reflecting mixed reactions as investors weighed revenue growth against shifting margins and cash use.

Earnings releases highlight a transition toward a membership-fee model: revenue has trended upward while margins fluctuate as Travelzoo invests in member acquisition and new offerings like Jack’s Flight Club and Travelzoo META.

Market Pulse Summary

This announcement reports Q1 2026 revenue of $24.3M (up 5% year-over-year), EPS of $0.23, and operat...

Analysis

This announcement reports Q1 2026 revenue of $24.3M (up 5% year-over-year), EPS of $0.23, and operating cash flow of $3.9M, alongside ongoing investment in member acquisition and record membership renewals. Segment results show growth in both North America and Europe, while Jack’s Flight Club and New Initiatives remain small. Investors may track future revenue growth, renewal rates, operating margins, and cash levels of $11.3M to gauge the trajectory of the membership model.

Key Terms

non-gaap, eps, cash flow from operations, return on investment (roi), +2 more

6 terms

non-gaap financial

"Non-GAAP consolidated operating profit of $3.5 million"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

eps financial

"Earnings per share (EPS) of $0.23"

Earnings per share (EPS) measures how much profit a company makes for each outstanding share of its stock by dividing the company’s profit after expenses by the number of shares. It matters to investors because it shows how much of the company’s “pie” each share represents—higher EPS usually signals greater profitability per share, helps compare companies of different sizes, and influences stock valuations and investor decisions.

cash flow from operations financial

"Cash flow from operations of $3.9 million"

Cash flow from operations is the money a company actually generates from its core business activities—sales, services and day-to-day operations—after paying routine costs like wages and suppliers. Investors watch it like a company’s operating “paycheck” because it shows whether the business can fund growth, pay debts and return cash to shareholders without relying on loans or one-time asset sales; steady positive cash flow is a sign of financial health.

return on investment (roi) financial

"we saw that we can achieve a positive return on investment (ROI)."

Return on investment (ROI) measures how much money you gain or lose compared with what you originally put in, usually shown as a percentage. Investors use it to compare the efficiency of different investments—like checking miles per gallon when choosing a car—so you can see which option gives the biggest payoff for each dollar, helping weigh potential reward against cost and risk.

net operating losses (nols) financial

"Travelzoo intends to utilize available net operating losses (NOLs)"

Net operating losses (NOLs) are tax losses a company records when its deductible expenses exceed its taxable income; they act like a coupon that can be used to lower future tax bills by offsetting future profits. Investors care because NOLs reduce a firm’s future cash taxes and can increase after-tax earnings and cash flow, but their value can be limited by time rules and ownership changes, which affects valuation and takeover economics.

subscription period technical

"Membership fees revenue is recognized ratably over the subscription period of 12 months."

A subscription period is the set number of days when investors can sign up to buy newly offered securities, such as shares or bonds, at a specified price. Think of it like a limited-time sale window: if you want to join the offering you must commit during that window, and the number of applicants can affect how many units each investor receives and the final price outcome. For investors, it matters because timing, demand and allocation during this period directly influence potential ownership stake and short-term position value.

AI-generated analysis. Not financial advice.

NEW YORK, April 23, 2026 /PRNewswire/ -- Travelzoo® (NASDAQ: TZOO):

• Revenue of $24.3 million, up 5% year-over-year
• Consolidated operating profit of $3.4 million
• Non-GAAP consolidated operating profit of $3.5 million
• Cash flow from operations of $3.9 million
• Earnings per share (EPS) of $0.23

Travelzoo, the club for travel enthusiasts, today announced financial results for the first quarter ended March 31, 2026. Consolidated revenue was $24.3 million, up 5% from $23.1 million year-over-year. In constant currencies, revenue was $23.6 million, up 2% 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 Q1, we continued to invest significantly in acquiring more Club Members when we saw that we can achieve a positive return on investment (ROI). Marketing costs were expensed immediately. Membership fees revenue is recognized ratably over the subscription period of 12 months. In Q1, the number of renewals of memberships jumped to the highest ever. Because renewals of memberships have no acquisition costs, this had a positive impact on EPS. Going forward, we expect renewals of memberships to further increase because of a growing base of members. We refer to our investor presentation.

Net Income attributable to Travelzoo was $2.5 million for Q1 2026, or $0.23 per share, compared with $0.26 per share in the prior-year period.

Non-GAAP operating profit was $3.5 million. Non-GAAP operating profit excludes stock option expenses ($35,000) and severance expenses ($15,000). 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 increased 4% year-over-year to $15.7 million. Operating profit for Q1 2026 was $3.2 million, or 21% of revenue, compared to operating profit of $3.6 million or 24% of revenue in the prior-year period.

Travelzoo Europe
Europe business segment revenue increased 8% year-over-year to $7.3 million. Operating profit for Q1 2026 was $279,000, or 4% of revenue, compared to operating profit of $228,000, or 3% 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 increased 2% 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 Q1 2026 was $48,000, compared to operating profit of $12,000 in the prior-year period.

New Initiatives
New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was $17,000. Operating loss for Q1 2026 was $34,000.

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 Q1 2026. Licensing revenue from the licensee in Japan was $7,000 for Q1 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 provision and reserves for Q1 2026 are $942,000. Travelzoo intends to utilize available net operating losses (NOLs) to largely offset its tax liability for Q1 2026.

Balance Sheet
As of March 31, 2026, cash, cash equivalents and restricted cash were $11.3 million. Cash flow from operations was $3.9 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 Q1 2026, the Company repurchased 500,000 shares of its outstanding common stock.

Looking Ahead
For Q2 2026, we expect year-over-year revenue growth to continue. We also expect revenue growth 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 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.

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 first quarter 2026 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 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.

Investor Relations:
ir@travelzoo.com 

Travelzoo Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts)
	Three months ended
	March 31,
	2026		2025
Revenues	$       24,273		$       23,140
Cost of revenues	5,236		4,172
Gross profit	19,037		18,968
Operating expenses:
Sales and marketing	11,116		10,225
Product development	664		634
General and administrative	3,812		4,305
Total operating expenses	15,592		15,164
Operating income	3,445		3,804
Other income (loss), net	(5)		629
Income from operations before income taxes	3,440		4,433
Income tax expense	942		1,173
Net income	2,498		3,260
Net income attributable to non-controlling interest	20		93
Net income attributable to Travelzoo	$        2,478		$        3,167
Net income per share—basic	$          0.23		$          0.27
Net income per share—diluted	$          0.23		$          0.26
Shares used in per share calculation—basic	10,837		11,670
Shares used in per share calculation—diluted	10,837		12,249

 

Travelzoo Condensed Consolidated Balance Sheets (Unaudited) (In thousands)
	March 31, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$           10,571		$          10,007
Accounts receivable, net	13,592		10,723
Prepaid income taxes	1,527		1,364
Prepaid expenses and other	2,797		1,302
Total current assets	28,487		23,396
Deposits and other	206		166
Deferred tax assets	4,120		4,202
Restricted cash	754		756
Operating lease right-of-use assets	4,793		4,047
Property and equipment, net	181		231
Intangible assets, net	1,450		1,450
Goodwill	10,944		10,944
Total assets	$           50,935		$          45,192
Liabilities and Equity
Current liabilities:
Accounts payable	$            8,327		$            7,761
Merchant payables	13,453		11,665
Accrued expenses and other	4,572		3,926
Deferred revenue	10,657		8,728
Income tax payable	142		279
Operating lease liabilities	2,116		1,811
Total current liabilities	39,267		34,170
Long-term tax liability	10,316		9,260
Long-term operating lease liabilities	4,507		4,184
Total liabilities	54,090		47,614
Common stock	104		109
Tax indemnification	(9,537)		(9,537)
Retained earnings	6,461		7,243
Accumulated other comprehensive loss	(5,297)		(5,331)
Total Travelzoo stockholders' equity (deficit)	(8,269)		(7,516)
Non-controlling interest	5,114		5,094
Total stockholders' equity (deficit)	(3,155)		(2,422)
Total liabilities and stockholders' equity	$           50,935		$          45,192

 

