Travelzoo swings to $2.56M operating loss in Q3 2026
The paid Club Member base grew 65% year over year, while Travelzoo expects revenue growth in Q4 2026 and subsequent quarters.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Travelzoo reported third-quarter 2026 revenue of $22.9 million, up 3% from $22.2 million a year earlier, while consolidated operating results shifted from $488,000 income to a $2.56 million loss. Net loss attributable to Travelzoo was $2.009 million, or $(0.20) per diluted share, versus $150,000 net income and $0.01 per diluted share a year earlier. Non-GAAP operating loss was $2.072 million, excluding $338,000 of stock-option expense and $150,000 of severance expense.
Club Members increased 65% year over year as Travelzoo continued investing in membership growth; marketing costs are expensed immediately, while membership fees are recognized ratably over the 12-month subscription period. Operating cash flow was $1.819 million, compared with $374,000 used a year earlier; cash, cash equivalents and restricted cash totaled $8.844 million as of September 30, 2026. The company repurchased 256,898 common shares during the quarter.
Travelzoo expects year-over-year revenue growth in Q4 2026 and subsequent quarters. It expects profitability to increase over time as recurring membership-fee revenue is recognized, while noting that short-term fluctuations in reported net income are likely.
1 point · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointOperating cash flow was $1.819 million, versus $374,000 used a year earlier.
Negative
- Moderate pointConsolidated operating results shifted to a $2.56 million loss from $488,000 income.
Insights
Analyzing...
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $22.9 million
Consolidated operating loss: $2.56 million
Net loss attributable to Travelzoo: $2.009 million
+5 more
8 metrics
Revenue
$22.9 million
Third quarter 2026; up 3% from $22.2 million year over year
Consolidated operating loss
$2.56 million
Third quarter 2026; compared with $488,000 operating income in third quarter 2025
Net loss attributable to Travelzoo
$2.009 million
Third quarter 2026
Diluted earnings per share
$(0.20) per share
Third quarter 2026
Cash flow from operations
$1.819 million
Third quarter 2026; compared with $374,000 used in third quarter 2025
Cash, cash equivalents and restricted cash
$8.844 million
As of September 30, 2026
Club Members
Up 65%
Third quarter 2026 year over year
Common shares repurchased
256,898 shares
During third quarter 2026
Key Terms
Non-GAAP operating loss, Deferred revenue, recognized ratably, constant currencies
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.
recognized ratably financial
"Membership fees revenue is recognized ratably over the subscription period"
constant currencies financial
"In constant currencies, revenue was $23.0 million"
Constant currencies is a way companies report sales and profit changes as if exchange rates had not moved, isolating underlying business performance from currency swings. For investors it matters because it shows whether growth comes from actual demand or just favorable exchange-rate moves—think of it like comparing two stores’ receipts after converting prices to the same stable money to see who actually sold more, not who benefitted from changing rates.
Earnings Snapshot
Revenue: $22.9 million · Guidance included
Third quarter 2026 ended September 30, 2026
Revenue
$22.9 million
Up 3% from $22.2 million year over year
Consolidated operating income (loss)
Loss of $2.56 million
Compared with $488,000 income in third quarter 2025
Net loss attributable to Travelzoo
Loss of $2.009 million
Compared with $150,000 net income in third quarter 2025
Diluted earnings per share
$(0.20) per share
Compared with $0.01 per share in third quarter 2025
Cash flow from operations
$1.819 million
Compared with $374,000 used in third quarter 2025
Guidance
Travelzoo expects year-over-year revenue growth in Q4 2026 and subsequent quarters.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did TZOO report in Q3 2026?
Travelzoo reported $22.9 million in consolidated revenue for Q3 2026, up 3% from $22.2 million a year earlier. Revenue in constant currencies was $23.0 million.
What was Travelzoo's Q3 2026 net loss?
Net loss attributable to Travelzoo was $2.009 million, or $(0.20) per diluted share. In the prior-year quarter, Travelzoo reported $150,000 of net income attributable to the company and $0.01 per diluted share.
What is TZOO's revenue outlook for Q4 2026?
Travelzoo expects year-over-year revenue growth in Q4 2026 and in subsequent quarters. It also expects profitability to increase over time as recurring membership-fee revenue is recognized, while noting short-term fluctuations in reported net income are likely.
How does Travelzoo recognize membership fees?
