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Earnings (Loss) Attributable to Inspirato Incorporated per Class A Share

9 Months Ended

Sep. 30, 2024

Earnings (Loss) Attributable to Inspirato Incorporated per Class A Share

Earnings (Loss) Attributable to Inspirato Incorporated per Class A Share

(11) Earnings (Loss) Attributable to Inspirato Incorporated per Class A Share

Basic and diluted earnings (loss) per share (“EPS”) is computed utilizing shares that participate in the Company’s earnings – including dividend rights. The Company’s Class A and Class B Common Stock are the classes of shares that are entitled to the Company’s earnings and dividends.

EPS is computed using the two-class method. Under the two-class method, the Company allocates net income attributable to Inspirato Incorporated to Class A Common Stock (including those with vested share-based awards). Basic earnings per share is calculated by taking net income attributable to Inspirato Incorporated, less earnings allocated to Class A Common Stock, divided by the basic weighted-average Class A Common Stock outstanding. Net income (loss) per share is calculated by taking net income (loss) attributable to Inspirato Incorporated divided by weighted-average Class A Common Stock outstanding. In accordance with the two-class method, diluted earnings (loss) per share is calculated using the more dilutive of the impact of the treasury-stock method or from reducing net income for the earnings allocated to Class A Common Stock.

The following table presents the Company’s basic EPS for the three and nine months ended September 30, 2024 and 2023 (in thousands, except per share amounts):


		Three Months Ended September 30,							Nine Months Ended September 30,
		2024			2023				2024			2023
Net income (loss) attributable to Inspirato Incorporated		$	4,332		$	(16,653)			$	(3,112)		$	(42,969)
Weighted average Class A Shares outstanding, Basic			5,639			3,419				4,326			3,339
Net income (loss) attributable to Inspirato Incorporated per Class A Share, Basic		$	0.77		$	(4.87)			$	(0.72)		$	(12.87)

The following table presents the Company’s diluted EPS for the three and nine months ended September 30, 2024 and 2023 (in thousands, except per share amounts):


		Three Months Ended September 30,							Nine Months Ended September 30,
		2024			2023				2024			2023
Net income (loss) attributable to Inspirato Incorporated		$	4,332		$	(16,653)			$	(3,112)		$	(42,969)
Impact of Note interest and fair market value adjustment attributable to Inspirato Incorporated Class A Shares			267			—				—			—
Net income (loss) attributable to common stockholders		$	4,599		$	(16,653)			$	(3,112)		$	(42,969)

Weighted average Class A Shares outstanding, Basic			5,639			3,419				4,326			3,339
Effect of dilutive securities			1,783			—				—			—
Weighted average Class A Shares outstanding, Diluted			7,422			3,419				4,326			3,339

Net income (loss) attributable to Inspirato Incorporated per Class A Share, Diluted		$	0.62		$	(4.87)			$	(0.72)		$	(12.87)

Due to the net loss attributable to Inspirato Incorporated for the three months ended September 30, 2023 and the nine months ended September 30, 2024 and 2023, diluted weighted-average Class A shares outstanding are equal to basic weighted-average shares outstanding as the effect of any incremental equity awards is anti-dilutive. Additionally, the following securities are excluded from the computation of diluted shares for the three and nine months ended September 30, 2024 and 2023 due to their anti-dilutive effects (in thousands):


		Three Months Ended September 30,							Nine Months Ended September 30,
		2024			2023				2024			2023
Restricted stock units			601			866				694			860
Performance-based units			261			—				88			—
Stock options			142			222				165			239
Public Warrants			431			431				431			431
Investment Warrants			—			—				192			—
Investment Agreement Option			—			—				1,458			—
Note			—			833				902			833
Anti-dilutive securities			1,435			2,352				3,930			2,363