Financial Data and Key Metrics Changes - Q1 2025 recorded adjusted EBITDA of $5.6 million, marking the strongest performance in the company's history, indicating successful operational discipline [19][20] - Total revenue for Q1 was approximately $66 million, down 18% year over year, with subscription revenue at $21 million, down 26% [20][21] - Travel revenue decreased to $42 million, down 16%, attributed to a lower member count and timing impacts related to curated experiences [22] Business Line Data and Key Metrics Changes - The company had over 11,000 members at the end of Q1, with approximately 10,200 active club members and 1,300 active Pass members, reflecting a strategic shift towards club growth [20][21] - Cost of revenue declined by $8 million year over year due to ongoing portfolio optimization efforts [20] - Operating expenses were reduced by approximately $8 million, benefiting from streamlined operations [20] Market Data and Key Metrics Changes - The company maintained a strong occupancy level of 74% in controlled residence accommodations, with an average daily rate (ADR) increase of 8% to over $2,100 [22] - The strategic partnerships with renowned hotels like Hondas and Fairmont were renewed, providing exclusive access to accommodations for members [15] Company Strategy and Development Direction - The company is focused on four key pillars: operational efficiency, brand elevation, member experience, and a robust technology and digital marketing platform [8][10] - A significant emphasis is placed on building a digital marketing platform to connect with luxury travelers and expand the total addressable market [17][44] - The company aims to achieve sustained profitability and operational efficiency as core competencies [42][43] Management's Comments on Operating Environment and Future Outlook - Management acknowledged expected near-term revenue headwinds but expressed confidence in the strategic decisions made over the past year translating to stronger financial results [25] - The outlook for 2025 includes adjusted EBITDA guidance between breakeven and $5 million, with total revenue expected between $235 million and $255 million [24] Other Important Information - Q1 free cash flow was negative $8 million, including one-time cash outflows related to underperforming lease terminations [22] - The company is committed to enhancing service quality and member experience through new initiatives and partnerships [14][15] Q&A Session Summary Question: Update on marketing efforts to drive and retain members - The company is growing its sales force to reach a curated target audience, relying on direct connections rather than traditional marketing [29][30] Question: When and where do club memberships see stabilization? - Management expects continued headwinds on member count through the first half of the year, with stabilization anticipated in the second half of 2025 and into 2026 [32][33] Question: Status of expense cutting efforts - The company is now focused on fine-tuning expenses and improving service quality, with significant opportunities for operational efficiency still ahead [37][39] Question: Major milestones targeted for 2025 - Key goals include achieving sustained profitability, establishing operational efficiency as a core competency, and launching a digital marketing platform [42][44]

Financial Data and Key Metrics Changes - Q1 2025 recorded adjusted EBITDA of $5.6 million, marking the strongest performance in the company's history, indicating successful operational discipline [19][20] - Total revenue for Q1 was approximately $66 million, down 18% year over year, with subscription revenue at $21 million, down 26% [20][21] - Travel revenue decreased to $42 million, down 16%, attributed to a lower member count and timing impacts related to curated experiences [22] Business Line Data and Key Metrics Changes - The company had over 11,000 members at the end of Q1, with approximately 10,200 active club members and 1,300 active Pass members, reflecting a strategic shift towards club growth [20][21] - Cost of revenue declined by $8 million year over year due to ongoing portfolio optimization efforts [20] - Operating expenses decreased by approximately $8 million, benefiting from reduced overhead and streamlined operations [20] Market Data and Key Metrics Changes - The company maintained a strong occupancy level of 74% in controlled residence accommodations, with an 8% increase in average daily rate (ADR) to over $2,100 [22] - The strategic partnerships with renowned hotels like Hondas and Fairmont were renewed, providing members with exclusive access to select accommodations [15] Company Strategy and Development Direction - The company is focused on four key pillars: operational efficiency, brand elevation, member experience, and a robust technology and digital marketing platform [8][10] - The goal is to build a scalable, durable, and efficient growth model while enhancing service quality and member experiences [8][10] - A digital marketing platform is being developed to connect with high-value travelers and expand the total addressable market [17][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged expected near-term revenue headwinds but expressed confidence in the strategic decisions made over the past year translating to stronger financial results [25] - The company reiterated its full-year 2025 guidance, expecting adjusted EBITDA between breakeven and $5 million, and revenue between $235 million and $255 million [24][25] - The focus remains on balancing investment for future profitable growth with operational efficiencies [25] Other Important Information - Q1 free cash flow was negative $8 million, including approximately $2.6 million of one-time cash outflows related to underperforming lease terminations [22] - Adjusted free cash flow, excluding one-time lease-related items, totaled more than $8 million over the same period [23] Q&A Session Summary Question: Update on marketing efforts to drive and retain members - The company is growing its sales force to reach a curated target audience, relying on direct connections rather than direct marketing [29][30] Question: When and where do club memberships see stabilization? - Management expects continued headwinds on member count through the first half of the year, with stabilization anticipated in the second half of 2025 and into 2026 [32][33] Question: Status of expense cutting efforts - The company is now focused on fine-tuning expenses and improving service quality, with significant opportunities for operational efficiency still ahead [37][39] Question: Major milestones targeted for 2025 - Key goals include achieving sustained profitability, establishing operational efficiency as a core competency, and launching a digital marketing platform [42][44]

