Inspirato rporated(ISPO) - 2025 Q3 - Quarterly Results

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]