Financial Performance - Travelzoo reported consolidated revenue of $23.9 million for Q2 2025, representing a 13% increase from $21.1 million in the same period last year [1] - Net income attributable to Travelzoo was $1.4 million, or $0.12 per share, compared to $0.23 per share in the prior-year period [3] - Non-GAAP operating profit was $2.4 million, excluding certain expenses [3][24] Segment Performance - North America business segment revenue increased by 14% year-over-year to $16.1 million, with an operating profit of $2.8 million [5] - Europe business segment revenue rose by 7% year-over-year to $6.4 million, but reported an operating loss of $883,000 due to increased member acquisition costs [6] - Jack's Flight Club, in which Travelzoo holds a 60% ownership, saw revenue increase by 33% year-over-year to $1.4 million, with a shift from an operating loss to a profit of $156,000 [7] Membership and Marketing Strategy - The company invested significantly in acquiring new Club Members, expecting a positive return on investment within the quarter [2] - Membership fees revenue is recognized ratably over a 12-month subscription period, impacting earnings per share [2] - Travelzoo aims to leverage its global reach and relationships with travel suppliers to negotiate more offers for Club Members [4] Cash Flow and Balance Sheet - Cash flow from operations was reported at $1.3 million [12] - As of June 30, 2025, cash, cash equivalents, and restricted cash totaled $11.2 million [12] - Deferred revenue is expected to continue increasing as membership fees are recognized over time [12] Future Outlook - For Q3 2025, Travelzoo anticipates continued year-over-year revenue growth, with expectations for accelerated growth in subsequent quarters [14] - The company expects profitability to increase over time as recurring membership fees are recognized [14] - Travelzoo is seeing a transition of Legacy Members to Club Members, which is expected to enhance revenue streams [15]