Financial Data and Key Metrics Changes - Q1 2025 recorded the strongest adjusted EBITDA performance in the company's history at $5.6 million, indicating successful operational discipline [6][17] - Total revenue for Q1 was approximately $66 million, down 18% year over year, with subscription revenue at $21 million, down 26% [18] - Travel revenue decreased to $42 million, down 16%, attributed to a lower member count and timing impacts related to curated experiences [20] Business Line Data and Key Metrics Changes - The company had over 11,000 members at the end of Q1, with approximately 10,200 active club members and 1,300 active Pass members [18] - Pass subscriptions now represent about 10% to 15% of the total membership base, reflecting a strategic shift towards club growth and profitability [19] Market Data and Key Metrics Changes - The company maintained a strong occupancy level of 74% in controlled residence accommodations, with an 8% increase in Average Daily Rate (ADR) to over $2,100 [20] Company Strategy and Development Direction - The company is focused on operational efficiency, brand elevation, member experience, and building a robust technology and digital marketing platform [8][10][14] - The strategic decisions made over the past year are translating to stronger financial results, with a focus on balancing investment for future growth with operational efficiencies [22] Management's Comments on Operating Environment and Future Outlook - Management expects continued revenue headwinds throughout the year but is optimistic about future enhancements to the Pass product [19] - The company is reiterating its full-year 2025 guidance, expecting adjusted EBITDA between breakeven and $5 million, and revenue between $235 million and $255 million [21] Other Important Information - The company is building a digital marketing platform to connect with luxury travelers and expand its total addressable market [15] - A new Chief Transformation Officer has been appointed to focus on operational efficiency [36] Q&A Session Summary Question: Update on marketing efforts to drive and retain members - The company is growing its sales force to reach a curated target audience and is building a robust technology platform to scale access to luxury travelers [26] Question: When and where do you see club memberships bottoming out? - Management expects continued headwinds on member count through the first half of the year, with stabilization anticipated in the second half and into 2026 [29][30] Question: Is there much left to cut in expenses? - The company is now focused on fine-tuning expenses and improving service quality, with significant opportunities for operational efficiency still ahead [34][36] Question: Major milestones targeted for 2025 - Key goals include achieving sustained profitability, establishing operational efficiency as a core competency, and launching a digital marketing platform [38]

Inspirato Incorporated (ISPO) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of a loss of $0.36 per share. This compares to loss of $1.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 133.33%. A quarter ago, it was expected that this company would post a loss of $1.09 per share when it actually produced a loss of $0.21, delivering a surprise of 80.73%.Over the last four quarters, th ...