Travelzoo recognizes membership-fee revenue ratably over the 12-month subscription period, while marketing costs are expensed immediately.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
____________________________________________________
FORM 8-K
____________________________________________________
CURRENT REPORT
Pursuant To Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 27, 2026
____________________________________________________
Travelzoo
(Exact name of registrant as specified in its charter)
____________________________________________________
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||
(Address of principal executive offices) | (Zip Code) | ||||||||||
Registrant’s telephone number, including area code +1 ( | |||||||||||
| (Former Name or Former Address, if Changed Since Last Report) | |||||||||||
____________________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐
Item 2.02. Results of Operations and Financial Condition.
On October 27, 2026, Travelzoo (the "Company") reported its third quarter 2026 financial results. A copy of the Company’s press release is attached hereto as Exhibit 99.1.
The information furnished pursuant to Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.
Item 7.01. Regulation FD Disclosure
See Item 2.02, “Results of Operations and Financial Condition,” above.
In addition, a copy of the supplemental investor presentation discussed during the Company’s earnings call is attached hereto as Exhibit 99.2.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. See Exhibit Index
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| TRAVELZOO | |||||||||||
| Date: | By: | /s/ JEFF HOFFMAN | |||||||||
| Jeff Hoffman Financial Controller, North America | |||||||||||
EXHIBIT INDEX
| Exhibit | Description | ||||
99.1 | Press Release, dated | ||||
99.2 | Supplemental investor presentation provided in connection with the third quarter 2026 earnings call of Travelzoo, dated | ||||
Exhibit 99.1
 | Travelzoo 590 Madison Avenue 35th Floor New York, NY 10022 Investor Relations: ir@travelzoo.com | |||||||
FOR IMMEDIATE RELEASE
Travelzoo Reports Third Quarter 2026 Results
NEW YORK, October 27, 2026 — Travelzoo® (NASDAQ: TZOO):
•Revenue of $22.9 million, up 3% year-over-year
•Consolidated operating loss of $2.6 million
•Non-GAAP consolidated operating loss of $2.1 million
•Cash flow from operations of $1.8 million
•Earnings per share (EPS) of $(0.20)
•Club Members up 65% year-over-year
Travelzoo, the club for travel enthusiasts, today announced financial results for the third quarter ended September 30, 2026. Consolidated revenue was $22.9 million, up 3% from $22.2 million year-over-year. In constant currencies, revenue was $23.0 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.
In Q3, we continued to invest significantly in growing Club Members and accelerated the shift towards membership fees revenue. Marketing costs were expensed immediately. Membership fees revenue is recognized ratably over the subscription period of 12 months. Going forward, we expect new and recurring membership fees revenue from a growing base of members. We refer to our investor presentation.
Net Loss attributable to Travelzoo was $2.0 million for Q3 2026, or $(0.20) per share, compared with $0.01 per share in the prior-year period.
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Non-GAAP operating loss was $2.1 million. Non-GAAP operating loss excludes stock option expenses ($338,000) and severance expense ($150,000). 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 $14.8 million. Operating loss for Q3 2026 was $1.4 million, or 9% of revenue, compared to operating profit of $1.1 million or 8% of revenue in the prior-year period.
Travelzoo Europe
Europe business segment revenue increased 5% year-over-year to $6.9 million. Operating loss for Q3 2026 was $1.2 million, or 18% of revenue, compared to operating loss of $0.6 million, or 10% 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 15% year-over-year to $1.2 million. Jack’s Flight Club’s revenue from subscriptions is recognized ratably over the subscription period (quarterly, semi-annually, annually). Operating profit for Q3 2026 was $34,000, compared to operating profit of $20,000 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 2026 was $3,000.
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
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the licensee in Australia was $11,000 for Q3 2026. Licensing revenue from the licensee in Japan was $5,000 for Q3 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.
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. In Q3, the number of Club
Members increased by 65% year-over-year.
Income Taxes
The reported income tax benefit for Q3 2026 was $436,000.
Balance Sheet
As of September 30, 2026, cash, cash equivalents and restricted cash were $8.8 million. Cash flow from operations was $1.8 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 Q3 2026, the Company repurchased 256,898 shares of its outstanding common stock.
Looking Ahead
For Q4 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.
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
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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 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.
