Inspirato rporated(US:ISPO)2025-11-05 21:17Revenue Performance - Revenue for Q3 2025 was $55,541,000, a decrease of 19.6% compared to $69,114,000 in Q3 2024[19] - For the three months ended September 30, 2025, total revenues decreased to $55.5 million, down 19.6% from $69.1 million in the same period of 2024[34][47] - For the nine months ended September 30, 2025, total revenues declined to $184.5 million, a decrease of 14.9% from $216.7 million for the same period in 2024[34][47] - Total revenue for the nine months ended September 30, 2025, was $184.538 million, down 14.9% from $216.741 million in 2024[127] - Total revenue decreased by $13.6 million, from $69.1 million in Q3 2024 to $55.5 million in Q3 2025, a decline of 20%[158] Profitability and Loss - Net loss for Q3 2025 was $4,521,000, compared to a net income of $6,622,000 in Q3 2024, indicating a significant shift in profitability[19] - The company reported a net loss of $5,313,000, compared to a net loss of $4,521,000 for the same period in 2024[25] - The basic earnings per share (EPS) for the three months ended September 30, 2025, was $(0.36), while for the same period in 2024, it was $0.77[90] - The diluted EPS for the three months ended September 30, 2025, was $(0.36), compared to $0.62 for the same period in 2024[91] - Net loss and comprehensive loss increased by $1.7 million from $6.5 million for the nine months ended September 30, 2024, to $8.2 million for the nine months ended September 30, 2025, an increase of 26%[173] Expenses and Cost Management - General and administrative expenses for Q3 2025 were $9,658,000, down from $19,795,000 in Q3 2024, a decrease of 51.2%[19] - General and administrative expenses decreased by $17.0 million from $48.4 million for the nine months ended September 30, 2024, to $31.4 million for the nine months ended September 30, 2025, a decrease of 35%[180] - Sales and marketing expenses decreased by $8.7 million from $24.7 million for the nine months ended September 30, 2024, to $16.0 million for the nine months ended September 30, 2025, a decrease of 35%[181] - Technology and development expenses decreased by $2.9 million from $6.0 million for the nine months ended September 30, 2024, to $3.1 million for the nine months ended September 30, 2025, a decrease of 48%[183] Assets and Liabilities - Total current assets decreased to $45,869,000 as of September 30, 2025, down from $58,383,000 at the end of 2024, a reduction of 21.4%[17] - Total liabilities decreased to $362,263,000 as of September 30, 2025, compared to $403,737,000 at the end of 2024, a decline of 10.3%[17] - Total assets decreased to $228,286,000 as of September 30, 2025, down from $273,885,000 at the end of 2024, a reduction of 16.6%[17] - Cash and cash equivalents decreased to $13,715,000 from $21,845,000, representing a decrease of 37.2%[17] Cash Flow and Financing Activities - The company generated $2,058,000 in net cash from financing activities, primarily from proceeds of $10,000,000 from the Investment Agreement[25] - Net cash used in operating activities decreased from $22.7 million in 2024 to $7.8 million in 2025, driven by changes in operating assets and liabilities[198] - Net cash used in investing activities decreased from $4.8 million in 2024 to $2.5 million in 2025, due to lower expenditures for property and equipment[199] - Net cash provided by financing activities decreased from $9.4 million in 2024 to $2.1 million in 2025, primarily due to the absence of proceeds from the Investment Agreement[200] Revenue Sources and Trends - Subscription revenue fell by $3.6 million, from $23.0 million in Q3 2024 to $19.4 million in Q3 2025, primarily due to a 14% decrease in the number of subscriptions[160] - Active subscriptions decreased from 12,400 as of September 30, 2024, to 10,700 as of September 30, 2025, reflecting a decline in market penetration[145] - Total travel revenue decreased by $8.7 million, from $42.6 million in Q3 2024 to $33.9 million in Q3 2025, driven by lower paid nights delivered[159] Operational Changes and Future Plans - The Company is executing a Reorganization Plan to address operational challenges and improve liquidity[35] - The Company has plans for market expansion through curated luxury experiences and personalized services to enhance customer satisfaction[28] - The Company believes its plans will allow it to meet projected working capital and capital expenditure requirements for at least the next twelve months[38] Legal and Compliance Issues - The Company is involved in ongoing legal disputes with former executives, with litigation currently in the discovery phase[105][106] - The Company paid a full and final settlement amount of $0.3 million for the termination of the Tax Receivable Agreement on August 9, 2024[81]