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Travelzoo (NASDAQ: TZOO) pivots to memberships as Q2 revenue hits $23.2M

Filing Impact
(Very High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Travelzoo reported second-quarter 2026 revenue of $23.2 million, down slightly from $23.9 million a year earlier, as international conflicts weighed on advertiser and traveler activity across all segments. The company recorded a consolidated operating loss of $2.8 million and a net loss attributable to Travelzoo of $2.1 million, or $(0.21) per diluted share, compared with earnings of $0.12 per share in the prior-year quarter.

Management attributed the weaker profitability to stepped-up marketing investment to accelerate growth in paying Club Members and shift the business mix toward recurring membership fees, which are recognized ratably over 12 months while acquisition costs are expensed immediately. Membership fees and subscription revenues rose to about $5.0 million in Q2 2026 from $3.0 million in Q2 2025, becoming a larger share of total revenue as renewals reached their highest level.

Cash, cash equivalents and restricted cash were $7.6 million as of June 30, 2026. Cash flow from operations was $(1.7) million, reflecting higher accounts receivable, increased deferred revenue, lower merchant payables and the heavier marketing spend. Travelzoo repurchased 200,000 shares in the quarter and expects year-over-year revenue growth beginning in the third quarter of 2026.

Positive

  • Higher-quality recurring membership fees and subscription revenues grew to $5.0 million in Q2 2026 from $3.0 million a year earlier, and membership renewals reached their highest level ever, supporting management’s strategy to build a subscription-driven model.

Negative

  • Travelzoo swung from a prior-year profit to a $2.1 million net loss in Q2 2026, with diluted EPS declining from $0.12 to $(0.21) as higher marketing spending and softer demand reduced margins.
  • Operating cash flow deteriorated to $(1.7) million in Q2 2026, and total stockholders’ equity stood at a $(6.6) million deficit as of June 30, 2026.

Insights

Analyzing...

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, and exhibit attachments filed with this report.
Q2 2026 Revenue $23.2 million Consolidated revenue for the quarter ended June 30, 2026
Q2 2025 Revenue $23.9 million Consolidated revenue for the quarter ended June 30, 2025
Q2 2026 Operating Loss $2.8 million Consolidated operating loss in Q2 2026
Q2 2026 Net Loss per Share $(0.21) Diluted EPS attributable to Travelzoo for Q2 2026
Q2 2026 Cash from Operations $(1.7) million Net cash used in operating activities in Q2 2026
Cash Balance June 30, 2026 $7.6 million Cash, cash equivalents and restricted cash as of June 30, 2026
Q2 2026 Membership Fees Revenue $5.0 million Membership fees and subscription revenues in Q2 2026
Q2 2026 Share Repurchases 200,000 shares Common shares repurchased during Q2 2026
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.
Non-GAAP operating income financial
"Management calculates non-GAAP operating income when evaluating the financial performance."
Non-GAAP operating income is a measure of a company's profit from its core business activities, calculated by excluding certain expenses or income that are not part of regular operations. It provides a clearer picture of how well the business is performing by focusing on ongoing operations, helping investors compare companies more consistently and make better-informed decisions.
Merchant payables financial
"Cash balance decreased because we reduced merchant payables by $2.7 million."
Merchant payables are amounts a company or payment platform owes to sellers for transactions it processed on their behalf but has not yet transferred. Think of it like money sitting in a clearinghouse that must be passed on to the merchant once payments are settled; that timing and reliability affect a business’s cash flow, working capital and trust with sellers. Investors watch merchant payables to gauge liquidity, settlement risk and the health of a payments or platform business.
Subscription period financial
"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.
Forward-looking statements regulatory
"Certain statements contained in this press release that are not historical facts may be forward-looking statements."
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
Revenue $23.2 million down from $23.9 million in the quarter ended June 30, 2025
Net income (loss) attributable to Travelzoo $(2.1) million compared with net income of $1.4 million in Q2 2025
Diluted EPS $(0.21) down from $0.12 in Q2 2025
Non-GAAP operating income (loss) $(2.1) million compared with non-GAAP operating income of $2.4 million in Q2 2025
Cash flow from operations $(1.7) million compared with $1.3 million provided by operations in Q2 2025
Guidance

The company expects year-over-year revenue growth in Q3 2026 and subsequent quarters as membership fees are recognized over the 12-month subscription period.

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

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FAQ

What were Travelzoo (TZOO) revenues in the second quarter of 2026?
Travelzoo reported Q2 2026 revenue of $23.2 million, slightly below $23.9 million in Q2 2025. The decline reflected softer advertiser and traveler demand amid international conflicts, which negatively affected all business segments, including North America, Europe, Jack’s Flight Club and New Initiatives.

Did Travelzoo (TZOO) report a profit or loss in Q2 2026?
Travelzoo recorded a net loss of $2.1 million in Q2 2026, or $(0.21) per diluted share, compared with net income of $1.4 million and diluted EPS of $0.12 in the same quarter of 2025, driven mainly by increased marketing spending and lower operating margins.

How is Travelzoo’s (TZOO) membership strategy affecting results?
Travelzoo is investing heavily in marketing to grow paying Club Members, expensing acquisition costs immediately while recognizing membership fees over 12 months. This pressured near-term earnings but helped lift membership and subscription revenues to about $5.0 million in Q2 2026, up from $3.0 million a year earlier.

What was Travelzoo’s (TZOO) cash position and operating cash flow in Q2 2026?
As of June 30, 2026, Travelzoo held $7.6 million in cash, cash equivalents and restricted cash. Cash flow from operations was $(1.7) million, influenced by higher accounts receivable, increased deferred revenue, reduced merchant payables and elevated marketing expenses to support Club Member growth.

How much stock did Travelzoo (TZOO) repurchase in Q2 2026?
During Q2 2026, Travelzoo repurchased 200,000 shares of its outstanding common stock. The cash flow statement shows related cash outflows of approximately $1.9 million, reflecting the company’s ongoing share repurchase activity despite posting a quarterly net loss and negative operating cash flow.

What outlook did Travelzoo (TZOO) provide for Q3 2026 and beyond?
Management expects year-over-year revenue growth in Q3 2026 and in subsequent quarters, as recurring membership fees are recognized over the 12-month subscription period. Over time, they expect profitability to increase, while cautioning that short-term fluctuations in reported net income and EPS are likely.
0001133311FALSETravelzoo00011333112026-07-282026-07-28


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):  July 28, 2026
____________________________________________________

Travelzoo
(Exact name of registrant as specified in its charter)
____________________________________________________
Delaware000-5017136-4415727
(State or Other
Jurisdiction of
Incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
 
590 Madison Avenue, 35th Floor
New York, New York
10022
(Address of principal executive offices)
(Zip Code)
 
Registrant’s telephone number, including area code +1 (212) 516-1300
(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):

☐       Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐       Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐       Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐       Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueTZOOThe NASDAQ Stock Market



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 July 28, 2026, Travelzoo (the "Company") reported its second 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 earnings 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:July 28, 2026By:/s/ JEFF HOFFMAN
Jeff Hoffman
Financial Controller, North America



EXHIBIT INDEX
ExhibitDescription
99.1
Press Release, dated July 28, 2026.
99.2
Supplemental earnings presentation provided in connection with the second quarter 2026 earnings call of Travelzoo, dated July 28, 2026.


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

Investor Relations:
ir@travelzoo.com

FOR IMMEDIATE RELEASE

Travelzoo Reports Second Quarter 2026 Results

NEW YORK, July 28, 2026 — 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.
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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
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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
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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.