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Travelzoo
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenues | $ | 22,910 | $ | 22,198 | $ | 70,391 | $ | 69,245 | |||||||||||||||
| Cost of revenues | 5,748 | 4,519 | 18,088 | 13,132 | |||||||||||||||||||
| Gross profit | 17,162 | 17,679 | 52,303 | 56,113 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Sales and marketing | 14,604 | 12,198 | 39,454 | 34,378 | |||||||||||||||||||
| Product development | 589 | 631 | 1,855 | 1,963 | |||||||||||||||||||
| General and administrative | 4,529 | 4,362 | 12,872 | 13,420 | |||||||||||||||||||
| Total operating expenses | 19,722 | 17,191 | 54,181 | 49,761 | |||||||||||||||||||
| Operating income (loss) | (2,560) | 488 | (1,878) | 6,352 | |||||||||||||||||||
| Other income, net | 166 | (64) | 436 | 727 | |||||||||||||||||||
| Income (loss) before income taxes | (2,394) | 424 | (1,442) | 7,079 | |||||||||||||||||||
| Income tax expense (benefit) | (436) | 245 | 124 | 2,158 | |||||||||||||||||||
| Net income (loss) | (1,958) | 179 | (1,566) | 4,921 | |||||||||||||||||||
| Net income attributable to non-controlling interest | 51 | 29 | 101 | 201 | |||||||||||||||||||
| Net income (loss) attributable to Travelzoo | $ | (2,009) | $ | 150 | $ | (1,667) | $ | 4,720 | |||||||||||||||
| Net income (loss) per share—basic | $ | (0.20) | $ | 0.01 | $ | (0.16) | $ | 0.41 | |||||||||||||||
| Net income (loss) per share—diluted | $ | (0.20) | $ | 0.01 | $ | (0.16) | $ | 0.39 | |||||||||||||||
| Shares used in per share calculation—basic | 10,197 | 10,987 | 10,449 | 11,585 | |||||||||||||||||||
| Shares used in per share calculation—diluted | 10,197 | 11,213 | 10,449 | 11,974 | |||||||||||||||||||
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Travelzoo
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
| September 30, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 8,090 | $ | 10,007 | |||||||
| Accounts receivable, net | 11,198 | 10,723 | |||||||||
| Prepaid income taxes | 2,093 | 1,364 | |||||||||
| Prepaid expenses and other | 1,958 | 1,302 | |||||||||
| Total current assets | 23,339 | 23,396 | |||||||||
| Deposits and other | 397 | 166 | |||||||||
| Deferred tax assets | 4,964 | 4,202 | |||||||||
| Restricted cash | 754 | 756 | |||||||||
| Operating lease right-of-use assets | 4,737 | 4,047 | |||||||||
| Property and equipment, net | 117 | 231 | |||||||||
| Intangible assets, net | 1,450 | 1,450 | |||||||||
| Goodwill | 10,944 | 10,944 | |||||||||
| Total assets | $ | 46,702 | $ | 45,192 | |||||||
| Liabilities and Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 10,468 | $ | 7,761 | |||||||
| Merchant payables | 10,419 | 11,665 | |||||||||
| Accrued expenses and other | 5,003 | 3,926 | |||||||||
| Deferred revenue | 13,523 | 8,728 | |||||||||
| Income tax payable | 27 | 279 | |||||||||
| Operating lease liabilities | 2,197 | 1,811 | |||||||||
| Total current liabilities | 41,637 | 34,170 | |||||||||
| Long-term tax liability | 10,675 | 9,260 | |||||||||
| Long-term operating lease liabilities | 4,151 | 4,184 | |||||||||
| Total liabilities | 56,463 | 47,614 | |||||||||
| Common stock | 100 | 109 | |||||||||
| Tax indemnification | (9,537) | (9,537) | |||||||||
| Retained earnings (losses) | (151) | 7,243 | |||||||||
| Accumulated other comprehensive loss | (5,368) | (5,331) | |||||||||
| Total Travelzoo stockholders’ equity (deficit) | (14,956) | (7,516) | |||||||||
| Non-controlling interest | 5,195 | 5,094 | |||||||||
| Total stockholders' equity (deficit) | (9,761) | (2,422) | |||||||||
| Total liabilities and stockholders' equity | $ | 46,702 | $ | 45,192 | |||||||
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Travelzoo
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||||||
| Net income (loss) | $ | (1,958) | $ | 179 | $ | (1,566) | $ | 4,921 | |||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||
