Inspirato Reports 18% Revenue Decline in Q1 2025, Net Income Drops to $1.6 Million

Inspirato Incorporated reported a decline in financial performance for the first quarter of 2025, with total revenue falling to $65.9 million, an 18% decrease from $80.2 million in the same period of 2024. The decrease was attributed to a significant drop in active paid member subscriptions and a reduction in travel bookings, which resulted in lower revenue from both travel and subscription services. The company recorded a net income of $1.6 million, down from $2.2 million a year earlier, with earnings per share of $0.14 compared to $0.35 in the prior year.

The company's cost of revenue also decreased, dropping 17% to $40.3 million, primarily due to reduced booking fees and lease costs. General and administrative expenses fell by 22% to $11.4 million, reflecting cost-cutting measures implemented as part of a broader reorganization plan initiated in late 2024. This plan included a reduction in workforce and a review of operational expenses, which is expected to yield annualized savings of approximately $15 million. The company also reported a decrease in sales and marketing expenses, which fell by 43% to $5.0 million.

Operationally, Inspirato's active subscriptions decreased to approximately 11,600 as of March 31, 2025, down from 13,000 a year earlier. The decline was driven by a reduction in Club and Pass subscriptions, although the newly launched Invited subscription model contributed to some offsetting growth. The company reported a decrease in paid nights delivered, with occupancy rates for residences and hotels also declining. Average daily rates, however, increased, indicating a shift in pricing strategy.

In terms of liquidity, Inspirato had $16.4 million in cash and cash equivalents and $13.0 million in restricted cash as of March 31, 2025. The company has engaged in various financing activities, including the exercise of investment warrants that generated $2.0 million in proceeds. Despite the operational challenges, management believes that the ongoing restructuring efforts and cost-saving initiatives will support the company's liquidity needs over the next twelve months.

Looking ahead, Inspirato's management remains cautious about the economic environment but is optimistic about the potential for recovery through strategic partnerships, including a collaboration with Capital One. The company is focused on enhancing its service offerings and expanding its market presence, particularly through the new Invited subscription model and other initiatives aimed at improving member engagement and satisfaction.