During the Q&A, management acknowledged that advertising and commerce revenue was “a bit soft” in Q4 and said it expected that softness to continue “a bit more into Q1 as well.” Global CEO Holger Bartel said there was no specific reason he could point to for the sequential weakness, adding that the company has been “focused very much on membership and adding new members.”Travelzoo reported Q4 advertising and commerce revenue of $18.3 million, with membership fees contributing $4.1 million. Hoffman said memb ...

Revenue Performance - Consolidated revenue for Q4 2025 was $22.5 million, a 9% increase from $20.7 million year-over-year[1] - North America business segment revenue increased 6% year-over-year to $14.8 million, with an operating profit of $1.5 million, or 10% of revenue[6] - Europe business segment revenue rose 16% year-over-year to $6.3 million, but reported an operating loss of $1 million, or 16% of revenue[7] - Total net revenues for the three months ended December 31, 2025, were $22,474 thousand, up from $20,678 thousand in the same period of 2024, representing an increase of approximately 8.7%[29] - Total revenues from unaffiliated customers for the twelve months ended December 31, 2025, were $91,719 thousand, an increase from $83,902 thousand in 2024, marking a growth of about 9.5%[30] Profitability - Non-GAAP consolidated operating profit was $0.9 million, excluding amortization of intangibles and stock option expenses[4] - Net income for the three months ended December 31, 2025, was $60 thousand, compared to $3,281 million for the same period in 2024, indicating a significant decline[27] - Operating profit for the three months ended December 31, 2025, was $554 thousand, down from $4,851 thousand in the same period of 2024, reflecting a decrease of about 88.6%[29] - Non-GAAP operating income for the twelve months ended December 31, 2025, was $8,796 thousand, down from $21,095 thousand in 2024, a decline of about 58.3%[32] Cash Flow and Financial Position - Cash flow from operations was $1.5 million, with cash and cash equivalents totaling $10.8 million as of December 31, 2025[14] - Cash flows from operating activities for the twelve months ended December 31, 2025, were $5,661 thousand, compared to $21,100 thousand for the same period in 2024, a decrease of approximately 73%[27] - The company reported a cash balance of $10,763 thousand at the end of December 31, 2025, compared to $17,740 thousand at the end of December 31, 2024, reflecting a decrease of approximately 39.4%[27] Expenses - Sales and marketing expenses for the twelve months ended December 31, 2025, totaled $45,267 thousand, compared to $34,470 thousand in 2024, indicating an increase of approximately 31.3%[30] - The company’s total operating expenses for the three months ended December 31, 2025, were $16,976 thousand, compared to $13,066 thousand in the same period of 2024, an increase of approximately 30.5%[32] - The company incurred stock-based compensation expenses of $1,447 thousand for the twelve months ended December 31, 2025, compared to $1,646 thousand in 2024, a decrease of about 12.1%[32] Future Outlook - For Q1 2026, the company expects continued year-over-year revenue growth as membership fees are recognized ratably over the subscription period[16] - Membership fees revenue is recognized ratably over a 12-month subscription period, impacting EPS in the short term[2] - Licensing revenue from Australia and Japan was $8,000 and $7,000 respectively for Q4 2025, with expectations for future growth[11] Share Repurchase - The company did not repurchase any shares of its outstanding common stock during Q4 2025[15] Customer Metrics - Travelzoo reached 30 million travelers, including members from Jack's Flight Club[12]

Financial Data and Key Metrics Changes - Travelzoo's consolidated Q4 revenue was $22.5 million, up 9% from the prior year, while in constant currencies, revenue was $22.1 million, up 7% from the prior year [3] - Operating income decreased to $0.6 million, or 3% of revenue, down from $4.9 million in the prior year, attributed to increased investments in club member growth [3][6] - Non-GAAP operating profit for Q4 2025 was $0.9 million, or 4% of revenue, compared to $5.4 million in the prior year [8] Business Line Data and Key Metrics Changes - Advertising and commerce revenue was $18.3 million for Q4 2025, while membership fees increased to $4.1 million, expected to account for around 25% of revenue this year [7][9] - Member acquisition costs for a full-paying club member were $34 in Q4, down from $40 in Q3, indicating a more efficient acquisition strategy [4][32] Market Data and Key Metrics Changes - Investment in member acquisition in Europe led to a loss, while operating profit in North America and Europe segments was lower, with Jack's Flight Club segment remaining flat [7][8] - The company noted that luxury travel is booming, while lower-end travel is more challenging, reflecting broader trends in the travel industry [38][40] Company Strategy and Development Direction - The company aims to leverage its global reach and trusted brand to negotiate more club offers for members, focusing on growing the number of paying members and accelerating revenue growth [10][12] - Plans to increase member acquisition spending in 2026, anticipating that recurring revenue from renewing members will improve profitability over time [22][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged softness in advertising and commerce revenue, expecting this trend to continue into Q1 2026, with no specific reasons identified for the decline [16][38] - The company is optimistic about future growth as more luxury properties open, which may improve the availability of attractive offers for members [38][40] Other Important Information - As of December 31, 2025, consolidated cash, cash equivalents, and restricted cash was $10.8 million, with cash flow from operations at $1.5 million [8] - The membership fee was increased to $50 for new members starting January 1, 2026, while existing members had the opportunity to renew at the old rate of $40 [44] Q&A Session Summary Question: Revenue trends in advertising and commerce - Management acknowledged that advertising and commerce revenue was soft in Q4 and expected this to continue into Q1, attributing it to a focus on membership growth [16] Question: G&A expenses increase - A one-time expense related to a global company meeting was cited as the reason for higher G&A expenses in Q4 [18] Question: Marketing expenses and profitability - Management plans to increase member acquisition spending in 2026, which may impact EPS in the short term but is expected to improve profitability in the long run [22][24] Question: Churn rates for new members - It was noted that it is too early to assess churn rates for new members added in 2025, but new benefits are expected to help retain members [25] Question: Industry travel outlook for 2026 - Management indicated that luxury travel is booming while lower-end travel is more challenging, with trends being similar across different markets [38][40]

