Travelzoo Reports First Quarter 2026 Results
Rhea-AI Summary
Travelzoo (NASDAQ: TZOO) reported Q1 2026 results: revenue $24.3M (+5% YoY), consolidated operating profit $3.4M, non-GAAP operating profit $3.5M, net income attributable $2.5M and EPS $0.23. Cash, cash equivalents and restricted cash were $11.3M and operating cash flow was $3.9M. The company repurchased 500,000 shares in Q1. North America revenue was $15.7M; Europe revenue was $7.3M. Jack's Flight Club revenue was $1.3M with a $48k operating loss. Membership renewals reached their highest level, supporting recurring revenue recognition.
AI-generated analysis. Not financial advice.
Positive
- Revenue of $24.3M, up 5% year-over-year
- Consolidated operating profit of $3.4M
- Non-GAAP operating profit of $3.5M
- Cash, cash equivalents and restricted cash of $11.3M
- Operating cash flow of $3.9M
- Repurchased 500,000 shares in Q1 2026
Negative
- North America operating margin declined from 24% to 21%
- Jack's Flight Club operating loss of $48,000 in Q1
- New Initiatives operating loss of $34,000 in Q1
- Income tax provision and reserves of $942,000
News Market Reaction – TZOO
On the day this news was published, TZOO gained 26.57%, reflecting a significant positive market reaction. Argus tracked a peak move of +40.4% during that session. Our momentum scanner triggered 59 alerts that day, indicating high trading interest and price volatility. This price movement added approximately $27M to the company's valuation, bringing the market cap to $130.37M at that time. Trading volume was exceptionally heavy at 35.9x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
TZOO is up 2.46% while peers show mixed moves: two down (e.g., SOGP -0.2%, MNY -0.74%), two up (ASST +1.59%, CCG +5.65%), and one flat (BZFD +0.03%). This points to a stock-specific reaction to earnings rather than a broad sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 19 | Q4 2025 earnings | Negative | -10.9% | Revenue grew but GAAP profit fell sharply, resulting in a small net loss. |
| Oct 28 | Q3 2025 earnings | Negative | -17.2% | Higher revenue but much lower profit and cash outflow amid rising costs. |
| Apr 29 | Q1 2025 earnings | Positive | +28.8% | Strong revenue growth, higher operating profit and solid net income per share. |
| Feb 25 | Q4 2024 earnings | Neutral | -17.1% | Revenue dipped slightly but operating profit and EPS improved versus prior year. |
| Oct 23 | Q3 2024 earnings | Neutral | +12.9% | Revenue declined modestly while operating profit and cash flow remained solid. |
Recent earnings reports often showed revenue growth but uneven profitability, with an average next-day move of -0.73% and several sharp downside reactions.
Over the past five earnings releases, Travelzoo has consistently grown revenue, such as Q3 2025 at $22.2M and Q1 2025 at $23.1M, while profitability fluctuated from small losses to solid EPS of $0.26. Cash flow has generally remained positive and the company has invested heavily in member acquisition and share repurchases. Today’s Q1 2026 results, with continued top-line growth and profitability, fit this pattern of balancing expansion with margin pressure.
Historical Comparison
Over the last five earnings releases, TZOO’s average next‑day move was -0.73%, reflecting mixed reactions as investors weighed revenue growth against shifting margins and cash use.
Earnings releases highlight a transition toward a membership-fee model: revenue has trended upward while margins fluctuate as Travelzoo invests in member acquisition and new offerings like Jack’s Flight Club and Travelzoo META.
Market Pulse Summary
The stock surged +26.6% in the session following this news. A strong positive reaction aligns with Q1 2026 results showing revenue of $24.3M, up 5% year-over-year, and non-GAAP operating profit of $3.5M. Historically, earnings moves have averaged -0.73%, with some sharp swings, so large gains have not been routine. Investors should weigh recurring membership-fee growth, cash generation of $3.9M and ongoing marketing spend, as sentiment can reverse if margins compress again or growth slows.
Key Terms
non-gaap financial
eps financial
cash flow from operations financial
return on investment (roi) financial
net operating losses (nols) financial
subscription period technical
AI-generated analysis. Not financial advice.
- Revenue of
$24.3 million 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
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
Non-GAAP operating profit was
"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
Travelzoo Europe
Jack's Flight Club
Jack's Flight Club is a membership subscription service in which Travelzoo has a
New Initiatives
New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was
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
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
Balance Sheet
As of March 31, 2026, cash, cash equivalents and restricted cash were
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.
Looking 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
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:
ir@travelzoo.com
Travelzoo | |||
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 | |||
March 31, | December 31, | ||
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 | |||
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 | |||||||||
Three months ended March 31, 2026 | Travelzoo America | Travelzoo | Jack's | New | 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 America | Travelzoo | Jack's | New | 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 | |||
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 | |
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SOURCE Travelzoo