Soho House & Co (SHCO) Q2 2024 earnings summary

Executive summary

• Total revenue for Q2 2024 increased 6% year-over-year to $305.1 million, driven by 16% growth in membership revenues and 2% growth in in-house revenues, with a record waitlist of 111,000 and 6,000 new members added, reaching 204,000 Soho House members and 264,540 total members globally.

• Adjusted EBITDA rose to $33.3 million, up $2 million year-over-year, with margins steady at 11% despite new house openings and a $4 million drag from expansion.

• Net loss widened to $34.2 million, compared to $2.3 million in Q2 2023, primarily due to higher operating expenses and non-cash FX losses.

• Opened new houses in São Paulo, Portland, and Scorpios Bodrum, with further expansion planned in Madrid, Milan, Barcelona, and Tokyo.

• Positive cash flow from operations for the fifth consecutive quarter, reflecting operational improvements.

Financial highlights

• Membership revenues increased 16% year-over-year to $103.6 million, with in-house revenues up 2% to $128.4 million and other revenues down 1%.

• Total revenues grew to $305.1 million, up from $288.9 million year-over-year (+6%).

• House-level contribution margin improved to 27% from 26% year-over-year.

• Adjusted EBITDA margin remained stable at 11% of total revenues.

• Net loss margin was (11.1)% compared to (0.9)% in Q2 2023.

Outlook and guidance

• 2024 guidance raised: Soho House members expected to exceed 212,000, membership revenues $410–$420 million, total revenues $1.2–$1.25 billion, and Adjusted EBITDA $157–$165 million.

• CapEx for the year expected to be $90–$100 million.

• Sufficient liquidity is expected to fund operations and expansion for at least the next 12 months.