Travelzoo(TZOO) - 2025 Q4 - Annual Results

Revenue Performance - Consolidated revenue for Q4 2025 was $22.5 million, a 9% increase from $20.7 million year-over-year[1] - North America business segment revenue increased 6% year-over-year to $14.8 million, with an operating profit of $1.5 million, or 10% of revenue[6] - Europe business segment revenue rose 16% year-over-year to $6.3 million, but reported an operating loss of $1 million, or 16% of revenue[7] - Total net revenues for the three months ended December 31, 2025, were $22,474 thousand, up from $20,678 thousand in the same period of 2024, representing an increase of approximately 8.7%[29] - Total revenues from unaffiliated customers for the twelve months ended December 31, 2025, were $91,719 thousand, an increase from $83,902 thousand in 2024, marking a growth of about 9.5%[30] Profitability - Non-GAAP consolidated operating profit was $0.9 million, excluding amortization of intangibles and stock option expenses[4] - Net income for the three months ended December 31, 2025, was $60 thousand, compared to $3,281 million for the same period in 2024, indicating a significant decline[27] - Operating profit for the three months ended December 31, 2025, was $554 thousand, down from $4,851 thousand in the same period of 2024, reflecting a decrease of about 88.6%[29] - Non-GAAP operating income for the twelve months ended December 31, 2025, was $8,796 thousand, down from $21,095 thousand in 2024, a decline of about 58.3%[32] Cash Flow and Financial Position - Cash flow from operations was $1.5 million, with cash and cash equivalents totaling $10.8 million as of December 31, 2025[14] - Cash flows from operating activities for the twelve months ended December 31, 2025, were $5,661 thousand, compared to $21,100 thousand for the same period in 2024, a decrease of approximately 73%[27] - The company reported a cash balance of $10,763 thousand at the end of December 31, 2025, compared to $17,740 thousand at the end of December 31, 2024, reflecting a decrease of approximately 39.4%[27] Expenses - Sales and marketing expenses for the twelve months ended December 31, 2025, totaled $45,267 thousand, compared to $34,470 thousand in 2024, indicating an increase of approximately 31.3%[30] - The company’s total operating expenses for the three months ended December 31, 2025, were $16,976 thousand, compared to $13,066 thousand in the same period of 2024, an increase of approximately 30.5%[32] - The company incurred stock-based compensation expenses of $1,447 thousand for the twelve months ended December 31, 2025, compared to $1,646 thousand in 2024, a decrease of about 12.1%[32] Future Outlook - For Q1 2026, the company expects continued year-over-year revenue growth as membership fees are recognized ratably over the subscription period[16] - Membership fees revenue is recognized ratably over a 12-month subscription period, impacting EPS in the short term[2] - Licensing revenue from Australia and Japan was $8,000 and $7,000 respectively for Q4 2025, with expectations for future growth[11] Share Repurchase - The company did not repurchase any shares of its outstanding common stock during Q4 2025[15] Customer Metrics - Travelzoo reached 30 million travelers, including members from Jack's Flight Club[12]