Executive Summary

Q1 2025 (ended March 31, 2024) delivered modest topline growth and resilient member KPIs: total revenue $263.1M (+3.1% YoY), membership revenue $100.2M (+20.4% YoY), with Soho House members up 17.4% YoY and waitlist ~102,000 at an all-time high .
In-house revenues declined 5% YoY and RevPAR fell 3% YoY; adjusted EBITDA was $19.3M (7% margin), slightly below prior year but described as “ahead of market expectations,” supported by cost control and sequential improvement in in-house trends through April .
Guidance: FY 2024 adjusted EBITDA low end raised to $157M (from $155M), with membership revenue and total revenue guidance maintained; management reiterated confidence in seasonal improvement ahead and free cash flow focus .
Stock reaction catalysts: sustained membership demand/record waitlist, sequential in-house recovery (Jan→Apr), and guidance raise; headwinds include lower per-visit spend (dry January/mix shift away from alcohol) and macro softness across regions .

What Went Well and What Went Wrong

What Went Well

Strong membership momentum and record waitlist: “Soho House membership growing 17% year-on-year and our waitlist surpassing the 100,000 mark” .
Cost discipline and operational execution: “Q1 adjusted EBITDA was ahead of market expectations… we continue to control costs well,” and raised EBITDA guidance midpoint .
Sequential improvement in in-house trends: management cited January high-single-digit declines improving to low-single-digit declines by March/April .

What Went Wrong

In-house revenue softness and RevPAR pressure: in-house revenue down 5% YoY; like-for-like RevPAR down 3% YoY due to lower ADR despite slightly higher occupancy .
Net loss widened YoY on FX and higher G&A: net loss attributable to SHCO was $(46.0)M vs $(16.0)M YoY, with FX volatility and higher run-rate G&A cited; adjusted EBITDA fell to $19.3M from $20.1M .
Per-visit spend down: footfall outperformed the market, but members “spending a little bit less,” notably a shift away from alcohol consumption in January (“dry January”) .

Financial Results

Metric	Q3 2023	Q4 2023	Q1 2025 (ended Mar 31, 2024)
Total Revenues ($USD Millions)	$300.957	$290.790	$263.146
Membership Revenues ($USD Millions)	$93.279	$95.767	$100.191
In-House Revenues ($USD Millions)	$115.288	$125.220	$110.401
Other Revenues ($USD Millions)	$92.390	$69.803	$52.554
Net Income (Loss) Attrib. to SHCO ($USD Millions)	$(42.362)	$(56.995)	$(46.040)
Diluted EPS ($USD)	$(0.22)	$(0.29)	$(0.24)
Adjusted EBITDA ($USD Millions)	$42.051	$36.631	$19.300
Adjusted EBITDA Margin (%)	14%	13%	7%
Operating Income (Loss) ($USD Millions)	$(20.403)	$(23.156)	$(25.083)
Operating Margin (%)	(7%)	(2%)	(10%)
House-Level Contribution ($USD Millions)	$52.773	$65.304	$49.444
House-Level Contribution Margin (%)	26%	31%	25%

Segment breakdown (Revenue):

Segment Revenue ($USD Millions)	Q3 2023	Q4 2023	Q1 2025 (ended Mar 31, 2024)
Membership	$93.279	$95.767	$100.191
In-House	$115.288	$125.220	$110.401
Other	$92.390	$69.803	$52.554
Total	$300.957	$290.790	$263.146

KPIs and balance sheet highlights:

KPI	Q3 2023	Q4 2023	Q1 2025 (ended Mar 31, 2024)
Soho House Members (000s)	184.542	193.865	198.021
Total Members (000s)	255.252	259.884	261.571
Membership Waitlist (000s)	~98	~99	~102
RevPAR YoY (Like-for-like)	+6%	+4%	−3%
House-Level Contribution Margin (%)	26%	31%	25%
Other Contribution ($USD Millions)	$27.995	$16.767	$8.106
Cash & Cash Equivalents + Restricted Cash ($USD Millions)	$163.040	$163.607	$144.556
Net Debt ($USD Millions)	~$607	$638.358	~$664 (CFO commentary)
Weighted Avg Shares (Millions)	196.153	195.126	195.711

Estimates comparison: Wall Street consensus via S&P Global was unavailable due to access limits; management stated adjusted EBITDA was “ahead of market expectations” . Values from S&P Global were not retrievable at this time.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA ($USD Millions)	FY 2024	$155–$165	$157–$165	Raised low end
Membership Revenues ($USD Millions)	FY 2024	$405–$415	$405–$415	Maintained
Total Revenues ($USD Billions)	FY 2024	$1.20–$1.25	$1.20–$1.25	Maintained
Total Soho House Members (000s)	FY 2024 YE	>210	>210	Maintained

