EX-99.1 2 ex-99112x31x20258xk.htm EX-99.1 Document

Exhibit 99.1
travellogo11062017a13a.jpg
Travelzoo
590 Madison Avenue
35th Floor
New York, NY 10022

Investor Relations:
ir@travelzoo.com

FOR IMMEDIATE RELEASE

Travelzoo Reports Fourth Quarter 2025 Results

NEW YORK, February 19, 2026 — Travelzoo® (NASDAQ: TZOO):

•Revenue of $22.5 million, up 9% year-over-year
•Consolidated operating profit of $0.6 million
•Non-GAAP consolidated operating profit of $0.9 million
•Cash flow from operations of $1.5 million
•Earnings per share (EPS) of $0.00

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.

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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
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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.

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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 fourth 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 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 endedTwelve months ended
 December 31,December 31,
 2025202420252024
Revenues$22,474 $20,678 $91,719 $83,902 
Cost of revenues4,944 2,761 18,076 10,469 
Gross profit17,530 17,917 73,643 73,433 
Operating expenses:
Sales and marketing10,889 8,239 45,267 34,470 
Product development 588 644 2,551 2,407 
General and administrative5,499 4,183 18,919 18,058 
Total operating expenses16,976 13,066 66,737 54,935 
Operating income 554 4,851 6,906 18,498 
Other income (loss), net27 (86)753 588 
Income from operations before income taxes581 4,765 7,659 19,086 
Income tax expense 521 1,484 2,679 5,404 
Net income 60 3,281 4,980 13,682 
Net income attributable to non-controlling interest79 64 280 118 
Net income (loss) attributable to Travelzoo$(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—basic10,932 11,831 11,180 12,594 
Shares used in per share calculation—diluted10,959 12,358 11,477 12,852 
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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, net10,723 12,825 
Prepaid income taxes 1,278 736 
Prepaid expenses and other1,302 1,148 
Total current assets23,310 31,773 
Deposits and other166 374 
Deferred tax assets4,202 3,380 
Restricted cash756 675 
Operating lease right-of-use assets4,047 5,655 
Property and equipment, net231 423 
Intangible assets, net1,452 1,498 
Goodwill10,944 10,944 
Total assets$45,108 $54,722 
Liabilities and Equity
Current liabilities:
Accounts payable$7,761 $6,162 
Merchant payables11,665 16,294 
Accrued expenses and other 3,926 3,404 
Deferred revenue8,728 6,545 
Income tax payable193 1,619 
Operating lease liabilities1,811 2,472 
Total current liabilities34,084 36,496 
Long-term tax liability9,260 7,851 
Long-term operating lease liabilities4,184 5,646 
Other long-term liabilities— 376 
Total liabilities47,528 50,369 
Common stock109 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 interest5,095 4,815 
Total stockholders' equity (deficit)(2,420)4,353 
Total liabilities and stockholders' equity$45,108 $54,722 
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Travelzoo
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
 Three months endedTwelve months ended
 December 31,December 31,
 2025202420252024
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 amortization64 170 303 907 
Stock-based compensation339 405 1,447 1,646 
Deferred income tax(520)(476)(516)(518)
Net foreign currency effects7 132 (216)(33)
Provision of loss (net recoveries) on accounts receivable and refund reserve152 (81)182 40 
Changes in operating assets and liabilities:
Accounts receivable1,619 113 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 payable1,077 264 (1,507)857 
Other liabilities173 507 446 1,888 
Net cash provided by operating activities1,452 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 cash80 (390)495 (599)
Net increase (decrease) in cash, cash equivalents and restricted cash1,516 5,634 (6,977)1,351 
Cash, cash equivalents and restricted cash at beginning of period9,247 12,106 17,740 16,389 
Cash, cash equivalents and restricted cash at end of period$10,763 $17,740 $10,763 $17,740 
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Travelzoo
Segment Information from Continuing Operations
(Unaudited)
(In thousands)
Three months ended December 31, 2025Travelzoo North
America		Travelzoo EuropeJack's Flight ClubNew InitiativesConsolidated
Revenues from unaffiliated customers$14,705 $6,377 $1,376 $16 $22,474 
Intersegment revenues95 (62)(33)— — 
Total net revenues14,800 6,315 1,343 16 22,474 
Sales and marketing expenses6,101 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), net27 
Income from operations before income taxes581 
Three months ended December 31, 2024Travelzoo North
America		Travelzoo EuropeJack's Flight ClubNew InitiativesConsolidated
Revenues from unaffiliated customers$13,834 $5,508 $1,317 $19 $20,678 
Intersegment revenues74 (68)(6)— — 
Total net revenues13,908 5,440 1,311 19 20,678 
Sales and marketing expenses4,641 3,110 488 — 8,239 
Other expenses4,689 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 taxes4,765 
Twelve months ended December 31, 2025Travelzoo North
America		Travelzoo EuropeJack's Flight ClubNew InitiativesConsolidated
Revenues from unaffiliated customers$59,001 $27,122 $5,516 $80 $91,719 
Intersegment revenues1,291 (1,146)(145)— — 
Total net revenues60,292 25,976 5,371 80 91,719 
Sales and marketing expenses25,501 17,396 2,370 — 45,267 
Other expenses25,796 10,895 2,660 195 39,546 
Operating profit (loss)8,995 (2,315)341 (115)6,906 
Other income, net753 
Income from operations before income taxes7,659 
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Twelve months ended December 31, 2024Travelzoo North
America		Travelzoo EuropeJack's Flight ClubNew InitiativesConsolidated
Revenues from unaffiliated customers$54,968 $24,113 $4,714 $107 $83,902 
Intersegment revenues124 (42)(82)— — 
Total net revenues55,092 24,071 4,632 107 83,902 
Sales and marketing expenses19,748 12,561 1,881 280 34,470 
Other expenses19,461 8,429 2,707 337 30,934 
Operating profit (loss)15,883 3,081 44 (510)18,498 
Other income, net588 
Income from operations before income taxes19,086 

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Travelzoo
Reconciliation of GAAP to Non-GAAP Information
(Unaudited)
(In thousands, except per share amounts)

 Three months endedTwelve months ended
 December 31,December 31,
 2025202420252024
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 expense16,635 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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