Travelzoo Reports Second Quarter 2026 Results
NEW YORK, July 28, 2026 /PRNewswire/ -- Travelzoo® (NASDAQ: TZOO):
Travelzoo, the club for travel enthusiasts, today announced financial results for the second quarter ended June 30, 2026. Consolidated revenue was $23.2 million, down 3% from $23.9 million year-over-year. In constant currencies, revenue was $23.1 million. Travelzoo's reported revenue consists of advertising revenues and commissions, derived from and generated in connection with purchases made by Travelzoo members, and membership fees.
During Q2, international conflicts created uncertainty among advertisers and travelers. All of Travelzoo's business segments were negatively impacted. Management considers this a temporary effect. In Q2, we continued to invest significantly in growing Club Members and accelerated the shift towards recurring membership revenues. Marketing costs were expensed immediately. Membership fees revenue is recognized ratably over the subscription period of 12 months. In Q2, the number of renewals of memberships jumped to the highest ever. Going forward, we expect renewals of memberships to further increase because of a growing base of members. We refer to our investor presentation.
Net Loss attributable to Travelzoo was $2.1 million for Q2 2026, or $(0.21) per share, compared with $0.12 per share in the prior-year period.
Non-GAAP operating loss was $2.1 million. Non-GAAP operating loss excludes stock option expenses ($684,000). Please refer to "Non-GAAP Financial Measures" and the tabular reconciliation below.
"We will continue to leverage Travelzoo's global reach, trusted brand, and strong relationships with top travel suppliers to negotiate more Club Offers for Club Members and add new benefits, such as our popular complimentary airport lounge access worldwide in case of a delayed flight," said Holger Bartel, Travelzoo's Global CEO. "Travelzoo members are affluent, active, and open to new experiences. We inspire travel enthusiasts to travel to places they never imagined they could. Travelzoo is the must-have membership for those who love to travel as much as we do."
Travelzoo North America
North America business segment revenue decreased 3% year-over-year to $15.7 million. Operating loss for Q2 2026 was $1.5 million, or 10% of revenue, compared to operating profit of $2.8 million or 17% of revenue in the prior-year period.
Travelzoo Europe
Europe business segment revenue decreased 2% year-over-year to $6.2 million. Operating loss for Q2 2026 was $1.2 million, or 19% of revenue, compared to operating loss of $0.9, or 14% of revenue in the prior-year period.
Jack's Flight Club
Jack's Flight Club is a membership subscription service in which Travelzoo has a 60% ownership interest. Revenue decreased 7% year-over-year to $1.3 million. Jack's Flight Club's revenue from subscriptions is recognized ratably over the subscription period (quarterly, semi-annually, annually). Operating loss for Q2 2026 was $34,000, compared to operating profit of $156,000 in the prior-year period.
New Initiatives
New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was $17,000. Operating loss for Q2 2026 was $35,000.
In 2020, Travelzoo entered into royalty-bearing licensing agreements with local licensees for the exclusive use of Travelzoo's brand, business model, and members in Australia, Japan, New Zealand, and Singapore. Under these arrangements, Travelzoo's existing members in Australia, Japan, New Zealand, and Singapore will continue to be owned by Travelzoo as the licensor. Licensing revenue from the licensee in Australia was $10,000 for Q2 2026. Licensing revenue from the licensee in Japan was $7,000 for Q2 2026. Licensing revenue is expected to increase going forward.
Reach
Travelzoo reaches 30 million travelers. This includes Jack's Flight Club. Comparisons to prior periods are no longer meaningful due to strategic developments of the Travelzoo membership.
Income Taxes
The reported income tax benefit for Q2 2026 was $(382,000).
Balance Sheet
As of June 30, 2026, cash, cash equivalents and restricted cash were $7.6 million. Cash flow from operations was $(1.7) million.
Deferred revenue increased because membership fees are earned over the subscription period. Membership fees revenue is recognized ratably over the subscription period.
Share Repurchase Program
During Q2 2026, the Company repurchased 200,000 shares of its outstanding common stock.
Looking Ahead
For Q3 2026, we expect year-over-year revenue growth. We also expect revenue growth in subsequent quarters, as membership fees revenue is recognized ratably over the subscription period of 12 months, as we grow Club Members, and as more Legacy Members become Club Members. Over time, we expect profitability to increase as recurring membership fees revenue will be recognized. In the short-term, fluctuations in reported net income are likely.
In 2024, we introduced a membership fee for Travelzoo. Legacy Members, who joined prior to 2024, continue to receive certain travel offers. However, Club Offers and new benefits are only available to Club Members, who pay the membership fee. Therefore, we are seeing many Legacy Members become Club Members over time—in addition to new members who join.
