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 [3] - 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] - The average acquisition cost for a full-paying club member was $34 in Q4, down from $40 in Q3 [4] - G&A expenses increased due to a one-time expense related to a global company meeting [7][18] Market Data and Key Metrics Changes - Membership growth rate was 180% year to date, with new club members coming from both legacy members and new customers [6] - The company experienced a loss in Europe due to investments in member acquisition [7] 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 affluent and active travelers [10] - Plans to increase member acquisition spending in 2026, expecting to maintain a positive return and quick payback [22] - The introduction of new benefits for club members, such as a travel hotline and curated culinary journeys, is expected to enhance member retention [11][12] Management's Comments on Operating Environment and Future Outlook - The travel industry is experiencing a divergence, with luxury travel booming while lower-end travel faces challenges [40] - Management anticipates continued revenue growth in subsequent quarters as membership fees are recognized ratably over the subscription period [9] - There is an expectation for profitability to increase as recurring membership fees revenue will be recognized [9] 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 increased to $50 for new members starting January 1, 2026, while existing members had the opportunity to renew at the old rate of $40 [45] 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 trend to continue into Q1, attributing it to a focus on membership growth [16] Question: G&A expenses - 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 over time [22] Question: Churn rates for new members - It was noted that it is too early to assess churn rates for new members added in 2025, as renewals are just beginning [25] Question: Trends in advertising revenue - Management indicated that as the member base grows, it allows for maintaining and improving advertising rates, although the impact is less controllable compared to membership revenue [30] Question: Customer acquisition costs - The lower cost per acquisition in Q4 was attributed to optimizations in user experience and cautious spending [34]

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 [3] - Non-GAAP operating profit for Q4 2025 was $0.9 million, or 4% of revenue, compared to $5.4 million in the prior year [7] 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 [6] - Membership growth rate was 180% year to date, with new club members coming roughly half from legacy members and half from new members [5] Market Data and Key Metrics Changes - Investment in member acquisition in Europe led to a loss, while operating profit on North America and Europe segments was lower [6] - GAAP operating margin was 2% in Q4 2025, affected by the increase in club members [7] 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 [9][12] - Plans to incorporate Travelzoo Meta experiences as a benefit of Travelzoo Club membership starting Q2 2026 [12] Management Comments on Operating Environment and Future Outlook - The travel industry is experiencing a divergence, with luxury travel booming while lower-end travel faces challenges [38] - The company expects continued revenue growth in subsequent quarters as membership fees are recognized ratably over the subscription period [8] Other Important Information - Cash, cash equivalents, and restricted cash as of December 31, 2025, was $10.8 million, with cash flow from operations at $1.5 million [7] - A one-time expense related to a global company meeting increased G&A expenses in Q4 [18] Q&A Session Summary Question: Revenue trends in advertising and commerce - Revenue from advertising and commerce was soft in Q4, expected to continue into Q1, with no specific reason identified for the decline [16] Question: Increase in G&A expenses - A one-time expense related to a global company meeting caused the increase, not a permanent change [18] Question: Marketing expenses and profitability - Marketing expenses are expected to increase in 2026, impacting EPS in the short term but improving as recurring revenue comes in from renewing members [21][22] Question: Churn rates for new members - It is too early to judge churn rates as most new members joined in Q1 2025, with renewals upcoming [25] Question: Industry travel outlook for 2026 - Luxury travel is booming, while lower-end travel is more challenging, with trends consistent across markets [38][40] Question: Membership fee increase - The membership fee increased to $50 for new members, with existing members given the opportunity to renew at the old rate of $40 [45]

Please read this management presentation together with the Company's press release issued earlier today announcing the Company's fourth quarter 2025 financial results and in conjunction with the Company's recent Annual Report and Quarterly Reports as filed with the Securities and Exchange Commission (SEC). Certain statements contained in this presentation that are not historical facts may be forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 2 ...

Q3 2025 Performance - Revenue increased by 10% year-over-year[5] - Q3 2025 revenue reached $22.2 million, compared to $20.1 million in Q3 2024[6] - Operating profit decreased to $0.5 million in Q3 2025, down from $4.0 million in Q3 2024[6] - Non-GAAP operating profit was $1.1 million, representing 5% of revenue[34] - Cash flow from operations was negative $0.4 million[39] - The company repurchased 148,602 shares[39] - Cash balance at the end of Q3 2025 was $9.2 million[41] Travelzoo Club Membership - Member acquisition has a quick payback, with positive payback within a quarter[7,9] - Direct member acquisition costs in Q3 2025 were $2.9 million, impacting earnings per share by negative $0.20[14] - Revenue generated from these members in Q3 2025 and future periods is projected to be $3.0 million or more[14] - Membership fees are expected to account for around 25% of revenue next year[20] - Jack's Flight Club revenue increased by 12%[27]

Financial Data and Key Metrics Changes - Travelzoo's consolidated Q2 revenue was $23.9 million, up 13% from the prior year, and $23.5 million in constant currencies, up 12% from the prior year [5] - Operating income decreased to $2.1 million or 9% of revenue, down from $4 million in the prior year [5] - Non-GAAP operating profit for Q2 was $2.4 million, or 10% of revenue, compared to $4.8 million in the prior year [12] Business Line Data and Key Metrics Changes - Revenue from Jack's Flight Club increased by 33% [10] - Advertising and commerce revenue was $20.9 million for Q2, while membership fees increased to $3 million, expected to account for about 25% of revenue next year [10] Market Data and Key Metrics Changes - Member acquisition costs increased from $28 in Q1 to $38 in Q2 [6] - The company invested heavily in the UK market due to favorable ROI on member acquisition [9] Company Strategy and Development Direction - The company aims to grow the number of paying members and accelerate revenue growth by converting legacy members and adding new club members [22] - Travelzoo plans to leverage its global reach and trusted brand to negotiate more club offers for members [16] Management Comments on Operating Environment and Future Outlook - Management expects revenue growth to continue in Q3 2025 and accelerate in subsequent quarters as membership fees revenue is recognized ratably over the subscription period [13] - The company acknowledges potential fluctuations in reported net income but anticipates substantial increases in profitability over time [13] Other Important Information - As of June 30, 2025, consolidated cash and cash equivalents were $11.2 million, with cash flow from operations at $1.3 million [13] - The company repurchased 172,088 shares during the quarter [13] Q&A Session Summary Question: Understanding profitability dynamics going forward - Management explained that profitability will improve as revenue from previously acquired members contributes without incurring new acquisition costs for those cohorts [24] Question: Pace of club offers - Management indicated that new club offers are released several times a week, not limited to monthly or quarterly [25] Question: Addressing cost of revenues - Management noted that increased costs were due to purchasing distressed inventory, which allowed for strong club offers [30] Question: Normalization of costs in the second half of the year - Management stated that future costs depend on market opportunities, particularly in a weaker travel demand environment [31] Question: Focus on acquiring subscribers in Europe - Management clarified that while there was a focus on the UK, member acquisition was strong in North America as well [35] Question: Premium subscription level prospects - Management is not currently considering a premium subscription tier but will evaluate the membership fee for potential increases in 2026 [38] Question: Travel industry conditions - Management observed that both North America and Europe are experiencing lower demand, but affluent members are not trading down in spending [54]

Financial Performance - Revenue growth accelerated to 13% year-over-year[5], reaching $23.9 million in Q2 2025 compared to $21.1 million in Q2 2024[6] - Operating profit decreased to $2.1 million in Q2 2025 from $4.0 million in Q2 2024 due to increased investment in member growth[5][6] - Non-GAAP operating profit was $2.4 million, representing 10% of revenue[31] - Cash flow from operations was $1.3 million[37], with a cash balance of $11.2 million at the end of Q2 2025[39] Membership & Investment - The company substantially increased investments in acquiring Club Members, observing a favorable payback[8] - The average acquisition cost of annual Club Members in the US market in Q2 2025 was -$38[9] - Direct member acquisition costs in Q2 2025 amounted to -$2.8 million, expected to generate $3.0+ million in revenue in future periods[15] - Membership fees are driving revenue growth and are expected to account for around 25% of revenue next year[19] Segment Performance - Jack's Flight Club revenue increased by 33%[17]