8-K
TRAVELZOO (TZOO)
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 28, 2025
____________________________________________________
(Exact name of registrant as specified in its charter)
____________________________________________________
| Delaware | 000-50171 | 36-4415727 |
|---|---|---|
| (State or Other<br><br>Jurisdiction of<br><br>Incorporation) | (Commission<br><br>File Number) | (I.R.S. Employer<br><br>Identification No.) |
| 590 Madison Avenue, 35th Floor<br><br>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 class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.01 par value | TZOO | The 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 October 28, 2025, Travelzoo (the "Company") reported its third quarter 2025 financial results. A copy of the Company’s press release containing this information is being furnished as Exhibit 99.1 to this report on Form 8-K and is incorporated herein by reference.
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 to this report on Form 8-K as Exhibit 99.2 and incorporated herein by reference.
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: | October 28, 2025 | By: | /s/ JEFF HOFFMAN |
| Jeff Hoffman<br>Financial Controller, North America |
EXHIBIT INDEX
| Exhibit | Description |
|---|---|
| 99.1 | Press Release, dated October 28, 2025. |
| 99.2 | Supplemental earnings presentation provided in connection with the third quarter 2025 earnings call of Travelzoo, dated October 28, 2025. |
Document
Exhibit 99.1
| Travelzoo<br><br>590 Madison Avenue<br><br>35th Floor<br><br>New York, NY 10022<br><br><br><br>Investor Relations:<br><br>ir@travelzoo.com |
|---|
FOR IMMEDIATE RELEASE
Travelzoo Reports Third Quarter 2025 Results
NEW YORK, October 28, 2025 — Travelzoo® (NASDAQ: TZOO):
•Revenue of $22.2 million, up 10% year-over-year
•Consolidated operating profit of $0.5 million
•Non-GAAP consolidated operating profit of $1.1 million
•Cash flow from operations of ($0.4) million
•Earnings per share (EPS) of $0.01
Travelzoo, the club for travel enthusiasts, today announced financial results for the third quarter ended September 30, 2025. Consolidated revenue was $22.2 million, up 10% from $20.1 million year-over-year. In constant currencies, revenue was $21.9 million, up 9% year-over-year. Travelzoo's reported revenue consists of advertising revenues and commissions, derived from and generated in connection with purchases made by Travelzoo members, and membership fees.
In Q3, Travelzoo continued to invest significantly in acquiring more Club Members when we saw that we can achieve a payback and positive return on investment (ROI) within a quarter. Marketing costs were expensed immediately. Membership fees revenue is recognized ratably over the subscription period of 12 months. The effect is a sizable reduction in EPS. We refer to our investor presentation.
Net income attributable to Travelzoo was $0.2 million for Q3 2025, or $0.01 per share, compared with $0.26 per share in the prior-year period.
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Non-GAAP operating profit was $1.1 million. Non-GAAP operating profit excludes amortization of intangibles ($2,000), stock option expenses ($399,000), and severance-related expenses ($167,000). 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 complementary 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 11% year-over-year to $14.2 million. Operating profit for Q3 2025 was $1.1 million, or 8% of revenue, compared to operating profit of $3.2 million or 25% of revenue in the prior-year period.
Travelzoo Europe
Europe business segment revenue increased 9% year-over-year to $6.6 million. Operating loss for Q3 2025 was $640,000, or 10% of revenue, compared to operating profit of $1.0 million, or 17% of revenue in the prior-year period. The reported operating loss occurred because we acquired more Club Members.
Jack’s Flight Club
Jack’s Flight Club is a membership subscription service in which Travelzoo has a 60% ownership interest. Revenue increased 12% year-over-year to $1.4 million. The number of premium subscribers increased 8% year-over-year. Jack’s Flight Club’s revenue from subscriptions is recognized ratably over the subscription period (quarterly, semi-annually, annually). Operating profit for Q3 2025 was $20,000, compared to operating profit of $27,000 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 2025 was $20,000.
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
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Zealand, and Singapore will continue to be owned by Travelzoo as the licensor. Licensing revenue from the licensee in Australia was $9,000 for Q3 2025. Licensing revenue from the licensee in Japan was $7,000 for in Q3 2025. Licensing revenue is expected to increase going forward.
Reach
Travelzoo reaches 30 million travelers. This includes Jack's Flight Club. Comparisons to prior periods are no longer meaningful due to strategic developments of the Travelzoo membership.
Income Taxes
The reported income tax provision and reserves for Q3 2025 are $244,000. Travelzoo intends to utilize available net operating losses (NOLs) to largely offset its tax liability for Q3 2025.