[Q1 2025 Performance Overview](index=1&type=section&id=Q1%202025%20Performance%20Overview) [Q1 2025 Highlights](index=1&type=section&id=Q1%202025%20Highlights) Inspirato achieved its most profitable quarter with **$1.6 million net income** and **$5.6 million Adjusted EBITDA**, driven by strong operational efficiency Q1 2025 Key Performance Indicators | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Net Income | $1.6 million | - | | Adjusted EBITDA | $5.6 million | +38% ($1.5M) | | Gross Margin | 39% | - | | Cash Operating Expenses | - | Declined $7.6M (26%) | | Occupancy | 73% | - | | Average Daily Rate (ADR) | $1,915 | +16% | - This was the **second consecutive quarter of positive Adjusted EBITDA**, generating **over $7.5 million** in the trailing six months[4](index=4&type=chunk) - As of March 31, 2025, the company had approximately **11,600 active memberships**, reflecting a focus on high-quality, recurring revenue[4](index=4&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributes strong Q1 results to disciplined transformation, emphasizing operational efficiency and technology investments - The company's strategic focus is on **operational efficiency, brand elevation, and delivering an enhanced member experience**[3](index=3&type=chunk) - Inspirato is making **foundational technology investments** to build a platform for reaching, targeting, and converting **high-value travelers at scale**[3](index=3&type=chunk) - The long-term goal is to transform Inspirato into a **leading property technology company** supported by a curated portfolio of high-quality homes[3](index=3&type=chunk) [2025 Guidance](index=2&type=section&id=2025%20Guidance) Inspirato reiterated its full-year 2025 guidance, projecting revenue between **$235 million and $255 million** and Adjusted EBITDA between **$0 and $5 million** Full Year 2025 Guidance | Metric | 2025 Forecast | | :--- | :--- | | Revenue | $235M - $255M | | Adjusted EBITDA | $0M - $5M | | Cash Operating Expenses | $80M - $90M | - The anticipated year-over-year improvement in Adjusted EBITDA is expected to be driven by a **300 basis point expansion in gross margins** and other operational efficiencies[7](index=7&type=chunk) [Financial & Operational Metrics](index=2&type=section&id=Financial%20%26%20Operational%20Metrics) Q1 2025 saw total revenue decrease **17.9%** to **$65.9 million**, with a **39% gross margin** and declines in nights delivered and active memberships Revenue and Gross Margin (Q1 2025 vs Q1 2024, in millions) | | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Travel Revenue | $41.7 | $49.7 | (16.0)% | | Subscription Revenue | $20.9 | $28.1 | (25.6)% | | **Total Revenue** | **$65.9** | **$80.2** | **(17.9)%** | | **Gross Margin** | **$25.5** | **$31.7** | **(19.5)%** | | **Gross Margin (%)** | **39%** | **40%** | **(1) pp** | Operational Metrics (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Nights Delivered | 29,100 | 41,300 | | Total Occupancy | 73% | 78% | | Total ADR | $1,915 | $1,655 | Active Memberships (as of March 31) | Membership Type | 2025 | 2024 | | :--- | :--- | :--- | | Club | 10,200 | 10,900 | | Pass | 1,300 | 2,100 | | **Total** | **11,600** | **13,000** | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 revenue was **$65.9 million**, resulting in a net income of **$1.6 million** and basic EPS of **$0.14** Condensed Consolidated Statements of Operations (in thousands) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | Revenue | $65,889 | $80,245 | | Gross margin | $25,545 | $31,721 | | Income before income taxes | $1,659 | $2,393 | | **Net income** | **$1,622** | **$2,249** | | Net income attributable to Inspirato Inc. | $1,622 | $1,263 | | Basic net income per Class A share | $0.14 | $0.35 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were **$270.1 million**, total liabilities **$395.3 million**, and cash **$16.4 million** Condensed Consolidated Balance Sheets (in thousands) | | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $16,445 | $21,845 | | Total current assets | $55,091 | $58,383 | | **Total assets** | **$270,130** | **$273,885** | | **Liabilities & Equity** | | | | Total current liabilities | $200,074 | $211,856 | | **Total liabilities** | **$395,285** | **$403,737** | | **Total equity (deficit)** | **($125,155)** | **($129,852)** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 operating activities used **$6.6 million** cash, with a net decrease of **$5.5 million** in total cash and equivalents Condensed Consolidated Statements of Cash Flows (in thousands) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | Net cash used in operating activities | $(6,627) | $(7,202) | | Net cash used in investing activities | $(915) | $(1,502) | | Net cash provided by (used in) financing activities | $2,000 | $(276) | | **Net decrease in cash, cash equivalents and restricted cash** | **$(5,542)** | **$(8,980)** | | Cash, cash equivalents and restricted cash – end of year | $29,463 | $33,286 | [Non-GAAP Financial Measures and Key Metrics](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Key%20Metrics) [Reconciliation of Net Income to Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) Q1 2025 GAAP net income of **$1.6 million** reconciled to **$5.6 million** Adjusted EBITDA, with margin improving from **5.1% to 8.5%** Reconciliation of Net Income to Adjusted EBITDA (in thousands) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | Net income and comprehensive income | $1,622 | $2,249 | | Adjustments (Interest, Tax, D&A, etc.) | $3,981 | $1,824 | | **Adjusted EBITDA** | **$5,603** | **$4,073** | | **Adjusted EBITDA Margin** | **8.5%** | **5.1%** | [Reconciliation of Free Cash Flow](index=10&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) Q1 2025 Free Cash Flow was negative **$7.5 million**, an improvement from negative **$8.7 million** in the prior year Reconciliation of Free Cash Flow (in thousands) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | Net cash used in operating activities | $(6,627) | $(7,202) | | Development of internal-use software | $(863) | $(1,266) | | Purchase of property and equipment | $(52) | $(236) | | **Free Cash Flow** | **$(7,542)** | **$(8,704)** | [Definitions of Non-GAAP Measures and Key Metrics](index=4&type=section&id=Definitions%20of%20Non-GAAP%20Measures%20and%20Key%20Metrics) The company defines non-GAAP measures like Adjusted EBITDA and Free Cash Flow, alongside key operational metrics such as Active Memberships and ADR - **Adjusted EBITDA is defined as net income less interest expense, income tax, depreciation and amortization, equity‑based compensation, and gain on fair value instruments**[14](index=14&type=chunk) - **Free Cash Flow is defined as net cash used in operating activities less purchases of property and equipment and development of internal-use software**[16](index=16&type=chunk) - **Active Memberships are used to assess market penetration and are a key driver of revenue**[19](index=19&type=chunk) [Company Information and Forward-Looking Statements](index=11&type=section&id=Company%20Information%20and%20Forward-Looking%20Statements) [About Inspirato](index=11&type=section&id=About%20Inspirato) Inspirato is a luxury vacation club and property technology company offering members access to curated luxury travel experiences - Inspirato (Nasdaq: ISPO) is a **luxury vacation club and property technology company** that provides access to a portfolio of curated vacation options[33](index=33&type=chunk) [Forward-Looking Statements](index=11&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements subject to substantial risks and uncertainties, with no obligation for future updates - The press release contains **forward-looking statements** regarding future financial performance, strategic initiatives, and operational results, which are **not guarantees of future performance**[34](index=34&type=chunk) - **Numerous risks and uncertainties** could cause **actual results to differ**, including the ability to service debt, comply with Nasdaq listing standards, adapt to consumer preferences, and compete effectively[34](index=34&type=chunk)[37](index=37&type=chunk) - The company **disclaims any obligation to publicly release revisions** to any forward-looking statements, except as required by law[39](index=39&type=chunk)

