Travelzoo (TZOO) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $22.5 million, up 9% year-over-year; constant currency revenue was $22.1 million, up 7%.

• Operating profit declined to $0.6 million (3% of revenue) from $4.9 million due to increased marketing spend for member acquisition.

• Membership growth accelerated, with a 180% increase year-to-date, driven by both legacy and new members.

• Net loss attributable to shareholders was $19,000, or $0.00 per share, compared to $0.26 per share profit in Q4 2024.

• Strategic focus remains on growing club members, recurring revenue, and leveraging exclusive travel offers.

Financial highlights

• Advertising and commerce revenue was $18.3 million; membership fees rose to $4.1 million, now about 25% of total revenue.

• Non-GAAP operating profit was $0.9 million (4% of revenue), down from $5.4 million year-over-year.

• Cash, cash equivalents, and restricted cash totaled $10.8 million as of December 31, 2025.

• Cash flow from operations was $1.5 million, with a corresponding increase in cash balance.

• Gross profit for Q4 2025 was $17.5 million, with total operating expenses of $17.0 million.

Outlook and guidance

• Year-over-year revenue growth expected to continue in Q1 2026 and subsequent quarters.

• Profitability anticipated to improve as recurring membership revenue is recognized over time.

• Short-term net income may fluctuate due to immediate expensing of marketing costs.

• Membership fee increases to $50 in the US for 2026, with legacy members offered a renewal at the old rate before February.

• Membership fees are expected to account for around 25% of total revenue in 2026.