分组1 - Inspirato Incorporated reported a quarterly loss of $0.42 per share, slightly worse than the Zacks Consensus Estimate of a loss of $0.41, but an improvement from a loss of $2.25 per share a year ago, indicating a significant year-over-year recovery [1] - The company posted revenues of $63.11 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 10.19%, although this represents a decline from $67.38 million in the same quarter last year [2] - Over the last four quarters, Inspirato has surpassed consensus EPS estimates two times and revenue estimates three times, showcasing some level of operational resilience [2] 分组2 - The stock has underperformed, losing about 6.1% since the beginning of the year, while the S&P 500 has gained 8.4%, indicating a challenging market environment for the company [3] - The current consensus EPS estimate for the upcoming quarter is -$0.37 on revenues of $64.74 million, and for the current fiscal year, it is -$1.00 on revenues of $245.03 million, reflecting cautious expectations moving forward [7] - The Leisure and Recreation Services industry, to which Inspirato belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting a challenging industry outlook that could impact stock performance [8]

[Executive Summary & Strategic Overview](index=1&type=section&id=Executive%20Summary%20%26%20Strategic%20Overview) This section provides an executive summary of Inspirato's Q2 2025 performance, highlighting key financial and operational achievements and outlining the strategic combination with Buyerlink [Q2 2025 Performance Highlights](index=1&type=section&id=Q2%202025%20Highlights) Inspirato achieved significant operational and financial improvements in Q2 2025, with a 96% year-over-year increase in Adjusted EBITDA and reaching free cash flow breakeven, driven by portfolio optimization and operational efficiency - Net loss was **$5.3 million**, Adjusted EBITDA was **negative $0.3 million**, representing an **$8.8 million or 96% year-over-year improvement** in Adjusted EBITDA[7](index=7&type=chunk) - Gross margin reached **$17.4 million**, driven by portfolio optimization and a more efficient business model[7](index=7&type=chunk) - Cash operating expenses decreased by **$7.1 million or 27% year-over-year**, reflecting a continued focus on operational improvements[7](index=7&type=chunk) - Occupancy rate was **59%**, with Average Daily Rate (ADR) increasing **24% to $1,670**[7](index=7&type=chunk) - As of June 30, 2025, the company had over **11,000 active memberships**, emphasizing a focus on high-quality, recurring revenue[7](index=7&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Chairman and CEO Payam Zamani highlighted Q2 results as reflecting ongoing transformation progress, particularly in EBITDA improvement and free cash flow breakeven, with continued focus on operational efficiency and strategic growth - Chairman and CEO Payam Zamani stated that Q2 results reflect continued progress in the company's transformation, with an **$8.8 million EBITDA improvement** and achieving free cash flow breakeven[4](index=4&type=chunk) - The company remains focused on executing strategic initiatives: enhancing operational efficiency, elevating the brand, improving member experience, and advancing the digital platform to solidify the foundation for long-term profitable growth[4](index=4&type=chunk) - The strategic combination with Buyerlink is expected to further accelerate the company's strategy by adding proven technology and expanding global luxury travel market reach[4](index=4&type=chunk) [Strategic Combination with Buyerlink](index=1&type=section&id=Strategic%20Combination%20with%20Buyerlink) Inspirato has entered a definitive agreement with Buyerlink for an all-stock reverse merger, expected to close in Q3 2025, forming One Planet Platforms, leveraging Buyerlink's technology and marketing expertise - Inspirato announced a definitive merger agreement with Buyerlink on June 26, 2025, an all-stock reverse merger transaction valuing Buyerlink's equity at approximately **$326.3 million**[5](index=5&type=chunk) - The transaction is expected to close in Q3 2025, with the combined company named One Planet Platforms and trading on Nasdaq under a new ticker symbol[5](index=5&type=chunk)[6](index=6&type=chunk) - Inspirato's brand and travel products are expected to significantly benefit from Buyerlink's scalable infrastructure, AI technology, and performance-based marketing expertise[6](index=6&type=chunk) - Prior to closing, Inspirato will continue to operate as an independent public company, focusing on executing strategic priorities; post-merger, existing shareholders will hold shares in the new