Travelzoo Reports Second Quarter 2026 Results

Rhea-AI Summary

Travelzoo (NASDAQ: TZOO) reported Q2 2026 revenue of $23.2 million, down 3% from $23.9 million a year earlier, and a consolidated operating loss of $2.8 million versus operating income of $2.1 million in Q2 2025. Net loss attributable to Travelzoo was $2.1 million, or $(0.21) per diluted share, compared with earnings of $0.12 per share in the prior-year quarter. Management cited international conflicts and continued investment in growing Club Members and recurring membership revenue as key factors.

North America revenue declined 3% to $15.7 million with a $1.5 million operating loss; Europe revenue declined 2% to $6.2 million with a $1.2 million operating loss; Jack’s Flight Club revenue fell 7% to $1.3 million and moved to a small loss. Cash, cash equivalents and restricted cash were $7.6 million at June 30, 2026, with operating cash outflow of $1.7 million. Deferred revenue rose to $13.4 million, reflecting ratable recognition of membership fees. The company repurchased 200,000 shares in Q2 and expects year-over-year revenue growth from Q3 2026 onward, with longer-term profitability improvements as membership fees scale.

Positive

• Deferred revenue increased to $13.4 million at June 30, 2026, from $8.7 million at December 31, 2025, reflecting growth in paid memberships and ratable revenue recognition.
• Membership renewals reached their highest level ever in Q2 2026, according to Travelzoo, supporting the strategy to build recurring membership fee revenue.
• Share repurchases of 200,000 shares in Q2 2026 used $1.9 million of cash, reducing the share count outstanding.
• Six-month 2026 revenue was $47.5 million versus $47.0 million in the first half of 2025, indicating essentially stable year-to-date top-line performance.

Negative

• Q2 2026 revenue declined 3% year-over-year to $23.2 million from $23.9 million, with all business segments negatively impacted.
• Operating performance swung from $2.1 million income in Q2 2025 to a $2.8 million loss in Q2 2026, driven by higher costs.
• EPS declined to a loss of $(0.21) in Q2 2026 from earnings of $0.12 in the prior-year quarter.
• Gross profit fell to $16.1 million from $18.7 million year-over-year, while sales and marketing expenses rose to $13.7 million from $11.5 million.
• Operating cash flow was a use of $1.7 million in Q2 2026 versus a $1.3 million inflow in Q2 2025, pressuring liquidity.
• Stockholders’ equity showed a deficit of $6.6 million at June 30, 2026, compared with a $2.4 million deficit at December 31, 2025.

News Explained

The completed Q2 report shows Travelzoo stockholders’ equity was $11,740 thousand below zero at June 30, 2026.

Travelzoo has reported results for the completed quarter ended June 30, 2026. The material balance-sheet consequence is that equity attributable to Travelzoo stockholders was negative at the quarter-end.

At June 30, 2026, the balance sheet listed Travelzoo stockholders’ equity at negative $11,740 thousand and total stockholders’ equity at negative $6,596 thousand, the latter including non-controlling interest.

The release identifies Jack’s Flight Club as a membership subscription service in which Travelzoo holds a 60% ownership interest, so the consolidated results include an ownership interest held outside Travelzoo’s common stockholders.

Market Context

Historical earnings event 924476 recorded a -17.23% 24-hour reaction, illustrating that earnings out...

Analysis

Historical earnings event 924476 recorded a -17.23% 24-hour reaction, illustrating that earnings outcomes have not produced uniform market responses. The current report adds losses and cash-flow pressure; low short positioning remained a sourced risk context.

