Travelzoo · NASDAQ:TZOO
Travelzoo — Q1 2026 Earnings Presentation
25 slides from Travelzoo's earnings presentation, Apr 23, 2026
Slide 1: First Quarter 2026 Performance
First Quarter 2026 Performance April 23, 2026
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 first quarter 2026 financial results and in conjunction with the Company’s recent Annual Report and Quarterly Reports as filed with the Secur
Slide 3: Part 1: First Quarter 2026 Performance
Part 1: First Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 3 | First Quarter 2026 Performance
Slide 4: Revenue increased 5% year-over-year; operating profit remained stable
Revenue increased 5% year-over-year. Even though we invested more in the growth of Club Members, operating profit remained stable. Revenue Operating Profit $ millions $ millions 24.3 23.1 3.8 3.4 Q1 2025 Q1 2026 Q1 2025 Q1 2026 4 | First Quarter 2026 Performance
Slide 5: Investments in the 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 Q1 2026, U.S. market Q1 2026, U.S. market $ $ $14 $50 Q1 Q2 Q3 Q4 Q1 2025 2025 2025 2025 2
Slide 6: Membership fee revenue is recognized ratably over the subscription period
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 March 15, 2026, paying a membership fee of $50 per annum Q1 202
Slide 7: Higher member acquisition expenses reduce EPS in the current quarter
Higher member acquisition expenses, coupled with only a small portion of revenue recognized in the quarter, reduces EPS in the current quarter. But we expect EPS to increase over time. Direct Member Acquisition Revenue Generated from these Members Costs in Q1 2026* in Q1 2026 and in Future Periods $
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 Q4 2025 Q1 2026 8 | First Quarter 2026 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. This year, we expect them to account for over 20% 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 18.
Slide 10: Revenue growth came from all segments
Revenue growth came from all segments. North America Segment Europe Segment Jack’s Flight Club Segment Revenue $ millions Q1 2025 15.1 6.7 1.32 Q1 2026 15.7 7.3 1.35 Operating Profit $ millions Q1 2025 3.6 0.2 0.0 Q1 2026 3.2 0.3 (0.0) 10 | First Quarter 2026 Performance
Slide 11: Acquiring more Club Members reduces operating margin in the short term
Acquiring more Club Members reduces operating margin in the short term. As the number of membership renewals—which do not require acquisition expenses—grows, operating margins should increase again over time.* Operating Margin Q1 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 22% 18% 14% 11% 9% 7
Slide 12: The 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 $3.5 million
Total non-GAAP operating profit was $3.5 million or 14% of revenue. Non-GAAP Operating Profit* GAAP Operating Profit $ millions Adjustments Non-GAAP Operating Profit* 4.4 3.8 0.6 3.4 .1 3.5 Q1 2025 Q1 2026 * 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 Q1 2025 Q1 2026 Adjustments 0.62 0.05 Amortization of intangibles 0.03 — Stock option expense 0.37 0.04 Severance-related expenses 0.22 0.01 14 | First Quarter 2026 Performance
Slide 15: Cash flow from operations was $3.9 million
Cash flow from operations was $3.9 million. Our cash balance increased, even though we repurchased 500,000 shares of our stock in Q1. Cash Balance at End of Quarter* $ millions 12.2 10.8 11.3 Q1 2025 Q4 2025 Q1 2026 * Includes cash, cash equivalents and restricted cash 15 | First Quarter 2026 Perfor
Slide 16: Part 2: Travelzoo Club Membership
Part 1: First Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 16 | First Quarter 2026 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 ($50 for a 12-month period in the U.S.) provides: • Access to Club Offers negotiated and rigorously vetted for us
Slide 18: Exclusive Club Offers created for Club Members during Q1
A few of the exclusive Club Offers that we created for Club Members during Q1: $299—The Azores: 4 nights w/flights from the U.S. £299pp—A week in a Tuscan castle with car hire $299 (reg. $519)—Member rate at iconic resort 40% off—5-star stay for two on Anguilla, voted best where 23 presidents have s
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. Member Sentiment and Demographics Our Members Compared to the General Population Median Household Income** 90% 88% 69% $150,000 are open to new are likely to book plan to take destinations and an unplanned
Slide 21: Part 3: Management Focus
Part 1: First Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 21 | First Quarter 2026 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: First Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 23 | First Quarter 2026 Performance
Slide 24: 24 | First Quarter 2026 Performance
24 | First Quarter 2026 Performance
Slide 25: Have a good day!
NASDAQ: TZOO HAVE A GOOD DAY! For questions, please contact Travelzoo Investor Relations: ir@travelzoo.com