| Depreciation and amortization | 44 | 57 | 153 | 239 | |||||||||||||||||||
| Stock-based compensation | 338 | 399 | 1,057 | 1,108 | |||||||||||||||||||
| Deferred income tax | (219) | (1) | (972) | 4 | |||||||||||||||||||
| Net foreign currency effects | 14 | 71 | 66 | (224) | |||||||||||||||||||
| Provision of loss (net recoveries) on accounts receivable and refund reserve | (35) | (93) | (182) | 30 | |||||||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||||||||
| Accounts receivable | 3,367 | (988) | (490) | 756 | |||||||||||||||||||
| Prepaid income taxes | (271) | (154) | (846) | 84 | |||||||||||||||||||
| Prepaid expenses, deposits and other | (98) | (559) | (620) | (702) | |||||||||||||||||||
| Accounts payable | 983 | 2,314 | 1,667 | 2,134 | |||||||||||||||||||
| Merchant payables | (286) | (612) | (1,100) | (5,053) | |||||||||||||||||||
| Accrued expenses and other | (540) | (981) | 1,193 | 859 | |||||||||||||||||||
| Deferred revenue | 783 | 643 | 4,881 | 2,363 | |||||||||||||||||||
| Income tax payable | (44) | (576) | (165) | (2,583) | |||||||||||||||||||
| Other liabilities | (259) | (73) | 927 | 273 | |||||||||||||||||||
| Net cash (used) provided by operating activities | 1,819 | (374) | 4,003 | 4,209 | |||||||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||||||||
| Purchases of property and equipment | (33) | (15) | (46) | (49) | |||||||||||||||||||
| Net cash used in investing activities | (33) | (15) | (46) | (49) | |||||||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||||||||
| Repurchase of common stock | (530) | (1,545) | (5,735) | (12,964) | |||||||||||||||||||
| Exercise of stock options and taxes paid for net share settlement of equity awards | — | — | — | (104) | |||||||||||||||||||
| Net cash used in financing activities | (530) | (1,545) | (5,735) | (13,068) | |||||||||||||||||||
| Effect of exchange rate on cash, cash equivalents and restricted cash | (4) | (17) | (141) | 415 | |||||||||||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 1,252 | (1,951) | (1,919) | (8,493) | |||||||||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 7,592 | 11,198 | 10,763 | 17,740 | |||||||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 8,844 | $ | 9,247 | $ | 8,844 | $ | 9,247 | |||||||||||||||
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Travelzoo
Segment Information from Continuing Operations
(Unaudited)
(In thousands)
| Three months ended September 30, 2026 | Travelzoo North America | Travelzoo Europe | Jack's Flight Club | New Initiatives | Consolidated | ||||||||||||||||||||||||
| Revenues from unaffiliated customers | $ | 14,664 | $ | 7,031 | $ | 1,188 | $ | 27 | $ | 22,910 | |||||||||||||||||||
| Intersegment revenues | 137 | (114) | (23) | — | — | ||||||||||||||||||||||||
| Total net revenues | 14,801 | 6,917 | 1,165 | 27 | 22,910 | ||||||||||||||||||||||||
| Sales and marketing expenses | 9,069 | 5,097 | 438 | — | 14,604 | ||||||||||||||||||||||||
| Other expenses | 7,108 | 3,035 | 693 | 30 | 10,866 | ||||||||||||||||||||||||
| Operating profit (loss) | (1,376) | (1,215) | 34 | (3) | (2,560) | ||||||||||||||||||||||||
| Other income, net | 166 | ||||||||||||||||||||||||||||
| Loss from operations before income taxes | (2,394) | ||||||||||||||||||||||||||||
| Three months ended September 30, 2025 | Travelzoo North America | Travelzoo Europe | Jack's Flight Club | New Initiatives | Consolidated | ||||||||||||||||||||||||
| Revenues from unaffiliated customers | $ | 13,728 | $ | 7,036 | $ | 1,407 | $ | 27 | $ | 22,198 | |||||||||||||||||||
| Intersegment revenues | 503 | (471) | (32) | — | — | ||||||||||||||||||||||||
| Total net revenues | 14,231 | 6,565 | 1,375 | 27 | 22,198 | ||||||||||||||||||||||||
| Sales and marketing expenses | 6,998 | 4,549 | 651 | — | 12,198 | ||||||||||||||||||||||||
