Inspirato rporated(ISPO) - 2025 Q1 - Quarterly Results

Q1 2025 Performance Overview Q1 2025 Highlights 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] - As of March 31, 2025, the company had approximately 11,600 active memberships, reflecting a focus on high-quality, recurring revenue[4] Management Commentary 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] - Inspirato is making foundational technology investments to build a platform for reaching, targeting, and converting high-value travelers at scale[3] - The long-term goal is to transform Inspirato into a leading property technology company supported by a curated portfolio of high-quality homes[3] 2025 Guidance 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] Financial & Operational Metrics 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 Condensed Consolidated Statements of Operations 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 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 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 Reconciliation of Net Income to Adjusted EBITDA 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 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 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] - 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] - Active Memberships are used to assess market penetration and are a key driver of revenue[19] Company Information and Forward-Looking Statements About Inspirato 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] Forward-Looking Statements 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] - 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][37] - The company disclaims any obligation to publicly release revisions to any forward-looking statements, except as required by law[39]