Non-GAAP Financial Measures
Management calculates non-GAAP operating income when evaluating the financial performance of the business. Calculation of non-GAAP operating income, also called "non-GAAP operating profit" in this press release and today's earnings conference call, excludes the following items: amortization of intangibles, stock option expenses, and severance-related expenses. This press release includes a table which reconciles GAAP operating income to the calculation of non-GAAP operating income. Non-GAAP operating income is not required by, or presented in accordance with, generally accepted accounting principles in the United States of America ("GAAP"). This information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies.
Conference Call
Travelzoo will host a conference call to discuss second quarter 2026 results today at 11:00 a.m. ET. Please visit http://ir.travelzoo.com/events-presentations to
About Travelzoo
We, Travelzoo®, are the club for travel enthusiasts. We reach 30 million travelers. Club Members receive Club Offers negotiated and rigorously vetted by our deal experts around the globe. Our relationships with thousands of top travel companies give us access to irresistible deals. Our club and its benefits are built around the lifestyle of a modern travel enthusiast.
Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words "expect", "predict", "project", "anticipate", "believe", "estimate", "intend", "plan", "seek" and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
Travelzoo
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three months ended
Six months ended
June 30,
June 30,
2026
2025
2026
2025
Revenues
$ 23,208
$ 23,906
$ 47,481
$ 47,046
Cost of revenues
7,104
5,163
12,340
9,335
Gross profit
16,104
18,743
35,141
37,711
Operating expenses:
Sales and marketing
13,734
11,483
24,850
21,708
Product development
602
698
1,266
1,332
General and administrative
4,530
4,502
8,343
8,807
Total operating expenses
18,866
16,683
34,459
31,847
Operating income (loss)
(2,762)
2,060
682
5,864
Other income, net
274
161
270
790
Income (loss) before income taxes
(2,488)
2,221
952
6,654
Income tax expense (benefit)
(382)
740
561
1,912
Net income (loss)
(2,106)
1,481
391
4,742
Net income attributable to non-controlling interest
30
79
51
172
Net income (loss) attributable to Travelzoo
$ (2,136)
$ 1,402
$ 340
$ 4,570
Net income (loss) per share—basic
$ (0.21)
$ 0.13
$ 0.03
$ 0.39
Net income (loss) per share—diluted
$ (0.21)
$ 0.12
$ 0.03
$ 0.38
Shares used in per share calculation—basic
10,319
11,139
10,577
11,617
Shares used in per share calculation—diluted
10,319
11,505
10,658
12,088
Travelzoo
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
June 30,
2026
December 31,
2025
Assets
Current assets:
Cash and cash equivalents
$ 6,838
$ 10,007
Accounts receivable, net
14,543
10,723
Prepaid income taxes
1,827
1,364
Prepaid expenses and other
2,064
1,302
Total current assets
25,272
23,396
Deposits and other
193
166
Deferred tax assets
4,744
4,202
Restricted cash
754
756
Operating lease right-of-use assets
4,334
4,047
Property and equipment, net
132
231
Intangible assets, net
1,450
1,450
Goodwill
10,944
10,944
Total assets
$ 47,823
$ 45,192
Liabilities and Equity
Current liabilities:
Accounts payable
$ 7,811
$ 7,761
Merchant payables
10,723
11,665
Accrued expenses and other
5,544
3,926
Deferred revenue
13,400
8,728
Income tax payable
71
279
Operating lease liabilities
2,026
1,811
Total current liabilities
39,575
34,170
Long-term tax liability
10,770
9,260
Long-term operating lease liabilities
4,074
4,184
Total liabilities
54,419
47,614
Common stock
102
109
Tax indemnification
(9,537)
(9,537)
Retained earnings
3,105
7,243
Accumulated other comprehensive loss
(5,410)
(5,331)
Total Travelzoo stockholders' equity (deficit)
(11,740)
(7,516)
Non-controlling interest
5,144
5,094
Total stockholders' equity (deficit)
(6,596)
(2,422)
Total liabilities and stockholders' equity
$ 47,823
$ 45,192
Travelzoo
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Three months ended
Six months ended
June 30,
June 30,
2026
2025
2026
2025
Cash flows from operating activities:
Net income (loss)
$ (2,106)
$ 1,481
$ 391
$ 4,742
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
54
106
110
182
Stock-based compensation
684
339
719
708
