Earnings release
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1/10 Travelzoo 590 Madison Avenue 35th Floor New York, NY 10022 Investor Relations: ir@travelzoo.com FOR IMMEDIATE RELEASE Travelzoo Reports Third Quarter 2026 Results NEW YORK, October 27, 2026 — Travelzoo® (NASDAQ: TZOO): • Revenue of $22.9 million, up 3% year-over-year • Consolidated operating loss of $2.6 million • Non-GAAP consolidated operating loss of $2.1 million • Cash flow from operations of $1.8 million • Earnings per share (EPS) of $(0.20) • Club Members up 65% year-over-year Travelzoo, the club for travel enthusiasts, today announced financial results for the third quarter ended September 30, 2026. Consolidated revenue was $22.9 million, up 3% from $22.2 million year-over- year. In constant currencies, revenue was $23.0 million. Travelzoo's reported revenue consists of advertising revenues and commissions, derived from and generated in connection with purchases made by Travelzoo members, and membership fees. In Q3, we continued to invest significantly in growing Club Members and accelerated the shift towards membership fees revenue. Marketing costs were expensed immediately. Membership fees revenue is recognized ratably over the subscription period of 12 months. Going forward, we expect new and recurring membership fees revenue from a growing base of members. We refer to our investor presentation. Net Loss attributable to Travelzoo was $2.0 million for Q3 2026, or $(0.20) per share, compared with $0.01 per share in the prior-year period.
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2/10 Non-GAAP operating loss was $2.1 million. Non-GAAP operating loss excludes stock option expenses ($338,000) and severance expense ($150,000). Please refer to “Non-GAAP Financial Measures” and the tabular reconciliation below. “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 North America business segment revenue increased 4% year-over-year to $14.8 million. Operating loss for Q3 2026 was $1.4 million, or 9% of revenue, compared to operating profit of $1.1 million or 8% of revenue in the prior-year period. Travelzoo Europe Europe business segment revenue increased 5% year-over-year to $6.9 million. Operating loss for Q3 2026 was $1.2 million, or 18% of revenue, compared to operating loss of $0.6 million, or 10% of revenue in the prior-year period. Jack’s Flight Club Jack’s Flight Club is a membership subscription service in which Travelzoo has a 60% ownership interest. Revenue decreased 15% year-over-year to $1.2 million. Jack’s Flight Club’s revenue from subscriptions is recognized ratably over the subscription period (quarterly, semi-annually, annually). Operating profit for Q3 2026 was $34,000, compared to operating profit of $20,000 in the prior-year period. New Initiatives New Initiatives business segment revenue, which includes Licensing and Travelzoo META, was $27,000. Operating loss for Q3 2026 was $3,000. 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 Australia, Japan, New Zealand, and Singapore. Under these arrangements, Travelzoo’s existing members in Australia, Japan, New Zealand, and Singapore will continue to be owned by Travelzoo as the licensor. Licensing revenue from
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3/10 the licensee in Australia was $11,000 for Q3 2026. Licensing revenue from the licensee in Japan was $5,000 for Q3 2026. Licensing revenue is expected to increase going forward. 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. 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. In Q3, the number of Club Members increased by 65% year-over-year. Income Taxes The reported income tax benefit for Q3 2026 was $436,000. Balance Sheet As of September 30, 2026, cash, cash equivalents and restricted cash were $8.8 million. Cash flow from operations was $1.8 million. 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 Q3 2026, the Company repurchased 256,898 shares of its outstanding common stock. Looking Ahead For Q4 2026, we expect year-over-year revenue growth. We also expect revenue growth in subsequent quarters, as membership fees revenue is recognized ratably over the subscription period of 12 months, as we grow Club 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 likely. 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
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4/10 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 the United States of America ("GAAP"). This information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies. Conference Call Travelzoo will host a conference call to discuss third 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.
