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

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ISPO

Inspirato

(NASDAQ:ISPO)

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Neutral 53 (OpenAI - 4o)
Rating:53Neutral
Price Target:
$3.00
▲(0.00% Upside)
Inspirato's overall stock score is primarily influenced by its financial challenges, which pose significant risks to its sustainability. The strategic initiatives and improvements in adjusted EBITDA provide some optimism, but the bearish technical indicators and high valuation limit the stock's appeal. The company's future growth prospects hinge on successful execution of its strategic plans and financial improvements.

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

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-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:Aug 12, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Dec 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of significant strategic advancements and operational improvements alongside notable challenges in revenue and subscription metrics. The combination with Buyerlink and improvements in adjusted EBITDA and brand elevation efforts are strong positives, but these are tempered by declines in revenue and subscription numbers. The sentiment is balanced with a slight positive tilt due to strategic initiatives expected to drive future growth.
Q2-2025 Updates
Positive Updates
Strategic Combination with Buyerlink
Inspirato entered into a definitive agreement to combine with Buyerlink, a leader in online marketplaces, which is expected to enhance personalization and monetization of luxury travel services, and expand Inspirato's reach.
Significant Improvement in Adjusted EBITDA
Inspirato achieved a 96% or $8.8 million year-over-year improvement in adjusted EBITDA, demonstrating the impact of cost optimization initiatives.
Positive Trailing 12-Month Adjusted EBITDA
Inspirato reported positive trailing 12-month adjusted EBITDA of $3.9 million, reflecting sustained cost efficiency measures.
Operational Efficiency Achievements
Cost of revenue declined by $5.5 million year-over-year due to ongoing portfolio optimization efforts, while operating expenses were down approximately $9 million.
Successful Brand Elevation Efforts
Inspirato made strides in brand elevation, including the reimagination of Inspirato magazine and the expansion of their digital and social media presence, which increased engagement and awareness.
Experiential Travel Business Growth
Experiential travel business revenue was up 47% year-over-year, contributing to a 1% increase in travel revenue.
Negative Updates
Decline in Total Revenue
Total revenue for Q2 2025 was approximately $63.1 million, representing a 6% decline year-over-year, primarily due to a planned decline in Pass subscriptions.
Decrease in Subscription Revenue
Subscription revenue was $19.4 million, down 23% year-over-year due to scaling back the previous version of Pass.
Reduced Occupancy Levels
Controlled accommodations delivered an occupancy level of 59%, down from 71% in Q2 2024, despite a 24% increase in average daily rate (ADR).
Negative Free Cash Flow Year-to-Date
Year-to-date free cash flow remains negative at $7.3 million, although it is an improvement from the prior year.
Company Guidance
During Inspirato's Second Quarter 2025 Earnings Conference Call, the company provided extensive guidance on its strategic direction and financial outlook. Inspirato announced a definitive agreement to combine with Buyerlink, a move expected to significantly enhance its platform and expand its market reach. Buyerlink reported approximately $124 million in revenue and over $26 million in EBITDA in 2024, and the merger is projected to increase combined revenue to over $350 million, with approximately $30 million in adjusted EBITDA on a pro forma basis for 2025. Inspirato's Q2 results showed a notable improvement with a negative adjusted EBITDA of $300,000, compared to negative $9.2 million in Q2 2024, and total revenue of $63.1 million. The company achieved a 96% year-over-year improvement in adjusted EBITDA, reflecting successful cost optimization initiatives. Subscription revenue was $19.4 million, with a decline attributed to a strategic scale-back of Pass subscriptions, while travel revenue increased by 1% to $39.4 million. Inspirato's future focus includes enhancing operational efficiency, brand elevation, member experience, and digital platform capabilities, leveraging Buyerlink's technology to drive growth. The transaction is expected to close in the third quarter, with full integration anticipated to bring operational synergies and financial benefits.

