Travelzoo(US:TZOO)2025-10-28 20:22Revenue Performance - Consolidated revenue for Q3 2025 was $22.2 million, representing a 10% increase from $20.1 million year-over-year[1] - North America business segment revenue increased 11% year-over-year to $14.2 million, with an operating profit of $1.1 million, or 8% of revenue[7] - Europe business segment revenue increased 9% year-over-year to $6.6 million, but reported an operating loss of $640,000, or 10% of revenue[8] - Total net revenues for the three months ended September 30, 2025, were $22,198,000, up from $20,098,000 in the same period of 2024, representing a growth of 10.4%[29] - Total revenues from unaffiliated customers for the nine months ended September 30, 2025, were $69,245,000, an increase from $63,224,000 in the same period of 2024, reflecting an increase of 9.5%[30] Profitability - Net income attributable to Travelzoo was $0.2 million, or $0.01 per share, compared to $0.26 per share in the prior-year period[3] - Net income for the three months ended September 30, 2025, was $180,000, a decrease from $3,256,000 in the same period of 2024[27] - Operating profit for the three months ended September 30, 2025, was $488,000, down from $4,045,000 in the same period of 2024, indicating a decline of 87.9%[32] - Non-GAAP operating income for the nine months ended September 30, 2025, was $7,901,000, compared to $15,746,000 in the same period of 2024, indicating a decrease of 50.1%[32] Cash Flow and Financial Position - Cash flow from operations was ($0.4) million, with cash and cash equivalents totaling $9.2 million as of September 30, 2025[4][14] - Cash flows from operating activities for the three months ended September 30, 2025, resulted in a net cash outflow of $374,000, compared to a net cash inflow of $5,331,000 in the same period of 2024[27] - Cash, cash equivalents, and restricted cash at the end of the period on September 30, 2025, were $9,247,000, down from $12,106,000 at the end of the same period in 2024[27] - The company experienced a net cash outflow of $1,951,000 in cash, cash equivalents, and restricted cash for the three months ended September 30, 2025, compared to an outflow of $1,137,000 in the same period of 2024[27] Membership and Subscriber Growth - Jack's Flight Club revenue increased 12% year-over-year to $1.4 million, with a premium subscriber increase of 8% year-over-year[9] - The company reached 30 million travelers, including members from Jack's Flight Club[12] Future Outlook - For Q4 2025, Travelzoo expects year-over-year revenue growth to continue and profitability to substantially increase over time[16] Share Repurchase - During Q3 2025, Travelzoo repurchased 148,602 shares of its outstanding common stock[15] Deferred Revenue - Deferred revenue increased due to membership fees being recognized ratably over a 12-month subscription period[14] Expenses - Sales and marketing expenses for the nine months ended September 30, 2025, totaled $34,378,000, compared to $26,209,000 in the same period of 2024, representing an increase of 31.3%[30] Accounts Payable - The company reported a significant increase in accounts payable, which rose to $2,314,000 for the three months ended September 30, 2025, compared to a decrease of $284,000 in the same period of 2024[27]