Balance Sheet
As of September 30, 2025, cash, cash equivalents and restricted cash were $9.2 million. Cash flow from operations was ($0.4) million.
Deferred revenue increased because membership fees revenue is recognized ratably over the subscription period.
Share Repurchase Program
During Q3 2025, the Company repurchased 148,602 shares of its outstanding common stock.
Looking Ahead
For Q4 2025, we expect year-over-year revenue growth to continue. We expect revenue growth to accelerate as a trend in subsequent quarters, as membership fees revenue is recognized ratably over the subscription period of 12 months, as we acquire new members, and as more Legacy Members become Club Members. Over time, we expect profitability to substantially increase as recurring membership fees revenue will be recognized. In the short-term, fluctuations in reported net income are possible. We might see attractive opportunities to increase marketing. We expense marketing costs immediately.
In 2024, we introduced a membership fee for Travelzoo. Legacy Members, who joined prior to 2024, continue to receive certain travel offers. However, Club Offers and new benefits are only available to Club Members, who pay the membership fee. Therefore, we are seeing many Legacy Members become Club Members over time—in addition to new members who join.
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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 third quarter 2025 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 personally reviewed by our deal experts around the globe. We have our finger on the pulse of outstanding travel, entertainment, and lifestyle experiences. We work in partnership with thousands of top travel suppliers—our long-standing relationships give us access to irresistible deals.
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, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Revenues | $ | 22,198 | $ | 20,098 | $ | 69,245 | $ | 63,224 |
| Cost of revenues | 4,519 | 2,548 | 13,132 | 7,708 | ||||
| Gross profit | 17,679 | 17,550 | 56,113 | 55,516 | ||||
| Operating expenses: | ||||||||
| Sales and marketing | 12,198 | 8,247 | 34,378 | 26,231 | ||||
| Product development | 631 | 594 | 1,963 | 1,763 | ||||
| General and administrative | 4,362 | 4,664 | 13,419 | 13,875 | ||||
| Total operating expenses | 17,191 | 13,505 | 49,760 | 41,869 | ||||
| Operating income | 488 | 4,045 | 6,353 | 13,647 | ||||
| Other income (loss), net | (64) | 359 | 727 | 674 | ||||
| Income from operations before income taxes | 424 | 4,404 | 7,080 | 14,321 | ||||
| Income tax expense | 244 | 1,148 | 2,157 | 3,920 | ||||
| Net income | 180 | 3,256 | 4,923 | 10,401 | ||||
| Net income attributable to non-controlling interest | 29 | 72 | 201 | 54 | ||||
| Net income attributable to Travelzoo | $ | 151 | $ | 3,184 | $ | 4,722 | $ | 10,347 |
| Net income per share—basic | $ | 0.01 | $ | 0.26 | $ | 0.41 | $ | 0.81 |
| Net income per share—diluted | $ | 0.01 | $ | 0.26 | $ | 0.39 | $ | 0.79 |
| Shares used in per share calculation—basic | 10,987 | 12,176 | 11,585 | 12,851 | ||||
| Shares used in per share calculation—diluted | 11,213 | 12,386 | 11,974 | 13,035 |
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Travelzoo
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
| September 30,<br>2025 | December 31,<br>2024 | |||
|---|---|---|---|---|
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 8,491 | $ | 17,064 |
| Accounts receivable, net | 12,460 | 12,825 | ||
| Prepaid income taxes | 654 | 736 | ||
| Income taxes receivable | 887 | — | ||
| Prepaid expenses and other | 1,931 | 1,148 | ||
| Total current assets | 24,423 | 31,773 | ||
| Deposits and other | 302 | 374 | ||
| Deferred tax assets | 3,469 | 3,380 | ||
| Restricted cash | 756 | 675 | ||
| Operating lease right-of-use assets | 4,540 | 5,655 | ||
| Property and equipment, net | 278 | 423 | ||
| Intangible assets, net | 1,452 | 1,498 | ||
| Goodwill | 10,944 | 10,944 | ||
| Total assets | $ | 46,164 | $ | 54,722 |
| Liabilities and Equity | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 8,405 | $ | 6,162 |
| Merchant payables | 11,767 | 16,294 | ||
| Accrued expenses and other | 4,557 | 3,404 | ||
| Deferred revenue | 9,060 | 6,545 | ||
| Income tax payable | — | 1,619 | ||
| Operating lease liabilities | 2,058 | 2,472 | ||
| Total current liabilities | 35,847 | 36,496 | ||
| Long-term tax liability | 8,906 | 7,851 | ||
