8-K: Soho House & Co Reports Q3 2025 Revenue Growth, Net Loss

Soho House & Co Inc. announced third quarter 2025 financial results, reporting 11.2% year-over-year revenue growth to $370.8 million but a net loss of $18.7 million, impacted by non-cash FX losses.

Summary

• Total revenues increased by 11.2% year-over-year to $370.8 million for the third quarter ended September 28, 2025.
• Membership revenues grew 14.3% to $122.7 million, and Other revenues increased 15.8% to $122.0 million, driven by strong growth in Scorpios and Soho Home.
• The company reported a net loss attributable to Soho House & Co Inc. of $18.7 million, or $0.10 loss per share, which included $14.0 million in non-cash foreign exchange losses.
• Adjusted EBITDA rose 11% year-over-year to $53.8 million, with the Adjusted EBITDA margin improving to 15%.
• Soho House membership grew 2.8% year-over-year to 213,830 members, contributing to a total membership base of 269,606.
• The company opened Soho Farmhouse Ibiza and enhanced Soho Farmhouse in the UK with new fitness amenities, including padel courts and its first Lazy Lab.
• Cash, cash equivalents, and restricted cash stood at $148 million at the end of the third quarter 2025.

Sentiment

Score: 4

Explanation: While the company demonstrated solid top-line revenue growth and an increase in Adjusted EBITDA, the reported net loss of $18.7 million, primarily driven by non-cash foreign exchange losses and significant one-off expenses (ERP implementation, strategic transaction evaluation), indicates a weaker bottom-line performance. The widening shareholder deficit and increased total liabilities are also points of concern. Operational metrics show mixed results with core Soho House membership growth but a decline in other membership categories.

Positives

• Total revenues grew 11.2% year-over-year to $370.8 million for Q3 2025.
• Membership revenues increased by 14.3% year-over-year to $122.7 million.
• Other revenues saw strong growth of 15.8% year-over-year to $122.0 million, driven by Scorpios and Soho Home.
• Adjusted EBITDA increased by 11% year-over-year to $53.8 million, with the Adjusted EBITDA margin improving to 15%.
• House-Level Contribution grew 11% to $67.428 million.
• Other Contribution increased 33% to $36.021 million, with its margin improving to 27%.
• Like-for-like Revenue Per Available Room (RevPAR) was 2% higher year-over-year.
• Total Soho House Members grew 2.8% year-over-year to 213,830.
• The number of Soho Houses increased to 46 from 45 year-over-year.
• Year-to-date revenues are up 9% and EBITDA is up 47%, indicating positive momentum.
• Net cash provided by operating activities for the 39 weeks ended September 28, 2025, was $98.757 million, up from $62.794 million in the prior year.

Negatives

• Reported a net loss attributable to Soho House & Co Inc. of $18.7 million for Q3 2025, a significant decline from a net income of $0.175 million in Q3 2024.
• Operating income swung to a loss of $(6.004) million from an income of $37.884 million in Q3 2024.
• The net loss was inclusive of $14.0 million in non-cash foreign exchange losses.
• Other Memberships (Soho Friends and Soho Works) declined by 6.1% year-over-year to 55,776 members.
• Total liabilities increased to $3,033,128 million as of September 28, 2025, from $2,772,970 million as of December 29, 2024.
• Total shareholders deficit widened to $(348,904) million as of September 28, 2025, from $(329,458) million as of December 29, 2024.
• Significant expenses incurred for ERP system implementation ($4.276 million) and evaluation of certain strategic transactions ($6.810 million) during the quarter.

Risks

• The company operates in a rapidly changing environment, with new risks emerging from time to time.
• Actual results, performance, or achievements may be materially different from forward-looking statements due to known and unknown risks, uncertainties, and other important factors.
• Specific risk factors are discussed under the caption 'Risk Factors' in the company's annual report on Form 10-K for the fiscal year ended December 29, 2024, and as such factors may be updated from time to time in other filings with the SEC.

