Soho House & Co (SHCO) Q3 2024 earnings summary

Executive summary

• Total revenues for Q3 2024 increased 14% year-over-year to $333.4 million, driven by strong growth in membership, in-house, and other revenues.

• Membership base expanded by 4,000 to approximately 208,000 globally, with total members reaching 267,500 and a record waitlist of 111,000.

• Adjusted EBITDA rose 38% year-over-year to $48.3 million, with margins at 14–14.5%.

• Net income turned positive at $0.7 million, reversing a $48–49 million loss from the prior year.

• Board received a $9/share buyout offer from a third-party consortium, supported by key shareholders and under review by a Special Committee.

Financial highlights

• Membership revenues grew 17% year-over-year to $107.4 million, in-house revenues rose 5% to $120.7 million, and other revenues increased 22% to $105.3 million.

• House-Level Contribution was $60.8 million (28% margin), and Other Contribution was $27.1 million (24% margin), both up year-over-year.

• Cash and cash equivalents at quarter-end were $143–$147 million, with net debt at $686 million.

• Repurchased 2.3 million shares for $13 million during the quarter.

• Net income margin for Q3 2024 was 0.2%, compared to -16.5% in Q3 2023.

Outlook and guidance

• 2024 guidance: membership revenues $410–$420 million, total revenues approx. $1.2 billion, Adjusted EBITDA approx. $140 million, and Soho House members expected to exceed 212,000.

• Adjusted EBITDA guidance was lowered from $157–$165 million, with about half the reduction due to one-time or non-recurring items.

• Q1 2025 bedroom bookings are strong, indicating positive momentum into next year.

• Guidance assumes no material FX impact and sufficient liquidity for at least the next 12 months.