combined company, with only the ticker symbol updated[8](index=8&type=chunk) - Inspirato will no longer update its standalone guidance but remains on track to achieve its full-year 2025 targets[8](index=8&type=chunk) [Q2 2025 Financial and Operational Results](index=3&type=section&id=Q2%202025%20Financial%20and%20Operational%20Results) This section details Inspirato's Q2 2025 financial performance, including revenue, gross margin, and key operational metrics such as active memberships and average daily rates [Revenue and Gross Margin Analysis](index=3&type=section&id=Revenue%20and%20Gross%20Margin%20Analysis) In Q2 2025, Inspirato's total revenue decreased 6.3% year-over-year to $63.1 million, yet gross margin increased 7.4% to $17.4 million, with a 3.5 percentage point improvement in gross margin percentage due to cost optimization Q2 2025 Revenue and Gross Margin (Millions of USD) | Indicator | Q2 2025 | Q2 2024 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Accommodations and Hotel Travel | $24.9 | $29.1 | (14.3)% | | Experiences and Custom Travel | 14.5 | 9.8 | 47.9% | | **Total Travel Revenue** | **39.4** | **38.8** | **1.4%** | | Subscription Revenue | 19.4 | 25.2 | (23.3)% | | Ancillary and Other Revenue | 4.4 | 3.3 | 32.5% | | **Total Revenue** | **63.1** | **67.4** | **(6.3)%** | | Cost of Revenue | 45.7 | 51.2 | (10.7)% | | **Gross Margin** | **$17.4** | **$16.2** | **7.4%** | | Gross Margin (%) | 28% | 24% | 3.5 pp | [Operational Metrics](index=3&type=section&id=Operational%20Metrics) In Q2 2025, total paid and total nights stayed decreased, but Average Daily Rate (ADR) significantly grew 24% to $1,670, indicating stronger pricing power, while total occupancy rate declined from 71% to 59% Q2 2025 Operational Metrics | Indicator | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Residences** | | | | Paid Nights Stayed | 9,700 | 13,600 | | Total Nights Stayed | 14,600 | 21,700 | | Occupancy Rate | 57% | 70% | | ADR | $1,957 | $1,535 | | **Hotels** | | | | Paid Nights Stayed | 6,100 | 8,300 | | Total Nights Stayed | 9,000 | 14,000 | | Occupancy Rate | 74% | 79% | | ADR | $1,210 | $1,035 | | **Total** | | | | Paid Nights Stayed | 15,800 | 21,900 | | Total Nights Stayed | 23,600 | 35,700 | | Occupancy Rate | 59% | 71% | | ADR | $1,670 | $1,346 | [Active Memberships](index=4&type=section&id=Active%20Memberships) As of June 30, 2025, Inspirato's total active memberships were 11,200, a decrease from the prior year, primarily due to reductions in Club and Pass memberships Active Memberships (as of June 30) | Membership Type | 2025 | 2024 | | :--- | :--- | :--- | | Club | 9,900 | 10,800 | | Pass | 1,200 | 1,900 | | Invited | 100 | — | | **Total Active Memberships** | **11,200** | **12,700** | [Non-GAAP Financial Measures & Key Metrics Definitions](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Key%20Metrics%20Definitions) This section defines Inspirato's non-GAAP financial measures, including Adjusted EBITDA and Free Cash Flow, along with key business and operating metrics used for performance evaluation [Non-GAAP Financial Measures Definitions](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions) Inspirato uses Adjusted EBITDA, Adjusted EBITDA Margin, and Free Cash Flow as non-GAAP metrics to assess performance, budget, and communicate with investors, providing a clearer view of core operations and liquidity - Adjusted EBITDA is defined as net loss and comprehensive loss less net interest expense, income tax expense, depreciation and amortization, stock-based compensation, and gain or loss on fair value instruments[16](index=16&type=chunk) - Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of total revenue for the same period[16](index=16&type=chunk) - Free Cash Flow is defined as net cash generated from operating activities less purchases of property and equipment and capitalized software development costs for internal use[18](index=18&type=chunk) [Key Business and Operating Metrics Definitions](index=5&type=section&id=Key%20Business%20and%20Operating%20Metrics%20Definitions) Inspirato utilizes key business metrics such as active memberships, Average Daily Rate (ADR), and total occupancy rate to evaluate business performance, measure trends, and inform strategic decisions - Active Memberships are defined as fully paid membership subscriptions as of the measurement date, and those expected to renew, used to assess the adoption of membership subscription products[21](index=21&type=chunk) - Average Daily Rate (ADR) is defined as total paid travel revenue divided by total paid nights, including rented residences or hotel rooms and suites[22](index=22&type=chunk) - Occupancy Rate is defined as