Soho House & Co shares rise over 7% as membership model drives earnings beat

# Soho House & Co shares rise over 7% as membership model drives earnings beat

LONDON - On Friday, Soho House & Co Inc. (NYSE: SHCO) reported second quarter earnings that significantly exceeded analyst expectations, driven by strong membership growth and improved operational efficiency.

The global membership platform’s shares rose 7.53% in pre-market trading after the release.

The company reported adjusted earnings of $0.13 per share for the second quarter, substantially beating the analyst estimate of -$0.07. Revenue reached $329.8 million, surpassing the consensus estimate of $315.54 million and representing an 8.9% increase YoY. Membership revenues were particularly strong, growing 15.9% YoY to $118.6 million.

"Our second quarter results reflect the continued strength of the Soho House membership model and the real progress we’ve made in transforming the business," said Andrew Carnie, CEO of Soho House & Co. " Total (EPA:TTEF) revenues grew 9%, and Adjusted EBITDA was up 46%—a clear sign that our strategic priorities of enhancing member experience and improving operational efficiency are delivering results."

The company’s membership base continued to expand, with total Soho House members growing 4.7% YoY to 213,621. In-House revenues, which include food and beverage, accommodation and spa services, increased 4.1% to $132.5 million, while Revenue Per Available Room (RevPAR) was 2% higher YoY on a like-for-like basis.

Adjusted EBITDA showed remarkable improvement, reaching $46.1 million compared to $31.5 million in the second quarter of 2024, with margins expanding from 10% to 14%.

The company is currently evaluating a previously announced offer from a third-party consortium to take the company private for $9.00 per share, though no assurances were given that the assessment would result in a transaction.

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