Future Outlook

The company expects continued sustainable growth, driven by strategic priorities focused on enhancing member experience and improving operational efficiency. Plans include refreshing existing Houses, expanding food and beverage offerings with new concepts, providing unique events, and further expanding Soho Health Clubs due to strong demand. The company also noted positive momentum with year-to-date revenues up 9% and EBITDA up 47%.

Management Comments

• "Our third quarter results reflect the continued strength and appeal of Soho House."
• "Total revenues grew 11% and Adjusted EBITDA was up 11%, demonstrating that our strategic priorities enhancing member experience and improving operational efficiency are delivering sustainable growth."
• "We're investing in what matters most to our members refreshing existing Houses such as Soho House West Hollywood, expanding our food and beverage offerings with new concepts including Nancy Silverton and Berenjak in Los Angeles, and providing events across our Clubs that only Soho House can do."
• "As part of our experiential House strategy, we opened Soho Farmhouse Ibiza and transformed Soho Farmhouse in the UK with new fitness amenities including padel courts and our first Lazy Lab a concept designed to support longevity and holistic wellbeing."
• "We continue to see strong demand for our health and wellness offering and plan to expand Soho Health Clubs further."
• "Our results build on the positive momentum we've seen throughout the year, with year-to-date revenues up 9% and EBITDA up 47%."
• "I'd like to thank our teams for their dedication and our members for their loyalty."

Industry Context

Soho House & Co's results indicate a resilient demand for exclusive membership-based hospitality and lifestyle services, even amidst broader economic uncertainties. The focus on enhancing member experience, expanding health and wellness offerings, and introducing new F&B concepts aligns with trends in the luxury experiential market where consumers seek unique, curated experiences and community. The growth in membership revenues and Adjusted EBITDA suggests the company is effectively leveraging its brand appeal and operational strategies within the competitive high-end hospitality sector, despite facing challenges like foreign exchange volatility.

Comparison to Industry Standards

• NA

Stakeholder Impact

• Shareholders: The net loss and widening shareholder deficit could negatively impact shareholder value, despite revenue and Adjusted EBITDA growth. The non-cash FX losses highlight exposure to currency fluctuations.
• Members: Continued investment in member experience, new Houses (Soho Farmhouse Ibiza), and expanded amenities (Soho Farmhouse UK fitness, Soho Health Clubs, new F&B concepts) aims to enhance member satisfaction and retention.
• Employees: Operational reorganization and severance expenses were incurred, indicating some impact on the workforce.
• Creditors: Increased total liabilities and debt levels could be a consideration for creditors, though cash from operations improved year-to-date.

Next Steps

• Continue investing in enhancing member experience and improving operational efficiency.
• Refresh existing Houses, such as Soho House West Hollywood.
• Expand food and beverage offerings with new concepts, including Nancy Silverton and Berenjak in Los Angeles.
• Provide unique events across Clubs.
• Expand Soho Health Clubs further due to strong demand.
• Continue with the planned ERP system implementation.
• Continue evaluation of certain strategic transactions.

Key Dates

Recommendation

While Soho House & Co demonstrated robust revenue growth and an increase in Adjusted EBITDA, indicating strong operational performance and brand appeal, the reported net loss of $18.7 million for the quarter is a significant concern. This loss was heavily influenced by non-cash foreign exchange losses and substantial one-off expenses related to ERP implementation and strategic transaction evaluation. The widening shareholder deficit and increased total liabilities also warrant caution. The company's strategic investments in member experience and expansion are positive long-term drivers, but the immediate bottom-line performance and exposure to FX volatility suggest a 'hold' recommendation until there is clearer evidence of sustained GAAP profitability and reduced impact from non-recurring items.

Keywords

Soho House, SHCO, Membership Platform, Luxury Hospitality, Private Clubs, Financial Results, Q3 2025, Revenue Growth, Adjusted EBITDA, Net Loss, Membership Growth, Lifestyle Brand, Soho Home, Scorpios, Soho Works