all paid, Pass, IFG, IFB, employee, and complimentary nights divided by the total available nights for all at-risk properties[22](index=22&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Inspirato's condensed consolidated financial statements for Q2 2025, including statements of operations, balance sheets, and cash flows [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Statements%20of%20Operations%20and%20Comprehensive%20Loss) Inspirato reported a net loss of $5.313 million in Q2 2025, a significant reduction from $15.393 million in the prior year, with total revenue decreasing but gross margin improving and operating expenses declining Q2 2025 Condensed Consolidated Statements of Operations and Comprehensive Loss (Thousands of USD) | Indicator | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $63,108 | $67,382 | | Cost of Revenue | 45,736 | 51,201 | | Gross Margin | 17,372 | 16,181 | | Sales and Marketing | 5,325 | 8,772 | | Operations | 4,182 | 4,766 | | Technology and Development | 917 | 2,266 | | Depreciation and Amortization | 1,015 | 1,013 | | Interest Expense, Net | 488 | 373 | | Gain (Loss) on Fair Value Instruments | 261 | 316 | | Net Loss and Comprehensive Loss | $(5,313) | $(15,393) | | Net Loss and Comprehensive Loss Attributable to Inspirato Incorporated | $(5,313) | $(8,707) | | Basic and Diluted Net Loss Per Class A Share Attributable to Inspirato Incorporated | $(0.42) | $(2.33) | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Balance%20Sheets) As of June 30, 2025, Inspirato's total assets were $252.6 million, down from $273.9 million on December 31, 2024, with corresponding reductions in total liabilities and total equity (deficit) Condensed Consolidated Balance Sheets (Thousands of USD) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and Cash Equivalents | $16,724 | $21,845 | | Restricted Cash | 13,045 | 13,160 | | Total Current Assets | 50,599 | 58,383 | | Operating Lease Right-of-Use Assets | 165,546 | 175,228 | | Goodwill | 21,233 | 21,233 | | Property and Equipment, Net | 10,828 | 14,079 | | **Total Assets** | **$252,642** | **$273,885** | | **Liabilities** | | | | Total Current Liabilities | 193,258 | 211,856 | | Deferred Revenue, Noncurrent | 38,752 | 36,147 | | Operating Lease Liabilities, Noncurrent | 123,876 | 130,239 | | Convertible Notes | 23,225 | 22,336 | | **Total Liabilities** | **382,338** | **403,737** | | **Equity (Deficit)** | | | | Accumulated Deficit | (294,867) | (291,176) | | **Total Equity (Deficit)** | **(129,696)** | **(129,852)** | | **Total Liabilities and Equity (Deficit)** | **$252,642** | **$273,885** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Statements%20of%20Cash%20Flows) In Q2 2025, Inspirato generated $1.082 million in net cash from operating activities, a turnaround from a net outflow in the prior year, with investing activities remaining a net outflow and financing activities a net inflow Q2 2025 Condensed Consolidated Statements of Cash Flows (Thousands of USD) | Indicator | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Cash Provided by (Used in) Operating Activities | $1,082 | $(1,767) | | Net Cash Used in Investing Activities | $(834) | $(2,024) | | Net Cash Provided by (Used in) Financing Activities | $58 | $(14) | | Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | $306 | $(3,805) | | Cash, Cash Equivalents, and Restricted Cash at End of Period | $29,769 | $29,481 | [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) This section provides reconciliations of Inspirato's non-GAAP financial measures, specifically Adjusted EBITDA and Free Cash Flow, to their most directly comparable GAAP measures [Reconciliation of Net Loss to Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) In Q2 2025, Inspirato's Adjusted EBITDA was negative $0.329 million, a significant improvement from negative $9.156 million in the prior year, with Adjusted EBITDA Margin improving from negative 13.6% to negative 0.5% Reconciliation of Net Loss to Adjusted EBITDA (Thousands of USD) | Indicator | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Loss and Comprehensive Loss | $(5,313) | $(15,393) | | Interest Expense, Net | 488 | 373 | | Income Tax Expense | 87 | 56 | | Depreciation and Amortization | 2,277 | 2,820 | | Stock-Based Compensation | 714 | 2,672 | | Gain (Loss) on Fair Value Instruments | 261 | 316 | | Asset Impairment | 386 | — | | Transaction Costs | 771 | — | | **Adjusted EBITDA** | **$(329)** | **$(9,156)** | | **Adjusted EBITDA Margin** | **(0.5)%** | **(13.6)%** | [Reconciliation of Free Cash Flow](index=10&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) In Q2 2025, Inspirato achieved $0.248 million in free cash flow, a significant improvement from negative $3.791 million in the prior year, primarily driven by positive cash flow from operating activities Reconciliation of Free Cash Flow (Thousands of USD) | Indicator | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Cash Provided by (Used in) Operating Activities | $1,082 | $(1,767) | | Capitalized Software Development for Internal Use | (632) | (1,904) | | Purchases of Property and Equipment | (202) | (120) | | **Free Cash Flow** | **$248** | **$(3,791)** | [Company Information & Disclosures](index=11&type=section&id=Company%20Information%20%26%20Disclosures) This section provides essential company information, including an overview of Inspirato, forward-looking statements, important information for stockholders regarding the merger, and contact details [About Inspirato](index=11&type=section&id=About%20Inspirato) Inspirato is a luxury travel club and property technology company offering curated vacation options through an innovative model, ensuring service, certainty, and value across exclusive homes, five-star hotels, and custom experiences - Inspirato (Nasdaq: ISPO) is a luxury travel club and property technology company offering curated vacation options[34](index=34&type=chunk) - Its portfolio includes exclusive luxury vacation homes, accommodations at five-star hotel and resort partners, and custom travel experiences[34](index=34&type=chunk) [Forward-Looking Statements](index=11&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements involving significant risks and uncertainties, where actual results may differ materially from expectations, and investors should exercise caution - This press release contains forward-looking statements regarding future financial performance, business, the combination with Buyerlink, strategic and operational initiatives and results, but actual results may differ materially due to various risks and uncertainties[35](index=35&type=chunk) - Risks and uncertainties include the Capital One partnership, ability to service debt, ability to complete the Buyerlink transaction, management team changes, Nasdaq listing compliance, strategic shifts, market acceptance, competition, employee retention, changing consumer preferences, brand maintenance, natural disaster impacts, capital requirements, cash flow generation, liquidity impacts, and other strategic alternatives[35](index=35&type=chunk)[41](index=41&type=chunk) - The company undertakes no obligation to publicly revise any forward-looking statements, except as required by law[39](index=39&type=chunk) [Important Information for Stockholders](index=13&type=section&id=Important%20Information%20for%20Stockholders) This communication may be deemed soliciting material for the proposed Inspirato-Buyerlink merger, and stockholders should carefully review the preliminary proxy statement and any amendments filed with the SEC for important information - This communication may be deemed soliciting material for the proposed Inspirato-Buyerlink merger, with relevant information available in Inspirato's preliminary proxy statement filed with the SEC on July 31, 2025[42](index=42&type=chunk) - Inspirato stockholders should carefully read the definitive proxy statement and other documents filed with the SEC, as they will contain important information and are available for free on the SEC's website[42](index=42&type=chunk) - Inspirato, Buyerlink, and their directors, executive officers, and other management members may be deemed participants in the solicitation of proxies for the merger, with information on their interests included in the definitive proxy statement[43](index=43&type=chunk) [Investor and Media Contacts](index=13&type=section&id=Investor%20and%20Media%20Contacts) Contact information for Inspirato's investor relations and media relations is provided via email - Investor Relations contact: ir@inspirato.com[44](index=44&type=chunk) - Media Relations contact: communications@inspirato.com[44](index=44&type=chunk)

