Inspirato (ISPO) AI Stock Analysis

• Market Cap: $37.41M
• Dividend Yield: N/A
• Average Volume (3M): 41.19K
• Price to Earnings (P/E): 39.3
• Beta (1Y): 0.67
• Revenue Growth: -13.20%
• EPS Growth: N/A
• Country: US
• Employees: 470
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Leisure
• EPS (TTM): -0.42
• Shares Outstanding: 12,469,941
• 10 Day Avg. Volume: 31,119
• 30 Day Avg. Volume: 41,192
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 5.69
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 1.91
• Enterprise Value/Ebitda: 4.82
• 1Y Price Target: $3.00
• Price Target Upside: 1.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: $3.00 ▲(1.01% Upside)

Inspirato's overall stock score reflects significant financial challenges, including high leverage and negative cash flows, which weigh heavily on the score. However, the strategic merger with Buyerlink and operational improvements provide a positive outlook. Technical indicators and valuation metrics are mixed, with bearish momentum and ongoing losses. The earnings call suggests potential for future profitability, but current financial instability remains a concern.

Inspirato Business Overview & Revenue Model

Company Description

Inspirato 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 Money

Inspirato makes money primarily through its subscription-based model, where members pay a monthly or annual fee to access the company's portfolio of luxury vacation properties and travel services. In addition to membership fees, Inspirato generates revenue from booking fees for reservations made through its platform. The company may also earn income from ancillary services such as travel planning and concierge services, which enhance the overall travel experience for its members. Inspirato's partnerships with property owners, luxury resorts, and other travel service providers play a crucial role in expanding its offerings and maintaining a diverse inventory of high-quality accommodations, thus contributing to its revenue generation.

Inspirato Financial Statement Overview

Summary

Inspirato is facing significant financial challenges across its income statement, balance sheet, and cash flow statement. The company is struggling with profitability, high leverage, and negative cash flows, raising concerns about its financial sustainability. While there are some positive trends, such as improved EBIT and EBITDA margins, the overall financial health remains precarious, with risks of insolvency and liquidity constraints.

Income Statement

Inspirato's income statement reveals significant challenges. The company has faced negative net income consistently, and net profit margins remain negative, indicating a lack of profitability. Although there is a positive gross profit margin, the revenue growth trend is declining, which is concerning. The EBIT and EBITDA margins show improvement in TTM (Trailing-Twelve-Months) compared to the previous annual report, but overall profitability is still lacking.

Balance Sheet

The balance sheet of Inspirato highlights financial distress, with negative stockholders' equity and high debt levels. The debt-to-equity ratio is not meaningful due to negative equity, indicating significant insolvency risk. The equity ratio is negative, further emphasizing financial instability. These factors severely impact the company's financial health and illustrate a high leverage situation.

Cash Flow

Inspirato's cash flow statement shows consistent negative free cash flow, reflecting poor cash generation from operations. Operating cash flow is also negative, which is a significant concern. The ratios of operating cash flow and free cash flow to net income are not favorable, indicating cash management issues. However, financing activities have provided some liquidity, albeit insufficient for overall positive cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	265.50M	279.86M	329.10M	345.53M	234.75M	165.59M
Gross Profit	111.68M	119.22M	54.31M	116.24M	82.00M	64.99M
EBITDA	44.18M	60.54M	6.17M	43.54M	-26.37M	4.42M
Net Income	-5.04M	-5.39M	-51.76M	-24.06M	-22.22M	-540.00K
Balance Sheet
Total Assets	270.13M	273.88M	330.73M	430.37M	145.77M	120.61M
Cash, Cash Equivalents and Short-Term Investments	16.45M	21.84M	36.57M	80.28M	80.23M	62.77M
Total Debt	186.53M	206.06M	282.68M	282.46M	13.27M	23.55M
Total Liabilities	395.29M	403.74M	485.43M	505.36M	335.46M	283.81M
Stockholders Equity	-125.16M	-129.85M	-30.24M	11.73M	-189.69M	-163.21M
Cash Flow
Free Cash Flow	-20.57M	-21.24M	-63.52M	-59.96M	24.74M	7.69M
Operating Cash Flow	-15.20M	-15.77M	-51.39M	-45.69M	28.75M	11.58M
Investing Cash Flow	-5.42M	-6.01M	-12.12M	-14.27M	-4.02M	-3.89M
Financing Cash Flow	16.80M	14.52M	23.84M	58.95M	-8.79M	16.55M

Inspirato Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2.97 is above the 20-day moving average (MA) of 2.85, below the 50-day MA of 3.37, and below the 200-day MA of 3.84, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 47.43 is Neutral, neither overbought nor oversold. The STOCH value of 60.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ISPO.

Inspirato Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSW	77 Outperform	$2.23B	32.02	13.16%	0.73%	8.51%	31.24%
LTH	66 Neutral	$6.03B	26.83	8.66%	―	17.25%	93.88%
PLNT	61 Neutral	$8.83B	48.01	-79.88%	―	12.47%	22.74%
Sector *	61 Neutral	$17.23B	11.51	-5.97%	3.09%	1.47%	-15.79%
ISPO	52 Neutral	$37.41M	39.29	8.84%	―	-13.20%	―
MODG	51 Neutral	$1.82B	―	-46.53%	―	-2.35%	-7104.57%
PTON	50 Neutral	$3.46B	―	58.47%	―	-7.76%	79.66%

Inspirato Corporate Events

Inspirato Announces Strategic Merger with Buyerlink

Inspirato reported its Q2 2025 financial results, showing significant operational improvements with a net loss of $5.3 million and an adjusted EBITDA improvement of $8.8 million year-over-year. The company announced a strategic combination with Buyerlink, a leader in online marketplaces, to form One Planet Platforms, which is expected to enhance Inspirato’s luxury travel offerings and global reach. This merger, valued at approximately $326.3 million, is anticipated to close in the third quarter of 2025, positioning the combined entity as a diversified, technology-driven platform in the luxury travel market.

Inspirato Announces Merger with Buyerlink for Expansion

On June 25, 2025, Inspirato announced a definitive agreement to merge with Buyerlink, a move that will form One Planet Platforms, a diversified consumer-focused marketplaces platform. This strategic merger aims to enhance Inspirato’s luxury travel services by integrating Buyerlink’s marketplace capabilities, thereby expanding its reach in the global luxury travel market. The merger, valued at approximately $326 million, is expected to be completed in the third quarter of 2025, subject to customary closing conditions and approvals. The combined company will trade on the Nasdaq Stock Exchange under a new ticker symbol, with Payam Zamani serving as Chairman and CEO.

Inspirato Stockholders Meeting Results on June 12, 2025

On June 12, 2025, Inspirato Incorporated held its Annual Meeting of Stockholders, where 70.11% of the outstanding shares were represented. During the meeting, a proposal to amend the Company’s Certificate of Incorporation to declassify the Board of Directors was not approved, as it did not meet the required two-thirds majority. Consequently, the election of six directors contingent on this proposal was not applicable. However, two Class III directors, May Samali and Julie Wainwright, were elected to serve until the 2028 annual meeting. Additionally, the appointment of BDO USA, P.C. as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified.