Inspirato (ISPO) Q4 2024 earnings summary

Executive summary

• Achieved strongest Q4 results as a public company, with profitability and positive free cash flow in Q4 2024, and a net loss of $2.3M, an 86% year-over-year improvement.

• Fourth quarter Adjusted EBITDA income of $2M, a $7M year-over-year improvement; full-year Adjusted EBITDA loss of $6.5M, in line with guidance.

• Over 11,000 members served, with a shift toward a healthier mix of Club and Pass members.

• Strategic focus on operational efficiencies, luxury brand elevation, scalable technology, and portfolio optimization for future growth.

• Optimized portfolio with 14 new luxury residences and delivered a Net Promoter Score of 70.

Financial highlights

• Q4 2024 revenue: $63.1M, down 11% year-over-year; full-year 2024 revenue: $280M, down 15% year-over-year.

• Q4 adjusted EBITDA: $2M positive, a $7M year-over-year improvement; full-year adjusted EBITDA loss: $6.5M.

• Q4 positive free cash flow: $6M, or $9M adjusted for one-time lease termination payments; Q4 net cash from operating activities: $6.9M.

• Ended 2024 with $35M in cash, up $11M from Q3; full-year net loss: $8.8M, improved from $93.9M in 2023.

• Q4 gross margin: $21.9M (35% of revenue), up from $12.8M (18%) in 2023.

Outlook and guidance

• 2025 revenue expected between $235M and $255M, consistent with Q4 annualized revenue.

• Full-year adjusted EBITDA guidance: $0M to $5M, driven by a 300 basis point gross margin improvement.

• Cash operating expenses projected at $80M–$90M, a 15% improvement over 2024.

• Focus on investments in homes, technology, and sales to achieve full-year profitability and sustainable growth.

• Continued focus on profitability and margin improvement.