| Long-term operating lease liabilities | 4,494 | 5,646 | ||
| Other long-term liabilities | — | 376 | ||
| Total liabilities | 49,247 | 50,369 | ||
| Common stock | 109 | 118 | ||
| Tax indemnification | (9,537) | (9,537) | ||
| Retained earnings | 6,925 | 14,284 | ||
| Accumulated other comprehensive loss | (5,596) | (5,327) | ||
| Total Travelzoo stockholders’ equity (deficit) | (8,099) | (462) | ||
| Non-controlling interest | 5,016 | 4,815 | ||
| Total stockholder's equity (deficit) | (3,083) | 4,353 | ||
| Total liabilities and stockholder's equity | $ | 46,164 | $ | 54,722 |
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Travelzoo
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
| Three months ended | Nine months ended | |||||||
|---|---|---|---|---|---|---|---|---|
| September 30, | September 30, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 180 | $ | 3,256 | $ | 4,923 | $ | 10,401 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 57 | 179 | 239 | 737 | ||||
| Stock-based compensation | 399 | 457 | 1,108 | 1,240 | ||||
| Deferred income tax | (1) | (12) | 4 | (39) | ||||
| Net foreign currency effects | 71 | (154) | (224) | (165) | ||||
| Provision of loss (net recoveries) on accounts receivable and refund reserve | (93) | 128 | 30 | 121 | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (988) | 127 | 756 | (258) | ||||
| Prepaid income taxes | (154) | (134) | 84 | (461) | ||||
| Prepaid expenses, deposits and other | (560) | (69) | (703) | 464 | ||||
| Accounts payable | 2,314 | (284) | 2,134 | 430 | ||||
| Merchant payables | (612) | 431 | (5,053) | (3,348) | ||||
| Accrued expenses and other | (981) | 463 | 859 | 2,162 | ||||
| Deferred revenue | 643 | — | 2,363 | — | ||||
| Income tax payable | (576) | 315 | (2,584) | 593 | ||||
| Other liabilities | (73) | 628 | 273 | 1,381 | ||||
| Net cash provided by operating activities | (374) | 5,331 | 4,209 | 13,258 | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (15) | (46) | (49) | (129) | ||||
| Net cash used in investing activities | (15) | (46) | (49) | (129) | ||||
| Cash flows from financing activities: | ||||||||
| Repurchase of common stock | (1,545) | (6,183) | (12,964) | (16,605) | ||||
| Exercise of stock options and taxes paid for net share settlement of equity awards | — | (335) | (104) | (592) | ||||
| Net cash used in financing activities | (1,545) | (6,518) | (13,068) | (17,197) | ||||
| Effect of exchange rate on cash, cash equivalents and restricted cash | (17) | 96 | 415 | (215) | ||||
| Net increase in cash, cash equivalents and restricted cash | (1,951) | (1,137) | (8,493) | (4,283) | ||||
| Cash, cash equivalents and restricted cash at beginning of period | 11,198 | 13,243 | 17,740 | 16,389 | ||||
| Cash, cash equivalents and restricted cash at end of period | $ | 9,247 | $ | 12,106 | $ | 9,247 | $ | 12,106 |
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Travelzoo
Segment Information from Continuing Operations
(Unaudited)
(In thousands)
| Three months ended September 30, 2025 | Travelzoo North<br>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 | 6,104 | 2,656 | 704 | 48 | 9,512 | |||||
| Operating profit (loss) | 1,128 | (640) | 20 | (20) | 488 | |||||
| Other income (loss), net | (64) | |||||||||
| Income from operations before income taxes | 424 | |||||||||
| Three months ended September 30, 2024 | Travelzoo North<br>America | Travelzoo Europe | Jack's Flight Club | New Initiatives | Consolidated | |||||
| Revenues from unaffiliated customers | $ | 12,846 | $ | 6,021 | $ | 1,198 | $ | 33 | $ | 20,098 |
| Intersegment revenues | (24) | (3) | 27 | — | — | |||||
| Total net revenues | 12,822 | 6,018 | 1,225 | 33 | 20,098 | |||||
| Sales and marketing expenses | 4,557 | 3,038 | 511 | 145 | 8,251 | |||||
| Other expenses | 5,115 | 1,952 | 687 | 48 | 7,802 | |||||
| Operating profit (loss) | 3,150 | 1,028 | 27 | (160) | 4,045 | |||||
| Other income, net | 359 | |||||||||
| Income from operations before income taxes | 4,404 | |||||||||
| Nine months ended September 30, 2025 | Travelzoo North<br>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 | 18,550 | 7,856 | 1,963 | 145 | 28,514 | |||||
| Operating profit (loss) | 7,542 | (1,296) | 188 | (81) | 6,353 | |||||
| Other income, net | 727 | |||||||||
| Income from operations before income taxes | 7,080 |