Core Insights - Inspirato Incorporated reported its most profitable quarter in history for Q1 2025, driven by improved gross margins and operational efficiencies [1][3] - The company reiterated its full-year financial guidance for 2025, indicating confidence in its ongoing transformation and growth strategy [1][4] Financial Performance - Net income for Q1 2025 was $1.6 million, with Adjusted EBITDA of $5.6 million, reflecting a 38% year-over-year improvement [6][30] - Gross margin for the quarter was 39%, a slight decrease from 40% in Q1 2024, attributed to portfolio optimization and a more efficient business model [6][8] - Total revenue for Q1 2025 was $65.9 million, down 17.9% from $80.2 million in Q1 2024 [8][22] Operational Metrics - Cash operating expenses decreased by $7.6 million, or 26% year-over-year, highlighting a focus on operational efficiency [6][8] - The company maintained a strong occupancy rate of 73%, with average daily rates (ADR) increasing by 16% to $1,915 [6][8] - As of March 31, 2025, Inspirato reported approximately 11,600 active memberships, down from 13,000 in the previous year [6][9] Future Guidance - The company anticipates Adjusted EBITDA for the full year 2025 to be between $0 to $5 million, driven by a projected 300 basis point expansion in gross margins [7] - Expected full-year revenue is projected to be between $235 million and $255 million, aligning with the annualized revenue from Q4 2024 [7]

