Travelzoo (NASDAQ: TZOO)

Travelzoo is a global Internet media company. We operate Travelzoo the club for travel enthusiasts Jack’s Flight Club and Travelzoo META. We reach 30 million travelers worldwide. Club members receive Club Offers negotiated and vetted by deal experts around the globe. Our relationships with thousands of top travel suppliers give us access to irresistible deals. Our club and its benefits are built around the lifestyle of a travel enthusiast. Travelzoo attracts a high quality audience of travel enthusiasts across multiple digital platforms including email websites social media and mobile applications. We have over 4.7 million social media followers on Facebook Instagram X and WeChat and our iOS and Android mobile applications have been downloaded 8.1 million times. Our core products and services include the Travelzoo website the Travelzoo iOS and Android apps the Top 20 email newsletter Standalone email newsletters the Travelzoo Network and Jack’s Flight Club. The Travelzoo website and newsletters feature Local Deals and Getaways listings that allow members to purchase vouchers for offers from local businesses such as spas hotels and restaurants. Jack’s Flight Club provides members with information about exceptional airfares. This overview shows how we serve travel enthusiasts by curating and delivering value focused offers.

The Company generates revenue from advertising and commerce membership fees and other sources. Advertising revenue consists primarily of advertising fees paid by travel companies for publishing their offers on Travelzoo’s media properties commissions and revenues generated from the sale of Getaways vouchers and bookings on our hotel platform and publishing fees from high quality local businesses sale of Local Deals vouchers and entertainment offers. We typically recognize advertising revenues upon delivery of emails or clicks as tracked by our internal platform or third party platforms. We recognize revenue upon the sale of vouchers upon notification of the amount of direct bookings or upon delivery of emails. We recognize a percentage of the face value of vouchers upon the sale of the vouchers net of an allowance for refunds. Membership fee revenue consists of subscription fees paid by Travelzoo and Jack’s Flight Club. Travelzoo membership has historically been free however on January 1 2024 Travelzoo introduced an annual membership fee of 40 dollars or local equivalent for new members in the United States Canada United Kingdom and Germany with the 2024 annual fee waived for existing members as of December 31 2023. On January 1 2026 we increased the annual membership fee to 50 dollars for new members in the United States only. For existing Club Members the new pricing will apply from the next renewal of their membership after February 1 2026. Jack’s Flight Club subscription options are quarterly semi annually and annually. We recognize subscription revenues ratably over the respective subscription periods. Other revenue consists of licensing fees from license agreements as well as the retail business originally operated by Metaverse Travel Experiences LLC MTE and acquired and maintained by the Company following the acquisition of MTE. We also license Travelzoo products services and intellectual property to licensees in Australia New Zealand and Singapore and in Japan and South Korea where the Company is entitled to quarterly royalty payments based on a percentage of net revenue. Licensing arrangements generate steady royalty income that supplements our advertising and membership streams.

The company operates through the following segments Travelzoo North America Travelzoo Europe Jack’s Flight Club and New Initiatives. These segments reflect the way management evaluates performance and allocates resources. Revenue contributions for the year ended December 31 2025 were 66 percent from Travelzoo North America 28 percent from Travelzoo Europe 6 percent from Jack’s Flight Club and the remainder from New Initiatives.

• Travelzoo North America consists of the Company’s operations in the U. S. and Canada. It includes advertising sales commerce and membership services in those regions. It accounted for 66 percent of revenues for the year ended December 31 2025.

• Travelzoo Europe consists of the Company’s operations in France Germany Spain and the United Kingdom. It provides similar advertising commerce and membership services in those markets. It accounted for 28 percent of revenues for the year ended December 31 2025.

• Jack’s Flight Club consists of subscription revenue from premium members to access and receive flight deals via email or mobile applications. It offers airfare alerts and travel advice. It accounted for 6 percent of revenues for the year ended December 31 2025.

• New Initiatives consists of Travelzoo’s licensing business Travelzoo META and MTE. It includes licensing of Travelzoo products and services to partners in Australia New Zealand Singapore Japan and South Korea as well as the Metaverse travel experiences and the retail business originally operated by Metaverse Travel Experiences LLC. This segment also explores emerging opportunities in virtual travel experiences.

Travelzoo holds a strong position as a trusted curator of travel and leisure deals with a global audience of 30 million travelers. It competes with online travel agencies deal websites and traditional advertising platforms. Competitive advantages include its curated offer selection long standing relationships with thousands of travel suppliers a multichannel distribution network encompassing email websites social media and mobile apps and a loyal member base that values quality and value. The company benefits from the shift toward digital advertising and the demand for flexible cost effective marketing solutions for excess inventory. Its scale and expertise in negotiating exclusive deals allow it to offer members savings that are difficult to obtain elsewhere.

The Company serves more than 5 000 travel entertainment and local providers including airlines hotels cruise lines vacation packagers tour operators destinations car rental companies travel agents theater and performing arts groups restaurants spas and activity companies. Our advertiser base is diversified across industries and geographies with no single customer representing more than 10 percent of total revenue. No specific customer names are disclosed in the filing.