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Inspirato (ISPO)
NASDAQ:ISPO
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Inspirato
(NASDAQ:ISPO)
48Neutral
Inspirato (ISPO) vs. S&P 500 (SPY)
Market Cap
$50.38M
Dividend YieldN/A
Average Volume (3M)18.63K
Price to Earnings (P/E)―
Beta (1Y)0.77
Revenue Growth-14.96%
EPS Growth90.64%
CountryUS
Employees470
SectorConsumer Cyclical
Sector Strength54
IndustryLeisure
Share Statistics
EPS (TTM)-2.14
Shares Outstanding12,440,577
10 Day Avg. Volume20,530
30 Day Avg. Volume18,632
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.17
Price to Cash Flow (P/CF)-0.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Inspirato Business Overview & Revenue Model
Company DescriptionInspirato Incorporated operates as a subscription-based luxury travel company. The company provides affluent travelers access to a portfolio of curated luxury vacation options. As of December 31, 2021, it had approximately 425 private luxury vacation homes available exclusively to subscribers; and accommodations at approximately 420 luxury hotel and resort partners worldwide. The company was founded in 2010 and is headquartered in Denver, Colorado.
How the Company Makes MoneyInspirato makes money primarily through its subscription revenue model. Members pay a recurring subscription fee to access the company's portfolio of luxury accommodations and travel services. This fee grants them access to a wide range of exclusive properties and experiences without additional nightly rates. In addition to subscription fees, Inspirato generates revenue through booking fees and other ancillary services offered to enhance the travel experience. Key partnerships with property owners, real estate developers, and luxury brands also contribute to Inspirato's revenue by expanding its inventory and enhancing the value proposition for its members.
Inspirato Financial Statement Overview
Summary
Inspirato is facing severe financial challenges with declining revenue and negative equity. Though there have been improvements in operational efficiency and margins, the company remains unprofitable with negative cash flows, indicating liquidity issues.Income Statement
Inspirato has faced significant challenges in revenue growth, with total revenue declining by approximately 15% from 2023 to 2024. Gross Profit Margin improved to 42.6% in 2024 compared to 16.5% in 2023, demonstrating enhanced operational efficiency. However, the company remains unprofitable with a negative Net Profit Margin of -1.9% in 2024, though this is an improvement from -15.7% in 2023. The EBIT Margin is positive at 7.9% in 2024, a considerable recovery from -18.8% in 2023, showing potential for future profitability.45
Neutral
Balance Sheet
The company's financial position is concerning, marked by negative Stockholders' Equity, which deteriorated further to -$129.9 million in 2024 from -$30.2 million in 2023. The Debt-to-Equity Ratio is not meaningful due to negative equity, indicating financial instability. Total Assets decreased by approximately 17% from 2023 to 2024, reflecting asset shrinkage. Despite improvements in certain areas, the overall financial leverage remains high, posing a significant risk.30
Negative
Cash Flow
Inspirato's cash flow position is weak, with negative Free Cash Flow of -$21.2 million in 2024, though this is an improvement from -$63.5 million in 2023. Operating Cash Flow is negative at -$15.8 million in 2024 but shows a positive trajectory compared to -$51.4 million in 2023. The company is struggling to generate sufficient cash to cover its operational expenses, indicating liquidity challenges.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 279.86M | 329.10M | 345.53M | 234.75M | 165.59M | Gross Profit |
| 119.22M | 54.31M | 116.24M | 82.00M | 64.99M | EBIT |
| 22.24M | -62.02M | -47.06M | -39.71M | -426.00K | EBITDA |
| -763.00K | 6.17M | 43.54M | -26.37M | 4.42M | Net Income Common Stockholders |
| -5.39M | -51.76M | -51.08M | -13.79M | -868.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 21.84M | 36.57M | 80.28M | 80.23M | 62.77M | Total Assets |
| 273.88M | 330.73M | 430.37M | 145.77M | 120.61M | Total Debt |
| 183.73M | 282.68M | 282.46M | 13.27M | 23.55M | Net Debt |
| 161.88M | 246.12M | 202.18M | -66.97M | -39.22M | Total Liabilities |
| 403.74M | 485.43M | 505.36M | 335.46M | 283.81M | Stockholders Equity |
| -129.85M | -30.24M | 11.73M | -189.69M | -163.21M |
| Cash Flow | Free Cash Flow | |||
| -21.24M | -63.52M | -59.96M | 24.74M | 7.69M | Operating Cash Flow |
| -15.77M | -51.39M | -45.69M | 28.75M | 11.58M | Investing Cash Flow |
| -6.01M | -12.12M | -14.27M | -4.02M | -3.89M | Financing Cash Flow |
| 14.52M | 23.84M | 58.95M | -8.79M | 16.55M |
Inspirato Technical Analysis
Negative
4.20
Price Trends
4.46
Negative
4.21
Negative
4.12
Positive
Market Momentum
-0.01
Negative
45.50
Neutral
38.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISPO, the sentiment is Negative. The current price of 4.2 is above the 20-day moving average (MA) of 4.15, below the 50-day MA of 4.46, and above the 200-day MA of 4.12, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 45.50 is Neutral, neither overbought nor oversold. The STOCH value of 38.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ISPO.