Earnings Call Themes & Trends

Topic	Q3 2023 (prev two quarters)	Q4 2023 (prev quarter)	Q1 2025 (current)	Trend
Consumer in-house spend vs footfall	Footfall healthy; weather impacted spend; October trends normalized	Footfall up, per-visit spend slightly lower; January softness noted; sequential improvement into March	Footfall outperformed; lower spend per visit, alcohol mix down in Jan; sequential improvement Jan→Apr	Improving sequentially
Geography	Europe/UK strong in Q3; US affected by weather	Mature markets (London/NY/LA) seeing strong satisfaction; leadership changes in NA	No notable regional differences; similar patterns across UK, Europe, US, Asia	Broad-based similar
Membership health	21% YoY growth; waitlist 98k	20% YoY; waitlist 99k; retention ~91.5%	17.4% YoY; waitlist ~102k; continued high retention	Strong and durable
Operational excellence (margins)	House-level margin up ~750bps; cost control	EBITDA margins up; wages % revenue improved ~200bps	House F&B margins improved YoY despite inflation; new HR system roll-out	Positive execution
Product/initiatives (wellness, app)	Seasonal menu, Scorpios strength	Wellness expansion; refurbishments; booking tech	App-driven event recs (+6% bookings); wellness/gym plans	Ongoing enhancement
Strategic alternatives	—	Board formed independent special committee; no update	Special committee continues; no update	In process
Scorpios/Soho Home	Scorpios expansion plans	Scorpios record year; two openings planned; Soho Home growth/margins	Soho Home/Works growth; Scorpios expansion ongoing	Expansion continuing

Management Commentary

CEO: “Our first quarter results are testament to the strong appeal of Soho House globally… our waitlist surpassing the 100,000 mark for the first time.”
CEO: “Total revenues grew 3%… steady improvement in underlying trends since the start of the year… gives us confidence to raise the midpoint of our Adjusted EBITDA guidance.”
CFO: “Q1 adjusted EBITDA was ahead of market expectations at $19.3 million… we are raising the low end of our EBITDA guidance to $157–$165 million.”
CEO on service and tech: “We launched event recommendations on our app… helped drive 6% higher event bookings in the quarter.”
CFO on leverage: “We ended the quarter with $145 million of cash… roughly 5x net debt-to-EBITDA, down from approximately 7x at the end of the first quarter 2023.”

Q&A Highlights

Consumer behavior: Footfall strong, but spend per visit lower; January weakness tied to “dry January” alcohol mix shift; monthly trend improved from high-single-digit decline in Jan to low-single-digit in Mar/Apr .
Geography: No material regional differences; similar patterns across all regions .
Membership mix and pricing: De-emphasis of Soho Friends to focus on core Soho House member; pricing viewed as appropriate with back-end efficiency focus .
Strategic alternatives: Special committee continues to evaluate; no new disclosures .
New house maturation and margin opportunity: Newer market openings (Mexico City, Portland, Austin, Nashville) performing in line; continued opportunities to raise House-Level Contribution as houses mature .

Estimates Context

Wall Street consensus estimates from S&P Global were unavailable at the time of this analysis due to data access limits; management noted Q1 adjusted EBITDA “ahead of market expectations” .
Given the sequential in-house revenue recovery and raised EBITDA guidance, estimate revisions may move modestly higher on EBITDA while revenue trajectories remain cautious near-term due to per-visit spend softness and RevPAR pressure .

Key Takeaways for Investors

Membership engine intact: double-digit membership growth and record waitlist underpin resilient recurring revenue; focus remains on enhancing member value and retention .
Near-term margin/EBITDA support: cost control, F&B margin gains, and operational initiatives (HR system, data-driven offerings) offset in-house revenue softness; FY24 EBITDA low end raised .
In-house recovery is sequential: monitor monthly comps—management highlighted improving trends from January through April; watch summer seasonality across rooftops/pools for acceleration .
Mix shift and macro caution: lower alcohol mix and cautious spend per visit weigh on RevPAR and in-house; geographic softness is broad-based; near-term revenue growth skewed to membership .
Balance sheet and cash flow: cash ~$145M; net debt ~5x EBITDA; operating cash flow positive; CapEx $90–$100M expected in FY24 for openings and refreshes .
Strategic optionality: special committee continues to evaluate transactions (including potential take-private); not a near-term operational lever but a medium-term catalyst to monitor .
Trading implications: positive on guidance raise and sequential improvement; watch upcoming quarters for in-house normalization and summer season performance; EBITDA beats vs expectations can be a catalyst while macro-driven per-visit spend remains a risk .

Soho House & Co Inc. (SHCO)·Q1 2025 Earnings Summary