Soho House & Co Inc. (NYSE: SHCO), Results a leading global membership platform that connects a vibrant and diverse community across the world, has announced its financial results for the first quarter ended March 30, 2025. The results showcase the Company’s continued focus on expanding its membership base, enhancing guest experiences, and driving operational profitability.
Strong First Quarter Performance Reflects Momentum in Strategy Execution
For the first quarter of 2025, Soho House & Co Inc. reported total revenues of $282.9 million, marking an 8.0% increase compared to the same period in 2024. This growth reflects the ongoing appeal of the Soho House brand among its members and the positive impact of strategic initiatives launched in 2024.
Membership revenues saw especially strong growth, increasing by 14.1% year-over-year to reach $112.9 million. This surge was attributed to both a growing global member base and continued enhancements in the member experience, which have boosted member engagement and loyalty.
The In-House revenues segment, which includes food and beverage services and accommodations within Soho Houses, contributed $112.4 million, representing a modest yet steady 1.9% increase year-over-year. The increase came despite challenges from regional disruptions, including wildfires in Los Angeles earlier in the year.
Additionally, other revenues, including the popular Soho Home retail line, grew by 9.1% year-over-year to $57.5 million, reflecting robust demand for the Company’s lifestyle and design products.
Revenue per Available Room (RevPAR), a key metric for hospitality operations, saw a 4% increase on a like-for-like basis, highlighting successful efforts to drive accommodation performance and improve room utilization across the portfolio.
Significant Improvements in Profitability and Operating Leverage
The Company reported net income attributable to Soho House & Co Inc. of $8.2 million, or $0.04 per share, for the first quarter of 2025. This represents a marked turnaround from prior quarters, underscoring the impact of operational efficiencies and strategic financial management.
Adjusted EBITDA, a key measure of operating profitability, reached $47.0 million, more than doubling from $19.8 million in the first quarter of 2024. This translated to an Adjusted EBITDA margin of 16.6%, reflecting both revenue growth and effective cost controls.
A significant contributor to first-quarter profitability was the receipt of $22.9 million in business interruption insurance proceeds related to the COVID-19 pandemic. These funds provided a one-time boost to net income and Adjusted EBITDA, further enhancing the Company’s financial position.
Despite this, the quarter was not without challenges. The devastating wildfires in Los Angeles earlier this year disrupted operations at some Houses in the region. The Company has submitted an insurance claim of $3 million related to these events, although no proceeds have yet been received.
CEO Commentary: Confidence in Long-Term Growth Trajectory
Andrew Carnie, Chief Executive Officer of Soho House & Co Inc., expressed optimism about the Company’s direction and the impact of its strategic initiatives.”
Our strong quarterly performance gives me confidence that our strategic priorities are resonating with our members around the world. With total revenues growing by 8% and a more than twofold increase in Adjusted EBITDA, we are clearly gaining traction,” Carnie said.
“We continue to elevate the Soho House member experience, both in our existing Houses and through new openings. This summer, we’re particularly excited about the debut of Soho Farmhouse Ibiza, a major milestone in our global expansion strategy.”
Carnie added, “Our operational transformation efforts are beginning to show results in our profitability, and we are optimistic about our continued ability to drive margin expansion.”
He also extended appreciation to the Company’s staff and members, particularly those in regions affected by natural disasters.
“I want to thank our teams for their passion and commitment, and our members for their continued loyalty — especially those in Los Angeles who were impacted by the wildfires.”
Transaction Update: Potential Take-Private Offer Under Review
On December 19, 2024, Soho House disclosed that it had received a take-private proposal from a third-party consortium offering to acquire the Company for $9.00 per share. In response, the Board of Directors formed a Special Committee of independent directors to evaluate the proposal.
The review is ongoing, and discussions with the consortium are active. However, the Company emphasized that no assurances can be given regarding the outcome. There is no guarantee that the assessment will result in a strategic shift or completed transaction. The Company pledged to provide an update if and when a material development arises in the process.
Strategic Pillars: Enhancing Membership and Driving Operational Excellence
Soho House continues to prioritize initiatives that strengthen its unique value proposition and enhance shareholder value.
1. Growing and Enhancing Membership
Efforts to improve the overall member experience across all Houses remain a cornerstone of the Company’s strategy. Enhancements to hospitality offerings, personalized service, and programming have resulted in strong member satisfaction scores. These improvements are helping retain existing members while attracting new ones, driving continued revenue growth in this segment.
2. Operational Excellence and Profitability
The Company is intensifying its focus on improving unit-level economics across its portfolio. Key operational highlights from the quarter include:
- RevPAR growth of 4%, driven by improved occupancy and average daily rate (ADR).
- Improved like-for-like food and beverage margins across the portfolio, contributing to stronger In-House performance.
- Effective cost discipline and margin expansion efforts, resulting in strong Adjusted EBITDA growth.
The Company remains committed to further improving margin performance through enhanced operational efficiencies and technology investments.