Key Figures

Revenue: $23.2 million Consolidated operating loss: $2.8 million Non-GAAP operating loss: $2.1 million +5 more

8 metrics

Revenue $23.2 million Q2 2026, down 3% year-over-year

Consolidated operating loss $2.8 million Q2 2026

Non-GAAP operating loss $2.1 million Q2 2026

Cash flow from operations $(1.7) million Q2 2026

EPS $(0.21) Q2 2026, compared with $0.12 prior year

Cash, equivalents and restricted cash $7.6 million As of June 30, 2026

Shares repurchased 200,000 shares Q2 2026

Membership fee recognition period 12 months Membership fees revenue recognition

Previous Earnings Reports

5 past events · Latest: Apr 23 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 23	Q1 earnings report	Positive	+26.6%	Revenue growth, profitability, positive EPS, and strong operating cash flow were reported.
Feb 19	Q4 earnings report	Negative	-10.9%	Profitability declined sharply despite revenue growth and a small attributable net loss.
Oct 28	Q3 earnings report	Positive	-17.2%	Revenue and operating profit increased, but the stock recorded a negative reaction.
Apr 29	Q1 earnings report	Positive	+28.8%	Revenue growth, operating profit, net income, and segment performance improved year-over-year.
Feb 25	Q4 earnings report	Negative	-17.1%	Revenue declined year-over-year despite higher operating profit and positive quarterly EPS.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Tag-specific earnings reactions aligned with the reported results in four of five comparable events, including one positive-result divergence.

Key Terms

non-gaap operating loss, deferred revenue, non-controlling interest, gaap

4 terms

non-gaap operating loss financial

"Non-GAAP operating loss was $2.1 million."

Non-GAAP operating loss is a company's reported operating loss after management removes certain items they consider unusual, one-time, or not part of regular business (for example, restructuring charges, stock-based compensation, or asset write-downs). Investors care because it reflects management’s view of the business’s ongoing operating performance—like looking at a car’s speed after smoothing out bumps—but it can be shaped differently by each company and so is less standardized than GAAP figures.

deferred revenue financial

"Deferred revenue increased because membership fees are earned over the subscription period."

Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.

View in glossary

non-controlling interest financial

"Net income attributable to non-controlling interest was $30,000."

Non-controlling interest represents the portion of ownership in a company held by investors who do not have a controlling stake, meaning they do not have enough voting power to make major decisions. It is similar to owning a minority share of a business partner’s company—while they benefit from profits, they cannot control how the company is run. This matters to investors because it shows how much of the company's value is owned by outside shareholders and affects overall financial reporting.

gaap financial

"Non-GAAP operating income is not required by, or presented in accordance with, GAAP."

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

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

• Revenue of $23.2 million, down 3% year-over-year
• Consolidated operating loss of $2.8 million
• Non-GAAP consolidated operating loss of $2.1 million
• Cash flow from operations of $(1.7) million
• Earnings 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 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.

Travelzoo
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
	Three months ended				Six months ended
	June 30,				June 30,
	2026		2025		2026		2025
Revenues	$      23,208		$      23,906		$      47,481		$      47,046
Cost of revenues	7,104		5,163		12,340		9,335
Gross profit	16,104		18,743		35,141		37,711
Operating expenses:
Sales and marketing	13,734		11,483		24,850		21,708
Product development	602		698		1,266		1,332
General and administrative	4,530		4,502		8,343		8,807
Total operating expenses	18,866		16,683		34,459		31,847
Operating income (loss)	(2,762)		2,060		682		5,864
Other income, net	274		161		270		790
Income (loss) before income taxes	(2,488)		2,221		952		6,654
Income tax expense (benefit)	(382)		740		561		1,912
Net income (loss)	(2,106)		1,481		391		4,742
Net income attributable to non-controlling interest	30		79		51		172
Net income (loss) attributable to Travelzoo	$       (2,136)		$        1,402		$           340		$        4,570
Net income (loss) per share—basic	$         (0.21)		$          0.13		$          0.03		$          0.39
Net income (loss) per share—diluted	$         (0.21)		$          0.12		$          0.03		$          0.38
Shares used in per share calculation—basic	10,319		11,139		10,577		11,617
Shares used in per share calculation—diluted	10,319		11,505		10,658		12,088

 