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| Nine months ended September 30, 2024 | Travelzoo North<br>America | Travelzoo Europe | Jack's Flight Club | New Initiatives | Consolidated | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Revenues from unaffiliated customers | $ | 41,134 | $ | 18,605 | $ | 3,397 | $ | 88 | $ | 63,224 |
| Intersegment revenues | 50 | 26 | (76) | — | — | |||||
| Total net revenues | 41,184 | 18,631 | 3,321 | 88 | 63,224 | |||||
| Sales and marketing expenses | 15,107 | 9,429 | 1,393 | 280 | 26,209 | |||||
| Other expenses | 14,772 | 6,280 | 2,034 | 282 | 23,368 | |||||
| Operating profit (loss) | 11,305 | 2,922 | (106) | (474) | 13,647 | |||||
| Other income, net | 674 | |||||||||
| Income from operations before income taxes | 14,321 |
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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, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| GAAP operating expense | $ | 17,191 | $ | 13,505 | $ | 49,760 | $ | 41,869 |
| Non-GAAP adjustments: | ||||||||
| Amortization of intangibles (A) | 2 | 95 | 45 | 500 | ||||
| Stock option expenses (B) | 399 | 456 | 1,108 | 1,239 | ||||
| Severance-related expenses (C) | 167 | 330 | 395 | 360 | ||||
| Non-GAAP operating expense | 16,623 | 12,624 | 48,212 | 39,770 | ||||
| GAAP operating income | 488 | 4,045 | 6,353 | 13,647 | ||||
| Non-GAAP adjustments (A through C) | 568 | 881 | 1,548 | 2,099 | ||||
| Non-GAAP operating income | 1,056 | 4,926 | 7,901 | 15,746 |
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q32025presentationfinalv
Third Quarter 2025 Performance October 28, 2025
2 | Third Quarter 2025 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 2025 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 2025 Performance Part 1: Third Quarter 2025 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META
4 | Third Quarter 2025 Performance 20.1 22.2 Q3 2024 Q3 2025 Revenue increased 10% year-over-year. As expected, operating profit was lower as we invested more in the growth of Club Members. Revenue $ millions Operating Profit $ millions 4.0 0.5 Q3 2024 Q3 2025
5 | Third Quarter 2025 Performance Investments in the acquisition of Club Members are attractive, as they have a quick payback. Average Acquisition Cost of Annual Club Members* Q3 2025, US market $ ($28) ($38) Q1 2025 Q2 2025 * Most new Club members join on a trial basis. Acquisition cost here is presented for Club Members who paid the annual fee—after trial conversion. 1st year annual membership fee $40 Additional revenue from transactions within the same quarter Additional advertising revenue Future membership and other revenue Payback on member acquisition is positive within a quarter, even though revenue recognition is delayed $15 Return from Club Members Acquired in the Quarter and Future Periods Q3 2025, US market $ ($40) Q3 2025
6 | Third Quarter 2025 Performance $40 $1.67 $10 $10 $10 $8.33 Payment by member Revenue recognized But, 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 September 15, 2025, paying a membership fee of $40 per annum Revenue Recognition $ Revenue recognized Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026
7 | Third Quarter 2025 Performance Higher member acquisition expenses, coupled with only a small portion of revenue recognized in the quarter, reduced EPS in the current quarter but will increase it over time. Direct Member Acquisition Costs in Q3 2025* $ millions -$2.9 $1.0 Q3 2025 Q4 2025 2026 and forward ($2.9) Impact on Earnings per Share** $0.05 $0.07 min. $0.20($0.20) Net impact ($0.15) * Includes direct marketing expenses over which we have full discretion—and which we fully record in the quarter. Does not include fixed expenses like marketing staff, nor expenses for creating certain Club Offers which we utilize to attract and retain Club Members. But these on average attribute to income, rather than lower it. ** Assuming constant tax rate. $3.0+ Revenue Generated from these Members in Q3 2025 and in Future Periods $ millions ($0.7)
8 | Third Quarter 2025 Performance Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 This strategy is fueling member growth. New Club Members come roughly half from Legacy Members and half from those new to Travelzoo. Number of Travelzoo Club Members at End of Each Quarter