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Travelzoo
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
 Three months endedSix months ended
 June 30,June 30,
 2026202520262025
Revenues$23,208 $23,906 $47,481 $47,046 
Cost of revenues7,104 5,163 12,340 9,335 
Gross profit16,104 18,743 35,141 37,711 
Operating expenses:
Sales and marketing13,734 11,483 24,850 21,708 
Product development602 698 1,266 1,332 
General and administrative4,530 4,502 8,343 8,807 
Total operating expenses18,866 16,683 34,459 31,847 
Operating income (loss)(2,762)2,060 682 5,864 
Other income, net274 161 270 790 
Income (loss) before income taxes(2,488)2,221 952 6,654 
Income tax expense (benefit)(382)740 561 1,912 
Net income (loss)(2,106)1,481 391 4,742 
Net income attributable to non-controlling interest30 79 51 172 
Net income (loss) attributable to Travelzoo$(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—basic10,319 11,139 10,577 11,617 
Shares used in per share calculation—diluted10,319 11,505 10,658 12,088 
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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, net14,543 10,723 
Prepaid income taxes 1,827 1,364 
Prepaid expenses and other2,064 1,302 
Total current assets25,272 23,396 
Deposits and other193 166 
Deferred tax assets4,744 4,202 
Restricted cash754 756 
Operating lease right-of-use assets4,334 4,047 
Property and equipment, net132 231 
Intangible assets, net1,450 1,450 
Goodwill10,944 10,944 
Total assets$47,823 $45,192 
Liabilities and Equity
Current liabilities:
Accounts payable$7,811 $7,761 
Merchant payables10,723 11,665 
Accrued expenses and other5,544 3,926 
Deferred revenue13,400 8,728 
Income tax payable71 279 
Operating lease liabilities2,026 1,811 
Total current liabilities39,575 34,170 
Long-term tax liability10,770 9,260 
Long-term operating lease liabilities4,074 4,184 
Total liabilities54,419 47,614 
Common stock102 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 interest5,144 5,094 
Total stockholders' equity (deficit)(6,596)(2,422)
Total liabilities and stockholders' equity$47,823 $45,192 
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Travelzoo
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
 Three months endedSix months ended
 June 30,June 30,
 2026202520262025
Cash flows from operating activities:
Net income (loss)$(2,106)$1,481 $391 $4,742 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization54 106 110 182 
Stock-based compensation684 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 other1,179 975 1,733 1,842 
Deferred revenue2,780 478 4,763 1,720 
Income tax payable(57)(1,058)(121)(2,007)
Other liabilities276 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 period11,325 12,227 10,763 17,740 
Cash, cash equivalents and restricted cash at end of period$7,592 $11,198 $7,592 $11,198 
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Travelzoo
Segment Information from Continuing Operations
(Unaudited)
(In thousands)
Three months ended June 30, 2026Travelzoo North
America		Travelzoo EuropeJack's Flight ClubNew InitiativesConsolidated
Revenues from unaffiliated customers$15,548 $6,376 $1,267 $17 $23,208 
Intersegment revenues131 (139)8 — — 
Total net revenues15,679 6,237 1,275 17 23,208 
Sales and marketing expenses8,307 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, net274 
Income (loss) from operations before income taxes(2,488)
Three months ended June 30, 2025Travelzoo North
America		Travelzoo EuropeJack's Flight ClubNew InitiativesConsolidated
Revenues from unaffiliated customers$15,737 $6,740 $1,410 $19 $23,906 
Intersegment revenues395 (355)(40)— — 
Total net revenues16,132 6,385 1,370 19 23,906 
Sales and marketing expenses6,453 4,427 603 — 11,483 
Other expenses6,861 2,841 611 50 10,363 
Operating profit (loss)2,818 (883)156 (31)2,060 
Other income, net161 
Income from operations before income taxes2,221 
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Six months ended June 30, 2026Travelzoo North
America		Travelzoo EuropeJack's Flight ClubNew InitiativesConsolidated
Revenues from unaffiliated customers$30,875 $13,961 $2,611 $34 $47,481 
Intersegment revenues473 (448)(25)— — 
Total net revenues31,348 13,513 2,586 34 47,481 
Sales and marketing expenses14,310 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, net270 
Income from operations before income taxes952 
Six months ended June 30, 2025Travelzoo North
America		Travelzoo EuropeJack's Flight ClubNew InitiativesConsolidated
Revenues from unaffiliated customers$30,567 $13,710 $2,733 $36 $47,046 
Intersegment revenues693 (613)(80)— — 
Total net revenues31,260 13,097 2,653 36 47,046 
Sales and marketing expenses12,153 8,329 1,226 — 21,708 
Other expenses12,695 5,423 1,259 97 19,474 
Operating profit (loss)6,412 (655)168 (61)5,864 
Other income, net790 
Income from operations before income taxes6,654 
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Travelzoo
Reconciliation of GAAP to Non-GAAP Information
(Unaudited)
(In thousands, except per share amounts)