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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue265.50M279.86M329.10M345.53M234.75M165.59M
Gross Profit111.68M119.22M54.31M116.24M82.00M64.99M
EBITDA44.18M60.54M6.17M43.54M-26.37M4.42M
Net Income-5.04M-5.39M-51.76M-24.06M-22.22M-540.00K
Balance Sheet
Total Assets270.13M273.88M330.73M430.37M145.77M120.61M
Cash, Cash Equivalents and Short-Term Investments16.45M21.84M36.57M80.28M80.23M62.77M
Total Debt186.53M206.06M282.68M282.46M13.27M23.55M
Total Liabilities395.29M403.74M485.43M505.36M335.46M283.81M
Stockholders Equity-125.16M-129.85M-30.24M11.73M-189.69M-163.21M
Cash Flow
Free Cash Flow-20.57M-21.24M-63.52M-59.96M24.74M7.69M
Operating Cash Flow-15.20M-15.77M-51.39M-45.69M28.75M11.58M
Investing Cash Flow-5.42M-6.01M-12.12M-14.27M-4.02M-3.89M
Financing Cash Flow16.80M14.52M23.84M58.95M-8.79M16.55M

Inspirato Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.00
Price Trends
50DMA
2.95
Positive
100DMA
3.30
Negative
200DMA
3.75
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
49.56
Neutral
STOCH
30.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ISPO, the sentiment is Neutral. The current price of 3 is below the 20-day moving average (MA) of 3.01, above the 50-day MA of 2.95, and below the 200-day MA of 3.75, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.56 is Neutral, neither overbought nor oversold. The STOCH value of 30.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
2.20B31.5212.98%0.74%8.51%31.24%
64
Neutral
6.13B27.087.90%17.25%93.88%
61
Neutral
8.70B46.16-119.08%12.47%22.74%
56
Neutral
3.36B-27.2628.74%-7.76%79.66%
53
Neutral
$37.29M39.678.84%-13.20%
51
Neutral
1.69B-1.13-60.04%-2.35%-7104.57%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ISPO
Inspirato
3.00
-1.01
-25.19%
MODG
Topgolf Callaway Brands
9.20
-1.70
-15.60%
PLNT
Planet Fitness
103.66
23.18
28.80%
OSW
OneSpaWorld Holdings
21.68
5.26
32.03%
PTON
Peloton Interactive
8.42
3.61
75.05%
LTH
Life Time Group Holdings
27.99
3.78
15.61%

Inspirato Corporate Events

Business Operations and StrategyM&A Transactions
Inspirato Ends Merger Agreement with Buyerlink
Neutral
Sep 15, 2025

On September 15, 2025, Inspirato Incorporated announced the mutual termination of its merger agreement with Buyerlink, initially signed on June 25, 2025. The decision to remain independent reflects Inspirato’s confidence in its brand and operations, emphasizing its commitment to shareholder value and long-term growth in the luxury travel industry. Inspirato will continue to focus on enhancing its member experience and exploring strategic alternatives to maximize shareholder value.

The most recent analyst rating on (ISPO) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Inspirato stock, see the ISPO Stock Forecast page.

M&A Transactions
Inspirato Receives Acquisition Proposal from Exclusive Investments
Neutral
Sep 5, 2025

On September 3, 2025, Inspirato Incorporated received an unsolicited, non-binding proposal from Exclusive Investments, LLC to acquire all outstanding equity for $3.15 per share, totaling approximately $39 million. This proposal is not subject to a financing contingency but requires confirmatory due diligence and negotiation of definitive documentation. Meanwhile, Inspirato is also engaged in a previously announced merger agreement with Buyerlink, Inc., which would significantly increase One Planet Group’s ownership stake in the combined company. The Special Committee of Inspirato’s Board is reviewing the new proposal, though the board has not changed its support for the Buyerlink transaction.

The most recent analyst rating on (ISPO) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Inspirato stock, see the ISPO Stock Forecast page.

M&A TransactionsPrivate Placements and Financing
Inspirato Announces Termination Agreement Amid Merger Plans
Neutral
Aug 18, 2025

On August 15, 2025, Inspirato Incorporated announced a Termination Agreement to end the 8% Senior Secured Convertible Note with Oakstone Ventures, contingent on the closing of a merger with Buyerlink, Inc. The agreement involves a $20 million payoff to Oakstone Ventures and the termination of related agreements with Capital One. If the merger does not close by December 15, 2025, the Capital One Parties may sell or transfer the Note. Inspirato is in preliminary talks for financing to support this termination, though no agreements have been finalized.

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: Sep 20, 2025