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5/10 Travelzoo Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) Three months ended Nine months ended September 30, September 30, 2026 2025 2026 2025 Revenues $ 22,910 $ 22,198 $ 70,391 $ 69,245 Cost of revenues 5,748 4,519 18,088 13,132 Gross profit 17,162 17,679 52,303 56,113 Operating expenses: Sales and marketing 14,604 12,198 39,454 34,378 Product development 589 631 1,855 1,963 General and administrative 4,529 4,362 12,872 13,420 Total operating expenses 19,722 17,191 54,181 49,761 Operating income (loss) (2,560) 488 (1,878) 6,352 Other income, net 166 (64) 436 727 Income (loss) before income taxes (2,394) 424 (1,442) 7,079 Income tax expense (benefit) (436) 245 124 2,158 Net income (loss) (1,958) 179 (1,566) 4,921 Net income attributable to non-controlling interest 51 29 101 201 Net income (loss) attributable to Travelzoo $ (2,009) $ 150 $ (1,667) $ 4,720 Net income (loss) per share—basic $ (0.20) $ 0.01 $ (0.16) $ 0.41 Net income (loss) per share—diluted $ (0.20) $ 0.01 $ (0.16) $ 0.39 Shares used in per share calculation—basic 10,197 10,987 10,449 11,585 Shares used in per share calculation—diluted 10,197 11,213 10,449 11,974
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6/10 Travelzoo Condensed Consolidated Balance Sheets (Unaudited) (In thousands) September 30, 2026 December 31, 2025 Assets Current assets: Cash and cash equivalents $ 8,090 $ 10,007 Accounts receivable, net 11,198 10,723 Prepaid income taxes 2,093 1,364 Prepaid expenses and other 1,958 1,302 Total current assets 23,339 23,396 Deposits and other 397 166 Deferred tax assets 4,964 4,202 Restricted cash 754 756 Operating lease right-of-use assets 4,737 4,047 Property and equipment, net 117 231 Intangible assets, net 1,450 1,450 Goodwill 10,944 10,944 Total assets $ 46,702 $ 45,192 Liabilities and Equity Current liabilities: Accounts payable $ 10,468 $ 7,761 Merchant payables 10,419 11,665 Accrued expenses and other 5,003 3,926 Deferred revenue 13,523 8,728 Income tax payable 27 279 Operating lease liabilities 2,197 1,811 Total current liabilities 41,637 34,170 Long-term tax liability 10,675 9,260 Long-term operating lease liabilities 4,151 4,184 Total liabilities 56,463 47,614 Common stock 100 109 Tax indemnification (9,537) (9,537) Retained earnings (losses) (151) 7,243 Accumulated other comprehensive loss (5,368) (5,331) Total Travelzoo stockholders’ equity (deficit) (14,956) (7,516) Non-controlling interest 5,195 5,094 Total stockholders' equity (deficit) (9,761) (2,422) Total liabilities and stockholders' equity $ 46,702 $ 45,192
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7/10 Travelzoo Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Three months ended Nine months ended September 30, September 30, 2026 2025 2026 2025 Cash flows from operating activities: Net income (loss) $ (1,958) $ 179 $ (1,566) $ 4,921 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 44 57 153 239 Stock-based compensation 338 399 1,057 1,108 Deferred income tax (219) (1) (972) 4 Net foreign currency effects 14 71 66 (224) Provision of loss (net recoveries) on accounts receivable and refund reserve (35) (93) (182) 30 Changes in operating assets and liabilities: Accounts receivable 3,367 (988) (490) 756 Prepaid income taxes (271) (154) (846) 84 Prepaid expenses, deposits and other (98) (559) (620) (702) Accounts payable 983 2,314 1,667 2,134 Merchant payables (286) (612) (1,100) (5,053) Accrued expenses and other (540) (981) 1,193 859 Deferred revenue 783 643 4,881 2,363 Income tax payable (44) (576) (165) (2,583) Other liabilities (259) (73) 927 273 Net cash (used) provided by operating activities 1,819 (374) 4,003 4,209 Cash flows