Travelzoo · NASDAQ:TZOO
Travelzoo — Q3 2026 Earnings Presentation
25 slides from Travelzoo's earnings presentation, Oct 27, 2026
Slide 1: Third Quarter 2026 Performance
Third Quarter 2026 Performance October 27, 2026
Slide 2: Important Notice to Investors
Important Notice to Investors Please read this management presentation together with the Company’s press release issued earlier today announcing the Company’s third quarter 2026 financial results and in conjunction with the Company’s recent Annual Report and Quarterly Reports as filed with the Secur
Slide 3: Part 1: Third Quarter 2026 Performance
Part 1: Third Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 3 | Third Quarter 2026 Performance
Slide 4: Revenue increased again year-over-year; we still reported a loss
Revenue increased again year-over-year. We still reported a loss due to our investments in growing Club Members. Revenue Operating Profit (Loss) $ millions $ millions 22.9 22.2 0.5 (2.6) Q3 2025 Q3 2026 Q3 2025 Q3 2026 4 | Third Quarter 2026 Performance
Slide 5: Quarterly loss came from higher investment in growing Club Members
The quarterly loss came from higher investments into growing the number of Club Members. Higher membership revenues are a more attractive business model. Quarterly Spend on Marketing* Objectives and Actions $ millions • Accelerate the growth in (paying) 5.8 Club Members 4.7 • Increase recurring memb
Slide 6: More Club Members drive recurring revenue from membership fees
More Club Members drive recurring revenue from membership fees. This quarter, we added the largest number of Club Members yet. Number of Club Members at the End of Each Quarter Membership Fees Revenue $ millions Travelzoo Jack's Flight Club 4.5 3.7 3.2 2.8 2.2 1.6 1.1 0.3 1.3 1.3 1.4 1.4 1.4 1.3 1.3
Slide 7: Membership fees revenue is recognized ratably; acquisition costs expensed immediately
As a reminder, with subscription businesses, membership fees revenue is recognized ratably over the subscription period, whereas acquisition costs are expensed immediately. Revenue Recognition $ Example: New member joins on September 15, 2026, paying a membership fee of $50 per annum Q3 2026 Q4 2026
Slide 8: Marketing costs reduce EPS short-term but drive better results in 2027
Thus, marketing costs reduce reported EPS in the short-term but are projected to drive better results in 2027 and beyond when deferred revenues and recurring revenues increase profitability. Travelzoo Membership Revenues* Incremental Impact of $ millions Marketing Costs on EPS ~30+ ~$1.20 ~17 7.7 20
Slide 9: Average acquisition cost was lower in Q3; payback remains attractive
Even though we invested even more than in Q2 and acquired more members, the average acquisition cost was lower (better) in Q3. Payback remains attractive. Average Acquisition Cost of Payback from Club Members Acquired Annual Club Members* in the Quarter and Future Periods Q3 2026, U.S. market Q3 202
Slide 10: Segment revenues
Segment revenues: North America Segment Europe Segment Jack’s Flight Club Segment Revenue $ millions Q3 2025 14.2 6.6 1.4 Q3 2026 14.8 6.9 1.2 Operating Profit (Loss) $ millions Q3 2025 1.1 (0.6) 0.0 Q3 2026 (1.4) (1.2) 0.0 10 | Third Quarter 2026 Performance
Slide 11: Operating margins expected to improve as renewals grow
As the number of membership renewals—which do not have acquisition expenses—grows, operating margins are expected to substantially improve. In the short-term, fluctuations are likely.* Operating Margin Q1 Q2 Q3 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2026 2026 22% 18% 14% 11% 9% 7% 8% 4% (
Slide 12: Investments in Club Members occur in all key markets
