v3.25.3
Revenue
 9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue
(3) Revenue
Revenues are as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Residence and hotel travel$25,855 $33,110 $89,058 $106,372 
Experiences and bespoke travel8,009 9,461 25,908 24,719 
Total Travel33,864 42,571 114,966 131,091 
Subscription19,358 22,998 59,613 76,303 
Rewards and other revenue2,319 3,545 9,959 9,347 
Total$55,541 $69,114 $184,538 $216,741 
The Company recognizes assets and liabilities associated with its contracts with its members. Contract assets include commissions paid to the Company’s employees for obtaining contracts with initial terms greater than one year; these costs are capitalized and amortized over the life of the related contracts. As of September 30, 2025, the balance of capitalized commissions was $2.6 million, of which $1.1 million is included within other current assets and $1.5 million is included within other noncurrent assets on the Condensed Consolidated Balance Sheet. At December 31, 2024, the balance of capitalized commissions was $2.8 million, of which $1.2 million is included within other current assets and $1.6 million is included within other noncurrent assets on the Condensed Consolidated Balance Sheet. During the three and nine months ended September 30, 2025 and 2024, the Company recognized $0.3 million, $1.0 million, $0.4 million and $1.5 million, respectively, of amortization expense in sales and marketing within the Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income. Contract liabilities include deferred revenue as discussed below.
Assets and liabilities related to contracts with members are as follows (in thousands):
September 30,
2025		December 31,
2024
Assets:
Accounts receivable, net$2,944$3,767
Prepaid member travel$12,229$13,663
Other current assets$1,054$1,216
Other noncurrent assets$1,533$1,549
Liabilities:
Deferred revenue, current$117,668$135,347
Deferred revenue, noncurrent$35,072$36,147
Deferred revenue is comprised of the following (in thousands):
September 30,
2025		December 31,
2024
Travel$55,978$66,871
Subscriptions76,78875,730
Travel credits17,46817,830
Rewards2,50611,063
Total152,740171,494
Less: Deferred revenue, noncurrent35,07236,147
Deferred revenue, current$117,668$135,347
Deferred travel revenue is related to booked trips where the Company has received payment in advance and the revenue is recognized over the length of trip stay. All Subscriptions allow members to book travel up to one year in advance, except for Inspirato Invited ("Invited") Subscriptions, which allow bookings up to two years in advance.
Deferred Subscription revenue includes payments received in advance from members and is generally recognized over the period of time the Subscription was purchased which is generally from one to five years. The Company also offers an Invited Subscription, a ten year membership with substantial upfront dues that provides the member a fixed daily rate across the Company's portfolio, along with benefits similar to those of Inspirato Club.
Deferred travel credit revenue generally is either from members pre-purchasing travel credits or travel credits for members that stem from trip cancellations or modifications. Travel credits may be used on either travel or Subscriptions and travel credits expire within 3 years of issuance.
Deferred revenue related to Inspirato Rewards ("Rewards") represents multiple performance obligations associated with the Company’s member loyalty program. Revenues related to Rewards were recognized over time based upon historical travel patterns and members’ average life, which includes an estimate of Rewards benefits that will expire or will not be used during the benefit period of the Rewards material rights (up to 30 months). On June 30, 2025, the Rewards program ended and the remaining deferred liability from the program represents the remaining performance obligations yet to be delivered.
During the nine months ended September 30, 2025, the Company recognized approximately $112.3 million of revenue that had been included in the balance of deferred revenue as of December 31, 2024. The deferred revenue balance changed during the quarter primarily due to: (i) increases from payments the Company received before transferring control of goods or services to customers and (ii) decreases as the Company satisfied those performance obligations and recognized the related revenue. During the nine months ended September 30, 2024, $132.7 million of revenue was recognized that was included in the $177.5 million balance of deferred revenue as of December 31, 2023.