Operational efficiencies drive $15.0 million of year-to-date improved cash flow from operating activities and $13.2 million increase in adjusted EBITDA, strengthening the foundation for efficient growth ahead
DENVER, November 4, 2025 – Inspirato Incorporated (“Inspirato” or the “Company”) (Nasdaq: ISPO), the premier luxury vacation club and property technology company, today reported results for the third quarter (“Q3 2025”) ended September 30, 2025.
Q3 2025 Highlights
- Net loss of $4.5 million and adjusted EBITDA of negative $0.1 million, representing a $3.3 million or 97% year-over-year adjusted EBITDA improvement.
- Gross margin of $17.4 million, driven by portfolio optimization and a more efficient business model. Cost of revenue and adjusted EBITDA for year-to-date 2025 have been negatively impacted by foreign exchange rates as a result of a weakening U.S. dollar relative to the Euro, which created an unfavorable impact of $2.0 million year-to-date.
- Cash operating expenses declined by $6.9 million or 26% year-over-year, reflecting a continued focus on operational improvements.
- Occupancy of 56%, with average daily rates (“ADR”) increasing 20% to $1,742.
- As of September 30, 2025, the Company reported 10,700 active memberships, underscoring its focus on high-quality, recurring revenue.
Management Commentary
Chairman and Chief Executive Officer ("CEO") Payam Zamani commented, “Our results for the third quarter, highlighted by our 97% year-over-year adjusted EBITDA improvement, reflect the material progress we've made to reducing our fixed commitments without compromising the guest experience. Year-to-date, we've increased our adjusted EBITDA by $13.2 million and operating cash flow by $15.0 million, underscoring the longer-term impact of these efforts. More recently, we also reviewed and renegotiated hundreds of vendor contracts, resulting in $4.0 million of additional annualized savings. In the quarter, we also began pre-sales for our new Pass membership launching in January, redesigned to deliver an innovative new way to travel that creates greater value and flexibility for our members while advancing Inspirato’s mission to reinvent luxury travel. We believe that the changes we've made over the past year have set the business up for efficient growth in 2026 and beyond. We are now focused on accelerating our transformation as we begin investing in our technology.”
2025 Guidance
Inspirato is reinstating its previously issued guidance and tightening the range for its 2025 outlook. For the full-year 2025, the Company expects:
- Adjusted EBITDA of $2 to $4 million
- Cash operating expenses between $80 and $85 million
- Full year expected revenue of $235 to $240 million
CFO Transition
Additionally, Inspirato announced today that Michael Arthur, Chief Financial Officer ("CFO"), has resigned from his position to pursue another opportunity. Mr. Arthur will remain with the Company through the end of 2025 to support a smooth transition. The Company will initiate a search for a permanent CFO with the experience and capabilities to advance Inspirato’s strategic and financial objectives.
“I’m grateful to Michael for his leadership and partnership during a period of significant transformation for Inspirato. His contributions have helped position the Company for a strong next chapter, and we wish him continued success in his future endeavors,” said Chairman and CEO Payam Zamani.
“It has been an honor to serve as CFO of Inspirato and work alongside such a talented and dedicated team,” said Mr. Arthur. “Together, we’ve strengthened the Company’s financial foundation and advanced key strategic priorities that position Inspirato for long-term growth and profitability. I’m confident in the Company’s future and committed to ensuring a smooth transition.”
2025 Third Quarter Earnings Call and Webcast
Company Chairman and CEO, Payam Zamani, and CFO, Michael Arthur, will host a conference call on Wednesday, November 5, 2025, to discuss Inspirato's operating and financial results.
To listen to the audio webcast and Q&A, please visit the Inspirato Investor Relations website at investor.inspirato.com. An audio replay of the webcast will be available on the Inspirato Investor Relations website shortly after the call.
Conference Call and Webcast
Date/Time: Wednesday, November 5, 2025, at 11:00 AM ET / 9:00 AM MT
Dial-In: https://register-conf.media-server.com/register/BI389811593d9e449fa3fe114411985491
Webcast: https://edge.media-server.com/mmc/p/xw66sb59/