EX-99.1 2 ex-99106x30x20258xk.htm EX-99.1 Document

Exhibit 99.1
travellogo11062017a13.jpg
Travelzoo
590 Madison Avenue
35th Floor
New York, NY 10022

Investor Relations:
ir@travelzoo.com

FOR IMMEDIATE RELEASE

Travelzoo Reports Second Quarter 2025 Results

NEW YORK, July 23, 2025 — Travelzoo® (NASDAQ: TZOO):

•Revenue of $23.9 million, up 13% year-over-year
•Consolidated operating profit of $2.1 million
•Non-GAAP consolidated operating profit of $2.4 million
•Cash flow from operations of $1.3 million
•Earnings per share (EPS) of $0.12

Travelzoo, the club for travel enthusiasts, today announced financial results for the second quarter ended June 30, 2025. Consolidated revenue was $23.9 million, up 13% from $21.1 million year-over-year. In constant currencies, revenue was $23.5 million, up 12% 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 Q2, Travelzoo invested significantly in acquiring more Club Members when we saw that we can achieve a payback and positive return on investment (ROI) within the 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 $1.4 million for Q2 2025, or $0.12 per share, compared with $0.23 per share in the prior-year period.

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Non-GAAP operating profit was $2.4 million. Non-GAAP operating profit excludes amortization of intangibles ($16,000), stock option expenses ($339,000), and severance-related expenses ($6,000). 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 14% year-over-year to $16.1 million. Operating profit for Q2 2025 was $2.8 million, or 17% of revenue, compared to operating profit of $3.7 million or 26% of revenue in the prior-year period.

Travelzoo Europe
Europe business segment revenue increased 7% year-over-year to $6.4 million. Operating loss for Q2 2025 was $883,000, or 14% of revenue, compared to operating profit of $512,000, or 9% 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 33% year-over-year to $1.4 million. The number of premium subscribers increased 15% 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 Q2 2025 was $156,000, compared to an operating loss of $34,000 in the prior-year period.

New Initiatives
New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was $19,000. Operating loss for Q2 2025 was $31,000.

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 $10,000 for Q2 2025. Licensing revenue from the licensee in Japan was $7,000 for in Q2 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 Q2 2025 are $740,000. Travelzoo intends to utilize available net operating losses (NOLs) to largely offset its tax liability for Q2 2025.

Balance Sheet
Deferred revenue increased and is expected to continue to increase as membership fees revenue is recognized ratably over the subscription period.

As of June 30, 2025, cash, cash equivalents and restricted cash were $11.2 million. Cash flow from operations was $1.3 million.

Share Repurchase Program
During Q2 2025, the Company repurchased 172,088 shares of its outstanding common stock.