| Other expenses | 6,105 | 2,655 | 704 | 48 | 9,512 | ||||||||||||||||||||||||
| Operating profit (loss) | 1,128 | (640) | 20 | (20) | 488 | ||||||||||||||||||||||||
| Other loss, net | (64) | ||||||||||||||||||||||||||||
| Income from operations before income taxes | 424 | ||||||||||||||||||||||||||||
8/10
| Nine months ended September 30, 2026 | Travelzoo North America | Travelzoo Europe | Jack's Flight Club | New Initiatives | Consolidated | ||||||||||||||||||||||||
| Revenues from unaffiliated customers | $ | 45,539 | $ | 20,991 | $ | 3,800 | $ | 61 | $ | 70,391 | |||||||||||||||||||
| Intersegment revenues | 610 | (561) | (49) | — | — | ||||||||||||||||||||||||
| Total net revenues | 46,149 | 20,430 | 3,751 | 61 | 70,391 | ||||||||||||||||||||||||
| Sales and marketing expenses | 23,379 | 14,439 | 1,636 | — | 39,454 | ||||||||||||||||||||||||
| Other expenses | 22,394 | 8,125 | 2,163 | 133 | 32,815 | ||||||||||||||||||||||||
| Operating profit (loss) | 376 | (2,134) | (48) | (72) | (1,878) | ||||||||||||||||||||||||
| Other income, net | 436 | ||||||||||||||||||||||||||||
| Loss from operations before income taxes | (1,442) | ||||||||||||||||||||||||||||
| Nine months ended September 30, 2025 | Travelzoo North America | Travelzoo Europe | Jack's Flight Club | New Initiatives | Consolidated | ||||||||||||||||||||||||
| Revenues from unaffiliated customers | $ | 44,296 | $ | 20,745 | $ | 4,140 | $ | 64 | $ | 69,245 | |||||||||||||||||||
| Intersegment revenues | 1,196 | (1,084) | (112) | — | — | ||||||||||||||||||||||||
| Total net revenues | 45,492 | 19,661 | 4,028 | 64 | 69,245 | ||||||||||||||||||||||||
| Sales and marketing expenses | 19,400 | 13,101 | 1,877 | — | 34,378 | ||||||||||||||||||||||||
| Other expenses | 18,551 | 7,856 | 1,963 | 145 | 28,515 | ||||||||||||||||||||||||
| Operating profit (loss) | 7,541 | (1,296) | 188 | (81) | 6,352 | ||||||||||||||||||||||||
| Other income, net | 727 | ||||||||||||||||||||||||||||
| Income from operations before income taxes | 7,079 | ||||||||||||||||||||||||||||
9/10
Travelzoo
Reconciliation of GAAP to Non-GAAP Information
(Unaudited)
(In thousands, except per share amounts)
| Three months ended | Nine months ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| GAAP operating expense | $ | 19,722 | $ | 17,191 | $ | 54,181 | $ | 49,761 | |||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||
| Amortization of intangibles (A) | — | 2 | — | 45 | |||||||||||||||||||
| Stock option expenses (B) | 338 | 399 | 1,057 | 1,108 | |||||||||||||||||||
| Severance-related expenses (C) | 150 | 167 | 165 | 395 | |||||||||||||||||||
| Non-GAAP operating expense | 19,234 | 16,623 | 52,959 | 48,213 | |||||||||||||||||||
| GAAP operating income (loss) | (2,560) | 488 | (1,878) | 6,352 | |||||||||||||||||||
| Non-GAAP adjustments (A through C) | 488 | 568 | 1,222 | 1,548 | |||||||||||||||||||
| Non-GAAP operating income (loss) | (2,072) | 1,056 | (656) | 7,900 | |||||||||||||||||||
###
10/10
Third Quarter 2026 Performance October 27, 2026
2 | Third Quarter 2026 Performance Important Notice to Investors Please read this management presentation together with the Company’s press release issued earlier today announcing the Company’s third quarter 2026 financial results and in conjunction with the Company’s recent Annual Report and Quarterly Reports as filed with the Securities and Exchange Commission (SEC). Certain statements contained in this presentation that are not historical facts may be forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. These forward looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects, expected future financial guidance and intentions, markets in which we participate and other statements contained in this presentation that are not historical facts. When used in this presentation, 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 presentation.
