Travelzoo Posts $0.20 Per-Share Loss as Third-Quarter Revenue Rises 3%

Key Facts

Travelzoo reported results on October 27 for the third quarter ended September 30, 2026, recording a net loss attributable to the company of $2.0 million, or $0.20 per share, compared with earnings of $0.01 per share a year earlier. The per-share loss was worse than analysts’ estimate of $0.09, a miss of $0.11 per share, according to Investing.com. Revenue reached $22.9 million, up 3% year over year from $22.2 million in the year-earlier period. Investing.com put actual revenue at $22.91 million, versus consensus of $22.97 million, a narrow miss. The results showed revenue growth alongside a return to losses and mounting operating pressure.

Revenue growth varied between the two main regions and was not matched by improved operating profitability. In North America, revenue rose 4% year over year to $14.8 million, but the segment posted an operating loss of $1.4 million, equal to 9% of revenue, after operating income of $1.1 million, or 8% of revenue, a year earlier. In Europe, revenue increased 5% to $6.9 million, while the operating loss doubled to $1.2 million from $0.6 million in the third quarter of 2025. The European loss was 18% of revenue, compared with 10% in the year-earlier period. The comparison between the two segments shows that higher sales did not prevent operating results from deteriorating during the quarter.

Travelzoo said it continued to invest heavily in growing club membership while accelerating its shift toward membership-fee revenue. Travelzoo Club membership rose 65% year over year in the third quarter, while the company expenses marketing costs immediately. Membership fees, meanwhile, are recognized evenly over a 12-month subscription period, according to the company. The different timing of expense and revenue recognition means member-acquisition costs are recorded immediately, while subscription revenue is spread over the membership period. The company said: "Marketing costs are expensed immediately, while membership fee revenue is recognized evenly over the 12-month subscription period."

Results from Jack's Flight Club offer another view of the performance of the company's businesses. The club's revenue fell 15% year over year to $1.2 million in the third quarter, but its operating income rose to $34 thousand from $20 thousand in the year-earlier period. Cash flow from operations was $1.8 million during the quarter, compared with negative operating cash flow of $0.4 million in the third quarter of 2025. Cash, cash equivalents and restricted cash totaled $8.8 million on September 30, 2026. The company also repurchased 256,898 common shares during the quarter and recorded a tax benefit of $436 thousand.

The operating comparison is with the third quarter of 2025, when Travelzoo reported consolidated operating income of $0.5 million and non-GAAP operating income of $1.1 million. Cash flow from operations was also negative at $0.4 million at the time, according to the company's filing with the U.S. Securities and Exchange Commission. In the current quarter, those figures compare with operating losses in North America and Europe, despite revenue growth in both regions. The reported net loss of $2.0 million also compares with per-share profitability in the prior period. This divergence between a growing membership base and profitability measures is central to the results presented by the company.

Travelzoo said it expects year-over-year revenue growth in the fourth quarter of 2026 and in subsequent quarters, citing growth in its club membership base and the conversion of more long-standing members to club membership. The company scheduled a call to discuss its third-quarter results for October 27 at 11:00 a.m. Eastern time. Global CEO Holger Bartel also said the company intends to expand the offers and benefits available to members. Among the benefits he cited was free access to airport lounges around the world when flights are delayed. Travelzoo shares closed at $5.12 on October 26, the day before the results were announced, according to Investing.com.