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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on ISPO

Inspirato Incorporated's recent performance was negatively impacted by its Q3 2025 earnings report, which showed a net loss of $4.5 million and adjusted EBITDA of negative $0.1 million. The company's quarterly loss of $0.36 per share also missed revenue estimates. Furthermore, Inspirato's decision to terminate its merger agreement with Buyerlink and opposition from shareholder Stoney Lonesome regarding the deal may have contributed to the negative trend. Additionally, the company's high net loss and negative EBITDA may have raised concerns among investors. (Source: Zacks Consensus Estimate)

1.c. Company Highlights

2. Inspirato's Q3 2025 Earnings: A Step Closer to Profitability

Inspirato's third-quarter 2025 financial performance was marked by a revenue decline of 20% year-over-year to $56 million, but the company reported a significant improvement in adjusted EBITDA, narrowing the loss to negative $0.1 million. The actual EPS came out at '-0.36', slightly missing estimates of '-0.35'. The company's adjusted EBITDA improved by $13.2 million year-to-date, driven by operational progress and cost management. Cash operating expenses decreased by approximately $7 million year-over-year, benefiting from reduced overhead and disciplined cost management.

Publication Date: Nov -18

📋 Highlights
  • Adjusted EBITDA Surge:: 97% YoY improvement to negative $0.1 million, driven by cost reductions and operational efficiency, with $13.2M year-to-date gain.
  • Operating Cash Flow Growth:: $15 million improvement YoY, reflecting disciplined cost management and reduced overhead (-$7M in cash operating expenses).
  • Vendor Contract Savings:: Renegotiated contracts yielded $4 million in annual savings, boosting margins without compromising member experience.
  • Pass Program Launch:: Limited to 2,500 members (1,400 available), enhancing subscription mix balance and offering dual reservation tracks for travel flexibility.
  • 2025 Financial Outlook:: EBITDA of $2–$4 million, revenue of $235–$240 million, and 15% YoY operating expense reduction to $80–$85 million.

Operational Highlights

The company's focus on its high-value, long-term Club is driving a healthier and more sustainable subscription base, setting the stage for future growth. The relaunch of the Pass program in January is expected to complement the Club offering and strengthen the overall subscription mix. As Payam Zamani mentioned, "We've made tremendous strides to elevate the business while laying the operational groundwork to scale efficiently as we lean into our technology platform strategy."

Outlook and Guidance

Inspirato's outlook for 2025 includes expected EBITDA of between $2 million and $4 million, full-year revenue of between $235 million and $240 million, and operating expenses of between $80 million and $85 million, reflecting a 15% year-over-year reduction. Analysts estimate next year's revenue growth at 87.1%, indicating a significant rebound.

Valuation Metrics

With a P/S Ratio of 0.12 and EV/EBITDA of 6.03, the market seems to be pricing in a challenging near-term environment, but the expected growth in revenue and improvement in EBITDA could potentially drive the stock higher. The current valuation multiples indicate that the market is expecting a turnaround in the company's performance.

New Initiatives and Future Plans

The company has introduced a revamped Pass program, which offers improved features, including access to properties that Inspirato controls. The company has limited the number of Pass members to 2,500 and has started testing marketing initiatives, with early results showing promise. The CFO departure and the initiation of a search process for a new CFO are expected to be completed in the coming quarters.

3. NewsRoom

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Inspirato Adds Iconic Destinations to Its Global Portfolio

Nov -20

Source: globenewswire.com

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Inspirato Incorporated (ISPO) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Inspirato Incorporated (ISPO) Reports Q3 Loss, Misses Revenue Estimates

Nov -05

Source: zacks.com

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Inspirato Reports Q3 Financial and Operating Results

Nov -04

Source: globenewswire.com

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Inspirato to Announce Third Quarter 2025 Financial Results on Tuesday, November 4, 2025

Oct -30

Source: globenewswire.com

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Inspirato Introduces Luxury Catamaran Charters

Oct -29

Source: globenewswire.com

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Inspirato Elevates Travel Experiences with Strategic Property Enhancements

Oct -23

Source: globenewswire.com

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Inspirato Expands Its Sports Collection with New 2026 Experiences

Oct -09

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.00%)

6. Segments

Travel

Expected Growth: 11.53%

Inspirato's 11.53% growth is driven by increasing demand for luxury travel experiences, strategic partnerships with high-end hospitality brands, and expansion into new markets. Additionally, the company's subscription-based model and personalized travel planning services have contributed to its growth, as affluent travelers seek unique and curated experiences.

Subscription

Expected Growth: 10.27%

Inspirato Incorporated's 10.27% subscription growth is driven by increasing demand for luxury vacation experiences, strategic partnerships with high-end hospitality brands, and effective marketing campaigns targeting affluent demographics. Additionally, the company's focus on personalized travel planning and exclusive access to premium properties has contributed to its rapid growth.

Other

Expected Growth: 10.27%

Inspirato Incorporated's 10.27% growth is driven by increasing demand for luxury travel, strategic partnerships, and expansion into new markets. The company's unique subscription-based model and high-end vacation offerings also contribute to its growth. Additionally, investments in digital marketing and technology enhancements improve customer experience, further fueling growth.

7. Detailed Products

Inspirato Club

A luxury vacation club offering access to a portfolio of luxury vacation homes, experiences, and personalized travel planning

Inspirato Pass

A subscription-based travel program offering access to a curated collection of luxury vacation homes and experiences

Inspirato Real Estate

A luxury real estate investment and management company offering bespoke vacation home ownership and rental solutions

Inspirato Experiences

A curated collection of unique and exclusive experiences, including private events, guided tours, and adventure travel

Inspirato Partners

A partnership program offering bespoke travel and hospitality solutions for high-end brands and organizations

8. Inspirato Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Inspirato Incorporated faces moderate threat from substitutes, as there are limited alternatives to its luxury vacation club model. However, the rise of online travel agencies and vacation rental platforms poses some threat.

Bargaining Power Of Customers

Inspirato Incorporated's customers have high bargaining power due to the luxury nature of its services. Members can easily switch to competitors or negotiate better rates, giving them significant bargaining power.

Bargaining Power Of Suppliers

Inspirato Incorporated has low dependence on suppliers, as it partners with high-end resorts and hotels. This gives the company significant bargaining power in negotiating rates and terms.

Threat Of New Entrants

The luxury vacation club market has high barriers to entry, making it difficult for new entrants to compete with Inspirato Incorporated's established brand and network of partners.

Intensity Of Rivalry

Inspirato Incorporated operates in a niche market with limited competition. While there are some competitors, the company's unique model and high-end focus reduce the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 154.43%
Debt Cost 3.95%
Equity Weight -54.43%
Equity Cost 3.42%
WACC 4.23%
Leverage -283.73%

11. Quality Control: Inspirato Incorporated passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 1.9

Quality: 3.3

Yield: 5.0

Momentum: 8.0

Volatility: 5.3

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Xponential Fitness

A-Score: 3.7/10

Value: 8.5

Growth: 5.7

Quality: 5.5

Yield: 0.0

Momentum: 1.5

Volatility: 1.0

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Inspirato

A-Score: 3.3/10

Value: 9.8

Growth: 2.6

Quality: 5.5

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.82$

Current Price

2.82$

Potential

-0.00%

Expected Cash-Flows