Travelzoo · NASDAQ:TZOO
Travelzoo — Q2 2026 Earnings Presentation
25 slides from Travelzoo's earnings presentation, Jul 28, 2026
Slide 1: Second Quarter 2026 Performance
Second Quarter 2026 Performance July 28, 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 second quarter 2026 financial results and in conjunction with the Company’s recent Annual Report and Quarterly Reports as filed with the Secu
Slide 3: Part 1: Second Quarter 2026 Performance
Part 1: Second Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 3 | Second Quarter 2026 Performance
Slide 4: International conflicts negatively impacted all business segments
International conflicts negatively impacted all business segments. Investments in growing Club Members led to a reported loss. Revenue Operating Profit (Loss) $ millions $ millions 23.9 23.2 2.1 (2.8) Q2 2025 Q2 2026 Q2 2025 Q2 2026 4 | Second Quarter 2026 Performance
Slide 5: We decided to accelerate the shift towards recurring membership revenues
We decided to accelerate the shift towards recurring membership revenues by more quickly growing (paying) Club Members. Objectives and Actions Quarterly Spend on Number of Club Members at Marketing End of Quarter/Year $ millions • Accelerate the growth in (paying) Club Members 2024 • Increase recurr
Slide 6: We are scaling member acquisition to the point where payback still occurs quickly
We are scaling member acquisition to the point where payback still occurs quickly. Average Acquisition Cost of Return from Club Members Acquired Annual Club Members* in the Quarter and Future Periods Q2 2026, U.S. market Q2 2026, U.S. market $ $ $15 $50 Q1 Q2 Q3 Q4 Q1 Q2 2025 2025 2025 2025 2026 202
Slide 7: 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 June 15, 2026, paying a membership fee of $50 per annum Q2 2026
Slide 8: Marketing costs reduce reported quarterly EPS in the short time
Marketing costs reduce reported quarterly EPS in the short time but are projected to drive better results in 2027 and beyond. Club Member Growth Travelzoo Membership Incremental Impact of Revenues** Marketing Costs on EPS $ millions ~30.0+ ~$1.20 ~17.2 7.7 2026* 2025 2026* 2027* 2027* As % of revenu
Slide 9: Membership fees are adding revenue and have become a larger share
Membership fees, which are more stable and predictable, are adding revenue and have become a larger share, which we want to increase further. 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 18.7 1.4 Q4 2024 19.1 1.6 Q1 20
Slide 10: International conflicts affected revenues in all segments
International conflicts affected revenues in all segments. North America Segment Europe Segment Jack’s Flight Club Segment Revenue $ millions Q2 2025 16.1 6.4 1.4 Q2 2026 15.7 6.2 1.3 Operating Profit (Loss) $ millions Q2 2025 2.8 (0.9) 0.2 Q2 2026 (1.5) (1.2) (0.0) 10 | Second Quarter 2026 Performa
Slide 11: Accelerated growth of Club Members reduces operating margin
Accelerated growth of Club Members reduces operating margin in the short-term. As the number of membership renewals—which do not have acquisition expenses—grows, operating margins are expected to become very attractive over time.* Operating Margin Q1 Q2 2017 2018 2019 2020 2021 2022 2023 2024 2025 2
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 loss was $2.1 million
Total non-GAAP operating loss was $2.1 million. Non-GAAP Operating Profit (Loss)* GAAP Operating Profit (Loss) $ millions Adjustments Non-GAAP Operating Profit (Loss)* 2.4 2.1 0.3 0.7 (2.1) (2.8) Q2 2025 Q2 2026 * GAAP operating profit + amortization of intangibles + stock option expenses + severanc
Slide 14: Items excluded in the calculation of non-GAAP operating profit
Items excluded in the calculation of non-GAAP operating profit (loss): $ millions Q2 2025 Q2 2026 Adjustments* 0.4 0.7 Amortization of intangibles 0.0 0.0 Stock option expense 0.3 0.7 Severance-related expenses — 0.0 * Numbers do not add up due to rounding. 14 | Second Quarter 2026 Performance
Slide 15: Our cash balance decreased because we reduced merchant payables
Our cash balance decreased because we reduced merchant payables by $2.7 million and repurchased shares for $1.9 million. We expect the cash balance to rebound next quarter. Cash Balance at End of Quarter* $ millions 11.2 11.3 7.6 Q2 2025 Q1 2026 Q2 2026 * Includes cash, cash equivalents and restrict
Slide 16: Part 2: Travelzoo Club Membership
Part 1: Second Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 16 | Second 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: A few of the exclusive Club Offers
A few of the exclusive Club Offers that we created for Club Members during Q2: £249pp—Rome luxury city break with flights $499—Hawaii vacation at Hilton resort w/flights £89pp—London’s ‘hottest theatre ticket’ plus dinner $2000 off—Mexico St. Regis ocean view escape w/butler service 18 | Second Quar
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 travel enthusiasts who are affluent
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: Second Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 21 | Second 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: Second Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 23 | Second Quarter 2026 Performance
Slide 24: Travelzoo META
24 | Second 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