Travelzoo Q2 revenue up 13% YoY to $23.9 mln, EPS $0.12.

• Travelzoo Q2 revenue up 13% YoY to $23.9mln • Consolidated operating profit at $2.1mln • Non-GAAP consolidated operating profit at $2.4mln • Cash flow from operations at $1.3mln • EPS at $0.12 • Travelzoo invests in acquiring more Club Members with positive ROI.

Travelzoo® (NASDAQ: TZOO) has announced its second-quarter 2025 financial results, showcasing a robust performance with revenue growth and increased profitability. The company reported a 13% year-over-year (YoY) increase in revenue to $23.9 million, with a consolidated operating profit of $2.1 million. The non-GAAP consolidated operating profit stood at $2.4 million, reflecting a significant improvement over the prior year. Cash flow from operations was $1.3 million, and the earnings per share (EPS) reached $0.12.

Key highlights include a 14% YoY increase in North America business segment revenue to $16.1 million, and a 7% YoY increase in Europe business segment revenue to $6.4 million. Travelzoo's acquisition of more Club Members, driven by positive return on investment (ROI), has been a strategic focus. The company's investment in marketing to acquire new members has led to immediate expenses but is expected to yield long-term benefits.

Jack's Flight Club, a subscription service in which Travelzoo holds a 60% ownership interest, contributed to revenue growth with a 33% YoY increase to $1.4 million. The number of premium subscribers also increased by 15% YoY. The New Initiatives business segment, including Licensing and Travelzoo META, generated $19,000 in revenue and incurred an operating loss of $31,000.

Looking ahead, Travelzoo expects continued revenue growth and an acceleration in subsequent quarters as membership fees revenue is recognized over the subscription period. The company's strategic focus on acquiring new members and converting Legacy Members to Club Members is expected to drive profitability in the long term.

References:
[1] https://www.prnewswire.com/news-releases/travelzoo-reports-second-quarter-2025-results-302511863.html