Core Insights - Inspirato Incorporated reported strong operational execution in Q2 2025, with a focus on combining with Buyerlink to enhance its luxury travel offerings and global reach [1][3][4] Financial Performance - The company achieved an EBITDA improvement of $8.8 million year-over-year, reaching a free cash flow breakeven point [3] - Net loss for Q2 2025 was $5.3 million, with adjusted EBITDA of negative $0.3 million, marking a significant 96% year-over-year improvement [8][30] - Total revenue for Q2 2025 was $63.1 million, a decrease of 6.3% compared to $67.4 million in Q2 2024 [10][24] Operational Metrics - Gross margin increased to $17.4 million, reflecting a 7.4% rise from $16.2 million in Q2 2024 [10][24] - Cash operating expenses declined by $7.1 million or 27% year-over-year, indicating a focus on operational efficiency [8] - Occupancy rate was reported at 59%, with average daily rates (ADR) increasing by 24% to $1,670 [8][12] Membership and Market Position - As of June 30, 2025, Inspirato had over 11,000 active memberships, emphasizing its commitment to high-quality, recurring revenue [8][12] - The company is positioned to benefit from Buyerlink's technology and marketing expertise, which is expected to enhance its brand and member experience [5][6] Strategic Developments - Inspirato announced a definitive agreement to combine with Buyerlink in an all-stock transaction valued at approximately $326.3 million, expected to close in Q3 2025 [4][5] - The combined entity will be named One Planet Platforms and will operate as a diversified, technology-driven platform [5][6]

Core Insights - Inspirato Incorporated plans to release its financial and operating results for the quarter ended June 30, 2025, after market close on August 12, 2025 [1] - A conference call is scheduled for August 13, 2025, at 11:00 AM ET to discuss the results [2][3] Company Overview - Inspirato is a luxury vacation club and property technology company that offers curated vacation options through an innovative model [3] - The company's portfolio includes exclusive luxury vacation homes, accommodations at five-star hotel and resort partners, and custom travel experiences [3]

Core Insights - Inspirato Incorporated has announced a partnership with Savoya to enhance luxury travel experiences for its members, providing exclusive access to Savoya's elite chauffeur network in hundreds of destinations worldwide [1][3] Group 1: Partnership Details - The collaboration aims to elevate the Inspirato experience from the moment members leave their homes, ensuring that the journey is as luxurious as the destination [1][3] - Savoya operates in over 300 markets globally, known for its precision, discretion, and high-quality service, catering to Fortune 100 executives and ultra-high-net-worth individuals [2][6] Group 2: Member Benefits - Inspirato members will enjoy exclusive savings on Savoya bookings, access to a dedicated Savoya Client Care team for personalized coordination, and a more seamless experience between trip planning and ground transportation [8] - The partnership is designed to deepen member value and create incremental revenue opportunities for Inspirato, reinforcing member retention and loyalty [3][4] Group 3: Strategic Goals - The collaboration reflects Inspirato's commitment to thoughtful innovation and seamless service, aiming to create a travel experience that is effortless, secure, and personalized [4][3] - Both companies will explore new tools and co-branded offerings to streamline booking processes and enhance overall value for members [4]

Core Viewpoint - Inspirato and Buyerlink are merging through a reverse merger, valuing Buyerlink at approximately $326 million, aiming to create a leading platform for online marketplaces across various sectors, with projected revenues of around $350 million and adjusted EBITDA of approximately $30 million by 2025 [1][7]. Strategic Rationale - The merger aims to transform Inspirato from a luxury hospitality brand into a technology-driven luxury travel marketplace, enhancing member services and expanding luxury travel experiences [2]. - By integrating Buyerlink's capabilities, the combined entity will focus on maximizing value for members and tapping into new segments of the global luxury travel market [2]. Company Profiles - Inspirato is a luxury vacation club and property technology company, providing curated vacation options and custom travel experiences [14]. - Buyerlink is a leading marketing technology platform specializing in online marketplaces across high-value verticals, particularly in automotive and home services [15]. Transaction Details - The merger will consist of 90% common stock and 10% preferred stock, with preferred stock carrying a 7% accrued dividend [8]. - The average closing price of Inspirato's common stock prior to the agreement was $3.61 per share [8]. Governance and Leadership - One Planet Group will become the majority shareholder of the new entity, which will be named One Planet Platforms, with Payam Zamani serving as Chairman and CEO [9]. - Inspirato will continue to operate as a premier luxury travel company within the combined entity [9]. Approval Process - A Special Committee of Inspirato's Board of Directors conducted a thorough review and unanimously recommended the merger, which was subsequently approved by the full Board [11].

