Travelzoo Reports First Quarter 2026 Results

Travelzoo Reports First Quarter 2026 Results News provided by Travelzoo Apr 23, 2026, 06:39 ET Share this article Share to X Share this article Share to X NEW YORK , April 23, 2026 /PRNewswire/ -- Travelzoo® (NASDAQ: TZOO ): Revenue of $24.3 million, up 5% year-over-year Consolidated operating profit of $3.4 million Non-GAAP consolidated operating profit of $3.5 million Cash flow from operations of $3.9 million Earnings per share (EPS) of $0.23 Travelzoo, the club for travel enthusiasts, today announced financial results for the first quarter ended March 31, 2026. Consolidated revenue was $24.3 million, up 5% from $23.1 million year-over-year. In constant currencies, revenue was $23.6 million, up 2% 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 Q1, 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. In Q1, the number of renewals of memberships jumped to the highest ever. Because renewals of memberships have no acquisition costs, this had a positive impact on EPS. Going forward, we expect renewals of memberships to further increase because of a growing base of members. We refer to our investor presentation. Net Income attributable to Travelzoo was $2.5 million for Q1 2026, or $0.23 per share, compared with $0.26 per share in the prior-year period. Non-GAAP operating profit was $3.5 million. Non-GAAP operating profit excludes stock option expenses ($35,000) and severance expenses ($15,000). 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 4% year-over-year to $15.7 million. Operating profit for Q1 2026 was $3.2 million, or 21% of revenue, compared to operating profit of $3.6 million or 24% of revenue in the prior-year period. Travelzoo Europe Europe business segment revenue increased 8% year-over-year to $7.3 million. Operating profit for Q1 2026 was $279,000, or 4% of revenue, compared to operating profit of $228,000, or 3% 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 increased 2% 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 Q1 2026 was $48,000, compared to operating profit of $12,000 in the prior-year period. New Initiatives New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was $17,000. Operating loss for Q1 2026 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 $10,000 for Q1 2026. Licensing revenue from the licensee in Japan was $7,000 for Q1 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 provision and reserves for Q1 2026 are $942,000. Travelzoo intends to utilize available net operating losses (NOLs) to largely offset its tax liability for Q1 2026. Balance Sheet As of March 31, 2026, cash, cash equivalents and restricted cash were $11.3 million. Cash flow from operations was $3.9 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 Q1 2026, the Company repurchased 500,000 shares of its outstanding common stock. L ooking Ahead For Q2 2026, we expect year-over-year revenue growth to continue. We also expect 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 first 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. Investor Relations: [email protected] Travelzoo Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) Three months ended March 31, 2026 2025 Revenues $ 24,273 $ 23,140 Cost of revenues 5,236 4,172 Gross profit 19,037 18,968 Operating expenses: Sales and marketing 11,116 10,225 Product development 664 634 General and administrative 3,812 4,305 Total operating expenses 15,592 15,164 Operating income 3,445 3,804 Other income (loss), net (5) 629 Income from operations before income taxes 3,440 4,433 Income tax expense 942 1,173 Net income 2,498 3,260 Net income attributable to non-controlling interest 20 93 Net income attributable to Travelzoo $ 2,478 $ 3,167 Net income per share—basic $ 0.23 $ 0.27 Net income per share—diluted $ 0.23 $ 0.26 Shares used in per share calculation—basic 10,837 11,670 Shares used in per share calculation—diluted 10,837 12,249 Travelzoo Condensed Consolidated Balance Sheets (Unaudited) (In thousands) March 31, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 10,571 $ 10,007 Accounts receivable, net 13,592 10,723 Prepaid income