Travelzoo
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
	June 30, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$            6,838		$          10,007
Accounts receivable, net	14,543		10,723
Prepaid income taxes	1,827		1,364
Prepaid expenses and other	2,064		1,302
Total current assets	25,272		23,396
Deposits and other	193		166
Deferred tax assets	4,744		4,202
Restricted cash	754		756
Operating lease right-of-use assets	4,334		4,047
Property and equipment, net	132		231
Intangible assets, net	1,450		1,450
Goodwill	10,944		10,944
Total assets	$          47,823		$          45,192
Liabilities and Equity
Current liabilities:
Accounts payable	$            7,811		$           7,761
Merchant payables	10,723		11,665
Accrued expenses and other	5,544		3,926
Deferred revenue	13,400		8,728
Income tax payable	71		279
Operating lease liabilities	2,026		1,811
Total current liabilities	39,575		34,170
Long-term tax liability	10,770		9,260
Long-term operating lease liabilities	4,074		4,184
Total liabilities	54,419		47,614
Common stock	102		109
Tax indemnification	(9,537)		(9,537)
Retained earnings	3,105		7,243
Accumulated other comprehensive loss	(5,410)		(5,331)
Total Travelzoo stockholders' equity (deficit)	(11,740)		(7,516)
Non-controlling interest	5,144		5,094
Total stockholders' equity (deficit)	(6,596)		(2,422)
Total liabilities and stockholders' equity	$          47,823		$          45,192

 

Travelzoo
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
	Three months ended				Six months ended
	June 30,				June 30,
	2026		2025		2026		2025
Cash flows from operating activities:
Net income (loss)	$       (2,106)		$        1,481		$           391		$        4,742
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	54		106		110		182
Stock-based compensation	684		339		719		708
Deferred income tax	(728)		1		(753)		5
Net foreign currency effects	(24)		(188)		52		(295)
Provision of loss (net recoveries) on accounts receivable and refund reserve	(157)		(83)		(146)		124
Changes in operating assets and liabilities:
Accounts receivable	(1,039)		1,309		(3,857)		1,743
Prepaid income taxes	(322)		301		(575)		238
Prepaid expenses, deposits and other	1,008		277		(521)		(144)
Accounts payable	(492)		(36)		18		(180)
Merchant payables	(2,723)		(2,790)		(814)		(4,441)
Accrued expenses and other	1,179		975		1,733		1,842
Deferred revenue	2,780		478		4,763		1,720
Income tax payable	(57)		(1,058)		(121)		(2,007)
Other liabilities	276		188		1,186		345
Net cash (used) provided by operating activities	(1,667)		1,300		2,185		4,582
Cash 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)		432
Net 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 period	11,325		12,227		10,763		17,740
Cash, cash equivalents and restricted cash at end of period	$        7,592		$      11,198		$        7,592		$      11,198

 

Travelzoo
Segment Information from Continuing Operations
(Unaudited)
(In thousands)
Three months ended June 30, 2026	Travelzoo North America		Travelzoo Europe		Jack's Flight Club		New Initiatives		Consolidated
Revenues from unaffiliated customers	$     15,548		$       6,376		$       1,267		$            17		$        23,208
Intersegment revenues	131		(139)		8		—		—
Total net revenues	15,679		6,237		1,275		17		23,208
Sales and marketing expenses	8,307		4,821		606		—		13,734
Other expenses	8,866		2,615		703		52		12,236
Operating profit (loss)	(1,494)		(1,199)		(34)		(35)		(2,762)
Other income, net									274
Income (loss) from operations before income taxes									(2,488)
Three months ended June 30, 2025	Travelzoo North America		Travelzoo Europe		Jack's Flight Club		New Initiatives		Consolidated
Revenues from unaffiliated customers	$     15,737		$       6,740		$       1,410		$            19		$        23,906
Intersegment revenues	395		(355)		(40)		—		—
Total net revenues	16,132		6,385		1,370		19		23,906
Sales and marketing expenses	6,453		4,427		603		—		11,483
Other expenses	6,861		2,841		611		50		10,363
Operating profit (loss)	2,818		(883)		156		(31)		2,060
Other income, net									161
Income from operations before income taxes									2,221
Six months ended June 30, 2026	Travelzoo North America		Travelzoo Europe		Jack's Flight Club		New Initiatives		Consolidated
Revenues from unaffiliated customers	$     30,875		$     13,961		$       2,611		$            34		$        47,481
Intersegment revenues	473		(448)		(25)		—		—
Total net revenues	31,348		13,513		2,586		34		47,481
Sales and marketing expenses	14,310		9,342		1,198		—		24,850
Other expenses	15,285		5,091		1,470		103		21,949
Operating profit (loss)	1,753		(920)		(82)		(69)		682
Other income, net									270
Income from operations before income taxes									952
Six months ended June 30, 2025	Travelzoo North America		Travelzoo Europe		Jack's Flight Club		New Initiatives		Consolidated
Revenues from unaffiliated customers	$     30,567		$     13,710		$       2,733		$            36		$        47,046
Intersegment revenues	693		(613)		(80)		—		—
Total net revenues	31,260		13,097		2,653		36		47,046
Sales and marketing expenses	12,153		8,329		1,226		—		21,708
Other expenses	12,695		5,423		1,259		97		19,474
Operating profit (loss)	6,412		(655)		168		(61)		5,864
Other income, net									790
Income from operations before income taxes									6,654

