Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Address of principal executive offices) (Zip Code) o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-39791 INSPIRATO INCORPORATED (Exact Name of Registrant as Specified in its Charter) ...

Financial Data and Key Metrics Changes - The company reported total revenue of approximately $56 million, down 20% year-over-year, with adjusted EBITDA showing a 97% improvement to negative $0.1 million, reflecting operational progress [15][16][22] - Year-to-date adjusted EBITDA improved by $13.2 million, and operating cash flow increased by $15 million, indicating a disciplined approach to cost management [3][19] - Free cash flow for Q3 was negative $3 million, with year-to-date free cash flow at negative $10 million, but adjusted free cash flow improved by $17 million compared to the previous year [18][20][22] Business Line Data and Key Metrics Changes - Subscription revenue was $19.4 million, down 16% year-over-year, primarily due to a planned decline in pass subscriptions, but showed stabilization with flat quarter-over-quarter performance [16][17] - Travel revenue was $33.9 million, also down 20% year-over-year, driven by fewer members and lower occupancy of 56%, although average daily rate (ADR) increased by 25% [18] Market Data and Key Metrics Changes - The company had nearly 11,000 members at the end of Q3, consisting of approximately 9,500 active club members and 1,100 active pass members, indicating a focus on high-value, long-term club memberships [16][17] Company Strategy and Development Direction - The company is focused on four strategic pillars: operational efficiency, brand elevation, member experience, and digital platform [6][7] - A new pass membership program was launched, designed to provide more flexible travel opportunities and enhance member value, with pre-sales showing strong interest [4][10] - The proposed business combination with BuyerLink was terminated, but the company remains committed to its digital strategy and transformation initiatives [5][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, highlighting the operational improvements and strategic shifts that are expected to stabilize subscription revenue and improve profitability in 2026 and beyond [15][22] - The company anticipates continued improvement in EBITDA margins and is focused on building a robust technology and digital marketing platform to enhance growth potential [4][12] Other Important Information - The CFO, Michael Arthur, announced his departure, with a commitment to ensure a smooth transition while the search for a successor begins [13][14] Q&A Session Summary Question: Could you talk about two features of the new Pass and goals for 2026? - The new Pass offers significantly more travel opportunities without access to hotels, focusing on properties controlled by the company, allowing better monetization of available nights [24][25] Question: Any initial plans for the marketing engine? - The company has been testing landing pages and has increased spending on search engine marketing, showing promising early results [27][28] Question: Has the search for a new CFO begun? - The search for a new CFO has just started, and the company is early in the process [29]

Inspirato Incorporated (ISPO) came out with a quarterly loss of $0.36 per share versus the Zacks Consensus Estimate of a loss of $0.35. This compares to a loss of $2.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.86%. A quarter ago, it was expected that this company would post a loss of $0.41 per share when it actually produced a loss of $0.42, delivering a surprise of -2.44%.Over the last four quarters, the company has ...

Financial Performance - Inspirato reported a 97% year-over-year improvement in adjusted EBITDA, increasing by $13.2 million year-to-date[3] - Operating cash flow improved by $15.0 million year-to-date, reflecting operational efficiencies[3] - The company expects a net loss of $4.5 million and adjusted EBITDA of negative $0.1 million for the full year 2025, representing a $3.3 million or 97% year-over-year adjusted EBITDA improvement[4] - Cash operating expenses declined by $6.9 million or 26% year-over-year, indicating a focus on operational improvements[4] - Total revenue for Q3 2025 was $55.5 million, a decrease of 19.6% compared to Q3 2024[11] - Gross margin for Q3 2025 was $17.4 million, down 64.7% year-over-year[11] - Revenue for Q3 2025 was $55,541 thousand, a decrease of 19.6% compared to $69,114 thousand in Q3 2024[24] - Gross margin for Q3 2025 was $17,421 thousand, down 64.7% from $49,389 thousand in Q3 2024[24] - Net loss for Q3 2025 was $(4,521) thousand, compared to a net income of $6,622 thousand in Q3 2024[24] - Free cash flow for Q3 2025 was $(2,982) thousand, compared to $(15,051) thousand in Q3 2024[33] - Adjusted EBITDA for the nine months ended September 30, 2025, was $4,800 thousand, compared to $(8,437) thousand for the same period in 2024[29] Membership and Revenue Guidance - As of September 30, 2025, Inspirato reported 10,700 active memberships, down from 12,400 in the previous year[13] - Average daily rates (ADR) increased by 20% to $1,742, while occupancy was reported at 56%[4] - The company has begun pre-sales for a new Pass membership launching in January, aimed at enhancing travel value and flexibility for members[3] - Inspirato is tightening its 2025 revenue guidance to a range of $235 to $240 million[5] Assets and Liabilities - Total assets decreased to $228,286 thousand as of September 30, 2025, down from $273,885 thousand at the end of 2024[26] - Total liabilities were $362,263 thousand as of September 30, 2025, a decrease from $403,737 thousand at the end of 2024[26] - Cash and cash equivalents decreased to $13,715 thousand as of September 30, 2025, from $21,845 thousand at the end of 2024[26] - Deferred revenue decreased to $117,668 thousand as of September 30, 2025, down from $135,347 thousand at the end of 2024[26] Risks and Strategic Considerations - The company emphasizes the importance of considering risks and uncertainties related to forward-looking statements[38] - Statements reflecting the company's beliefs are based on available information, which may be limited or incomplete[39] - The company is focused on the impact of market conditions, including interest rate fluctuations and inflation, on its financial condition and operations[40] - Future capital requirements and sources of cash are critical for the company's growth strategy[40] - The company is assessing the impact of workforce reductions on its expenses[40] - The company is exploring strategic alternatives, including mergers, acquisitions, and joint ventures[40] - The company acknowledges the potential impact of natural disasters and global pandemics on its business operations[40] - The company is committed to generating positive cash flow and achieving profitability[40] - The company is evaluating the implications of its contractual obligations on liquidity[40] - The company is considering the effects of the One Planet Group LLC investment agreement on its financing[40]

Core Insights - Inspirato Incorporated reported a significant year-over-year improvement in adjusted EBITDA of 97%, reflecting operational efficiencies and a focus on reducing fixed commitments while enhancing guest experience [3][6][34] - The company achieved a year-to-date increase of $15.0 million in cash flow from operating activities and a $13.2 million rise in adjusted EBITDA, indicating a strong foundation for future growth [1][3] - Inspirato is set to launch a new Pass membership in January 2026, aimed at providing greater value and flexibility for members [3][34] Financial Performance - For Q3 2025, Inspirato reported a net loss of $4.5 million and an adjusted EBITDA of negative $0.1 million, marking a $3.3 million improvement year-over-year [6][24] - The gross margin for Q3 2025 was $17.4 million, down 64.7% from $49.4 million in Q3 2024, primarily due to a decline in total revenue [6][10] - Total revenue for Q3 2025 was $55.5 million, a decrease of 19.6% compared to $69.1 million in Q3 2024 [10][24] Operational Metrics - Cash operating expenses decreased by $6.9 million or 26% year-over-year, reflecting ongoing operational improvements [6][10] - The occupancy rate for Q3 2025 was 56%, with average daily rates (ADR) increasing by 20% to $1,742 [6][11] - As of September 30, 2025, the company reported 10,700 active memberships, down from 12,400 in the previous year [12][34] Guidance and Management Changes - Inspirato has reinstated its 2025 guidance, expecting adjusted EBITDA of $2 to $4 million and full-year revenue of $235 to $240 million [7][34] - The company announced the resignation of CFO Michael Arthur, who will assist in the transition until the end of 2025 [4][5]

Core Points - Inspirato Incorporated plans to release its financial and operating results for the quarter ended September 30, 2025, after market close on November 4, 2025 [1] - A conference call is scheduled for November 5, 2025, at 11:00 AM ET to discuss the results [2][3] - The company operates as a luxury vacation club and property technology firm, offering curated vacation options and exclusive luxury accommodations [3] Company Overview - Inspirato is listed on Nasdaq under the ticker ISPO and provides access to a portfolio of luxury vacation homes and five-star hotel accommodations [3] - The company aims to deliver service, certainty, and value to discerning travelers through its innovative model [3]

