Travelzoo announced consolidated revenue of $23.1 million for the first quarter ended March 31, 2025, marking a 5% increase year-over-year, or 6% in constant currencies. Net income attributable to Travelzoo was $3.0 million, or $0.25 per share, compared to $0.31 per share in the prior-year period. Non-GAAP operating profit was $4.4 million.
North America segment revenue increased 6% year-over-year to $15.1 million, though operating profit decreased to $3.6 million from $4.4 million. Europe's revenue grew 1% to $6.7 million, but operating profit declined to $0.2 million from $1.4 million. Jack's Flight Club continued its strong performance, with revenue up 20% year-over-year to $1.3 million and premium subscribers increasing by 13%.
The company noted that marketing investments of $0.6 million for Jack's Flight Club were fully expensed in Q1 2025. As of March 31, 2025, cash, cash equivalents, and restricted cash stood at $12.2 million, with cash flow from operations at $3.3 million. Travelzoo repurchased 590,839 shares of its common stock during the quarter.
For Q2 2025, Travelzoo expects year-over-year revenue growth to double and to accelerate in subsequent quarters, driven by the ratable recognition of membership fee revenue and new member acquisitions. Management anticipates profitability to increase over time as recurring membership fee revenue grows, while acknowledging potential short-term fluctuations in net income due to strategic marketing investments.
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