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Inspirato Incorporated (ISPO)
:ISPO
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Inspirato (ISPO) AI Stock Analysis

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ISPO

Inspirato

(NASDAQ:ISPO)

Rating:45Neutral
Price Target:
$2.50
▼(-19.87%Downside)
Inspirato's overall score is impacted by significant financial challenges, including negative profitability and cash flow issues, which weigh heavily on its financial performance and valuation. Bearish technical indicators further contribute to a lower score. However, operational improvements and strategic corporate events like the merger with Buyerlink offer some optimism for future growth.

Inspirato (ISPO) vs. SPDR S&P 500 ETF (SPY)

Inspirato Business Overview & Revenue Model

Company DescriptionInspirato (ISPO) is a luxury travel subscription company that specializes in delivering exclusive vacation experiences. The company provides its members with access to a curated collection of luxury vacation homes, hotels, and travel services. Inspirato operates in the hospitality and travel sector, offering a seamless blend of personalized customer service and high-end accommodations to create unique and memorable travel experiences for its members.
How the Company Makes MoneyInspirato 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 Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: -5.45%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlights significant progress in operational improvements and record adjusted EBITDA, indicating effective strategic shifts. However, challenges remain with declining revenue and member count, as well as negative free cash flow. Despite these lowlights, the company is optimistic about future profitability and growth driven by operational efficiencies and strategic initiatives.
Q1-2025 Updates
Positive Updates
Record Adjusted EBITDA Performance
Inspirato delivered the strongest adjusted EBITDA performance in its history, reaching $5.6 million in Q1 2025, indicating that their strategic shift towards operational discipline is effective.
Cost of Revenue and Operating Expenses Decline
Cost of revenue declined by $8 million year-over-year, and operating expenses were down approximately $8 million, showing significant improvements in cost management.
Strong Occupancy and ADR Increase
Controlled residence accommodations maintained a strong occupancy level of 74%, with an 8% increase in Average Daily Rate (ADR) to over $2,100, supporting gross margin goals.
Launch of New Initiatives for Member Experience
Inspirato launched new initiatives to standardize service quality, including enhanced concierge training and a partnership with Sixth car rental for exclusive member benefits.
Negative Updates
Revenue Decline
Total revenue for the quarter was approximately $66 million, down 18% year-over-year, with subscription revenue down 26% due to the planned decline of Pass subscriptions.
Member Count Decrease
Club memberships decreased to 10,200 from 10,900 year-over-year, with headwinds expected to persist through the first half of the year, impacting member growth.
Negative Free Cash Flow
Q1 free cash flow was negative $8 million, including $2.6 million in one-time cash outflows related to lease terminations, with an underlying free cash flow burn of approximately $4.5 million.
Company Guidance
During the first quarter of 2025, Inspirato delivered a record adjusted EBITDA of $5.6 million, marking the strongest performance in the company's history. Total revenue for the quarter was approximately $66 million, representing an 18% decrease year-over-year. Subscription revenue was reported at $21 million, down 26%, primarily due to a strategic shift away from Pass subscriptions. The company maintained a high occupancy rate of 74% in controlled residence accommodations, with an 8% increase in average daily rate (ADR) to over $2,100. Despite a revenue decline, Inspirato is focused on achieving sustainable profitability by fine-tuning its cost base and investing in a robust digital marketing and technology platform, with full-year 2025 guidance projecting adjusted EBITDA between breakeven and $5 million, and revenue between $235 million and $255 million. Operating expenses are expected to decrease by 15% year-over-year, ranging between $80 million and $90 million.

Inspirato Financial Statement Overview

Summary
Inspirato is facing significant financial challenges, with negative net income, declining revenue trends, and negative free cash flow. The balance sheet reveals financial distress with high leverage. Despite some improvement in EBIT and EBITDA margins, the overall financial health is precarious.
Income Statement
48
Neutral
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
35
Negative
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
42
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue279.86M329.10M345.53M234.75M165.59M
Gross Profit119.22M54.31M116.24M82.00M64.99M
EBITDA60.54M6.17M43.54M-26.37M4.42M
Net Income-5.39M-51.76M-51.08M-13.79M-868.00K
Balance Sheet
Total Assets273.88M330.73M430.37M145.77M120.61M
Cash, Cash Equivalents and Short-Term Investments21.84M36.57M80.28M80.23M62.77M
Total Debt206.06M282.68M282.46M13.27M23.55M
Total Liabilities403.74M485.43M505.36M335.46M283.81M
Stockholders Equity-129.85M-30.24M11.73M-189.69M-163.21M
Cash Flow
Free Cash Flow-21.24M-63.52M-59.96M24.74M7.69M
Operating Cash Flow-15.77M-51.39M-45.69M28.75M11.58M
Investing Cash Flow-6.01M-12.12M-14.27M-4.02M-3.89M
Financing Cash Flow14.52M23.84M58.95M-8.79M16.55M

Inspirato Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.12
Price Trends
50DMA
3.60
Negative
100DMA
3.71
Negative
200DMA
3.94
Negative
Market Momentum
MACD
-0.21
Positive
RSI
27.19
Positive
STOCH
10.77
Positive
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 3.12 is below the 20-day moving average (MA) of 3.38, below the 50-day MA of 3.60, and below the 200-day MA of 3.94, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 27.19 is Positive, neither overbought nor oversold. The STOCH value of 10.77 is Positive, 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$2.27B34.8312.80%0.72%9.80%89.42%
74
Outperform
$6.38B30.368.24%18.58%169.49%
71
Outperform
$9.51B53.58-79.88%10.32%20.44%
63
Neutral
$17.10B10.79-8.01%2.94%1.62%-25.73%
53
Neutral
$1.78B-46.00%-1.74%-2020.38%
51
Neutral
$2.56B58.47%-6.35%79.04%
45
Neutral
$34.21M8.84%-16.42%88.30%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ISPO
Inspirato
2.75
-2.49
-47.52%
MODG
Topgolf Callaway Brands
9.70
-6.59
-40.45%
PLNT
Planet Fitness
112.75
38.52
51.89%
OSW
OneSpaWorld Holdings
22.12
5.69
34.63%
PTON
Peloton Interactive
6.43
2.78
76.16%
LTH
Life Time Group Holdings
29.09
8.59
41.90%

Inspirato Corporate Events

M&A TransactionsBusiness Operations and Strategy
Inspirato Announces Merger with Buyerlink for Expansion
Positive
Jun 26, 2025

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.

Executive/Board ChangesShareholder Meetings
Inspirato Stockholders Meeting Results on June 12, 2025
Neutral
Jun 18, 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.

Business Operations and StrategyFinancial Disclosures
Inspirato Reports Record Profits for Q1 2025
Positive
May 7, 2025

On May 7, 2025, Inspirato reported its most profitable quarter since going public, driven by improved gross margins and operational efficiencies. The company achieved a net income of $1.6 million and an adjusted EBITDA of $5.6 million for Q1 2025, marking a 38% improvement year-over-year. Inspirato maintained strong occupancy rates and increased average daily rates, reflecting its focus on high-quality, recurring revenue. The company reiterated its full-year 2025 financial guidance, anticipating further improvements in adjusted EBITDA and cash operating expenses.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 25, 2025