3 | Third Quarter 2026 Performance Part 1: Third Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META
4 | Third Quarter 2026 Performance Revenue increased again year-over-year. We still reported a loss due to our investments in growing Club Members. 22.2 22.9 Q3 2025 Q3 2026 Revenue $ millions Operating Profit (Loss) $ millions 0.5 (2.6) Q3 2025 Q3 2026
5 | Third Quarter 2026 Performance The quarterly loss came from higher investments into growing the number of Club Members. Higher membership revenues are a more attractive business model. Objectives and Actions • Accelerate the growth in (paying) Club Members • Increase recurring membership revenues— a more attractive business model • Enhance the value of club membership 2.3 4.7 5.8 Average Q2 2025 thru Q1 2026 Q2 2026 Q3 2026 Quarterly Spend on Marketing* $ millions * Direct acquisition costs for new Club Members and trial members
6 | Third Quarter 2026 Performance Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 More Club Members drive recurring revenue from membership fees. This quarter, we added the largest number of Club Members yet. Number of Club Members at the End of Each Quarter 1.3 1.3 1.4 1.4 1.4 1.3 1.3 1.2 0.3 1.1 1.6 2.2 2.8 3.2 3.7 4.5 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Travelzoo Jack's Flight Club Membership Fees Revenue $ millions
7 | Third Quarter 2026 Performance As a reminder, with subscription businesses, membership fees revenue is recognized ratably over the subscription period, whereas acquisition costs are expensed immediately. Example: New member joins on September 15, 2026, paying a membership fee of $50 per annum Revenue Recognition $ Q3 2026 Q4 2026 Q1 2027 Q2 2027 Q3 2027 $50 $2.08 $12.50 $12.50 $12.50 $10.42 Payment by member Revenue recognized Revenue recognized
8 | Third Quarter 2026 Performance Thus, marketing costs reduce reported EPS in the short-term but are projected to drive better results in 2027 and beyond when deferred revenues and recurring revenues increase profitability. * Travelzoo Club Membership revenue only. Excludes Jack’s Flight Club ** Estimates Travelzoo Membership Revenues* $ millions 2025 2026** 2027** 7.7 ~30+ ~17 As % of revenue* 8% 16% 30% Incremental Impact of Marketing Costs on EPS ~$1.20 ($0.60) 2027** 2026**
9 | Third Quarter 2026 Performance Even though we invested even more than in Q2 and acquired more members, the average acquisition cost was lower (better) in Q3. Payback remains attractive. * Most new Club Members start with a trial. Acquisition cost here is presented for Club Members who paid the annual fee—after trial conversion. ** New members on a trial pay $1 for the first 30 days, so the payment of the $50 annual membership in the U.S. only occurs 30 days after the start of the trial. Payback on member acquisition is positive within a quarter,** even though revenue recognition is delayed Average Acquisition Cost of Annual Club Members* Q3 2026, U.S. market $ Revenue from trans- actions within 90 days 1st year annual member- ship fee $50 Future revenue from trans- actions and advertising Future member- ship fees (from recurring renewals) $15 ($40) Q3 2025 ($54) Q4 2025 ($34) Q2 2026 Payback from Club Members Acquired in the Quarter and Future Periods Q3 2026, U.S. market $ ($27) Q1 2026 ($62) Q3 2026 Total payback
10 | Third Quarter 2026 Performance 1.1 (0.6) Segment revenues: Revenue $ millions North America Segment Europe Segment Operating Profit (Loss) $ millions 6.6 6.9 0.0 0.0 Jack’s Flight Club Segment 1.4 1.2 14.2 14.8 Q3 2025 Q3 2026 Q3 2025 Q3 2026 (1.2)(1.4)
11 | Third Quarter 2026 Performance 4% 7% 9% 11% 18% 22% 8% 14% 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q1 2026 Q2 2026 Q3 2026 (11%)(12%) (26%) As the number of membership renewals—which do not have acquisition expenses—grows, operating margins are expected to substantially improve. In the short-term, fluctuations are likely.* Operating Margin (2%) * Quarterly fluctuations in operating margin are likely.
