Travelzoo announced consolidated revenue of $23.9 million for the second quarter ended June 30, 2025, representing a 13% increase year-over-year, or 12% in constant currencies. Net income attributable to Travelzoo was $1.4 million, or $0.12 per share, compared to $0.23 per share in the prior-year period. Non-GAAP operating profit was $2.4 million.
The company invested significantly in acquiring Club Members during the quarter, with marketing costs expensed immediately, which resulted in a sizable reduction in EPS. North America segment revenue increased 14% year-over-year to $16.1 million, but operating profit decreased to $2.8 million from $3.7 million. Europe's revenue increased 7% to $6.4 million, but reported an operating loss of $883,000, compared to an operating profit of $512,000 in the prior year, also due to increased member acquisition efforts.
Jack's Flight Club continued its strong performance, with revenue increasing 33% year-over-year to $1.4 million and premium subscribers growing by 15%. As of June 30, 2025, cash, cash equivalents, and restricted cash totaled $11.2 million, with cash flow from operations at $1.3 million. Travelzoo repurchased 172,088 shares of its common stock during the quarter.
For Q3 2025, Travelzoo expects year-over-year revenue growth to continue and accelerate in subsequent quarters as membership fee revenue is recognized ratably and more members convert. Management anticipates profitability to substantially increase over time as recurring membership fee revenue builds, while acknowledging that short-term fluctuations in net income are possible due to dynamic marketing investments.
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