Core Insights - Inspirato Incorporated plans to release its financial and operating results for the quarter ended March 31, 2025, after market close on May 7, 2025 [1] - A conference call is scheduled for May 8, 2025, at 1:00 PM 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, five-star hotel accommodations, and custom travel experiences [3]

Core Insights - Inspirato Incorporated has partnered with Clean the World to enhance its sustainability efforts through a structured recycling program for bath amenities [1][2] - The initiative aims to reduce waste by recycling plastic amenity bottles and partially used soap bars, contributing to environmental responsibility [2][3] - This partnership aligns Inspirato's domestic operations with global environmental standards, reinforcing its commitment to responsible travel [3] Company Overview - Inspirato (NASDAQ:ISPO) is a luxury vacation club offering exclusive access to curated vacation options, including luxury homes and five-star accommodations [5] - The company focuses on delivering high service quality and value to its discerning customers [5] Partner Overview - Clean the World is a leader in sustainability within the hospitality industry, dedicated to reducing waste and providing hygiene products to communities in need [6] - The organization collects and recycles discarded soap and plastic amenities to prevent landfill waste [6]

Core Insights - Inspirato Incorporated has renewed and expanded its strategic partnerships with Andaz Maui at Wailea Resort and Fairmont Kea Lani, enhancing exclusive member access to newly renovated oceanfront private residences [1][5] - Fairmont Kea Lani has undergone an extensive transformation, offering redesigned suites and villas, along with elevated guest experiences that reflect the spirit of Aloha [2][3] - Inspirato's partnership with Andaz Maui has deepened due to strong demand, providing members with access to exclusive accommodations, including a notable 4-bedroom, 4,700-square-foot oceanfront villa [3][4] Company Overview - Inspirato is a members-only luxury vacation club that offers exclusive access to a curated portfolio of vacation options, ensuring service, certainty, and value for discerning customers [6] - The company is committed to supporting Maui's recovery and rebuilding efforts, emphasizing responsible tourism [5] Partner Insights - Andaz, part of the Hyatt portfolio, is known for its immersive hospitality experiences that blend contemporary luxury with cultural authenticity [7] - Fairmont, under Accor, is recognized for its iconic properties and exceptional hospitality, offering timeless elegance and unforgettable experiences [8]

Core Insights - Inspirato Incorporated has launched its 2026 Inspirato Only Experience offerings, which include a curated collection of luxury travel experiences designed for discerning travelers [1][3] - The 2026 collection features exclusive itineraries such as the Arctic Expedition and luxury safaris in Africa, emphasizing unique access and thoughtful details [3][8] 2026 Experiences Highlights - The 2026 collection allows members to explore unique destinations, with high demand noted for marquee trips shortly after their launch [3] - Inspirato's offerings include private dinners, local engagement, and exclusive programming tailored to each destination, ensuring memorable experiences [4] Membership and Access - Inspirato's experiences are exclusively available to members, providing access to once-in-a-lifetime travel opportunities [5][6] - The company promotes its membership options as a way to join a community of explorers seeking luxury and curated travel experiences [5] Travel Offerings - The 2026 travel lineup includes luxury cruises through stunning waterways, exclusive safaris in Africa, and VIP access to elite sporting events [8] - Members can enjoy unique experiences such as island-hopping in Bali and premium seating at events like the Australian Open [8]