Travelzoo Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands)
	Three months ended
	March 31,
	2026		2025
Cash flows from operating activities:
Net income	$        2,498		$        3,260
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	56		76
Stock-based compensation	35		369
Deferred income tax	(25)		4
Net foreign currency effects	77		(106)
Provision of loss (net recoveries) on accounts receivable and refund reserve	11		206
Changes in operating assets and liabilities:
Accounts receivable	(2,873)		434
Prepaid income taxes	(267)		(63)
Prepaid expenses, deposits and other	(1,531)		(418)
Accounts payable	565		(144)
Merchant payables	1,909		(1,651)
Accrued expenses and other	554		867
Deferred revenue	1,983		1,241
Income tax payable	(50)		(949)
Other liabilities	909		158
Net cash provided by operating activities	3,851		3,284
Cash flows from investing activities:
Purchases of property and equipment	(8)		(21)
Net cash used in investing activities	(8)		(21)
Cash flows from financing activities:
Repurchase of common stock	(3,267)		(8,918)
Net cash used in financing activities	(3,267)		(8,918)
Effect of exchange rate on cash, cash equivalents and restricted cash	(14)		142
Net increase (decrease) in cash, cash equivalents and restricted cash	562		(5,513)
Cash, cash equivalents and restricted cash at beginning of period	10,763		17,740
Cash, cash equivalents and restricted cash at end of period	$       11,325		$       12,227

 

Travelzoo Segment Information from Continuing Operations (Unaudited) (In thousands)
Three months ended March 31, 2026	Travelzoo North America		Travelzoo Europe		Jack's Flight Club		New Initiatives		Consolidated
Revenues from unaffiliated customers	$      15,326		$       7,585		$       1,345		$            17		$         24,273
Intersegment revenues	341		(308)		(33)		—		—
Total net revenues	15,667		7,277		1,312		17		24,273
Sales and marketing expenses	6,003		4,521		592		—		11,116
Other expenses	6,416		2,477		768		51		9,712
Operating profit (loss)	3,248		279		(48)		(34)		3,445
Other income (loss), net									(5)
Income from operations before income taxes									3,440
Three months ended March 31, 2025	Travelzoo North America		Travelzoo Europe		Jack's Flight Club		New Initiatives		Consolidated
Revenues from unaffiliated customers	$      14,830		$       6,970		$       1,323		$            17		$         23,140
Intersegment revenues	298		(258)		(40)		—		—
Total net revenues	15,128		6,712		1,283		17		23,140
Sales and marketing expenses	5,700		3,902		623		—		10,225
Other expenses	5,834		2,582		648		47		9,111
Operating profit (loss)	3,594		228		12		(30)		3,804
Other income, net									629
Income from operations before income taxes									4,433

 

Travelzoo Reconciliation of GAAP to Non-GAAP Information (Unaudited) (In thousands, except per share amounts)
	Three months ended
	March 31,
	2026		2025
GAAP operating expense	$       15,592		$       15,164
Non-GAAP adjustments:
Amortization of intangibles (A)	—		26
Stock option expenses (B)	35		369
Severance-related expenses (C)	15		222
Non-GAAP operating expense	15,542		14,547
GAAP operating income	3,445		3,804
Non-GAAP adjustments (A through C)	50		617
Non-GAAP operating income	3,495		4,421

 

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SOURCE Travelzoo

FAQ

What were Travelzoo (TZOO) Q1 2026 revenue and EPS figures?

Travelzoo reported $24.3M revenue and $0.23 EPS for Q1 2026. According to the company, revenue rose 5% year-over-year to $24.3M and net income attributable was $2.5M, supporting the reported EPS.

How much cash did Travelzoo (TZOO) hold at March 31, 2026?

Travelzoo held $11.3M in cash, cash equivalents and restricted cash as of March 31, 2026. According to the company, operating cash flow for Q1 was $3.9M, reflecting positive cash generation in the quarter.

Did Travelzoo (TZOO) repurchase shares in Q1 2026 and how many?

Yes. Travelzoo repurchased 500,000 shares during Q1 2026. According to the company, the repurchase occurred in the quarter and reduces outstanding share count, which can affect per‑share metrics.

What were Travelzoo (TZOO) segment results for North America and Europe in Q1 2026?

North America revenue was $15.7M and Europe revenue was $7.3M in Q1 2026. According to the company, North America operating margin fell to 21% of revenue while Europe delivered a 4% operating margin.

What is Travelzoo's outlook for membership fees and renewals (TZOO)?

Travelzoo expects membership fees revenue to grow as renewals increase and new members join. According to the company, membership renewals hit the highest level ever in Q1, and fees are recognized ratably over 12 months.