Inspirato rporated(US:ISPO)2025-05-08 20:11Financial 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]