Travelzoo Reports Second Quarter 2025 Results
NEW YORK, July 23, 2025 /PRNewswire/ -- 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 and commerce revenues, 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.
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 us as the licensor. Licensing revenue from 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.
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.
Investor
Travelzoo
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
Three months ended
Six months ended
June 30,
June 30,
2025
2024
2025
2024
Revenues
$ 23,906
$ 21,141
$ 47,046
$ 43,126
Cost of revenues
5,163
2,520
9,335
5,160
Gross profit
18,743
18,621
37,711
37,966
Operating expenses:
Sales and marketing
11,483
9,386
21,708
17,984
Product development
698
603
1,332
1,169
General and administrative
4,502
4,621
8,807
9,211
Total operating expenses
16,683
14,610
31,847
28,364
Operating income
2,060
4,011
5,864
9,602
Other income, net
162
176
790
315
Income from operations before income taxes
2,222
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 interest
80
(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—basic
11,139
12,895
11,617
13,191
Shares used in per share calculation—diluted
11,505
12,976
12,088
13,300
Travelzoo
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
June 30,2025
December 31,2024
Assets
Current assets:
