[Second Quarter 2025 Results Overview](index=1&type=section&id=Second%20Quarter%202025%20Results%20Overview) [Q2 2025 Highlights & CEO Commentary](index=1&type=section&id=Q2%202025%20Highlights%20%26%20CEO%20Commentary) Soho House & Co Inc. achieved strong Q2 2025 growth with an 8.9% revenue increase and 46% Adjusted EBITDA growth, driven by membership and operational efficiency, while evaluating a privatization offer Q2 2025 Financial Highlights | Metric | Q2 2025 | YoY Growth | | :--- | :--- | :--- | | Total Revenue | $329.8 Million | 8.9% | | Membership Revenue | $118.6 Million | 15.9% | | In-House Revenue | $132.5 Million | 4.1% | | Other Revenue | $78.7 Million | 7.3% | | Revenue Per Available Room (RevPAR) | - | 2% (Same Store) | | Net Income Attributable to SHCO | $24.9 Million | - | | Earnings Per Share (EPS) | $0.13 | - | | Adjusted EBITDA | $46.1 Million | 46% | - CEO Andrew Carnie stated that Q2 results reflect the continued strength of the Soho House membership model and substantial progress in business transformation, with a strategic focus on enhancing member experience and improving operational efficiency[3](index=3&type=chunk) - The company is evaluating an offer from a third-party consortium to privatize the company at $9.00 per share, though there is no guarantee regarding the outcome or if the transaction will proceed[4](index=4&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) [Summary of Unaudited Financial Results](index=2&type=section&id=Summary%20of%20Unaudited%20Financial%20Results) This section provides an overview of Q2 2025 unaudited financial results, highlighting significant improvements in revenue, profit, and key operating metrics, including a shift from loss to profit Unaudited Financial Results Summary | Metric (Thousands of USD) | June 29, 2025 (13 Weeks) | June 30, 2024 (13 Weeks) | | :--- | :--- | :--- | | Total Revenue | $329,804 | $302,947 | | Membership Revenue | $118,626 | $102,347 | | In-House Revenue | $132,504 | $127,285 | | Other Revenue | $78,674 | $73,315 | | Operating Income (Loss) | $59,721 | $(12,942) | | House-Level Contribution | $71,883 | $57,411 | | House-Level Contribution Margin (%) | 30% | 26% | | Other Contribution | $14,058 | $14,646 | | Other Contribution Margin (%) | 16% | 18% | | Net Income (Loss) Attributable to SHCO | $24,885 | $(29,899) | | Adjusted EBITDA | $46,130 | $31,525 | | Adjusted EBITDA Margin (%) | 14% | 10% | | Basic Earnings (Loss) Per Share | $0.13 | $(0.15) | | Diluted Earnings (Loss) Per Share | $0.13 | $(0.15) | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents condensed consolidated statements of operations for Q2 2025 and Q2 2024, detailing revenue, expenses, and net income (loss), reflecting a significant shift to profitability Condensed Consolidated Statements of Operations | Metric (Thousands of USD) | June 29, 2025 (13 Weeks) | June 30, 2024 (13 Weeks) | | :--- | :--- | :--- | | **Revenue** | | | | Membership Revenue | $118,626 | $102,347 | | In-House Revenue | $132,504 | $127,285 | | Other Revenue | $78,674 | $73,315 | | **Total Revenue** | **$329,804** | **$302,947** | | **Operating Expenses** | | | | In-House Operating Expenses | $(170,044) | $(163,979) | | Other Operating Expenses | $(73,819) | $(66,911) | | General and Administrative Expenses | $(40,269) | $(38,726) | | Pre-Opening Expenses | $(3,191) | $(5,651) | | Depreciation and Amortization | $(23,389) | $(25,131) | | Share-Based Compensation Expense | $(2,156) | $(3,598) | | Foreign Exchange Gain (Loss), Net | $47,405 | $(5,173) | | Impairment Loss on Long-Lived Assets and Intangible Assets | — | $(4,710) | | Other, Net | $(4,620) | $(2,010) | | **Total Operating Expenses** | **$(270,083)** | **$(315,889)** | | **Operating Income (Loss)** | **$59,721** | **$(12,942)** | | **Other (Expense) Income** | | | | Interest Expense, Net | $(21,666) | $(19,989) | | Gain (Loss) on Disposal of Property and Other, Net | $54 | $109 | | Equity Method Investment Income | $1,882 | $1,514 | | **Total Other Expenses, Net** | **$(19,730)** | **$(18,366)** | | **Income (Loss) Before Income Taxes** | **$39,991** | **$(31,308)** | | Income Tax (Expense) Benefit | $(15,863) | $1,103 | | **Net Income (Loss)** | **$24,128** | **$(30,205)** | | Net Loss Attributable to Non-Controlling Interests | $757 | $306 | | **Net Income (Loss) Attributable to Soho House & Co Inc.** | **$24,885** | **$(29,899)** | | Basic Earnings (Loss) Per Share | $0.13 | $(0.15) | | Diluted Earnings (Loss) Per Share | $0.13 | $(0.15) | [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents condensed consolidated balance sheets as of June 29, 2025, and December 29, 2024, showing the composition and changes in assets, liabilities, and stockholders' equity, reflecting the company's financial position Condensed Consolidated Balance Sheets | Metric (Thousands of USD) | June 29, 2025 | December 29, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and Cash Equivalents | $150,305 | $152,716 | | Restricted Cash | $5,110 | $3,602 | | Accounts Receivable, Net | $71,115 | $78,890 | | Inventories | $57,957 | $54,419 | | Prepaid Expenses and Other Current Assets | $122,116 | $98,774 | | **Total Current Assets** | **$406,603** | **$388,401** | | Property and Equipment, Net | $639,000 | $598,270 | | Operating Lease Assets | $1,180,067 | $1,135,810 | | Goodwill | $210,543 | $195,295 | | Other Intangible Assets, Net | $109,697 | $102,610 | | Equity Method Investments | $39,353 | $13,217 | | Deferred Tax Assets | $5,776 | $5,306 | | Other Non-Current Assets | $3,870 | $4,603 | | **Total Non-Current Assets** | **$2,188,306** | **$2,055,111** | | **Total Assets** | **$2,594,909** | **$2,443,512** | | **Liabilities and Stockholders' Deficit** | | | | Accounts Payable | $77,749 | $75,987 | | Accrued Liabilities | $126,021 | $98,482 | | Current Portion of Deferred Revenue | $150,414 | $134,360 | | Indirect Taxes and Employee Payables | $52,249 | $33,889 | | Current Portion of Debt, Net of Issuance Costs | $33,715 | $34,618 | | Current Portion of Operating Lease Liabilities - Operating Less Than One Year | $2,426 | $371 | | Current Portion of Operating Lease Liabilities - Operating More Than One Year | $62,436 | $57,078 | | Other Current Liabilities | $50,193 | $39,377 | | **Total Current Liabilities** | **$555,203** | **$474,162** | | Debt, Net of Current Portion and Issuance Costs | $696,099 | $656,868 | | Real Estate Mortgages, Net of Issuance Costs | $137,757 | $137,385 | | Non-Current Portion of Operating Lease Liabilities - Operating Less Than One Year | $22,885 | $90,081 | | Non-Current Portion of Operating Lease Liabilities - Operating More Than One Year | $1,313,391 | $1,210,637 | | Finance Lease Liabilities | $83,855 | $77,255 | | Financing Obligations | $76,994 | $76,900 | | Deferred Revenue, Net of Current Portion | $23,785 | $23,697 | | Deferred Tax Liabilities | $2,116 | $2,286 | | Other Non-Current Liabilities | $29,081 | $23,699 | | **Total Non-Current Liabilities** | **$2,385,963** | **$2,298,808** | | **Total Liabilities** | **$2,941,166** | **$2,772,970** | | **Stockholders' Equity** | | | | Total Stockholders' Deficit Attributable to Soho House & Co Inc. | $(348,639) | $(335,059) | | Non-Controlling Interests | $2,382 | $5,601 | | **Total Stockholders' Deficit** | **$(346,257)** | **$(329,458)** | | **Total Liabilities and Stockholders' Equity** | **$2,594,909** | **$2,443,512** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents condensed consolidated statements of cash flows for the 26 weeks ended June 29, 2025, and June 30, 2024, detailing cash flows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows | Metric (Thousands of USD) | June 29, 2025 (26 Weeks) | June 30, 2024 (26 Weeks) | | :--- | :--- | :--- | | **Cash Flows from Operating Activities** | | | | Net Income (Loss) | $31,641 | $(72,063) | | Net Cash Provided by Operating Activities | $63,832 | $42,196 | | **Cash Flows from Investing Activities** | | | | Purchases of Property and Equipment | $(43,884) | $(45,507) | | Purchases of Intangible Assets | $(11,838) | $(8,947) | | Equity Method Investments | $(14,500) | — | | Property and Casualty Insurance Proceeds | $7,199 | — | | Capital Repayments from Equity Method Investees | — | $10,706 | | Net Cash Used in Investing Activities | $(63,023) | $(43,748) | | **Cash Flows from Financing Activities** | | | | Repayments of Borrowings | $(6,235) | $(879) | | Proceeds from Borrowings | — | $1,105 | | Principal Payments on Finance Leases | $(221) | $(181) | | Distributions to Non-Controlling Interests | $(2,358) | $(1,454) | | Purchases of Treasury Stock | — | $(4,708) | | Net Cash (Used in) Provided by Financing Activities | $(8,814) | $(6,117) | | Effect of Exchange Rate Changes on Cash and Cash Equivalents and Restricted Cash | $7,102 | $(1,779) | | Net (Decrease) Increase in Cash and Cash Equivalents and Restricted Cash | $(903) | $(9,448) | | Cash and Cash Equivalents and Restricted Cash at End of Period | $155,415 | $151,658 | [Operational Performance & Membership](index=2&type=section&id=Operational%20Performance%20%26%20Membership) [Membership Summary](index=2&type=section&id=Membership%20Summary) This section overviews Q2 2025 membership data, showing year-over-year growth in total and Soho House members, with a slight decrease in other memberships Membership Overview | Membership Type | June 29, 2025 | June 30, 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Total Members | 270,297 | 264,540 | 2.2% | | Soho House Members | 213,621 | 204,028 | 4.7% | | Frozen Members | 10,032 | 10,203 | -1.7% | | Soho Friends | 50,514 | 54,192 | -6.8% | | Soho Works | 6,162 | 6,320 | -2.5% | | Other Members (Soho Friends + Soho Works) | 56,676 | 60,512 | -6.3% | | Active App Users | 216,687 | 209,732 | 3.3% | Soho House Locations and Membership by Region | Region | Number of Soho Houses (June 29, 2025) | Number of Soho House Members (June 29, 2025) | | :--- | :--- | :--- | | Americas | 17 | 80,919 | | UK | 14 | 72,907 | | Europe/Rest of World | 15 | 46,053 | | **Total** | **46** | **213,621** | [Strategic Priorities & Operational Achievements](index=2&type=section&id=Strategic%20Priorities%20%26%20Operational%20Achievements) The company made significant Q2 progress on "growth and enhancing member experience" and "operational excellence to drive profitability," improving member satisfaction, Adjusted EBITDA, and F&B/accommodation performance - Strategic Priority 1: Growth and enhancing member experience, with high member satisfaction scores achieved through continuous improvement initiatives in member experience and services[7](index=7&type=chunk)[9](index=9&type=chunk) - Strategic Priority 2: Operational excellence to drive profitability, with Q2 2025 Adjusted EBITDA reaching **$46.1 million** and an Adjusted EBITDA margin of **14%**[7](index=7&type=chunk)[9](index=9&type=chunk) - House-level food and beverage profit margins improved year-over-year compared to Q2 2024, and accommodation performance drove a **2% RevPAR growth**[9](index=9&type=chunk) [Non-GAAP Financial Measures & Definitions](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Definitions) [Non-GAAP Financial Measures Definitions](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions) This section defines non-GAAP financial measures used for performance evaluation, including Adjusted EBITDA, House-Level Contribution, Other Contribution, Net Debt, and Constant Currency, emphasizing their supplemental nature - Adjusted EBITDA is defined as net income (loss) excluding depreciation and amortization, net interest expense, income tax (expense) benefit, and adjusted for certain non-cash and other items not considered in assessing ongoing operating performance[16](index=16&type=chunk)[17](index=17&type=chunk) - House-level contribution is defined as house revenue less in-house operating expenses, serving as a key metric to assess the performance and profitability of each house[18](index=18&type=chunk) - Other contribution is defined as other revenue plus non-house membership revenue less other operating expenses, used to evaluate the performance and profitability of non-house businesses[19](index=19&type=chunk) - Net Debt reflects total debt less cash, cash equivalents, and restricted cash, serving as an important metric for monitoring leverage and evaluating the balance sheet[20](index=20&type=chunk) - Constant currency is used to isolate the impact of exchange rate fluctuations on financial data, providing a more meaningful indication of year-over-year performance[21](index=21&type=chunk) [Reconciliation of Non-GAAP Measures](index=6&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) [Reconciliation of Net Income (Loss) to Adjusted EBITDA](index=6&type=section&id=Reconciliation%20of%20Net%20Income%20(Loss)%20to%20Adjusted%20EBITDA) This section provides a reconciliation of net income (loss) to Adjusted EBITDA for Q2 2025 and 2024, detailing adjustment items and their impact on EBITDA and Adjusted EBITDA Net Income (Loss) to Adjusted EBITDA Reconciliation | Metric (Thousands of USD) | June 29, 2025 (13 Weeks) | June 30, 2024 (13 Weeks) | Actual Change Rate (%) | | :--- | :--- | :--- | :--- | | Net Income (Loss) | $24,128 | $(30,205) | n/m | | Depreciation and Amortization | $23,389 | $25,131 | (7)% | | Interest Expense, Net | $21,666 | $19,989 | 8% | | Income Tax Expense (Benefit) | $15,863 | $(1,103) | n/m | | **EBITDA** | **$85,046** | **$13,812** | **n/m** | | Gain (Loss) on Disposal of Property and Other, Net | $(54) | $(109) | 50% | | Equity Method Investment Income | $(1,882) | $(1,514) | (24)% | | Foreign Exchange (Gain) Loss, Net | $(47,405) | $5,173 | n/m | | Equity Method Investment Adjusted EBITDA | $3,214 | $2,811 | 14% | | Share-Based Compensation Expense | $2,156 | $3,598 | (40)% | | Operating Restructuring and Severance | — | $2,114 | n/m | | ERP Implementation Related Costs | $1,502 | — | n/m | | Strategic Transaction Evaluation Related Costs | $3,553 | $930 | n/m | | Impairment Loss on Long-Lived Assets and Intangible Assets | — | $4,710 | n/m | | **Adjusted EBITDA** | **$46,130** | **$31,525** | **46%** | [Reconciliation of Operating Income (Loss) to House-Level & Other Contribution](index=7&type=section&id=Reconciliation%20of%20Operating%20Income%20(Loss)%20to%20House-Level%20%26%20Other%20Contribution) This section provides a reconciliation of operating income (loss) to house-level and other contribution for Q2 2025 and 2024, detailing how operating expenses and revenues impact these non-GAAP metrics Operating Income (Loss) to House-Level & Other Contribution Reconciliation | Metric (Thousands of USD) | June 29, 2025 (13 Weeks) | June 30, 2024 (13 Weeks) | Change Rate (%) | | :--- | :--- | :--- | :--- | | Operating Income (Loss) | $59,721 | $(12,942) | n/m | | General and Administrative Expenses | $40,269 | $38,726 | 4% | | Pre-Opening Expenses | $3,191 | $5,651 | (44)% | | Depreciation and Amortization | $23,389 | $25,131 | (7)% | | Share-Based Compensation Expense | $2,156 | $3,598 | (40)% | | Foreign Exchange (Gain) Loss, Net | $(47,405) | $5,173 | n/m | | Impairment Loss on Long-Lived Assets and Intangible Assets | — | $4,710 | n/m | | Other, Net | $4,620 | $2,010 | n/m | | Non-House Membership Revenue | $(9,203) | $(8,242) | (12)% | | Other Revenue | $(78,674) | $(73,315) | (7)% | | Other Operating Expenses | $73,819 | $66,911 | 10% | | **House-Level Contribution** | **$71,883** | **$57,411** | **25%** | | House-Level Contribution Margin | 30% | 26% | - | | House Membership Revenue | $(109,423) | $(94,105) | (16)% | | In-House Revenue | $(132,504) | $(127,285) | (4)% | | In-House Operating Expenses | $170,044 | $163,979 | 4% | | **Total Other Contribution** | **$14,058** | **$14,646** | **(4)%** | | Other Contribution Margin | 16% | 18% | - | [Key Performance and Operating Metrics](index=12&type=section&id=Key%20Performance%20and%20Operating%20Metrics) [Definitions of Key Metrics](index=12&type=section&id=Definitions%20of%20Key%20Metrics) This section defines key operating and financial metrics used to evaluate business performance, including revenue types, membership numbers, retention rates, and hospitality industry standards, for a deeper understanding of the business - House membership revenue primarily includes annual membership fees and one-time initiation fees (new member initiation fees were eliminated on April 4, 2022), with new members required to purchase House Introduction Credits[32](index=32&type=chunk)[42](index=42&type=chunk) - In-house revenue includes all revenue generated within the houses, such as food and beverage, accommodation, and spa products and services[33](index=33&type=chunk)[43](index=43&type=chunk) - House revenue is defined as membership revenue plus in-house revenue less non-house membership revenue, serving as a key metric for measuring overall house performance[34](index=34&type=chunk)[44](index=44&type=chunk) - Total members include Soho House members and other members (such as Soho Works and Soho Friends members), serving as a primary driver of membership revenue[36](index=36&type=chunk)[37](index=37&type=chunk)[39](index=39&type=chunk) - RevPAR (Revenue Per Available Room) is a key hospitality industry standard metric for measuring hotel operating performance, calculated by multiplying occupancy rate by average daily rate[46](index=46&type=chunk) [Additional Information](index=15&type=section&id=Additional%20Information) [About Soho House & Co](index=16&type=section&id=About%20Soho%20House%20%26%20Co) Soho House & Co is a global membership platform connecting a diverse community through physical and digital spaces, offering a platform for work, socializing, and growth, with a broad global business portfolio - Soho House & Co (SHCO) is a global membership platform connecting a vibrant, diverse, and global community through physical and digital spaces[49](index=49&type=chunk) - As of June 29, 2025, the company operates **46 Soho Houses**, **8 Soho Works**, Scorpios Beach Clubs, the Soho Home retail brand, and digital channels globally[49](index=49&type=chunk) - Soho House & Co's broader portfolio also includes The Ned in London, New York, and Doha, as well as The LINE and Saguaro hotels in North America[49](index=49&type=chunk) [Forward-Looking Statements](index=15&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements, as defined by the Private Securities Litigation Reform Act of 1995, based on management's current expectations, involving risks and uncertainties that could cause actual results to differ materially - This press release contains forward-looking statements regarding the company's expected financial and operational performance for the remainder of fiscal year 2025[47](index=47&type=chunk) - These statements are not promises or guarantees but involve known and unknown risks, uncertainties, and other important factors that could cause actual results to differ materially from forward-looking statements[47](index=47&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law[47](index=47&type=chunk) [Contacts](index=1&type=section&id=Contacts) This section provides investor relations and media contact information - Investor Relations contact email: ir@sohohouseco.com[1](index=1&type=chunk)[13](index=13&type=chunk)[48](index=48&type=chunk) - Media and Press contact email: press@sohohouseco.com[1](index=1&type=chunk)[13](index=13&type=chunk)[48](index=48&type=chunk)

Core Viewpoint - The article emphasizes the importance of timing and sustainability in stock trends for successful short-term investing, highlighting the need for strong fundamentals to maintain momentum in stock prices [1][2]. Group 1: Stock Performance - Soho House & Co (SHCO) has shown a solid price increase of 33.1% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 19.5% in the last four weeks, suggesting that the upward trend is still intact [5]. - SHCO is currently trading at 81.4% of its 52-week high-low range, indicating a potential breakout [6]. Group 2: Fundamental Strength - SHCO holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like SHCO that are on an uptrend supported by strong fundamentals [3]. - The article suggests that investors should consider other stocks that meet similar criteria for potential investment opportunities [8].

Industry Overview - The Zacks Hotels and Motels industry is experiencing growth due to increased occupancy, average daily rate (ADR), and revenue per available room (RevPAR) [1][3] - Demand has outpaced supply in the first quarter of 2025, leading to positive growth trends [1][3] Growth Strategies - Industry participants are focusing on growth strategies such as expanding portfolios, converting properties, forming partnerships, and enhancing loyalty programs [1][2] Performance Metrics - In Q1 2025, the hotel industry saw a 0.4% year-over-year increase in occupancy, a 1.9% increase in ADR, and a 2.2% improvement in RevPAR [3] - However, CBRE has revised its 2025 outlook for the U.S. hotel industry, now expecting a 1.3% year-over-year increase in RevPAR, down from an earlier projection of 2% [4] Digitalization and Customer Experience - Hotel owners are leveraging digital tools for mobile check-in, self-service bookings, and enhancing customer experience, which is expected to help capture additional market share [5] Cost Challenges - Rising labor costs due to salary increases and labor shortages are concerns for the industry, impacting service quality and operational capacity [6] Industry Ranking - The Zacks Hotels and Motels industry holds a Zacks Industry Rank of 88, placing it in the top 36% of 245 Zacks industries, indicating bright near-term prospects [8][9] Stock Performance - Over the past year, the industry has appreciated by 11.7%, outperforming the S&P 500's 9.3% increase but underperforming the sector's 18% rise [11] Valuation Metrics - The industry is currently trading at a trailing 12-month EV/EBITDA of 16.68X, compared to the S&P 500's 16.39X [13] Company Highlights - **Soho House**: Reported an 8% year-over-year increase in total revenues and significant growth in adjusted EBITDA, with a Zacks Rank of 1 (Strong Buy) [15][16] - **Marriott**: Benefits from robust leisure demand and global booking trends, with a projected year-over-year growth of 4.5% in top line and 8.3% in bottom line for 2025, holding a Zacks Rank of 3 (Hold) [19][20] - **Hilton**: Experienced solid RevPAR improvement driven by increased occupancy and ADR, with a projected EPS growth of 10.5% for 2025, also holding a Zacks Rank of 3 [22][25]

Core Viewpoint - Soho House & Co (SHCO) reported quarterly earnings of $0.04 per share, exceeding the Zacks Consensus Estimate of a loss of $0.14 per share, and showing improvement from a loss of $0.24 per share a year ago [1][2]. Financial Performance - The earnings surprise for the quarter was 128.57%, with the company previously expected to post a loss of $0.07 per share but actually reporting a loss of $0.10 [2]. - Soho House generated revenues of $282.86 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.64% and increasing from $263.15 million year-over-year [3]. - Over the last four quarters, the company has exceeded consensus revenue estimates two times [3]. Stock Performance and Outlook - Since the beginning of the year, Soho House shares have declined approximately 17.3%, compared to a 3.7% decline in the S&P 500 [4]. - The company's earnings outlook is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.10 on revenues of $318.4 million, and -$0.26 on revenues of $1.28 billion for the current fiscal year [8]. Industry Context - The Internet - Software industry, to which Soho House belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable position compared to the bottom 50% [9].

Financial Performance - Total revenues for Q1 2025 were $282.9 million, representing an 8.0% year-over-year growth[6]. - Adjusted EBITDA reached $47.0 million, up from $19.8 million in Q1 2024, with an Adjusted EBITDA margin of 17%[6][7]. - Net income attributable to Soho House & Co Inc. was $8.2 million, or $0.04 per share, compared to a net loss of $41.6 million in Q1 2024[6][7]. - Net income for the 13 weeks ended March 30, 2025, was $7,513, compared to a net loss of $41,858 for the same period in 2024, representing a significant turnaround[28]. - Total revenues increased to $282,864 thousand for the 13 weeks ended March 30, 2025, up from $261,944 thousand in 2024, reflecting an increase of 8%[28]. - Adjusted EBITDA rose to $46,962 thousand, compared to $19,806 thousand in the prior year, indicating a substantial improvement[24]. - Operating income for the period was $34,894 thousand, a recovery from a loss of $24,327 thousand in the same quarter of 2024[27]. - Cash provided by operating activities was $22,820 thousand, a notable increase from $6,189 thousand in the same period last year[29]. Membership Growth - Membership revenues increased to $112.9 million, a 14.1% year-over-year rise[6]. - Total membership grew by 3.1% year-over-year to 269,636 members, with Soho House members increasing by 7.1% to 212,001[11][13]. - The number of Soho Houses increased to 45, up from 43 in the previous year[11]. - The number of Soho Houses in operation as of March 30, 2025, is 45, contributing to the overall membership growth strategy[50]. - Total members, including Soho House members and Other members, are critical for revenue generation and profitability[37]. - The company anticipates continued growth in membership and revenue for the remainder of fiscal 2025, despite potential risks and uncertainties[48]. Revenue Sources - House Membership Revenues are primarily derived from annual membership fees and one-time legacy registration fees, with the latter amortized over 20 years[33]. - In-House revenues include all revenues generated within the Houses, such as food and beverage, accommodation, and spa services[34]. - In-House revenues were $112,419 thousand, slightly down from $110,270 thousand, reflecting a decrease of 2%[28]. Financial Position - The company ended Q1 2025 with cash, cash equivalents, and restricted cash totaling $155 million[12]. - The company ended the period with cash, cash equivalents, and restricted cash totaling $154,654 thousand, compared to $142,001 thousand at the end of the same quarter in 2024[30]. - Total assets increased to $2,480,378,000 as of March 30, 2025, up from $2,443,512,000 on December 29, 2024, reflecting a growth of approximately 1.5%[31]. - Total liabilities rose to $2,817,665,000 as of March 30, 2025, compared to $2,772,970,000 at the end of 2024, indicating an increase of about 1.6%[32]. - Current assets totaled $403,127,000, up from $388,401,000, marking an increase of approximately 3.8%[31]. - The company reported a total shareholders' deficit of $337,287,000 as of March 30, 2025, compared to $329,458,000 at the end of 2024[32]. Other Notable Items - The company received $22.9 million in business interruption insurance proceeds related to COVID-19 during the quarter[6][8]. - The company is assessing a third-party offer to take the company private at $9.00 per share, with no assurances of a transaction outcome[5]. - Share-based compensation expenses decreased by 71% to $2,360 thousand from $8,039 thousand in the previous year[27]. - The company reported a foreign exchange loss of $21,521 thousand, compared to a gain of $5,481 thousand in the prior year, indicating significant currency impact[27]. - Active App Users are defined as unique users who have logged into any of the membership Apps within the last three months, indicating engagement levels[46].

