Travelzoo Reports Fourth Quarter 2025 Results
NEW YORK, Feb. 19, 2026 /PRNewswire/ -- Travelzoo® (NASDAQ: TZOO):
Travelzoo, the club for travel enthusiasts, today announced financial results for the fourth quarter ended December 31, 2025. Consolidated revenue was $22.5 million, up 9% from $20.7 million year-over-year. In constant currencies, revenue was $22.1 million, up 7% 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 Q4, we continued to invest significantly in acquiring more Club Members when we saw that we can achieve a positive return on investment (ROI). Marketing costs were expensed immediately. Membership fees revenue is recognized ratably over the subscription period of 12 months. The effect is a sizable reduction in EPS. We refer to our investor presentation.
Net loss attributable to Travelzoo was $19,000 for Q4 2025, or $0.00 per share, compared with $0.26 per share in the prior-year period.
Non-GAAP operating profit was $0.9 million. Non-GAAP operating profit excludes amortization of intangibles ($2,000) and stock option expenses ($339,000). 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 6% year-over-year to $14.8 million. Operating profit for Q4 2025 was $1.5 million, or 10% of revenue, compared to operating profit of $4.6 million or 33% of revenue in the prior-year period.
Travelzoo Europe
Europe business segment revenue increased 16% year-over-year to $6.3 million. Operating loss for Q4 2025 was $1 million, or 16% of revenue, compared to operating profit of $159,000, or 3% 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 2% year-over-year to $1.3 million. The number of premium subscribers remained flat 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 Q4 2025 was $153,000, compared to operating profit of $150,000 in the prior-year period.
New Initiatives
New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was $16,000. Operating loss for Q4 2025 was $34,000.
In 2020, Travelzoo entered into royalty-bearing licensing agreements with local licensees for the exclusive use of Travelzoo's brand, business model, and members in Australia, Japan, New Zealand, and Singapore. Under these arrangements, Travelzoo's existing members in Australia, Japan, New Zealand, and Singapore will continue to be owned by Travelzoo as the licensor. Licensing revenue from the licensee in Australia was $8,000 for Q4 2025. Licensing revenue from the licensee in Japan was $7,000 for Q4 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 Q4 2025 are $521,000. Travelzoo intends to utilize available net operating losses (NOLs) to largely offset its tax liability for Q4 2025.
Balance Sheet
As of December 31, 2025, cash, cash equivalents and restricted cash were $10.8 million. Cash flow from operations was $1.5 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 Q4 2025, the Company didn't repurchase shares of its outstanding common stock.
Looking Ahead
For Q1 2026, we expect year-over-year revenue growth to continue. We expect continued revenue growth in subsequent quarters, as membership fees revenue is recognized ratably over the subscription period of 12 months, as we acquire new members, and as more Legacy Members become Club Members. Over time, we expect profitability to increase as recurring membership fees revenue will be recognized. In the short-term, fluctuations in reported net income are possible. We might see attractive opportunities to increase marketing. We expense marketing costs immediately.
In 2024, we introduced a membership fee for Travelzoo. Legacy Members, who joined prior to 2024, continue to receive certain travel offers. However, Club Offers and new benefits are only available to Club Members, who pay the membership fee. Therefore, we are seeing many Legacy Members become Club Members over time—in addition to new members who join.
Non-GAAP Financial Measures
Management calculates non-GAAP operating income when evaluating the financial performance of the business. Calculation of non-GAAP operating income, also called "non-GAAP operating profit" in this press release and today's earnings conference call, excludes the following items: amortization of intangibles, stock option expenses, and severance-related expenses. This press release includes a table which reconciles GAAP operating income to the calculation of non-GAAP operating income. Non-GAAP operating income is not required by, or presented in accordance with, generally accepted accounting principles in the United States of America ("GAAP"). This information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies.
Conference Call
Travelzoo will host a conference call to discuss fourth quarter 2025 results today at 11:00 a.m. ET. Please visit http://ir.travelzoo.com/events-presentations to
About Travelzoo
We, Travelzoo®, are the club for travel enthusiasts. We reach 30 million travelers. Club Members receive Club Offers negotiated and rigorously vetted by our deal experts around the globe. Our relationships with thousands of top travel companies give us access to irresistible deals. Our club and its benefits are built around the lifestyle of a modern travel enthusiast.
Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words "expect", "predict", "project", "anticipate", "believe", "estimate", "intend", "plan", "seek" and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
Travelzoo
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three months ended
Twelve months ended
December 31,
December 31,
2025
2024
2025
2024
Revenues
$ 22,474
$ 20,678
$ 91,719
$ 83,902
Cost of revenues
4,944
2,761
18,076
10,469
Gross profit
17,530
17,917
73,643
73,433
Operating expenses:
Sales and marketing
10,889
8,239
45,267
34,470
Product development
588
644
2,551
2,407
General and administrative
5,499
4,183
18,919
18,058
Total operating expenses
16,976
13,066
66,737
54,935
Operating income
554
4,851
6,906
18,498
Other income (loss), net
27
(86)
753
588
Income from operations before income taxes
581
4,765
7,659
19,086
Income tax expense
521
1,484
2,679
5,404
Net income
60
3,281
4,980
13,682
Net income attributable to non-controlling interest
79
64
280
118
Net income (loss) attributable to Travelzoo
$ (19)
$ 3,217
$ 4,700
$ 13,564
Net income per share—basic
$ —
$ 0.27
$ 0.42
$ 1.08
Net income per share—diluted
$ —
$ 0.26
$ 0.41
$ 1.06
Shares used in per share calculation—basic
10,932
11,831
11,180
12,594
Shares used in per share calculation—diluted
10,959
12,358
11,477
12,852
Travelzoo
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
December 31,
2025
December 31,
2024
Assets
Current assets:
Cash and cash equivalents
$ 10,007
$ 17,064
Accounts receivable, net
10,723
12,825
Prepaid income taxes
1,278
736
Prepaid expenses and other
1,302
1,148
Total current assets
23,310
31,773
Deposits and other
166
374
Deferred tax assets
4,202
3,380
Restricted cash
756
675
Operating lease right-of-use assets
4,047
5,655
Property and equipment, net
231
423
Intangible assets, net
1,452
1,498
Goodwill
10,944
10,944
Total assets
$ 45,108
$ 54,722
Liabilities and Equity
Current liabilities:
Accounts payable
$ 7,761
$ 6,162
Merchant payables
11,665
16,294
Accrued expenses and other
3,926
3,404
Deferred revenue
8,728
6,545
Income tax payable
193
1,619
Operating lease liabilities
1,811
2,472
Total current liabilities
34,084
36,496
Long-term tax liability
9,260
7,851
Long-term operating lease liabilities
4,184
5,646
Other long-term liabilities
—
376
Total liabilities
47,528
50,369
Common stock
109
118
Tax indemnification
(9,537)
(9,537)
Retained earnings
7,244
14,284
Accumulated other comprehensive loss
(5,331)
(5,327)
Total Travelzoo stockholders' equity (deficit)
(7,515)
(462)
Non-controlling interest
5,095
4,815
Total stockholders' equity (deficit)
(2,420)
4,353
Total liabilities and stockholders' equity
$ 45,108
$ 54,722
Travelzoo
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Three months ended
Twelve months ended
December 31,
December 31,
2025
2024
2025
2024
Cash flows from operating activities:
Net income
$ 60
$ 3,281
$ 4,980
$ 13,682
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
64
170
303
907
Stock-based compensation
339
405
1,447
1,646
Deferred income tax
(520)
(476)
(516)
(518)
Net foreign currency effects
7
132
(216)
(33)
Provision of loss (net recoveries) on accounts receivable and refund reserve
152
(81)
182
40
Changes in operating assets and liabilities:
Accounts receivable
1,619
113
2,374
(145)
Prepaid income taxes
(615)
354
(531)
(107)
Prepaid expenses, deposits and other
883
319
181
950
Accounts payable
(661)
1,286
1,473
1,716
Merchant payables
(131)
(709)
(5,184)
(4,057)
Accrued expenses and other
(647)
(661)
214
(282)
Deferred revenue
(348)
2,767
2,015
4,556
Income tax payable
1,077
264
(1,507)
857
Other liabilities
173
507
446
1,888
Net cash provided by operating activities
1,452
7,671
5,661
