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Inspirato (ISPO)
NASDAQ:ISPO
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Inspirato
(NASDAQ:ISPO)
45Neutral
Inspirato (ISPO) vs. S&P 500 (SPY)
Market Cap
$42.17M
Dividend YieldN/A
Average Volume (3M)26.67K
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth-16.42%
EPS Growth88.30%
CountryUS
Employees470
SectorConsumer Cyclical
Sector Strength73
IndustryLeisure
Share Statistics
EPS (TTM)0.12
Shares Outstanding12,440,577
10 Day Avg. Volume33,462
30 Day Avg. Volume26,669
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)-0.30
Price to Sales (P/S)0.00
P/FCF Ratio-2.03
Enterprise Value/Market Cap5.41
Enterprise Value/Revenue0.19
Enterprise Value/Gross Profit1.96
Enterprise Value/Ebitda1.56
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Inspirato Business Overview & Revenue Model
Company DescriptionInspirato (ISPO) is a luxury travel subscription company that operates in the hospitality sector. The company offers a subscription-based service that provides its members with access to a curated portfolio of luxury vacation homes, hotels, and travel experiences. Inspirato's core offerings include personalized travel planning, exclusive member benefits, and unique experiences designed to meet the sophisticated needs of affluent travelers.
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 significant financial challenges, including declining revenue and negative equity. Despite improved margins and operational efficiencies, the company remains unprofitable and struggles with cash flow, indicating financial instability.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 |
| -4.00M | -62.02M | -47.06M | -39.71M | -426.00K | EBITDA |
| 60.54M | 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 |
| 206.06M | 282.68M | 282.46M | 13.27M | 23.55M | Net Debt |
| 184.22M | 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
3.39
Price Trends
3.78
Negative
4.21
Negative
4.09
Negative
Market Momentum
-0.11
Negative
41.70
Neutral
35.78
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 3.39 is below the 20-day moving average (MA) of 3.44, below the 50-day MA of 3.78, and below the 200-day MA of 4.09, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 41.70 is Neutral, neither overbought nor oversold. The STOCH value of 35.78 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.98B | 30.40 | 12.80% | 0.62% | 9.80% | 89.42% | |
74 Outperform | $6.47B | 30.79 | 8.24% | ― | 18.58% | 169.49% | |
64 Neutral | $8.32B | 46.88 | -79.88% | ― | 10.32% | 20.44% | |
61 Neutral | $6.98B | 11.33 | 2.82% | 3.90% | 2.65% | -21.74% | |
50 Neutral | $2.53B | ― | 58.47% | ― | -6.35% | 79.04% | |
46 Neutral | $1.29B | ― | -46.00% | ― | -1.74% | -2020.38% | |
45 Neutral | $42.17M | ― | 8.84% | ― | -16.42% | 88.30% |
* Consumer Cyclical Sector Average
Performance Comparison
ISPO
Inspirato
3.39
-0.63
-15.67%
MODG
Topgolf Callaway Brands
7.00
-7.90
-53.02%
PLNT
Planet Fitness
98.86
34.09
52.63%
OSW
OneSpaWorld Holdings
19.31
4.42
29.68%
PTON
Peloton Interactive
6.34
2.43
62.15%
LTH
Life Time Group Holdings
29.50
14.20
92.81%
Inspirato Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 2.73%|
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 Corporate Events
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.
Spark’s Take on ISPO Stock
According to Spark, TipRanks’ AI Analyst, ISPO is a Underperform.
Inspirato’s overall stock score is low due to significant financial challenges, including negative equity and declining revenue. The stock’s technical indicators show bearish momentum, reinforcing concerns about its near-term performance. Despite some positive signals from the earnings call, such as profitability improvements and cost reductions, the overall outlook remains cautious due to ongoing liquidity and valuation concerns.
To see Spark’s full report on ISPO stock, click here.
Executive/Board ChangesShareholder Meetings
Inspirato Announces President’s Departure and CEO Transition
Neutral
Apr 24, 2025
On April 22, 2025, Inspirato Incorporated announced the immediate separation of David Kallery from his role as President. The company’s CEO, Payam Zamani, will take over Kallery’s responsibilities. The company is in discussions with Kallery regarding his separation terms, and any significant compensation details will be disclosed later. Kallery will not seek re-election at the upcoming annual meeting, and his board seat will be filled at a future date.
Spark’s Take on ISPO Stock
According to Spark, TipRanks’ AI Analyst, ISPO is a Underperform.
Inspirato’s overall stock score is low due to significant financial challenges, including negative equity and declining revenue. The stock’s technical indicators show bearish momentum, reinforcing concerns about its near-term performance. Despite some positive signals from the earnings call, such as profitability improvements and cost reductions, the overall outlook remains cautious due to ongoing liquidity and valuation concerns.
To see Spark’s full report on ISPO stock, click here.
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.