12 | Third Quarter 2026 Performance 8% 4% 13% 21% 8% 17% 3% 3% 4% The investments in Club Members occur in all key markets. North America Operating Margin Europe Operating Margin (4%) (14%) (10%) (16%) 31% 27% 22% 29% 31% 26% 25% 33% 24% 17% 8% 10% 21% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 (18%) (19%)(10%) (9%)
13 | Third Quarter 2026 Performance 0.5 0.6 1.1 Q3 2025 * GAAP operating profit + amortization of intangibles + stock option expenses + severance-related expenses = non-GAAP operating profit; GAAP operating loss - stock option expenses = non-GAAP operating loss Total non-GAAP operating loss was $2.1 million. Non-GAAP Operating Profit (Loss)* $ millions GAAP Operating Profit (Loss) Adjustments Non-GAAP Operating Profit (Loss)* (2.6) 0.5 (2.1) Q3 2026
14 | Third Quarter 2026 Performance Items excluded in the calculation of non-GAAP operating profit (loss): $ millions Q3 2025 Q3 2026 Adjustments* 0.6 0.5 Amortization of intangibles 0.0 0.0 Stock option expense 0.4 0.3 Severance-related expenses 0.2 0.2
15 | Third Quarter 2026 Performance 9.2 7.6 8.8 Q3 2025 Q2 2026 Q3 2026 Our cash balance increased by $1.2 million compared with Q2 2026. We repurchased 256,898 shares. Cash Balance at End of Quarter* $ millions * Includes cash, cash equivalents and restricted cash
16 | Third Quarter 2026 Performance Part 1: Third Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META
17 | Third Quarter 2026 Performance The must-have membership for the travel enthusiast Membership empowers you to live your life as a travel enthusiast to the fullest, while respecting different cultures. Annual membership ($50 for a 12-month period in the U.S.) provides: • Access to Club Offers negotiated and rigorously vetted for us travel enthusiasts You won’t find them anywhere else. • First access to our weekly Top 20®, giving travel enthusiasts a first choice • Complimentary access to airport lounges worldwide in case of flight delays • Travel Enthusiast HotlineTM—24/7 complimentary assistance wherever you travel • Culinary Journeys (coming soon)
18 | Third Quarter 2026 Performance A few of the exclusive Club Offers that we created for Club Members during Q3: £59—Stays at 15 cosy English inns Exclusive: Cook with a Michelin-star chef in Tuscany $999—Hawaiian Islands 16-night cruise $2599—Maldives all-inclusive overwater villa, reg. $8300
19 | Third Quarter 2026 Performance Perfect for the travel enthusiast: Worldwide complimentary lounge access in case of flight delays Complimentary access to an airport lounge if flight is delayed by at least one hour. The benefit is good on any flight on any airline, regardless of where they booked. Bring up to three family members or guests for free. For an unlimited number of trips.
20 | Third Quarter 2026 Performance Travelzoo is loved by travel enthusiasts who are affluent, active and open to new experiences. Sources: Travelzoo Trends Global Survey; September 2026; n=6,231 Travelzoo members. * Meta Business Suite; October 2026; global demographics based on Facebook and Instagram followers across six markets; global figures represent a simple average of market-level platform splits. ** Travelzoo Domestic Travel Survey in the U.S.; January 2026; n=1,425 Travelzoo members; the median excludes respondents who did not specify their household income; the median is determined based on the selected income range from the survey, with the midpoint of that range rounded to the nearest thousand; U.S. Census Bureau, Income in the United States: 2025 (September 2026), Figure 1. 90% are open to new destinations and travel ideas 62% plan to take 2+ international trips in 2027 63% ages 45+ 37% ages 18-44* 88% are likely to book an unplanned trip with an attractive offer Our Members Compared to the General PopulationMember Sentiment and Demographics Median Household Income** U.S. Travelzoo members U.S. general population $150,000 $87,460 Would Hold Onto Leisure Travel Longest if Household Spending Had to Be Cut Travelzoo members General population 75% 48%
21 | Third Quarter 2026 Performance Part 1: Third Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META
22 | Third Quarter 2026 Performance Management focus • Grow the number of (paying) members and accelerate revenue growth by converting Legacy Members and adding new Club Members • Retain, and grow, our profitable advertising business • Accelerate revenue growth which drives future profits in spite of temporarily lower EPS • Grow Jack’s Flight Club’s subscription revenue • Launch Travelzoo META
23 | Third Quarter 2026 Performance Part 1: Third Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META
24 | Third Quarter 2026 Performance
NASDAQ: TZOO HAVE A GOOD DAY! For questions, please contact Travelzoo Investor Relations: ir@travelzoo.com