Financial Data and Key Metrics Changes - Travelzoo's consolidated Q4 revenue was $22.5 million, up 9% from the prior year, while in constant currencies, revenue was $22.1 million, up 7% from the prior year [3] - Operating income decreased to $0.6 million, or 3% of revenue, down from $4.9 million in the prior year, attributed to increased investments in club member growth [3][6] - Non-GAAP operating profit for Q4 2025 was $0.9 million, or 4% of revenue, compared to $5.4 million in the prior year [8] Business Line Data and Key Metrics Changes - Advertising and commerce revenue was $18.3 million for Q4 2025, while membership fees increased to $4.1 million, expected to account for around 25% of revenue this year [7][9] - Member acquisition costs for a full-paying club member were $34 in Q4, down from $40 in Q3, indicating a more efficient acquisition strategy [4][32] Market Data and Key Metrics Changes - Investment in member acquisition in Europe led to a loss, while operating profit in North America and Europe segments was lower, with Jack's Flight Club segment remaining flat [7][8] - The company noted that luxury travel is booming, while lower-end travel is more challenging, reflecting broader trends in the travel industry [38][40] Company Strategy and Development Direction - The company aims to leverage its global reach and trusted brand to negotiate more club offers for members, focusing on growing the number of paying members and accelerating revenue growth [10][12] - Plans to increase member acquisition spending in 2026, anticipating that recurring revenue from renewing members will improve profitability over time [22][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged softness in advertising and commerce revenue, expecting this trend to continue into Q1 2026, with no specific reasons identified for the decline [16][38] - The company is optimistic about future growth as more luxury properties open, which may improve the availability of attractive offers for members [38][40] Other Important Information - As of December 31, 2025, consolidated cash, cash equivalents, and restricted cash was $10.8 million, with cash flow from operations at $1.5 million [8] - The membership fee was increased to $50 for new members starting January 1, 2026, while existing members had the opportunity to renew at the old rate of $40 [44] Q&A Session Summary Question: Revenue trends in advertising and commerce - Management acknowledged that advertising and commerce revenue was soft in Q4 and expected this to continue into Q1, attributing it to a focus on membership growth [16] Question: G&A expenses increase - A one-time expense related to a global company meeting was cited as the reason for higher G&A expenses in Q4 [18] Question: Marketing expenses and profitability - Management plans to increase member acquisition spending in 2026, which may impact EPS in the short term but is expected to improve profitability in the long run [22][24] Question: Churn rates for new members - It was noted that it is too early to assess churn rates for new members added in 2025, but new benefits are expected to help retain members [25] Question: Industry travel outlook for 2026 - Management indicated that luxury travel is booming while lower-end travel is more challenging, with trends being similar across different markets [38][40]

Travelzoo (NasdaqGS:TZOO) Q4 2025 Earnings call February 19, 2026 11:00 AM ET Company ParticipantsChristina Ciocca - Chair of the Board and General CounselHolger Bartel - CEOJeff Hoffman - Financial Controller, North AmericaTheodore O'Neill - CEO and Managing DirectorConference Call ParticipantsEd Woo - Director of Research and a Senior Equity Research AnalystMichael Kupinski - AnalystPatrick Sholl - VP and Equity Research AnalystSteve Silver - Director and Senior Equity Research AnalystOperatorGood morning ...

Travelzoo (NasdaqGS:TZOO) Q4 2025 Earnings call February 19, 2026 11:00 AM ET Speaker5Good morning, and welcome to Travelzoo's fourth quarter 2025 earnings call. Today's conference is being recorded. Currently, all callers have been placed in a listen-only mode, and following management's prepared remarks, the call will be open for your questions. If you would like to ask a question at that time, please press star one on your telephone keypad. If you need to remove yourself from the queue, press star one ag ...