21,100
Cash flows from investing activities:
Purchases of property and equipment
(16)
(48)
(65)
(177)
Net cash used in investing activities
(16)
(48)
(65)
(177)
Cash flows from financing activities:
Repurchase of common stock
—
(2,324)
(12,964)
(18,929)
Proceeds from note receivable from shareholder
—
1,920
—
1,753
Exercise of stock options and taxes paid for net share settlement of equity awards
—
(1,195)
(104)
(1,797)
Net cash used in financing activities
—
(1,599)
(13,068)
(18,973)
Effect of exchange rate on cash, cash equivalents and restricted cash
80
(390)
495
(599)
Net increase (decrease) in cash, cash equivalents and restricted cash
1,516
5,634
(6,977)
1,351
Cash, cash equivalents and restricted cash at beginning of period
9,247
12,106
17,740
16,389
Cash, cash equivalents and restricted cash at end of period
$ 10,763
$ 17,740
$ 10,763
$ 17,740
Travelzoo
Segment Information from Continuing Operations
(Unaudited)
(In thousands)
Three months ended December 31, 2025
Travelzoo North
America
Travelzoo
Europe
Jack's
Flight Club
New
Initiatives
Consolidated
Revenues from unaffiliated customers
$ 14,705
$ 6,377
$ 1,376
$ 16
$ 22,474
Intersegment revenues
95
(62)
(33)
—
—
Total net revenues
14,800
6,315
1,343
16
22,474
Sales and marketing expenses
6,101
4,295
493
—
10,889
Other expenses
7,244
3,040
697
50
11,031
Operating profit (loss)
1,455
(1,020)
153
(34)
554
Other income (loss), net
27
Income from operations before income taxes
581
Three months ended December 31, 2024
Travelzoo North
America
Travelzoo
Europe
Jack's
Flight Club
New
Initiatives
Consolidated
Revenues from unaffiliated customers
$ 13,834
$ 5,508
$ 1,317
$ 19
$ 20,678
Intersegment revenues
74
(68)
(6)
—
—
Total net revenues
13,908
5,440
1,311
19
20,678
Sales and marketing expenses
4,641
3,110
488
—
8,239
Other expenses
4,689
2,171
673
55
7,588
Operating profit (loss)
4,578
159
150
(36)
4,851
Other income, net
(86)
Income from operations before income taxes
4,765
Twelve months ended December 31, 2025
Travelzoo North
America
Travelzoo
Europe
Jack's
Flight Club
New
Initiatives
Consolidated
Revenues from unaffiliated customers
$ 59,001
$ 27,122
$ 5,516
$ 80
$ 91,719
Intersegment revenues
1,291
(1,146)
(145)
—
—
Total net revenues
60,292
25,976
5,371
80
91,719
Sales and marketing expenses
25,501
17,396
2,370
—
45,267
Other expenses
25,796
10,895
2,660
195
39,546
Operating profit (loss)
8,995
(2,315)
341
(115)
6,906
Other income, net
753
Income from operations before income taxes
7,659
Twelve months ended December 31, 2024
Travelzoo North
America
Travelzoo
Europe
Jack's
Flight Club
New
Initiatives
Consolidated
Revenues from unaffiliated customers
$ 54,968
$ 24,113
$ 4,714
$ 107
$ 83,902
Intersegment revenues
124
(42)
(82)
—
—
Total net revenues
55,092
24,071
4,632
107
83,902
Sales and marketing expenses
19,748
12,561
1,881
280
34,470
Other expenses
19,461
8,429
2,707
337
30,934
Operating profit (loss)
15,883
3,081
44
(510)
18,498
Other income, net
588
Income from operations before income taxes
19,086
Travelzoo
Reconciliation of GAAP to Non-GAAP Information
(Unaudited)
(In thousands, except per share amounts)
Three months ended
Twelve months ended
December 31,
December 31,
2025
2024
2025
2024
GAAP operating expense
$ 16,976
$ 13,066
$ 66,737
$ 54,935
Non-GAAP adjustments:
Amortization of intangibles (A)
2
93
48
593
Stock option expenses (B)
339
405
1,447
1,644
Severance-related expenses (C)
—
—
395
360
Non-GAAP operating expense
16,635
12,568
64,847
52,338
GAAP operating income
554
4,851
6,906
18,498
Non-GAAP adjustments (A through C)
341
498
1,890
2,597
Non-GAAP operating income
895
5,349
8,796
21,095
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SOURCE Travelzoo