Basic net income per share is computed using the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by adjusting the weighted-average number of common shares outstanding for the effect of dilutive potential common shares outstanding during the period. Potential common shares included in the diluted calculation consist of incremental shares issuable upon the exercise of outstanding stock options calculated using the treasury stock method.

The following table sets forth the calculation of basic and diluted net income (loss) per share (in thousands, except per share amounts):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
Numerator:
Net income (loss) attributable to Travelzoo	$	(2,009)	$	150	$	(1,667)	$	4,720

Denominator:
Weighted average common shares—basic	10,197		10,987		10,449		11,585
Effect of dilutive securities: stock options	—		226		—		389
Weighted average common shares—diluted	10,197		11,213		10,449		11,974




Net income (loss) per share —basic	$	(0.20)	$	0.01	$	(0.16)	$	0.41




Net income (loss) per share—diluted	$	(0.20)	$	0.01	$	(0.16)	$	0.39

For the three months ended September 30, 2026, options to purchase 1.1 million shares of common stock were not included in the computation of diluted net income per share because the effect would have been anti-dilutive.