 

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,
	2026		2025		2026		2025
GAAP operating expense	$      18,866		$      16,683		$      34,459		$      31,847
Non-GAAP adjustments:
Amortization of intangibles (A)	—		16		—		42
Stock option expenses (B)	684		339		719		709
Severance-related expenses (C)	—		6		15		227
Non-GAAP operating expense	18,182		16,322		33,725		30,869
GAAP operating income (loss)	(2,762)		2,060		682		5,864
Non-GAAP adjustments (A through C)	684		361		734		978
Non-GAAP operating income (loss)	(2,078)		2,421		1,416		6,842

Investor Relations:
ir@travelzoo.com

 

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SOURCE Travelzoo

FAQ

How did Travelzoo (NASDAQ: TZOO) perform in Q2 2026?

Travelzoo reported Q2 2026 revenue of $23.2 million, down 3% year-over-year, with a consolidated operating loss of $2.8 million. According to Travelzoo, net loss attributable to the company was $2.1 million, or $(0.21) per diluted share, versus prior-year earnings.

What were Travelzoo’s Q2 2026 earnings per share (EPS) and how did they change year-over-year?

Travelzoo’s Q2 2026 diluted EPS was $(0.21), compared with $0.12 in Q2 2025. According to Travelzoo, this reflects a shift from profitability to a net loss as revenue declined slightly and operating expenses, especially sales and marketing, increased.

How did Travelzoo’s revenue by segment trend in Q2 2026?

In Q2 2026, North America revenue was $15.7 million (down about 3%), Europe revenue was $6.2 million (down about 2%), and Jack’s Flight Club revenue was $1.3 million (down about 7%). According to Travelzoo, all segments were negatively impacted by international conflicts.

What is Travelzoo’s cash position and cash flow from operations after Q2 2026?

At June 30, 2026, Travelzoo held $7.6 million in cash, cash equivalents and restricted cash. According to Travelzoo, cash flow from operations in Q2 2026 was $(1.7) million, compared with positive operating cash flow of $1.3 million in the prior-year quarter.

What guidance did Travelzoo provide for revenue and profitability after Q2 2026?

Travelzoo expects year-over-year revenue growth in Q3 2026 and in subsequent quarters. According to Travelzoo, management also expects profitability to increase over time as recurring membership fee revenue is recognized, although short-term net income fluctuations are considered likely.

How is Travelzoo’s membership model affecting deferred revenue and renewals in 2026?

Travelzoo recognizes membership fees ratably over a 12-month subscription, increasing deferred revenue to $13.4 million at June 30, 2026. According to Travelzoo, Q2 2026 saw the highest-ever level of membership renewals, supporting growth in recurring revenue over time.

Did Travelzoo repurchase shares in Q2 2026 and what is the impact for TZOO investors?

Yes, Travelzoo repurchased 200,000 shares of common stock during Q2 2026. According to Travelzoo, total cash used for share repurchases in the quarter was about $1.9 million, which reduces shares outstanding but also decreases the company’s available cash.