The investments in Club Members occur in all key markets. North America Operating Margin Europe Operating Margin Q1 2023 31% 8% Q2 2023 27% (4%) Q3 2023 22% 4% Q4 2023 29% 13% Q1 2024 31% 21% Q2 2024 26% 8% Q3 2024 25% 17% Q4 2024 33% 3% Q1 2025 24% 3% Q2 2025 17% (14%) Q3 2025 8% (10%) Q4 2025 10%
Slide 13: Total non-GAAP operating loss was $2.1 million
Total non-GAAP operating loss was $2.1 million. Non-GAAP Operating Profit (Loss)* GAAP Operating Profit (Loss) $ millions Adjustments Non-GAAP Operating Profit (Loss)* 0.6 1.1 0.5 0.5 (2.1) (2.6) Q3 2025 Q3 2026 * GAAP operating profit + amortization of intangibles + stock option expenses + severanc
Slide 14: Items excluded in calculation of non-GAAP operating profit (loss)
Items excluded in the calculation of non-GAAP operating profit (loss): $ millions Q3 2025 Q3 2026 Adjustments* 0.6 0.5 Amortization of intangibles 0.0 0.0 Stock option expense 0.4 0.3 Severance-related expenses 0.2 0.2 14 | Third Quarter 2026 Performance
Slide 15: Cash balance increased by $1.2 million compared with Q2 2026
Our cash balance increased by $1.2 million compared with Q2 2026. We repurchased 256,898 shares. Cash Balance at End of Quarter* $ millions 9.2 8.8 7.6 Q3 2025 Q2 2026 Q3 2026 * Includes cash, cash equivalents and restricted cash 15 | Third Quarter 2026 Performance
Slide 16: Part 2: Travelzoo Club Membership
Part 1: Third Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 16 | Third Quarter 2026 Performance
Slide 17: The must-have membership for the travel enthusiast
The must-have membership for the travel enthusiast Membership empowers you to live your life as a travel enthusiast to the fullest, while respecting different cultures. Annual membership ($50 for a 12-month period in the U.S.) provides: • Access to Club Offers negotiated and rigorously vetted for us
Slide 18: Exclusive Club Offers created for Club Members during Q3
A few of the exclusive Club Offers that we created for Club Members during Q3: £59—Stays at 15 cosy English inns Exclusive: Cook with a Michelin-star chef in Tuscany $999—Hawaiian Islands 16-night cruise $2599—Maldives all-inclusive overwater villa, reg. $8300 18 | Third Quarter 2026 Performance
Slide 19: Worldwide complimentary lounge access in case of flight delays
Perfect for the travel enthusiast: Worldwide complimentary lounge access in case of flight delays Complimentary access to an airport lounge if flight is delayed by at least one hour. The benefit is good on any flight on any airline, regardless of where they booked. Bring up to three family members o
Slide 20: Travelzoo is loved by affluent, active travel enthusiasts
Travelzoo is loved by travel enthusiasts who are affluent, active and open to new experiences. Member Sentiment and Demographics Our Members Compared to the General Population Median Household Would Hold Onto Income** Leisure Travel Longest if Household Spending Had to Be Cut 90% 62% $150,000 are op
Slide 21: Part 3: Management Focus
Part 1: Third Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 21 | Third Quarter 2026 Performance
Slide 22: Management focus
Management focus • Grow the number of (paying) members and accelerate revenue growth by converting Legacy Members and adding new Club Members • Retain, and grow, our profitable advertising business • Accelerate revenue growth which drives future profits in spite of temporarily lower EPS • Grow Jack’
Slide 23: Part 4: Travelzoo META
Part 1: Third Quarter 2026 Performance Part 2: Travelzoo Club Membership Part 3: Management Focus Part 4: Travelzoo META 23 | Third Quarter 2026 Performance
Slide 24: 24 | Third Quarter 2026 Performance
24 | Third Quarter 2026 Performance
Slide 25: Have a good day!
NASDAQ: TZOO HAVE A GOOD DAY! For questions, please contact Travelzoo Investor Relations: [email protected]