Group 1 - Inspirato Incorporated (ISPO) is part of the Consumer Discretionary sector, which includes 255 stocks and has a Zacks Sector Rank of 12 [2] - ISPO has a Zacks Rank of 2 (Buy), with a 35.1% increase in the consensus estimate for its full-year earnings over the past quarter, indicating positive analyst sentiment [3] - ISPO has gained approximately 17.8% year-to-date, outperforming the average return of 6.3% for Consumer Discretionary companies [4] Group 2 - Inspirato Incorporated belongs to the Leisure and Recreation Services industry, which consists of 30 stocks and is currently ranked 86 in the Zacks Industry Rank; this industry has seen a decline of about 1.6% year-to-date [6] - In contrast, Lincoln Educational Services Corporation, another stock in the Consumer Discretionary sector, has a year-to-date return of 36.7% and is part of the Schools industry, which is ranked 18 [4][7]

Core Insights - Inspirato Incorporated has renewed its partnership with Regal Wings, enhancing the travel experience for its members by providing exclusive access to premium international airfare and concierge-level service [1][2][3] Company Overview - Inspirato is a luxury vacation club and property technology company that offers curated vacation options, including luxury vacation homes and five-star accommodations [5] - Regal Wings is a global leader in premium air travel, specializing in first-class and business-class international fares, known for its concierge-first approach [2][6] Partnership Details - The collaboration aims to create a seamless travel experience for Inspirato members, ensuring personalized and luxurious journeys from departure to return [3] - Members will benefit from premium international commercial airfare with no additional booking fees, provided bookings are made through a dedicated Inspirato link [3] Service Features - Regal Wings offers tailored airfare solutions and exclusive rates, emphasizing a high level of care and precision that aligns with Inspirato's elevated travel experience [3][6] - The partnership reflects a shared vision between Inspirato and Regal Wings to enhance the overall travel experience for discerning travelers [2][3]

Company Overview - Inspirato Incorporated (ISPO) is a notable stock within the Consumer Discretionary sector, which consists of 255 individual stocks [2] - The company currently holds a Zacks Rank of 2 (Buy), indicating a favorable investment outlook based on earnings estimates and revisions [3] Performance Analysis - Year-to-date, Inspirato has achieved a return of approximately 5.4%, outperforming the average return of 3% for the Consumer Discretionary sector [4] - The Zacks Consensus Estimate for ISPO's full-year earnings has increased by 35.1% over the past quarter, reflecting improved analyst sentiment and a stronger earnings outlook [4] Industry Context - Inspirato is part of the Leisure and Recreation Services industry, which includes 31 companies and currently ranks 88 in the Zacks Industry Rank [6] - The Leisure and Recreation Services industry has experienced a decline of about 7.1% year-to-date, indicating that ISPO is performing better than its industry peers [6] Comparison with Peers - Lincoln Educational Services Corporation (LINC), another stock in the Consumer Discretionary sector, has returned 39.2% year-to-date and has a Zacks Rank of 2 (Buy) [5] - The Schools industry, to which LINC belongs, is currently ranked 27 and has seen an average increase of 8% year-to-date [7]

