Travelzoo · NASDAQ:TZOO
Travelzoo — Q3 2025 Earnings Presentation
25 slides from Travelzoo's earnings presentation, Oct 28, 2025
Slide 1: Third Quarter 2025 Performance
Third Quarter 2025 Performance October 28, 2025
Slide 2: Important Notice to Investors
Important Notice to Investors Please read this management presentation together with the Company’s press release issued earlier today announcing the Company’s third quarter 2025 financial results and in conjunction with the Company’s recent Annual Report and Quarterly Reports as filed with the Secur
Slide 3: Part 1: Third Quarter 2025 Performance
Part 1: Third Quarter 2025 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 3 | Third Quarter 2025 Performance
Slide 4: Revenue increased 10% year-over-year; operating profit lower
Revenue increased 10% year-over-year. As expected, operating profit was lower as we invested more in the growth of Club Members. Revenue Operating Profit $ millions $ millions 22.2 20.1 4.0 0.5 Q3 2024 Q3 2025 Q3 2024 Q3 2025 4 | Third Quarter 2025 Performance
Slide 5: Investments in acquisition of Club Members have a quick payback
Investments in the acquisition of Club Members are attractive, as they have a quick payback. Average Acquisition Cost of Return from Club Members Acquired Annual Club Members* in the Quarter and Future Periods Q3 2025, US market Q3 2025, US market $ $ $15 $40 Q1 2025 Q2 2025 Q3 2025 1st year Additio
Slide 6: Membership fee revenue recognized ratably, acquisition costs expensed immediately
But, as a reminder, with subscription businesses, membership fee revenue is recognized ratably over the subscription period, whereas acquisition costs are expensed immediately when incurred. Revenue Recognition $ Example: New member joins on September 15, 2025, paying a membership fee of $40 per ann
Slide 7: Higher member acquisition expenses reduced EPS now but will increase it over time
Higher member acquisition expenses, coupled with only a small portion of revenue recognized in the quarter, reduced EPS in the current quarter but will increase it over time. Direct Member Acquisition Revenue Generated from these Members Costs in Q3 2025* in Q3 2025 and in Future Periods $ millions
Slide 8: This strategy is fueling member growth
This strategy is fueling member growth. New Club Members come roughly half from Legacy Members and half from those new to Travelzoo. Number of Travelzoo Club Members at End of Each Quarter Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 8 | Third Quarter 2025 Performance
Slide 9: Membership fees are becoming a larger share of revenue
Membership fees, which are more stable and predictable, are adding revenue and are becoming a larger share. Next year, we expect them to account for around 25% of revenue. Global Revenues $ millions Advertising and Commerce Membership Fees Q4 2023 19.4 1.2 Q1 2024 20.9 1.1 Q2 2024 20.0 1.2 Q3 2024 1
Slide 10: Revenue growth came from all segments
Revenue growth came from all segments. With favorable ROI on member acquisition in the UK, we invested heavily there. Jack’s Flight Club revenue increased by 12%. North America Segment Europe Segment Jack’s Flight Club Segment Revenue $ millions Q3 2024 12.8 6.0 1.2 Q3 2025 14.2 6.6 1.4 Operating Pr
Slide 11: Acquiring more Club Members lowers GAAP operating margin
Acquiring more Club Members has the effect of lower GAAP operating margin. Still, our goal is to further grow the number of Club Members to accelerate Travelzoo’s growth. Operating Margin 2017 2018 2019 2020 2021 2022 2023 2024 Q1 2025 Q2 2025 Q3 2025 22% 18% 16% 11% 9% 9% 7% 2% 4% (2%) (26%) 11 | T
Slide 12: Investments in Club Members occur in all key markets
The investments in Club Members occur in all key markets. Over time, we expect margins to return to previous levels or even exceed them. North America Operating Margin Europe Operating Margin Q1 2023 31% 8% Q2 2023 27% (4%) Q3 2023 22% 4% Q4 2023 29% 13% Q1 2024 31% 21% Q2 2024 26% 8% Q3 2024 25% 17
Slide 13: Total non-GAAP operating profit was $1.1 million
Total non-GAAP operating profit was $1.1 million or 5% of revenue. Non-GAAP Operating Profit* GAAP Operating Profit $ millions Adjustments Non-GAAP Operating Profit* 0.9 4.9 4.0 0.6 1.1 0.5 Q3 2024 Q3 2025 * GAAP operating profit + amortization of intangibles + stock option expenses + severance-rela
Slide 14: Items excluded in the calculation of non-GAAP operating profit
Items excluded in the calculation of non-GAAP operating profit: $ millions Q3 2024 Q3 2025 Adjustments 0.9 0.6 Amortization of intangibles 0.1 0.0 Stock option expense 0.5 0.4 Severance-related expenses 0.3 0.2 14 | Third Quarter 2025 Performance
Slide 15: Cash flow from operations and cash balance
Cash flow from operations was ($0.4) million. We reduced merchant payables by $0.7 million and repurchased 148,602 shares. Cash Balance at End of Quarter* $ millions 12.1 11.2 9.2 Q3 2024 Q2 2025 Q3 2025 * Includes cash, cash equivalents and restricted cash 15 | Third Quarter 2025 Performance
Slide 16: Part 2: Travelzoo Club Membership
Part 1: Third Quarter 2025 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 16 | Third Quarter 2025 Performance
Slide 17: The must-have membership for the travel enthusiast
The must-have membership for the travel enthusiast Membership empowers you to live your life as a travel enthusiast to the fullest, while respecting different cultures. Annual membership (currently $40 for a 12-month period) provides: • Access to Club Offers negotiated and rigorously vetted for us t
Slide 18: Exclusive Club Offers created for Club Members during Q3
A few of the exclusive Club Offers that we created for Club Members during Q3: $399—Caribbean all-inclusive getaway, incl. flights €99—Rome: 2 nights in a 4-star hotel, up to 69% off £109pp & up—Futuristic ABBA Voyage show with $1699—Fairmont Mayakoba: 5-star all-inclusive London hotel stay retreat
Slide 19: Worldwide complimentary lounge access in case of flight delays
Perfect for the travel enthusiast: Worldwide complimentary lounge access in case of flight delays Complimentary access to an airport lounge if flight is delayed by at least one hour. The benefit is good on any flight on any airline, regardless of where they booked. Bring up to three family members o
Slide 20: Travelzoo is loved by affluent, active travel enthusiasts
Travelzoo is loved by travel enthusiasts who are affluent, active and open to new experiences. Audience Demographics Our Audience Compared To The General Population Likely to book an 88% unplanned trip with an attractive offer 78% 60% ages 45+ Open to new destinations 84% 40% ages 18-44 and travel i
Slide 21: Part 3: Management Focus
Part 1: Second Quarter 2025 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 21 | Third Quarter 2025 Performance
Slide 22: Management focus
Management focus • Grow the number of (paying) members and accelerate revenue growth by converting Legacy Members and adding new Club Members • Retain, and grow, our profitable advertising business from the popular Top 20® product • Accelerate revenue growth which drives future profits in spite of t
Slide 23: Part 4: Travelzoo META
Part 1: Third Quarter 2025 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 23 | Third Quarter 2025 Performance
Slide 24: 24 | Third Quarter 2025 Performance
24 | Third Quarter 2025 Performance
Slide 25: Have a good day!
NASDAQ: TZOO HAVE A GOOD DAY! For questions, please contact Travelzoo Investor Relations: ir@travelzoo.com