Revenue Growth - Total revenues for the 13 weeks ended March 30, 2025, increased to $282,864,000, up 7.9% from $261,944,000 for the same period in 2024[18]. - Membership revenues rose to $112,911,000, a 14.1% increase compared to $98,949,000 in the prior year[18]. - The Company reported total consolidated segment revenue of $282.864 million for the 13 weeks ended March 30, 2025, compared to $241.447 million for the same period in 2024, representing an increase of approximately 17.2%[146]. - Membership revenues reached $116.398 million, with the Americas contributing $56.278 million, the UK $32.219 million, and Europe & RoW $14.019 million[146]. - The Americas segment generated $114.157 million in revenue, while the UK and Europe & RoW segments contributed $81.152 million and $31.580 million, respectively[149]. Profitability - Net income attributable to Soho House & Co Inc. was $8,168,000 for the 13 weeks ended March 30, 2025, compared to a net loss of $41,559,000 in the same period last year[18]. - Operating income for the period was $34,894,000, a significant improvement from an operating loss of $24,327,000 in the prior year[18]. - For the 13 weeks ended March 30, 2025, the company reported a net income of $7.5 million, a significant improvement compared to a net loss of $41.9 million for the same period in 2024[25]. - The effective tax rate for the 13 weeks ended March 30, 2025, was 47.3%, significantly higher than the 7.20% effective tax rate for the same period in 2024[135]. Cash Flow and Liquidity - Net cash provided by operating activities was $22.8 million, up from $6.2 million in the prior year[25]. - Cash and cash equivalents increased to $150.1 million from $139.8 million year-over-year, with total cash, cash equivalents, and restricted cash reaching $154.7 million[27]. - The company has access to an undrawn revolving credit facility of £75 million ($97 million)[45]. - Cash paid for interest decreased to $9.2 million from $10.2 million year-over-year[27]. - The Company reported cash flows from operating activities for operating leases of $(40.799) million for the 13 weeks ended March 30, 2025, compared to $(37.428) million for the same period in 2024, representing an increase of 6.4%[79]. Assets and Liabilities - Total assets as of March 30, 2025, were $2,480,378,000, an increase from $2,443,512,000 as of December 29, 2024[16]. - Total liabilities increased to $2,817,665,000 as of March 30, 2025, compared to $2,772,970,000 at the end of 2024[16]. - Total current assets increased to $21.131 million as of March 30, 2025, compared to $19.994 million as of December 29, 2024[64]. - Total long-term debt, net of current portion, increased to $675.421 million as of March 30, 2025, from $656.868 million as of December 29, 2024, marking a rise of 2.3%[96]. Membership and Demand - As of March 30, 2025, the Company had approximately 269,600 members, including approximately 212,000 Soho House Members[183]. - The SHCO global waitlist stood at over 112,000 applicants as of March 30, 2025, indicating strong demand for membership[186]. - Membership revenues are derived from annual fees and one-time registration fees, with every House annual membership fee approximately $5,200[188][192]. - The company expects to grow its member base by expanding the number of Soho Houses and scaling existing membership brands, aiming for significant and sustained growth[198]. Strategic Initiatives - The company is focused on implementing a new ERP system to enhance internal controls and support strategic growth initiatives[35]. - The company plans to open new Soho Houses in locations such as Mexico City, Portland, and Sao Paulo, enhancing its global footprint[193]. - The pricing of membership and In-House offerings is strategically adjusted to maximize revenue while maintaining high retention rates among members[204]. Impairments and Charges - The Company recognized a $2 million non-cash impairment charge for long-lived assets related to the UK Soho Restaurant sites during the 13 weeks ended March 30, 2025[52]. - The Company recognized $2 million of impairment losses on long-lived assets related to legacy restaurant sites in the UK during the reporting period[146]. Other Financial Metrics - The Company reported interest expense of $14 million for the 13 weeks ended March 30, 2025, compared to $12 million for the same period in 2024, indicating an increase of 16.7%[100]. - The estimated future revenues expected to be recognized in the next twelve months from March 30, 2025, amount to $112.231 million[85]. - The Company incurred $2 million in advisory expenses related to strategic transactions and $1 million for ERP systems implementation during the reporting period[148].