Looking Ahead
For Q3 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 second 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 endedSix months ended
 June 30,June 30,
 2025202420252024
Revenues$23,906 $21,141 $47,046 $43,126 
Cost of revenues5,163 2,520 9,335 5,160 
Gross profit18,743 18,621 37,711 37,966 
Operating expenses:
Sales and marketing11,483 9,386 21,708 17,984 
Product development 698 603 1,332 1,169 
General and administrative4,502 4,621 8,807 9,211 
Total operating expenses16,683 14,610 31,847 28,364 
Operating income 2,060 4,011 5,864 9,602 
Other income, net162 176 790 315 
Income from operations before income taxes2,222 4,187 6,654 9,917 
Income tax expense 740 1,267 1,912 2,772 
Net income 1,482 2,920 4,742 7,145 
Net income (loss) attributable to non-controlling interest80 (7)172 (18)
Net income attributable to Travelzoo$1,402 $2,927 $4,570 $7,163 
Net income per share—basic$0.13 $0.23 $0.39 $0.54 
Net income per share—diluted$0.12 $0.23 $0.38 $0.54 
Shares used in per share calculation—basic11,139 12,895 11,617 13,191 
Shares used in per share calculation—diluted11,505 12,976 12,088 13,300 
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Travelzoo
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
June 30,
2025		December 31,
2024
Assets
Current assets:
Cash and cash equivalents$10,441 $17,064 
Accounts receivable, net11,500 12,825 
Prepaid income taxes 503 736 
Income taxes receivable324 — 
Prepaid expenses and other1,392 1,148 
Total current assets24,160 31,773 
Deposits and other304 374 
Deferred tax assets3,591 3,380 
Restricted cash757 675 
Operating lease right-of-use assets5,204 5,655 
Property and equipment, net320 423 
Intangible assets, net1,455 1,498 
Goodwill10,944 10,944 
Total assets$46,735 $54,722 
Liabilities and Equity
Current liabilities:
Accounts payable$6,130 $6,162 
Merchant payables12,419 16,294 
Accrued expenses and other 5,596 3,404 
Deferred revenue8,459 6,545 
Income tax payable— 1,619 
Operating lease liabilities2,564 2,472 
Total current liabilities35,168 36,496 
Long-term tax liability reserve8,792 7,851 
Long-term operating lease liabilities4,856 5,646 
Other long-term liabilities— 376 
Total liabilities48,816 50,369 
Common stock111 118 
Tax indemnification(9,537)(9,537)
Additional paid-in capital— — 
Retained earnings 7,934 14,284 
Accumulated other comprehensive loss(5,576)(5,327)
Total Travelzoo stockholders’ equity (deficit)(7,068)(462)
Non-controlling interest4,987 4,815 
Total stockholder's equity (deficit)(2,081)4,353 
Total liabilities and stockholder's equity$46,735 $54,722 
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Travelzoo
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
 Three months endedSix months ended
 June 30,June 30,
 2025202420252024
Cash flows from operating activities:
Net income $1,482 $2,920 $4,742 $7,145 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization106 175 182 558 
Stock-based compensation339 688 709 783 
Deferred income tax1 (12)5 (27)
Net foreign currency effects(188)(14)(295)(11)
Provision of loss (net recoveries) on accounts receivable and refund reserve(83)26 123 (7)
Changes in operating assets and liabilities:
Accounts receivable1,309 (150)1,743 (385)
Prepaid income taxes301 (390)238 (327)
Prepaid expenses, deposits and other 277 (49)(144)533 
Accounts payable(36)(294)(180)714 
Merchant payables(2,790)(1,101)(4,441)(3,779)
Accrued expenses and other975 765 1,842 526 
Deferred revenue478 (38)1,720 1,173 
Income tax payable(1,058)224 (2,007)278 
Other liabilities187 556 345 753 
Net cash provided by operating activities1,300 3,306 4,582 7,927 
Cash flows from investing activities:
Purchases of property and equipment(14)(48)(34)(83)
Net cash used in investing activities(14)(48)(34)(83)
Cash flows from financing activities:
Repurchase of common stock(2,500)(6,550)(11,418)(10,422)
Exercise of stock options and taxes paid for net share settlement of equity awards(104)(257)(104)(257)
Net cash used in financing activities(2,604)(6,807)(11,522)(10,679)
Effect of exchange rate on cash, cash equivalents and restricted cash289 (73)432 (311)
Net increase in cash, cash equivalents and restricted cash(1,029)(3,622)(6,542)(3,146)
Cash, cash equivalents and restricted cash at beginning of period12,227 16,865 17,740 16,389 
Cash, cash equivalents and restricted cash at end of period$11,198 $13,243 $11,198 $13,243 
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Travelzoo
Segment Information from Continuing Operations
(Unaudited)
(In thousands)
Three months ended June 30, 2025Travelzoo North
America		Travelzoo EuropeJack's Flight ClubNew InitiativesConsolidated
Revenues from unaffiliated customers$15,737 $6,740 $1,410 $19 $23,906 
Intersegment revenues395 (355)(40)— — 
Total net revenues16,132 6,385 1,370 19 23,906 
Sales and marketing expenses6,453 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, net162 
Income from operations before income taxes2,222 
Three months ended June 30, 2024Travelzoo North
America		Travelzoo EuropeJack's Flight ClubNew InitiativesConsolidated
Revenues from unaffiliated customers$14,015 $6,004 $1,099 $23 $21,141 
Intersegment revenues119 (53)(66)— — 
Total net revenues14,134 5,951 1,033 23 21,141 
Sales and marketing expenses5,444 3,330 477 135 9,386 
Other expenses4,973 2,109 590 72 7,744 
Operating profit (loss)3,717 512 (34)(184)4,011 
Other income, net176 
Income from operations before income taxes4,187 
Six months ended June 30, 2025Travelzoo North
America		Travelzoo EuropeJack's Flight ClubNew InitiativesConsolidated
Revenues from unaffiliated customers$30,567 $13,710 $2,733 $36 $47,046 
Intersegment revenues693 (613)(80)— — 
Total net revenues31,260 13,097 2,653 36 47,046 
Sales and marketing expenses12,153 8,329 1,226 — 21,708 
Other expenses12,695 5,423 1,259 97 19,474 
Operating profit (loss)6,412 (655)168 (61)5,864 
Other income, net790 
Income from operations before income taxes6,654 
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Six months ended June 30, 2024Travelzoo North
America		Travelzoo EuropeJack's Flight ClubNew InitiativesConsolidated
Revenues from unaffiliated customers$28,288 $12,584 $2,199 $55 $43,126 
Intersegment revenues74 29 (103)— — 
Total net revenues28,362 12,613 2,096 55 43,126 
Sales and marketing expenses10,551 6,391 882 135 17,959 
Other expenses9,657 4,328 1,347 234 15,566 
Operating profit (loss)8,155 1,894 (133)(314)9,602 
Other income, net315 
Income from operations before income taxes9,917 









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

 Three months endedSix months ended
 June 30,June 30,
 2025202420252024
GAAP operating expense$16,683 $14,610 $31,847 $28,364 
Non-GAAP adjustments:
Amortization of intangibles (A)16 88 42 405 
Stock option expenses (B)339 688 709 783 
Severance-related expenses (C)6 30 227 30 
Non-GAAP operating expense16,322 13,804 30,869 27,146 
GAAP operating income 2,060 4,011 5,864 9,602 
Non-GAAP adjustments (A through C)361 806 978 1,218 
Non-GAAP operating income 2,421 4,817 6,842 10,820 





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