Core Insights - Travelzoo® has announced new Club Offers for its members in the U.S. and the UK, providing rigorously vetted travel deals [1][2] - The company reported a revenue of $22.2 million for the third quarter of 2025, reflecting a 10% year-over-year increase [5] Group 1: Club Offers - New offers include a Portugal vacation package for $499, which includes roundtrip flights, 4 nights at a well-reviewed hotel, and breakfast, saving over $340 [4] - A Bali trip for two is available for under $500, featuring 3 nights at a beachfront resort and 3 nights in Ubud, with savings of up to 57% [4] - A Hawaii winter getaway for $799 includes flights, hotels, and resort perks, with savings up to $360 [4] - Hotel stays across the U.S. are offered for $99 or less, saving Club Members up to 70% [4] - Spa treatments at over 500 locations are available at half price, with a $75 gift card valid for $150 worth of services [4] Group 2: Company Performance - Travelzoo reported a consolidated operating profit of $0.5 million for the third quarter of 2025 [5]

Core Insights - Travelzoo® (NASDAQ: TZOO) has announced new Club Offers for its members in the UK, emphasizing rigorously vetted and negotiated deals for travel enthusiasts [1][2] - The company reported a revenue of $22.2 million for Q3 2025, reflecting a 10% year-over-year increase, with a consolidated operating profit of $0.5 million [2][4] Offers Summary - A night at Riverside Manor in Yorkshire for £69, saving up to 61% compared to direct flexible rates, available until March [3] - A 3-night stay at a luxury hotel in Portugal's Douro Valley for £305 per person, saving up to 55%, includes dinner and various experiences [3] - A week in the French Alps for £499 per person, including flights and breakfast, saving up to 45% on the usual package price [3] - A 5-star holiday in the Spanish countryside for £399 per person, including car hire, saving 43% compared to independent booking [3] - A West End show and dinner package for £75 per person, featuring "Les Misérables" and a 2-course meal [3]

I recommend TravelZoo ( TZOO ) a buy with a 3-year horizon. My conviction lies in TZOO's good fundamentals and market mispricing on its poor margins. The company is fundamentally stronger as it has improved inI am currently working as an investment analyst at a family office. My specialty is identifying high-quality and/or severely mispriced investment ideas. I believe that a great investment idea would "jump" at you intuitively and it comes in buying great companies at great prices. If you like my investme ...

Core Viewpoint - TravelZoo (TZOO) is recommended as a buy with a 3-year investment horizon due to its strong fundamentals and market mispricing related to its poor margins [1] Company Analysis - The company has shown improvement in its fundamentals, indicating a stronger operational performance [1] - There is a belief that TZOO represents a high-quality investment opportunity that is currently mispriced in the market [1] Investment Strategy - The investment strategy focuses on identifying great companies at attractive prices, suggesting a value-oriented approach to investing [1]

The company said on the call that these lower margins come from higher investment in growth that is accretive, but the numbers show a differentLong-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the competitive dynamics of the industries where they participate, and buying companies th ...

Exhibit 99.1 Travelzoo 590 Madison Avenue 35th Floor New York, NY 10022 Investor Relations: ir@travelzoo.com FOR IMMEDIATE RELEASE Travelzoo Reports Third Quarter 2025 Results NEW YORK, October 28, 2025 — Travelzoo® (NASDAQ: TZOO): Travelzoo, the club for travel enthusiasts, today announced financial results for the third quarter ended September 30, 2025. Consolidated revenue was $22.2 million, up 10% from $20.1 million year-over-year. In constant currencies, revenue was $21.9 million, up 9% year-over-year. ...

Core Insights - Travelzoo reported quarterly earnings of $0.01 per share, missing the Zacks Consensus Estimate of $0.14 per share, representing an earnings surprise of -92.86% [1] - The company posted revenues of $22.2 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 3.15%, but showing an increase from $20.1 million year-over-year [2] - Travelzoo shares have declined approximately 49.7% year-to-date, contrasting with the S&P 500's gain of 16.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $24.1 million, and for the current fiscal year, it is $0.72 on revenues of $94.08 million [7] - The estimate revisions trend for Travelzoo was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Commerce industry, to which Travelzoo belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Travelzoo's stock performance [5]

Travelzoo (NasdaqGS:TZOO) Q3 2025 Earnings Call October 28, 2025 11:00 AM ET Company ParticipantsHolger Bartel - CEOChristina Ciocca - Chair and General CounselJeff Hoffman - Financial Controller, North AmericaConference Call ParticipantsSteve Silver - AnalystTheodore O'Neill - AnalystPatrick Sholl - AnalystEd Woo - AnalystMichael Kupinski - AnalystOperatorGood morning and welcome to the Travelzoo third quarter 2025 earnings call. Today's conference is being recorded. Currently, all callers have been placed ...