taxes 1,527 1,364 Prepaid expenses and other 2,797 1,302 Total current assets 28,487 23,396 Deposits and other 206 166 Deferred tax assets 4,120 4,202 Restricted cash 754 756 Operating lease right-of-use assets 4,793 4,047 Property and equipment, net 181 231 Intangible assets, net 1,450 1,450 Goodwill 10,944 10,944 Total assets $ 50,935 $ 45,192 Liabilities and Equity Current liabilities: Accounts payable $ 8,327 $ 7,761 Merchant payables 13,453 11,665 Accrued expenses and other 4,572 3,926 Deferred revenue 10,657 8,728 Income tax payable 142 279 Operating lease liabilities 2,116 1,811 Total current liabilities 39,267 34,170 Long-term tax liability 10,316 9,260 Long-term operating lease liabilities 4,507 4,184 Total liabilities 54,090 47,614 Common stock 104 109 Tax indemnification (9,537) (9,537) Retained earnings 6,461 7,243 Accumulated other comprehensive loss (5,297) (5,331) Total Travelzoo stockholders' equity (deficit) (8,269) (7,516) Non-controlling interest 5,114 5,094 Total stockholders' equity (deficit) (3,155) (2,422) Total liabilities and stockholders' equity $ 50,935 $ 45,192 Travelzoo Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Three months ended March 31, 2026 2025 Cash flows from operating activities: Net income $ 2,498 $ 3,260 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 56 76 Stock-based compensation 35 369 Deferred income tax (25) 4 Net foreign currency effects 77 (106) Provision of loss (net recoveries) on accounts receivable and refund reserve 11 206 Changes in operating assets and liabilities: Accounts receivable (2,873) 434 Prepaid income taxes (267) (63) Prepaid expenses, deposits and other (1,531) (418) Accounts payable 565 (144) Merchant payables 1,909 (1,651) Accrued expenses and other 554 867 Deferred revenue 1,983 1,241 Income tax payable (50) (949) Other liabilities 909 158 Net cash provided by operating activities 3,851 3,284 Cash flows from investing activities: Purchases of property and equipment (8) (21) Net cash used in investing activities (8) (21) Cash flows from financing activities: Repurchase of common stock (3,267) (8,918) Net cash used in financing activities (3,267) (8,918) Effect of exchange rate on cash, cash equivalents and restricted cash (14) 142 Net increase (decrease) in cash, cash equivalents and restricted cash 562 (5,513) Cash, cash equivalents and restricted cash at beginning of period 10,763 17,740 Cash, cash equivalents and restricted cash at end of period $ 11,325 $ 12,227 Travelzoo Segment Information from Continuing Operations (Unaudited) (In thousands) Three months ended March 31, 2026 Travelzoo North America Travelzoo Europe Jack's Flight Club New Initiatives Consolidated Revenues from unaffiliated customers $ 15,326 $ 7,585 $ 1,345 $ 17 $ 24,273 Intersegment revenues 341 (308) (33) — — Total net revenues 15,667 7,277 1,312 17 24,273 Sales and marketing expenses 6,003 4,521 592 — 11,116 Other expenses 6,416 2,477 768 51 9,712 Operating profit (loss) 3,248 279 (48) (34) 3,445 Other income (loss), net (5) Income from operations before income taxes 3,440 Three months ended March 31, 2025 Travelzoo North America Travelzoo Europe Jack's Flight Club New Initiatives Consolidated Revenues from unaffiliated customers $ 14,830 $ 6,970 $ 1,323 $ 17 $ 23,140 Intersegment revenues 298 (258) (40) — — Total net revenues 15,128 6,712 1,283 17 23,140 Sales and marketing expenses 5,700 3,902 623 — 10,225 Other expenses 5,834 2,582 648 47 9,111 Operating profit (loss) 3,594 228 12 (30) 3,804 Other income, net 629 Income from operations before income taxes 4,433 Travelzoo Reconciliation of GAAP to Non-GAAP Information (Unaudited) (In thousands, except per share amounts) Three months ended March 31, 2026 2025 GAAP operating expense $ 15,592 $ 15,164 Non-GAAP adjustments: Amortization of intangibles (A) — 26 Stock option expenses (B) 35 369 Severance-related expenses (C) 15 222 Non-GAAP operating expense 15,542 14,547 GAAP operating income 3,445 3,804 Non-GAAP adjustments (A through C) 50 617 Non-GAAP operating income 3,495 4,421 SOURCE Travelzoo 21 % more press release views with Request a Demo × Modal title