Financial Performance - Revenue for Q1 2025 was $65,889,000, a decrease of 18% compared to $80,245,000 in Q1 2024[19] - Gross margin for Q1 2025 was $25,545,000, down from $31,721,000 in Q1 2024, reflecting a decline of approximately 19%[19] - Net income for Q1 2025 was $1,622,000, compared to $2,249,000 in Q1 2024, representing a decrease of about 28%[19] - Revenues declined to $65.9 million for the three months ended March 31, 2025, down from $80.2 million for the same period in 2024, representing a decrease of approximately 17.5%[31] - Total revenue for the three months ended March 31, 2025, was $65.889 million, a decrease of 18% compared to $80.245 million for the same period in 2024[118] - Revenue from residence and hotel travel was $38.281 million, down 13% from $44.190 million in the prior year[118] - Subscription revenue decreased by $7.2 million from $28.1 million in Q1 2024 to $20.9 million in Q1 2025, primarily due to a 14% decrease in the number of subscriptions[155] - Net income and comprehensive income decreased by $627,000 from $2.2 million in Q1 2024 to $1.6 million in Q1 2025, a decrease of 28%[152] Assets and Liabilities - Total current assets decreased to $55,091,000 in Q1 2025 from $58,383,000 in Q4 2024, a decline of approximately 4%[16] - Total liabilities decreased to $395,285,000 in Q1 2025 from $403,737,000 in Q4 2024, a reduction of about 2%[16] - Cash, cash equivalents, and restricted cash at the end of Q1 2025 were $29,463,000, down from $33,286,000 at the end of Q1 2024, a decrease of approximately 11%[25] - The Company had $16.4 million in cash and cash equivalents as of March 31, 2025, down from $21.8 million as of December 31, 2024[31] - As of March 31, 2025, the company had $29.463 million in total financial assets measured at fair value, including $16.445 million in cash and cash equivalents and $13.018 million in restricted cash[99] Operational Metrics - Active paid member subscriptions and nights delivered experienced declines, contributing to negative cash flows from operating activities of $6.6 million for the three months ended March 31, 2025[31] - As of March 31, 2025, the total number of Active Subscriptions decreased to 11,600 from 13,000 in 2024, with Club subscriptions at 10,200 and Pass subscriptions at 1,300[139] - Average Daily Rate (ADR) for residences increased to $2,124 in Q1 2025 from $1,965 in Q1 2024, while occupancy decreased to 74% from 80%[144] Expenses - Cost of revenue decreased by $8.2 million from $48.5 million in Q1 2024 to $40.3 million in Q1 2025, a reduction of 17%[157] - General and administrative expenses decreased by $3.2 million from $14.6 million in Q1 2024 to $11.4 million in Q1 2025, a decrease of 22%[158] - Sales and marketing expenses decreased by $3.7 million from $8.7 million in Q1 2024 to $5.0 million in Q1 2025, a decline of 43%[159] Financing Activities - The company raised $2,000,000 from the exercise of Investment Warrants on February 21, 2025[29] - The company entered into an investment agreement to sell 2.9 million shares of Class A Common Stock for an aggregate purchase price of $10,000,000[29] - The Company issued a convertible note in a principal amount of $25.0 million, with net proceeds of $23.1 million after deducting debt issuance costs[52] - The company has an aggregate offering of up to $17.6 million of Class A Common Stock for sale under the Sales Agreement with Northland Securities, Inc.[34] Legal Matters - The company is involved in various legal proceedings but does not expect any material impact on its consolidated financial position from ongoing litigation[95] - A class action lawsuit was filed alleging that prior public statements about the company's financial condition were materially false and misleading, particularly regarding the restatement of financial statements for the periods ended March 31, 2022, and June 30, 2022[208] - The court granted the company's motion to dismiss the class action lawsuit without prejudice on September 23, 2024, but the plaintiff has since filed amended motions[208] Future Outlook - The company expects cash and cash equivalents on hand to meet projected working capital and capital expenditure requirements for at least the next twelve months[168] - The company expects its strategic partnership with Capital One to enhance demand for travel services and generate qualified leads for its offerings[137]