Travelzoo reported financial results for the third quarter ended September 30, 2026, showing a slight increase in revenue alongside continued operating losses. The company reported consolidated revenue of $22.9 million, representing a 3% year-over-year increase from $22.2 million. In constant currencies, revenue was $23.0 million.
Despite the revenue growth, the company reported a consolidated operating loss of $2.6 million. On a non-GAAP basis, which excludes stock option expenses of $338,000 and severance expense of $150,000, the operating loss was $2.1 million. Net loss attributable to Travelzoo was $2.0 million, or $(0.20) per share, compared to net income of $0.01 per share in the prior-year period.
Travelzoo’s balance sheet showed cash, cash equivalents, and restricted cash totaling $8.8 million as of September 30, 2026. The company generated $1.8 million in cash flow from operations during the quarter. Additionally, the company repurchased 256,898 shares of its common stock during Q3 2026.
Segment performance varied across the company’s reporting units. Travelzoo North America revenue increased 4% year-over-year to $14.8 million, though it posted an operating loss of $1.4 million. Travelzoo Europe revenue increased 5% year-over-year to $6.9 million, with an operating loss of $1.2 million. The company’s 60% owned subsidiary, Jack’s Flight Club, saw revenue decrease 15% year-over-year to $1.2 million, though it achieved an operating profit of $34,000.
Travelzoo noted that the number of Club Members increased by 65% year-over-year. The company expects year-over-year revenue growth in the fourth quarter of 2026 and subsequent quarters, driven by the recognition of recurring membership fees revenue as more Legacy Members convert to Club Members.