Group 1 - Soho House & Co Inc. (NYSE: SHCO) is highlighted as a unique company in the current market [1] - The focus of Crude Value Insights is on cash flow and companies in the oil and natural gas sector, emphasizing value and growth prospects [1] - Subscribers have access to a stock model account, cash flow analyses of exploration and production firms, and live discussions about the sector [2]

Market Overview - The U.S. stock market is experiencing significant volatility, leading to a pause in major M&A deals and IPOs [1] Industry Insights - Gary Alexander has extensive experience in covering technology companies and has worked in Silicon Valley, providing insights into current industry themes [1] Contributions and Influence - Gary Alexander has been a contributor to Seeking Alpha since 2017 and has been quoted in various web publications, with his articles reaching popular trading apps like Robinhood [1]

Company Performance - Soho House & Co reported a quarterly loss of $0.10 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.07, and the same as the loss reported a year ago [1] - The earnings surprise for this quarter was -42.86%, and the company had previously delivered a surprise of 100% by reporting break-even earnings when a loss of $0.01 was expected [2] - Revenues for the quarter were $305.56 million, missing the Zacks Consensus Estimate by 2.42%, but showing an increase from $290.79 million in the same quarter last year [3] Stock Performance - Since the beginning of the year, Soho House shares have declined by approximately 16.2%, compared to a decline of 5.1% for the S&P 500 [4] - The current Zacks Rank for Soho House is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is -$0.14 on revenues of $284.34 million, and for the current fiscal year, it is -$0.26 on revenues of $1.3 billion [8] - The estimate revisions trend for Soho House is mixed, and changes in earnings expectations could impact stock performance [5][6] Industry Context - The Internet - Software industry, to which Soho House belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [9]

Financial Performance - Total revenues for Q4 2024 were $305.6 million, representing a 5.4% year-over-year growth[4] - Total revenues for fiscal year 2024 reached $1,203.8 million, a 7.0% year-over-year increase[4] - Membership revenues increased to $109.3 million, a 15.6% year-over-year increase[4] - Membership revenues for fiscal year 2024 were $418.0 million, up 17.2% year-over-year[4] - Net loss attributable to Soho House & Co Inc. was $91.7 million, or $0.47 per share, including $51.6 million in non-cash FX losses[4] - Net loss for the fiscal year ended December 29, 2024, was $163,568 thousand, compared to a loss of $129,678 thousand for December 31, 2023, representing a 26% increase[28] - Net loss attributable to Soho House & Co Inc. was $91,685, compared to a loss of $61,360 in the previous year, reflecting a 49.3% increase in losses[33] - Operating loss for the fiscal year ended December 29, 2024, was $70,041 thousand, a significant increase of 97% compared to a loss of $35,593 thousand for December 31, 2023[29] Adjusted EBITDA - Adjusted EBITDA for Q4 2024 was $32.3 million, with an adjusted EBITDA margin of 11%[11] - Adjusted EBITDA increased by 14% to $131,904 thousand for the fiscal year ended December 29, 2024, from $115,605 thousand in the previous year[28] - Adjusted EBITDA for the 13 weeks ended December 29, 2024, was $32,292, a slight decrease of 1% from $32,525 in 2023[24] Membership and Expansion - Total Soho House members grew to 212,447, a 9.6% increase year-over-year[11] - Three new Soho Houses were successfully opened in 2024: Portland, Sao Paulo, and Mews House[4] - House Membership Revenues are primarily derived from annual membership fees and one-time legacy registration fees, with the latter amortized over 20 years[38] - The total number of Soho Houses in operation reflects the company's expansion strategy, with a focus on increasing membership and revenue[42] - Membership revenues are influenced by the number of members, membership mix, and pricing, with higher prices generally in North America compared to the UK and Europe[50] - The company reported strong member retention rates, indicating robust demand and loyalty among members[45] Expenses and Losses - House-Level Contribution for the 13 weeks ended December 29, 2024, was $60,725, a decrease of 5% compared to $64,113 for the same period in 2023[25] - House-Level Contribution Margin decreased to 27% from 30% year-over-year[25] - In-House operating expenses increased by 11% to $164,102 for the 13 weeks ended December 29, 2024, compared to $147,817 in 2023[27] - General and administrative expenses rose by 7% to $152,922 thousand in the fiscal year ended December 29, 2024, compared to $143,583 thousand in the previous year[29] - Total operating expenses rose to $376,211, an increase of 18.5% from $317,506 in the prior year[33] Cash and Debt - The company ended Q4 2024 with cash and cash equivalents of $156 million[13] - Net debt increased by 5% to $672,553 thousand as of December 29, 2024, compared to $640,859 thousand as of December 31, 2023[32] - The current portion of debt increased by 18% to $34,618 thousand as of December 29, 2024, from $29,290 thousand as of December 31, 2023[32] - Cash and cash equivalents decreased to $152,716 from $159,155, a decline of 4.3%[35] Foreign Exchange and Impairment - Foreign exchange gain for the 13 weeks ended December 29, 2024, was $51,645, compared to a loss of $(32,297) in 2023[27] - The company recognized impairment losses of $13,567 on long-lived assets and intangible assets for the 13 weeks ended December 29, 2024, a 72% decrease from $47,772 in 2023[27] - The company recognized impairment losses of $32,345 thousand on long-lived assets for the fiscal year ended December 29, 2024, down 32% from $47,772 thousand in the previous year[29] - The company recognized a loss of $6,204 thousand on goodwill related to certain reporting units during the fiscal year ended December 29, 2024[28] Shareholder Activities - A third-party consortium has made an offer to take the company private for $9.00 per share, currently under assessment[8] - The company incurred expenses related to shareholder activism amounting to $1,885 thousand during the fiscal year ended December 29, 2024[28] Digital Engagement - Active App Users are defined as unique users who have logged into membership Apps within the last three months, highlighting engagement with digital platforms[53] Forward-Looking Statements - Forward-looking statements indicate expectations for financial performance in fiscal 2024, subject to risks and uncertainties that may affect actual results[55]