$TZOO

TRAVELZOO INC

CIK:0001133311|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenues	$ 23,208	$ 23,906	$ 47,481	$ 47,046
Cost of revenues	7,104	5,163	12,340	9,335
Gross profit	16,104	18,743	35,141	37,711
Operating expenses:
Sales and marketing	13,734	11,483	24,850	21,708
Product development	602	698	1,266	1,332
General and administrative	4,530	4,502	8,343	8,807
Total operating expenses	18,866	16,683	34,459	31,847
Operating income (loss)	(2,762)	2,060	682	5,864
Other income, net	274	161	270	790
Income before income taxes	(2,488)	2,221	952	6,654
Income tax expense (benefit)	(382)	740	560	1,912
Net income (loss)	(2,106)	1,481	392	4,742
Net income attributable to non-controlling interest	30	79	50	172
Net income (loss) attributable to Travelzoo	$ (2,136)	$ 1,402	$ 342	$ 4,570
Net income (loss) per share - basic (in dollars per share)	$ (0.21)	$ 0.13	$ 0.03	$ 0.39
Net income (loss) per share - diluted (in dollars per share)	$ (0.21)	$ 0.12	$ 0.03	$ 0.38
Shares used in per share calculation - basic (in shares)	10,319	11,139	10,577	11,617
Shares used in per share calculation - diluted (in shares)	10,319	11,505	10,658	12,088

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 392	$ 4,742
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	110	182
Stock-based compensation	719	708
Deferred income tax	(753)	5
Net foreign currency effect	52	(295)
Provision for accounts receivable and refund reserve	(146)	124
Changes in operating assets and liabilities:
Accounts receivable	(3,857)	1,743
Prepaid income taxes	(575)	238
Prepaid expenses, deposits and other	(521)	(144)
Accounts payable	684	(180)
Merchant payables	(814)	(4,441)
Accrued expenses and other	1,733	1,842
Deferred revenue	4,097	1,720
Income tax payable	(121)	(2,007)
Other liabilities	1,186	345
Net cash provided by operating activities	2,186	4,582
Cash flows from investing activities:
Purchases of property and equipment	(14)	(34)
Net cash used in investing activities	(14)	(34)
Cash flows from financing activities:
Repurchase of common stock	(5,206)	(11,418)
Exercise of stock options and taxes paid for net share settlement of equity awards	0	(104)
Net cash used in financing activities	(5,206)	(11,522)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(137)	432
Net increase (decrease) in cash, cash equivalents and restricted cash	(3,171)	(6,542)
Cash, cash equivalents and restricted cash at beginning of period	10,763	17,740
Cash, cash equivalents and restricted cash at end of period	7,592	11,198
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net	560	2,726
Right-of-use assets obtained in exchange for lease obligations—operating leases	1,213	321
Cash paid for amounts included in the measurement of lease liabilities	1,658	897
Non-cash investing and financing activities:
Accrued excise tax for share repurchases	$ 52	$ 113

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 6,838	$ 10,007
Accounts receivable, less allowance for doubtful accounts of $787 and $1,222 as of June 30, 2026 and December 31, 2025, respectively	14,543	10,723
Prepaid income taxes	1,827	1,364
Prepaid expenses and other	2,064	1,302
Total current assets	25,272	23,396
Deposits and other	193	166
Deferred tax assets	4,744	4,202
Restricted cash	754	756
Operating lease right-of-use assets	4,334	4,047
Property and equipment, net	132	231
Intangible assets, net	1,450	1,450
Goodwill	10,944	10,944
Total assets	47,823	45,192
Current liabilities:
Accounts payable	8,474	7,761
Merchant payables	10,723	11,665
Accrued expenses and other	5,544	3,926
Deferred revenue	12,737	8,728
Income tax payable	71	279
Operating lease liabilities	2,026	1,811
Total current liabilities	39,575	34,170
Long-term tax liabilities	10,770	9,260
Long-term operating lease liabilities	4,074	4,184
Total liabilities	54,419	47,614
Stockholders’ equity (deficit):
Preferred stock, $0.01 par value per share ( 5,000 shares authorized; none issued) Common stock, $0.01 par value (20,000 shares authorized; 10,232 shares issued and outstanding as of June 30, 2026, 10,932 shares issued and outstanding as of December 31, 2025)	102	109
Additional paid-in capital	0	0
Tax indemnification	(9,537)	(9,537)
Retained earnings	3,105	7,243
Accumulated other comprehensive loss	(5,410)	(5,331)
Total Travelzoo stockholders’ equity (deficit)	(11,740)	(7,516)
Non-controlling interest	5,144	5,094
Total stockholders’ equity (deficit)	(6,596)	(2,422)
Total liabilities and stockholders’ equity	$ 47,823	$ 45,192