9 | Third Quarter 2025 Performance Membership fees, which are more stable and predictable, are adding revenue and are becoming a larger share. Next year, we expect them to account for around 25% of revenue. Advertising and Commerce Global Revenues $ millions 19.4 20.9 20.0 18.7 19.1 20.7 20.9 18.6 Q4 2023 Q1 2024 Q2 2024 Membership Fees 1.2 1.1 1.2 1.4 1.6 2.4 3.0 3.6 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
10 | Third Quarter 2025 Performance 1.0 Revenue growth came from all segments. With favorable ROI on member acquisition in the UK, we invested heavily there. Jack’s Flight Club revenue increased by 12%. Revenue $ millions North America Segment Europe Segment Operating Profit $ millions 6.0 6.6 Jack’s Flight Club Segment 1.2 1.4 0.2 3.2 1.1 12.8 14.2 Q3 2024 Q3 2025 Q3 2024 Q3 2025 (0.6) 0.3
11 | Third Quarter 2025 Performance 4% 7% 9% 11% 18% 22% 16% 9% 2% 2017 2018 2019 2020 2021 2022 2023 2024 Q1 2025 Q2 2025 Q3 2025 Acquiring more Club Members has the effect of lower GAAP operating margin. Still, our goal is to further grow the number of Club Members to accelerate Travelzoo’s growth. Operating Margin (26%) (2%)
12 | Third Quarter 2025 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 31% 27% 22% 29% 31% 26% 25% 33% 24% 17% 8% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 8% 4% 13% 21% 8% 17% 3% 3% (4%) (14%) (10%)
13 | Third Quarter 2025 Performance 4.0 0.9 4.9 Q3 2024 * GAAP operating profit + amortization of intangibles + stock option expenses + severance-related expenses = non-GAAP operating profit Total non-GAAP operating profit was $1.1 million or 5% of revenue. Non-GAAP Operating Profit* $ millions GAAP Operating Profit Adjustments Non-GAAP Operating Profit* 0.5 0.6 1.1 Q3 2025
14 | Third Quarter 2025 Performance Items excluded in the calculation of non-GAAP operating profit: $ millions Q3 2024 Q3 2025 Adjustments 0.9 0.6 Amortization of intangibles 0.1 0.0 Stock option expense 0.5 0.4 Severance-related expenses 0.3 0.2
15 | Third Quarter 2025 Performance 12.1 11.2 9.2 Q3 2024 Q2 2025 Q3 2025 Cash flow from operations was ($0.4) million. We reduced merchant payables by $0.7 million and repurchased 148,602 shares. Cash Balance at End of Quarter* $ millions * Includes cash, cash equivalents and restricted cash
16 | Third Quarter 2025 Performance Part 1: Third Quarter 2025 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META
17 | Third Quarter 2025 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 (currently $40 for a 12-month period) 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 • Member Days—48-hour sale events for Club Members, happening 4x per year • Complimentary access to airport lounges worldwide in case of flight delays • Culinary travel deals (coming soon)
18 | Third Quarter 2025 Performance A few of the exclusive Club Offers that we created for Club Members during Q3: $399—Caribbean all-inclusive getaway, incl. flights £109pp & up—Futuristic ABBA Voyage show with London hotel stay €99—Rome: 2 nights in a 4-star hotel, up to 69% off $1699—Fairmont Mayakoba: 5-star all-inclusive retreat for 2
19 | Third Quarter 2025 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 2025 Performance Travelzoo is loved by travel enthusiasts who are affluent, active and open to new experiences. 60% ages 45+ 40% ages 18-44 61% female 39% male Audience Demographics Our Audience Compared To The General Population Open to new destinations and travel ideas 79% 84% Likely to book an unplanned trip with an attractive offer 78% 88% Travelzoo Members General Population * Sources: Google Analytics, average taken over July to December, 2024; Travelzoo Trends Survey 2024, August 2024, Travelzoo members n=31,373, general population n=2,541; Travelzoo Domestic Travel Outlook in the U.S., April 2025, n=1,494; American Community Survey, U.S. Census Bureau ** HHI is U.S. only, Travelzoo percentage excludes 33% of U.S. respondents who did not specify their HHI Have a household income greater than $200,000** 12% 21% Have the budget to treat themselves and purchase non-essentials 34% 53%
21 | Third Quarter 2025 Performance Part 1: Second Quarter 2025 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META
22 | Third Quarter 2025 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 profitable subscription revenue • Develop Travelzoo META with discipline
23 | Third Quarter 2025 Performance Part 1: Third Quarter 2025 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META
24 | Third Quarter 2025 Performance
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