Financial Data and Key Metrics Changes - Travelzoo's consolidated Q3 revenue was $22.2 million, up 10% from the prior year, and $21.9 million in constant currency, up 9% from the prior year [3] - Operating income decreased to $0.5 million, or 2% of revenue, down from $4 million in the prior year [3] - Non-GAAP operating profit for Q3 2025 was $1.1 million, approximately 5% of revenue, compared to $4.9 million in the prior year [7] Business Line Data and Key Metrics Changes - Advertising and commerce revenue was $18.6 million for Q3 2025, while revenue from membership fees increased to $3.6 million, expected to account for about 25% of revenue next year [5][6] - The average acquisition cost for a full paying club member increased from $28 in Q1 to $40 in Q3, with a quick payback period [4][5] Market Data and Key Metrics Changes - Revenue growth was observed across all reporting segments, with significant investments in member acquisition in the UK [6] - Jack's Flight Club revenue increased by 12%, although operating profit was lower in both North America and Europe segments [6] Company Strategy and Development Direction - The company aims to leverage its global reach and trusted brand to negotiate more exclusive offers for club members, focusing on growing the number of paying members and accelerating revenue growth [9][12] - Future plans include developing Travelzoo Meta and enhancing the advertising business while maintaining a disciplined approach to financial management [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of membership revenue, which is expected to be a significant driver of profitability in the future [17] - The current advertising environment is experiencing fluctuations, particularly in the UK, but overall sentiment in the U.S. remains positive [27][28] Other Important Information - As of September 30, 2025, consolidated cash and cash equivalents were $9.2 million, with cash flow from operations being negative $0.4 million [7] - The company repurchased 148,602 shares during the quarter [7] Q&A Session Summary Question: What is driving the popularity of Travelzoo's offerings despite economic uncertainty? - Management highlighted that exclusive offers available only to members motivate travel enthusiasts to travel more affordably and enjoy luxury experiences [16] Question: How does the membership growth align with expectations? - Membership growth is in line with expectations, with Travelzoo membership growing faster than Jack's Flight Club [17] Question: What is driving the increase in customer acquisition costs? - The slight increase in acquisition costs is attributed to scaling and spending more on member acquisition, but optimizations are being implemented to manage costs [20][21] Question: How is the current advertising environment perceived? - The advertising revenue was slower than usual, particularly in the UK, but the U.S. market remains stable [27][28] Question: What are the retention efforts for subscribers? - Retention metrics are being tracked, with expectations for higher renewal rates, especially for legacy members [32][37] Question: Are there any concerns from travel suppliers regarding occupancy rates? - Suppliers are focused on maintaining high occupancy rates, and there are no significant concerns reported [54]

Financial Data and Key Metrics Changes - Travelzoo's consolidated Q3 revenue was $22.2 million, up 10% from the prior year, and $21.9 million in constant currency, up 9% from the prior year [3] - Operating income decreased to $0.5 million, or 2% of revenue, down from $4 million in the prior year [3] - Non-GAAP operating profit for Q3 2025 was $1.1 million, approximately 5% of revenue, compared to $4.9 million in the prior year [8] Business Line Data and Key Metrics Changes - Advertising and commerce revenue was $18.6 million for Q3 2025, while membership fees increased to $3.6 million, expected to account for about 25% of revenue next year [5][6] - The average acquisition cost for a full paying club member increased from $28 in Q1 to $40 in Q3 [4] - Member growth rate was 135% year-to-date, with new club members coming from both legacy and new members [5] Market Data and Key Metrics Changes - Revenue growth was observed across all reporting segments, with significant investment in member acquisition in the UK [6] - DAX Flight Club revenue increased by 12%, with operating profit lower in both North America and Europe segments [6] Company Strategy and Development Direction - The company aims to leverage its global reach and trusted brand to negotiate more exclusive offers for club members [10] - Focus on growing the number of paying members and accelerating revenue growth through converting legacy members and adding new club members [12] - Development of Travelzoo Meta is ongoing, with a disciplined financial approach [13] Management Comments on Operating Environment and Future Outlook - Management noted that fluctuations in reported net income are possible, but they expect revenue growth to continue in Q4 2025 [8] - The advertising environment was slower in Q3, particularly in the UK due to economic uncertainty, but the U.S. market remains positive [26] - Management expressed optimism about the return on marketing investments and the potential for increased membership revenue [17] Other Important Information - As of September 30, 2025, consolidated cash and cash equivalents were $9.2 million, with cash flow from operations being negative $0.4 million [8] - The company repurchased 148,602 shares during the quarter [8] Q&A Session Summary Question: What is driving the popularity of Travelzoo's offerings? - Management indicated that exclusive offers motivate members to travel more affordably and enjoy luxury experiences [16] Question: How does the increase in customer acquisition costs reconcile with expectations? - Management noted that the increase is minor and attributed to scaling and spending more on member acquisition [20][21] Question: What is the current advertising environment? - Management acknowledged a slower advertising revenue quarter but noted that fluctuations are common and the U.S. market feels positive [26] Question: What are the retention efforts for subscribers? - Management is tracking retention and expects higher renewal rates for legacy members starting in Q1 of next year [31][34] Question: Are there any concerns from travel suppliers regarding occupancy rates? - Management reported that travel suppliers are focused on maintaining occupancy rates and have not expressed significant concerns [46]