Financial Data and Key Metrics Changes - Travelzoo's consolidated Q4 revenue was $22.5 million, up 9% from the prior year, while in constant currencies, revenue was $22.1 million, up 7% from the prior year [3] - Operating income decreased to $0.6 million, or 3% of revenue, down from $4.9 million in the prior year [3] - Non-GAAP operating profit for Q4 2025 was $0.9 million, or 4% of revenue, compared to $5.4 million in the prior year [8] Business Line Data and Key Metrics Changes - Advertising and commerce revenue was $18.3 million for Q4 2025, while membership fees increased to $4.1 million, expected to account for around 25% of revenue this year [7] - The average acquisition cost for a full-paying club member was $34 in Q4, down from $40 in Q3 [4] - G&A expenses increased due to a one-time expense related to a global company meeting [7][18] Market Data and Key Metrics Changes - Membership growth rate was 180% year to date, with new club members coming from both legacy members and new customers [6] - The company experienced a loss in Europe due to investments in member acquisition [7] Company Strategy and Development Direction - The company aims to leverage its global reach and trusted brand to negotiate more club offers for members, focusing on affluent and active travelers [10] - Plans to increase member acquisition spending in 2026, expecting to maintain a positive return and quick payback [22] - The introduction of new benefits for club members, such as a travel hotline and curated culinary journeys, is expected to enhance member retention [11][12] Management's Comments on Operating Environment and Future Outlook - The travel industry is experiencing a divergence, with luxury travel booming while lower-end travel faces challenges [40] - Management anticipates continued revenue growth in subsequent quarters as membership fees are recognized ratably over the subscription period [9] - There is an expectation for profitability to increase as recurring membership fees revenue will be recognized [9] Other Important Information - As of December 31, 2025, consolidated cash, cash equivalents, and restricted cash was $10.8 million, with cash flow from operations at $1.5 million [8] - The membership fee increased to $50 for new members starting January 1, 2026, while existing members had the opportunity to renew at the old rate of $40 [45] Q&A Session Summary Question: Revenue trends in advertising and commerce - Management acknowledged that advertising and commerce revenue was soft in Q4 and expected this trend to continue into Q1, attributing it to a focus on membership growth [16] Question: G&A expenses - A one-time expense related to a global company meeting was cited as the reason for higher G&A expenses in Q4 [18] Question: Marketing expenses and profitability - Management plans to increase member acquisition spending in 2026, which may impact EPS in the short term but is expected to improve profitability over time [22] Question: Churn rates for new members - It was noted that it is too early to assess churn rates for new members added in 2025, as renewals are just beginning [25] Question: Trends in advertising revenue - Management indicated that as the member base grows, it allows for maintaining and improving advertising rates, although the impact is less controllable compared to membership revenue [30] Question: Customer acquisition costs - The lower cost per acquisition in Q4 was attributed to optimizations in user experience and cautious spending [34]