 Three months endedSix months ended
 June 30,June 30,
 2026202520262025
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 expense18,182 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 


###
10/10
Second Quarter 2026 Performance July 28, 2026

 

2 | Second 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 second 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 | Second Quarter 2026 Performance Part 1: Second Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META

 

4 | Second Quarter 2026 Performance International conflicts negatively impacted all business segments. Investments in growing Club Members led to a reported loss. 23.9 23.2 Q2 2025 Q2 2026 Revenue $ millions Operating Profit (Loss) $ millions 2.1 (2.8) Q2 2025 Q2 2026

 

5 | Second Quarter 2026 Performance 2027* Q4 2026* Q3 2026* Q2 2026 Q1 2026 2025 2024 Average Q1 2025 thru Q1 2026 Q2 2026 and next few quarters We decided to accelerate the shift towards recurring membership revenues by more quickly growing (paying) Club Members. 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: - Travel Enthusiast HotlineTM - META - Culinary Journeys Number of Club Members at End of Quarter/Year 2.3 4.7 Quarterly Spend on Marketing $ millions * Estimates

 

6 | Second Quarter 2026 Performance We are scaling member acquisition to the point where payback still occurs quickly. * 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* Q2 2026, U.S. market $ Additional revenue from transactions within the same quarter 1st year annual member- ship fee $50 Additional advertising revenue Future member- ship and other revenue $15 ($28) ($38) Q1 2025 Q2 2025 ($40) Q3 2025 ($62) Q4 2025 ($34) Q2 2026 Return from Club Members Acquired in the Quarter and Future Periods Q2 2026, U.S. market $ ($27) Q1 2026

 

7 | Second Quarter 2026 Performance As a reminder, with subscription businesses, membership fee revenue is recognized ratably over the subscription period, whereas acquisition costs are expensed immediately when incurred. Example: New member joins on June 15, 2026, paying a membership fee of $50 per annum Revenue Recognition $ Q2 2026 Q3 2026 Q4 2026 Q1 2027 Q2 2027 $50 $2.08 $12.50 $12.50 $12.50 $10.42 Payment by member Revenue recognized Revenue recognized

 

8 | Second Quarter 2026 Performance Marketing costs reduce reported quarterly EPS in the short time but are projected to drive better results in 2027 and beyond. 2025 2026* 2027* Club Member Growth Travelzoo Membership Revenues** $ millions 2025 2026* 2027* Incremental Impact of Marketing Costs on EPS 7.7 ~30.0+ ~17.2 ~$1.20 ($0.60) * Estimates ** Travelzoo Club Membership revenue only. Excludes Jack’s Flight Club As % of revenue** 8% 13% 30% 2027* 2026*

 

9 | Second Quarter 2026 Performance Membership fees, which are more stable and predictable, are adding revenue and have become a larger share, which we want to increase further. Advertising and Commerce Global Revenues $ millions 19.4 20.9 20.0 18.7 19.1 20.7 20.9 18.6 18.3 19.7 18.2 Q4 2023 Q1 2024 Q2 2024 Membership Fees 1.2 1.1 1.2 1.4 1.6 2.4 3.0 3.6 4.1 4.6 5.0 Includes advertising and commerce revenues from travel companies, local and entertainment businesses and other partners Includes membership fees and subscription revenues from both Travelzoo and Jack’s Flight Club Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026

 

10 | Second Quarter 2026 Performance 2.8 (0.9) International conflicts affected revenues in all segments. Revenue $ millions North America Segment Europe Segment Operating Profit (Loss) $ millions 6.4 6.2 0.2 Jack’s Flight Club Segment 1.4 1.3 16.1 15.7 Q2 2025 Q2 2026 Q2 2025 Q2 2026 (0.0)(1.2)(1.5)

 

11 | Second Quarter 2026 Performance Accelerated growth of Club Members reduces operating margin in the short-term. As the number of membership renewals—which do not have acquisition expenses—grows, operating margins are expected to become very attractive over time.* Operating Margin 4% 7% 9% 11% 18% 22% 8% 14% 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q1 2026 Q2 2026 (26%) (2%) (12%) * Quarterly fluctuations in operating margin are likely.

 

12 | Second Quarter 2026 Performance The investments in Club Members occur in all key markets. Over time, we expect margins to return to previous levels or even exceed them. 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 8% 4% 13% 21% 8% 17% 3% 3% 4% (19%)(10%)

 

13 | Second Quarter 2026 Performance 2.1 0.3 2.4 Q2 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)* (2.8) 0.7 (2.1) Q2 2026

 

14 | Second Quarter 2026 Performance Items excluded in the calculation of non-GAAP operating profit (loss): $ millions Q2 2025 Q2 2026 Adjustments* 0.4 0.7 Amortization of intangibles 0.0 0.0 Stock option expense 0.3 0.7 Severance-related expenses — 0.0 * Numbers do not add up due to rounding.

 

15 | Second Quarter 2026 Performance 11.2 11.3 7.6 Q2 2025 Q1 2026 Q2 2026 Our cash balance decreased because we reduced merchant payables by $2.7 million and repurchased shares for $1.9 million. We expect the cash balance to rebound next quarter. Cash Balance at End of Quarter* $ millions * Includes cash, cash equivalents and restricted cash

 

16 | Second Quarter 2026 Performance Part 1: Second Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META

 

17 | Second 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 | Second Quarter 2026 Performance A few of the exclusive Club Offers that we created for Club Members during Q2: £249pp—Rome luxury city break with flights $499—Hawaii vacation at Hilton resort w/flights £89pp—London’s ‘hottest theatre ticket’ plus dinner $2000 off—Mexico St. Regis ocean view escape w/butler service

 

19 | Second 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 | Second Quarter 2026 Performance Travelzoo is loved by travel enthusiasts who are affluent, active and open to new experiences. Sources: Travelzoo Trends Global Survey; October 2025; n=8,039 Travelzoo members. * Meta Business Suite; April 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, 500 general population respondents; 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. 88% are likely to book an unplanned trip with an attractive offer 90% are open to new destinations and travel ideas 69% plan to take 2+ international trips in 2026 73% female 27% male* 62% ages 45+ 38% ages 18-44* Our Members Compared to the General Population Median Household Income** Member Sentiment and Demographics U.S. Travelzoo members U.S. general population $150,000 $63,000

 

21 | Second Quarter 2026 Performance Part 1: Second Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META

 

22 | Second 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 from the popular Top 20® product • Accelerate revenue growth which drives future profits in spite of temporarily lower EPS • Grow Jack’s Flight Club’s subscription revenue • Launch Travelzoo META with discipline

 

23 | Second Quarter 2026 Performance Part 1: Second Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META

 

24 | Second Quarter 2026 Performance

 

NASDAQ: TZOO HAVE A GOOD DAY! For questions, please contact Travelzoo Investor Relations: ir@travelzoo.com

 

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