Core Insights - Inspirato Incorporated is expanding its Inspirato Bespoke offerings to include a curated collection of world-class catamarans for private charter, enhancing luxury travel experiences in the Caribbean [1][5] Company Overview - Inspirato is a luxury vacation club and property technology company that provides access to a portfolio of curated vacation options, including exclusive luxury vacation homes and accommodations at five-star hotels [7] Product Offering - The new catamaran collection allows guests to create personalized itineraries that combine luxury with the beauty of the open sea, featuring professional crews and chef-prepared cuisine [3][5] - The fleet includes six meticulously selected vessels known for their craftsmanship and design, ensuring elevated comfort and personalized service [4] Market Positioning - Inspirato aims to connect travelers more deeply with their surroundings through unique travel experiences, reflecting a commitment to luxury and personalized service [4][6] - The company also facilitates charters to various global destinations beyond the Caribbean, including the Mediterranean, Seychelles, Maldives, and more [5][8]

Core Insights - Inspirato Incorporated has completed a series of property enhancements aimed at improving member satisfaction, increasing occupancy, and reinforcing its brand as a leader in luxury travel [1][6] Property Enhancements - Significant updates have been made to various properties, including: - Lake Tahoe: Sawtooth condo received a modern design update [4] - San Diego: Shorebreak home underwent a full refresh with new furnishings [5] - Santa Barbara: Poppy residence was redesigned with new lighting and finishes [5] - Newport Beach: Admiral and Bayside homes enhanced with updated living areas [5] - Aspen: Copper Gulch condo improvements completed to elevate luxury [10] - Big Sky & Deer Valley: Ongoing enhancements expected to be completed soon [10] Strategic Focus - The company emphasizes its commitment to excellence in service and property quality, aiming for a best-in-class portfolio to support growth in membership and utilization [6][7] - Future refresh opportunities are being explored in various destinations including Hawaii, Hilton Head Island, and Tuscany [6] Brand Positioning - Inspirato's operational initiatives are designed to enhance consistency and quality, aligning with the luxury expectations of its members, which supports long-term revenue growth [7]

Core Insights - Inspirato Incorporated announced new "Inspirato Only Experiences" for 2026, expanding its portfolio to include a blend of world-class events and unique journeys for its members [1][3] Company Overview - Inspirato is a luxury vacation club and property technology company that offers curated vacation options through an innovative model, ensuring service, certainty, and value for discerning travelers [6] New Offerings - The 2026 Collection features over 25 members-only journeys, including iconic sporting events and cultural festivals, reflecting the company's growth in curated experiences [3] - Specific experiences include: - Family Southern Utah Adventure (June 7–13, 2026): A family journey through Zion, Bryce, and Capitol Reef, featuring luxury accommodations and guided activities [4] - Wimbledon (July 9–13, 2026): Premium seating for the finals, exclusive receptions, and accommodations at Rosewood London [4] - Spain Golf Play (September 26–October 2, 2026): Golfing on iconic courses in Southern Spain with luxury accommodations and cultural experiences [4]

Core Insights - Inspirato has announced a partnership with Aero to enhance travel experiences by combining luxury accommodations with semi-private flight options [1][3][4] Company Overview - Inspirato is a luxury vacation club providing access to over 350 luxury vacation homes and accommodations at more than 220 luxury hotels and resorts across 170+ destinations globally [5][10] - Aero is a semi-private jet service that connects travelers to unique getaway destinations, offering a private jet charter experience at a lower cost [9][10] Partnership Details - The collaboration allows Inspirato members to access Aero's semi-private flight services with benefits such as flight credits and preferred pricing, while Aero clients receive special access to Inspirato's luxury portfolio [4][6] - The partnership aims to create a seamless travel experience from flight to accommodation, enhancing the overall journey for travelers [3][4] Travel Experience - Aero's fleet includes Embraer ERJ 135 and Legacy 600 jets, with Gulfstream IV jets joining in fall 2025, providing comfort and service during flights [6][7] - In-flight amenities include oversized leather lounge chair seating, Starlink Wi-Fi, curated dining options, and a pet-friendly policy [7][9]