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] - Cash flow from operations was negative $0.4 million, with consolidated cash and equivalents at $9.2 million [7] 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, with a quick payback period [4][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 [9] - The focus is on growing the number of paying members and accelerating revenue growth through converting legacy members and adding new club members [12] Management's 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 [7][8] - The advertising environment was slower in Q3, particularly in the UK, due to economic uncertainty, but the overall sentiment in the U.S. remains positive [27][28] Other Important Information - The company is developing Travelzoo Meta in a financially disciplined manner, with updates expected in due time [13] - Membership provides exclusive offers and benefits, including complimentary access to airport lounges [10][11] 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, enhancing the value of membership [16] Question: How does membership growth reconcile with expectations? - Membership growth is in line with expectations, with Travelzoo membership growing faster than DAX 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 channels [20][21] Question: How is the current advertising environment? - The advertising revenue was slower in Q3, particularly in the UK, but the U.S. market sentiment remains positive [27][28] 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 [32][37] Question: Are there any concerns from travel suppliers regarding occupancy? - Suppliers are focused on maintaining occupancy rates, and there are no significant changes in their outlook [54]

Core Viewpoint - The latest financial reports from global retail giants, particularly Walmart, show mixed results amid the impact of tariffs, with challenges in profit expectations despite revenue growth [1]. Group 1: Financial Performance - Walmart's Q2 revenue reached $177.4 billion, a year-on-year increase of 4.8%, surpassing market expectations of $176.16 billion [3]. - The GAAP earnings per share for Q2 were $0.88, while adjusted earnings per share were $0.68, falling short of the market estimate of $0.74, marking the first miss since May 2022 [3]. - Operating profit declined by 8.2% to $7.3 billion, while net income rose by 51.8% to $7.151 billion [3]. Group 2: Growth Drivers - The growth in performance was primarily driven by Sam's Club and e-commerce, with global e-commerce sales increasing by 25% and global advertising revenue rising by 46% [5]. - Same-store sales in the U.S. grew by 4.6%, exceeding analyst expectations of 4%, and e-commerce sales in the U.S. increased by 26% [5]. - In China, net sales reached $5.8 billion, a 30.1% year-on-year increase, with e-commerce net sales growing by 40% [5]. Group 3: Strategic Initiatives - Walmart's CEO Kathryn McLay highlighted the growth of e-commerce in China, noting the opening of 33 new front warehouses and cloud warehouses, totaling 455, enabling rapid delivery to customers [7]. - The company plans to increase prices on certain imported goods to offset tariff costs, which has drawn criticism from former President Trump [8][9]. - Walmart's CFO John David Rainey indicated that the cost impact from tariffs is continuously rising, but the company is working to maintain low prices through accelerated imports and limited-time discounts [9]. Group 4: Future Outlook - Walmart has raised its full-year net sales growth forecast for fiscal 2026 to between 3.75% and 4.75%, and adjusted earnings per share expectations to between $2.52 and $2.62 [9]. - The company is assessing various scenario models due to trade policy negotiations, demand fluctuations, and future expansion flexibility [9].