Inspirato Risk Analysis
Inspirato disclosed 37 risk factors in its most recent earnings report. Inspirato reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Inspirato Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $76.41B | 29.70 | 31.95% | ― | 11.95% | -44.02% | |
75 Outperform | $21.61B | 18.74 | 79.84% | 0.24% | 6.64% | 69.85% | |
72 Outperform | $153.76B | 27.14 | -146.32% | 0.77% | 11.11% | 47.03% | |
65 Neutral | $3.10B | 8.68 | -46.70% | 4.44% | 3.52% | 2.49% | |
59 Neutral | $12.18B | 11.09 | -1.08% | 3.77% | 1.26% | -19.82% | |
55 Neutral | $65.59B | 28.60 | -144.82% | 1.06% | 5.85% | -18.43% | |
48 Neutral | $50.38M | ― | 8.84% | ― | -14.96% | 90.64% |
* Consumer Cyclical Sector Average
Performance Comparison
ISPO
Inspirato
4.20
0.28
7.14%
EXPE
Expedia
167.85
37.42
28.69%
MAR
Marriott International
242.56
-3.85
-1.56%
BKNG
Booking Holdings
4,689.30
1,196.54
34.26%
TNL
Travel + Leisure Co
48.07
3.72
8.39%
ABNB
Airbnb
122.80
-36.04
-22.69%
Inspirato Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -3.67% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant improvements in profitability, EBITDA, and gross margin, with strategic cost reductions and portfolio optimization contributing to financial performance. However, these positive developments were balanced by declines in revenue and active pass subscriptions, resulting from strategic shifts in the business model.Highlights
Profitability and Positive Cash Flow in Q4 2024
Inspirato achieved profitability and positive free cash flow of $6.9 million in Q4 2024, a first for the company as a public entity.
EBITDA Improvement
The company delivered approximately $2 million of positive EBITDA in Q4, marking a $7 million year-over-year improvement and the best fourth-quarter performance since going public.
Significant Cost Reductions
Inspirato reduced cash operating expenses by 20% in 2024, resulting in a decrease from $130 million in 2023 to $104 million.
Improved Gross Margin
Gross margin improved to 35% of revenue in Q4 2024, up from 27% in Q4 2023, driven by lower cost of revenue.
Strategic Portfolio Optimization
Achieved a 23% reduction in operating expenses and a 20% improvement in cost of revenue in Q4 2024, primarily through portfolio optimization efforts.
Lowlights
Revenue Decline
Total revenue was $63 million in Q4 2024, an 11% decrease year-over-year. Full-year revenue was $280 million, down 15% year-over-year due to strategic decisions affecting pass member base.
Member Base Reduction
The number of active pass subscriptions decreased, contributing to revenue decline. The company ended Q4 with approximately 1,500 active pass subscriptions, a strategic shift impacting revenue.
Company Guidance
During Inspirato's earnings call, the company provided guidance for 2025, aiming for total revenue between $235 million and $255 million, consistent with their fourth-quarter annualized revenue. They also anticipate achieving full-year profitability with an adjusted EBITDA range of $0 to $5 million. Their focus on operational efficiencies is expected to reduce cash operating expenses to between $80 million and $90 million, a 15% improvement from 2024. In 2024, the company reported total revenue of $280 million and an adjusted EBITDA loss of $6.5 million, within original guidance ranges. Fourth-quarter results showed $63 million in revenue, a 23% reduction in operating expenses, and a positive free cash flow of $6 million. Inspirato plans to invest in refreshing over half of their home portfolio's decor and standardizing concierge training to enhance member experiences.Inspirato Corporate Events
Business Operations and StrategyFinancial Disclosures
Inspirato Reports Improved Profitability in Q4 2024
Positive
Feb 28, 2025
Inspirato reported its financial results for the fourth quarter and full year of 2024, highlighting significant improvements in profitability and cash flow. The company achieved a net loss reduction of 86% year-over-year in the fourth quarter and improved its adjusted EBITDA by $7.3 million. Despite a decrease in total revenue by 11% in the fourth quarter and 15% for the full year, Inspirato plans to achieve full-year profitability in 2025 by optimizing operational efficiencies and strengthening gross margins. The company also added 14 new luxury residences and maintained an industry-leading Net Promoter Score of 70.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.