Operational liquidity is under extreme pressure, as evidenced by negative working capital adjustments reaching $27.0 million in 2025Q1 and a volatile free cash flow margin of -5.4% in 2025Q3.
| Cash from Operations | -807K | -15.77M | -51.39M | -45.69M | 28.75M | 11.58M | 3.95M |
| Operating CF Margin % | - | -5.64% | -15.62% | -13.22% | 12.25% | 6.99% | 1.82% |
| Operating CF Growth % | 469.12% | 69.31% | -12.48% | -258.89% | 148.34% | 193.29% | - |
| Net Income | -10.49M | -8.8M | -51.76M | -51.08M | -22.22M | -540K | -6.25M |
| Depreciation & Amortization | 62.83M | 66.65M | 98.18M | 93.53M | 4.28M | 4.63M | 5.11M |
| Stock-Based Compensation | 3.01M | 18.44M | 13.65M | 8.8M | 3.26M | 2.79M | 1.43M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 2.13M | -30.33M | -20.82M | 2.83M | 53.28M | -214K | 66K |
| Working Capital Changes | -58.27M | -61.73M | -90.64M | -99.77M | -9.84M | 4.91M | 3.59M |
| Change in Receivables | 423K | -461K | -549K | -1.03M | 707K | 8M | 6.2M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 1.75M | -4.34M |
| Change in Payables | -517K | -6.31M | 0 | -3.52M | 0 | -5.91M | -62K |
| Cash from Investing | -3.7M | -6.01M | -12.12M | -14.27M | -4.02M | -3.89M | -4.42M |
| Capital Expenditures | -3.44M | -5.47M | -6.3M | -14.27M | -2.96M | -3.89M | -4.42M |
| CapEx % of Revenue | 1.39% | 1.95% | 1.92% | 4.13% | 1.26% | 2.35% | 2.04% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -268K | -542K | -5.82M | 0 | -1.05M | 175.95M | -1K |
| Cash from Financing | 7.16M | 14.52M | 23.84M | 58.95M | -8.79M | 16.55M | 6.08M |
| Debt Issued (Net) | -446K | -446K | 25M | -13.27M | -765K | 16.55M | 6.08M |
| Equity Issued (Net) | 2.06M | 1000K | -178K | 1000K | -1000K | 1000K | 0 |
| Dividends Paid | 0 | 0 | 0 | -184K | -120K | 0 | 0 |
| Share Repurchases | 0 | 0 | -178K | 0 | -7.41M | 0 | 0 |
| Other Financing | -10.03M | -534K | -978K | 67.4M | -496K | -177.86M | 0 |
| Net Change in Cash | 2.65M | -7.26M | -39.67M | -1.01M | 15.95M | 24.24M | 5.6M |
| Free Cash Flow | -4.26M | -21.24M | -57.7M | -59.96M | 25.79M | 7.69M | -476K |
| FCF Margin % | -1.72% | -7.59% | -17.53% | -17.35% | 10.99% | 4.64% | -0.22% |
| FCF Growth % | 87.81% | 63.19% | 3.77% | -332.48% | 235.51% | 1714.92% | - |
| FCF per Share | -0.34 | -3.58 | -17.07 | -22.92 | 10.99 | 3.28 | -8.16 |
| FCF Conversion (FCF/Net Income) | 0.41x | 2.92x | 0.99x | 1.90x | -1.29x | -21.44x | -0.63x |
| Interest Paid | 0 | 0 | 1.86M | 288K | 609K | 0 | 0 |
| Taxes Paid | 18K | 279K | 0 | 81K | 0 | 0 | 0 |
Fixed lease obligation insolvency
Based on the provided quarterly data, the relationship between net income and operating cash flow remains highly erratic, with the OCF/NI ratio fluctuating wildly from -5.70 in 2024Q1 to 0.49 in 2025Q3, suggesting that reported earnings provide little insight into the company's actual cash-generating capacity.
The persistent divergence between net income and operating cash flow indicates that non-cash items, particularly depreciation and amortization, are masking the underlying cash burn. Investors should monitor this gap closely, as it suggests that the company's accounting profitability is not translating into the liquidity required to service its substantial lease obligations.
As reported in financial statements, the company's free cash flow trajectory is characterized by extreme instability, with FCF margins swinging from a positive 9.1% in 2024Q4 to a deeply negative 22.3% in 2023Q3, highlighting the precarious nature of its cash flow generation.
The inability to maintain positive free cash flow suggests that the business model is currently unable to self-fund its operations. This volatility appears to be driven by the mismatch between seasonal revenue inflows and the rigid, ongoing cash requirements of the luxury property portfolio.
According to recent SEC filings, working capital changes have consistently acted as a significant drag on cash flow, with negative quarterly adjustments reaching as high as $27.0 million in 2025Q1, indicating persistent inefficiencies in managing the company's operational liquidity and short-term liabilities.
The recurring negative working capital changes suggest that the company is struggling to optimize its cash conversion cycle, likely due to the timing of membership fee collections versus the immediate cash requirements of property maintenance and lease payments. This trend warrants further investigation into whether these outflows are structural or indicative of deteriorating vendor and member payment terms.
Based on the reported figures, capital expenditures remain relatively low, averaging roughly 1.7% of revenue over the last ten quarters, which may suggest that the company is under-investing in its property portfolio to preserve cash in the face of ongoing operational losses.
While low capital intensity might appear positive, it may also indicate a failure to adequately reinvest in the luxury standards required to maintain the brand's competitive moat. Analysts should consider whether this level of spending is sufficient to prevent long-term asset degradation or if it merely reflects a temporary deferral of necessary maintenance.
Quick answers to the most common questions about buying ISPO stock.
Inspirato Incorporated (ISPO) generated $-15.8M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Inspirato Incorporated (ISPO) reported negative free cash flow of $21.2M in 2024, indicating capital requirements exceeded cash from operations.
Inspirato Incorporated (ISPO) spent $5.5M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.