Deferred income tax
(728)
1
(753)
5
Net foreign currency effects
(24)
(188)
52
(295)
Provision of loss (net recoveries) on accounts receivable and refund reserve
(157)
(83)
(146)
124
Changes in operating assets and liabilities:
Accounts receivable
(1,039)
1,309
(3,857)
1,743
Prepaid income taxes
(322)
301
(575)
238
Prepaid expenses, deposits and other
1,008
277
(521)
(144)
Accounts payable
(492)
(36)
18
(180)
Merchant payables
(2,723)
(2,790)
(814)
(4,441)
Accrued expenses and other
1,179
975
1,733
1,842
Deferred revenue
2,780
478
4,763
1,720
Income tax payable
(57)
(1,058)
(121)
(2,007)
Other liabilities
276
188
1,186
345
Net cash (used) provided by operating activities
(1,667)
1,300
2,185
4,582
Cash flows from investing activities:
Purchases of property and equipment
(6)
(14)
(14)
(34)
Net cash used in investing activities
(6)
(14)
(14)
(34)
Cash flows from financing activities:
Repurchase of common stock
(1,938)
(2,500)
(5,205)
(11,418)
Exercise of stock options and taxes paid for net share settlement of equity awards
—
(104)
—
(104)
Net cash used in financing activities
(1,938)
(2,604)
(5,205)
(11,522)
Effect of exchange rate on cash, cash equivalents and restricted cash
(122)
289
(137)
432
Net increase (decrease) in cash, cash equivalents and restricted cash
(3,733)
(1,029)
(3,171)
(6,542)
Cash, cash equivalents and restricted cash at beginning of period
11,325
12,227
10,763
17,740
Cash, cash equivalents and restricted cash at end of period
$ 7,592
$ 11,198
$ 7,592
$ 11,198
Travelzoo
Segment Information from Continuing Operations
(Unaudited)
(In thousands)
Three months ended June 30, 2026
Travelzoo
North
America
Travelzoo
Europe
Jack's
Flight Club
New
Initiatives
Consolidated
Revenues from unaffiliated customers
$ 15,548
$ 6,376
$ 1,267
$ 17
$ 23,208
Intersegment revenues
131
(139)
8
—
—
Total net revenues
15,679
6,237
1,275
17
23,208
Sales and marketing expenses
8,307
4,821
606
—
13,734
Other expenses
8,866
2,615
703
52
12,236
Operating profit (loss)
(1,494)
(1,199)
(34)
(35)
(2,762)
Other income, net
274
Income (loss) from operations before income taxes
(2,488)
Three months ended June 30, 2025
Travelzoo
North
America
Travelzoo
Europe
Jack's
Flight Club
New
Initiatives
Consolidated
Revenues from unaffiliated customers
$ 15,737
$ 6,740
$ 1,410
$ 19
$ 23,906
Intersegment revenues
395
(355)
(40)
—
—
Total net revenues
16,132
6,385
1,370
19
23,906
Sales and marketing expenses
6,453
4,427
603
—
11,483
Other expenses
6,861
2,841
611
50
10,363
Operating profit (loss)
2,818
(883)
156
(31)
2,060
Other income, net
161
Income from operations before income taxes
2,221
Six months ended June 30, 2026
Travelzoo
North
America
Travelzoo
Europe
Jack's
Flight Club
New
Initiatives
Consolidated
Revenues from unaffiliated customers
$ 30,875
$ 13,961
$ 2,611
$ 34
$ 47,481
Intersegment revenues
473
(448)
(25)
—
—
Total net revenues
31,348
13,513
2,586
34
47,481
Sales and marketing expenses
14,310
9,342
1,198
—
24,850
Other expenses
15,285
5,091
1,470
103
21,949
Operating profit (loss)
1,753
(920)
(82)
(69)
682
Other income, net
270
Income from operations before income taxes
952
Six months ended June 30, 2025
Travelzoo
North
America
Travelzoo
Europe
Jack's
Flight Club
New
Initiatives
Consolidated
Revenues from unaffiliated customers
$ 30,567
$ 13,710
$ 2,733
$ 36
$ 47,046
Intersegment revenues
693
(613)
(80)
—
—
Total net revenues
31,260
13,097
2,653
36
47,046
Sales and marketing expenses
12,153
8,329
1,226
—
21,708
Other expenses
12,695
5,423
1,259
97
19,474
Operating profit (loss)
6,412
(655)
168
(61)
5,864
Other income, net
790
Income from operations before income taxes
6,654
Travelzoo
Reconciliation of GAAP to Non-GAAP Information
(Unaudited)
(In thousands, except per share amounts)
Three months ended
Six months ended
June 30,
June 30,
2026
2025
2026
2025
GAAP operating expense
$ 18,866
$ 16,683
$ 34,459
$ 31,847
Non-GAAP adjustments:
Amortization of intangibles (A)
—
16
—
42
Stock option expenses (B)
684
339
719
709
Severance-related expenses (C)
—
6
15
227
Non-GAAP operating expense
18,182
16,322
33,725
30,869
GAAP operating income (loss)
(2,762)
2,060
682
5,864
Non-GAAP adjustments (A through C)
684
361
734
978
Non-GAAP operating income (loss)
(2,078)
2,421
1,416
6,842
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SOURCE Travelzoo