Financial Data and Key Metrics Changes - Travelzoo's consolidated Q4 revenue was $22.5 million, up 9% from the prior year, while in constant currencies, revenue was $22.1 million, up 7% from the prior year [3] - Operating income decreased to $0.6 million, or 3% of revenue, down from $4.9 million in the prior year [3] - Non-GAAP operating profit for Q4 2025 was $0.9 million, or 4% of revenue, compared to $5.4 million in the prior year [7] Business Line Data and Key Metrics Changes - Advertising and commerce revenue was $18.3 million for Q4 2025, while membership fees increased to $4.1 million, expected to account for around 25% of revenue this year [6] - Membership growth rate was 180% year to date, with new club members coming roughly half from legacy members and half from new members [5] Market Data and Key Metrics Changes - Investment in member acquisition in Europe led to a loss, while operating profit on North America and Europe segments was lower [6] - GAAP operating margin was 2% in Q4 2025, affected by the increase in club members [7] Company Strategy and Development Direction - The company aims to leverage its global reach and trusted brand to negotiate more club offers for members, focusing on growing the number of paying members and accelerating revenue growth [9][12] - Plans to incorporate Travelzoo Meta experiences as a benefit of Travelzoo Club membership starting Q2 2026 [12] Management Comments on Operating Environment and Future Outlook - The travel industry is experiencing a divergence, with luxury travel booming while lower-end travel faces challenges [38] - The company expects continued revenue growth in subsequent quarters as membership fees are recognized ratably over the subscription period [8] Other Important Information - Cash, cash equivalents, and restricted cash as of December 31, 2025, was $10.8 million, with cash flow from operations at $1.5 million [7] - A one-time expense related to a global company meeting increased G&A expenses in Q4 [18] Q&A Session Summary Question: Revenue trends in advertising and commerce - Revenue from advertising and commerce was soft in Q4, expected to continue into Q1, with no specific reason identified for the decline [16] Question: Increase in G&A expenses - A one-time expense related to a global company meeting caused the increase, not a permanent change [18] Question: Marketing expenses and profitability - Marketing expenses are expected to increase in 2026, impacting EPS in the short term but improving as recurring revenue comes in from renewing members [21][22] Question: Churn rates for new members - It is too early to judge churn rates as most new members joined in Q1 2025, with renewals upcoming [25] Question: Industry travel outlook for 2026 - Luxury travel is booming, while lower-end travel is more challenging, with trends consistent across markets [38][40] Question: Membership fee increase - The membership fee increased to $50 for new members, with existing members given the opportunity to renew at the old rate of $40 [45]

Please read this management presentation together with the Company's press release issued earlier today announcing the Company's fourth quarter 2025 financial results and in conjunction with the Company's recent Annual Report and Quarterly Reports as filed with the Securities and Exchange Commission (SEC). Certain statements contained in this presentation that are not historical facts may be forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 2 ...

Travelzoo (TZOO) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of $0.11. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -100.00%. A quarter ago, it was expected that this global media commerce company would post earnings of $0.14 per share when it actually produced earnings of $0.01, delivering a surprise of -92.86%.Over the last four quarters, the comp ...

Core Insights - Travelzoo reported a consolidated revenue of $22.5 million for Q4 2025, representing a 9% increase year-over-year from $20.7 million [1] - The company experienced a net loss of $19,000, or $0.00 per share, compared to a profit of $3.2 million, or $0.26 per share, in the prior-year period [1] - Non-GAAP operating profit was $0.9 million, excluding certain expenses, while GAAP operating income was $554,000 [1] Financial Performance - Revenue for Q4 2025 was $22.5 million, up 9% from $20.7 million year-over-year; in constant currencies, revenue was $22.1 million, up 7% [1] - North America segment revenue increased 6% year-over-year to $14.8 million, while Europe segment revenue rose 16% to $6.3 million [1] - Operating profit for North America was $1.5 million (10% of revenue), down from $4.6 million (33% of revenue) in the prior-year period [1] - Europe segment reported an operating loss of $1 million (16% of revenue), compared to an operating profit of $159,000 (3% of revenue) in the prior-year period [1] Membership and Marketing - The company invested significantly in acquiring new Club Members, leading to increased marketing costs that were expensed immediately [1] - Membership fees revenue is recognized ratably over a 12-month subscription period, impacting EPS negatively [1] - Travelzoo aims to leverage its global reach and relationships with travel suppliers to negotiate more offers for Club Members [1] Cash Flow and Balance Sheet - Cash flow from operations was $1.5 million, with cash, cash equivalents, and restricted cash totaling $10.8 million as of December 31, 2025 [1] - Deferred revenue increased due to the recognition of membership fees over the subscription period [1] Future Outlook - The company expects continued revenue growth in Q1 2026 and subsequent quarters as more Legacy Members transition to Club Members [1] - Profitability is anticipated to increase over time as recurring membership fees are recognized [1]

Group 1 - The article does not contain relevant information regarding company or industry insights [1]

Group 1: Travelzoo (TZOO) - Travelzoo shares increased by 5% to close at $6.04, supported by higher trading volume compared to normal sessions, despite a 19.5% loss over the past four weeks [1] - The company benefits from an exclusive membership model that allows luxury travel suppliers to offer discreet discounts without harming brand positioning [1] - The consensus EPS estimate for the upcoming quarter is $0.11, reflecting a year-over-year decline of 57.7%, while revenues are projected to be $22.54 million, a 9% increase from the previous year [2] Group 2: Earnings and Stock Performance - The consensus EPS estimate for Travelzoo has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [3] - Travelzoo currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [3] - In comparison, Groupon (GRPN), a competitor in the same industry, has seen its EPS estimate change by -32.1% to $0.19, with a year-over-year increase of 115.8%, and currently holds a Zacks Rank of 4 (Sell) [4]