from investing activities: Purchases of property and equipment (33) (15) (46) (49) Net cash used in investing activities (33) (15) (46) (49) Cash flows from financing activities: Repurchase of common stock (530) (1,545) (5,735) (12,964) Exercise of stock options and taxes paid for net share settlement of equity awards — — — (104) Net cash used in financing activities (530) (1,545) (5,735) (13,068) Effect of exchange rate on cash, cash equivalents and restricted cash (4) (17) (141) 415 Net increase (decrease) in cash, cash equivalents and restricted cash 1,252 (1,951) (1,919) (8,493) Cash, cash equivalents and restricted cash at beginning of period 7,592 11,198 10,763 17,740 Cash, cash equivalents and restricted cash at end of period $ 8,844 $ 9,247 $ 8,844 $ 9,247
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8/10 Travelzoo Segment Information from Continuing Operations (Unaudited) (In thousands) Three months ended September 30, 2026 Travelzoo North America Travelzoo Europe Jack's Flight Club New Initiatives Consolidated Revenues from unaffiliated customers $ 14,664 $ 7,031 $ 1,188 $ 27 $ 22,910 Intersegment revenues 137 (114) (23) — — Total net revenues 14,801 6,917 1,165 27 22,910 Sales and marketing expenses 9,069 5,097 438 — 14,604 Other expenses 7,108 3,035 693 30 10,866 Operating profit (loss) (1,376) (1,215) 34 (3) (2,560) Other income, net 166 Loss from operations before income taxes (2,394) Three months ended September 30, 2025 Travelzoo North America Travelzoo Europe Jack's Flight Club New Initiatives Consolidated Revenues from unaffiliated customers $ 13,728 $ 7,036 $ 1,407 $ 27 $ 22,198 Intersegment revenues 503 (471) (32) — — Total net revenues 14,231 6,565 1,375 27 22,198 Sales and marketing expenses 6,998 4,549 651 — 12,198 Other expenses 6,105 2,655 704 48 9,512 Operating profit (loss) 1,128 (640) 20 (20) 488 Other loss, net (64) Income from operations before income taxes 424
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9/10 Nine months ended September 30, 2026 Travelzoo North America Travelzoo Europe Jack's Flight Club New Initiatives Consolidated Revenues from unaffiliated customers $ 45,539 $ 20,991 $ 3,800 $ 61 $ 70,391 Intersegment revenues 610 (561) (49) — — Total net revenues 46,149 20,430 3,751 61 70,391 Sales and marketing expenses 23,379 14,439 1,636 — 39,454 Other expenses 22,394 8,125 2,163 133 32,815 Operating profit (loss) 376 (2,134) (48) (72) (1,878) Other income, net 436 Loss from operations before income taxes (1,442) Nine months ended September 30, 2025 Travelzoo North America Travelzoo Europe Jack's Flight Club New Initiatives Consolidated Revenues from unaffiliated customers $ 44,296 $ 20,745 $ 4,140 $ 64 $ 69,245 Intersegment revenues 1,196 (1,084) (112) — — Total net revenues 45,492 19,661 4,028 64 69,245 Sales and marketing expenses 19,400 13,101 1,877 — 34,378 Other expenses 18,551 7,856 1,963 145 28,515 Operating profit (loss) 7,541 (1,296) 188 (81) 6,352 Other income, net 727 Income from operations before income taxes 7,079
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10/10 Travelzoo Reconciliation of GAAP to Non-GAAP Information (Unaudited) (In thousands, except per share amounts) Three months ended Nine months ended September 30, September 30, 2026 2025 2026 2025 GAAP operating expense $ 19,722 $ 17,191 $ 54,181 $ 49,761 Non-GAAP adjustments: Amortization of intangibles (A) — 2 — 45 Stock option expenses (B) 338 399 1,057 1,108 Severance-related expenses (C) 150 167 165 395 Non-GAAP operating expense 19,234 16,623 52,959 48,213 GAAP operating income (loss) (2,560) 488 (1,878) 6,352 Non-GAAP adjustments (A through C) 488 568 1,222 1,548 Non-GAAP operating income (loss) (2,072) 1,056 (656) 7,900 ###