Soho House & Co (SHCO) AI Stock Analysis

• Market Cap: $1.71B
• Dividend Yield: N/A
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: 7.89%
• EPS Growth: 67.07%
• Country: US
• Employees: 8,038
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Travel Lodging
• EPS (TTM): 0.13
• Shares Outstanding: 53,604,733
• 10 Day Avg. Volume: 3,674,381
• 30 Day Avg. Volume: 1,415,706
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.17
• Enterprise Value/Revenue: 2.97
• Enterprise Value/Gross Profit: 7.48
• Enterprise Value/Ebitda: 22.67
• 1Y Price Target: $9.00
• Price Target Upside: 2.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: $9.00 ▲(2.27% Upside)

The overall stock score is primarily influenced by the positive corporate event of a merger, which offers a significant premium to shareholders and is supported by major financial backers. However, financial performance and valuation concerns, including high leverage and negative equity, weigh down the score. Technical analysis shows bullish momentum, but caution is advised due to overbought conditions.

Positive Factors

Cost Management

Management's initiatives around cost savings and member engagement are benefiting in-house spending per member.

Membership Growth

Recent openings in locations like Sao Paulo, Mexico City, and Portland show positive trends in membership growth.

Negative Factors

Leverage Risk

SHCO's lease-adjusted debt is 5.8x 2024 EBITDAR, significantly higher than the average of 3.5x.

Soho House & Co Business Overview & Revenue Model

Company Description

Soho House & Co Inc. operates a global membership platform of physical and digital spaces that connects a group of members. These members use the platform to work, socialize, connect, create, and flourish all over the world. The company was formerly known as Membership Collective Group Inc. and changed its name to Soho House & Co Inc. in March 2023. Soho House & Co Inc. was founded in 1995 and is headquartered in New York, New York.

How the Company Makes Money

Soho House & Co generates revenue through multiple streams, primarily centered around its membership model. The company charges annual membership fees for access to its exclusive clubs, which serve as a significant source of recurring income. In addition to membership fees, Soho House & Co earns money through its hospitality operations, including hotel accommodations, dining services, and events hosted at its venues. The company also benefits from ancillary services such as retail offerings and branded merchandise. Strategic partnerships and collaborations with brands in the luxury and lifestyle sectors further enhance its revenue potential by creating unique experiences and offerings for members. The combination of these diverse revenue streams allows Soho House & Co to maintain its position as a leader in the private members' club and hospitality industry.

Soho House & Co Financial Statement Overview

Summary

Soho House & Co shows strong revenue growth and improved cash flow management. However, profitability challenges and financial instability due to negative equity and high leverage are significant concerns.

Income Statement

Soho House & Co has demonstrated a consistent increase in revenue over recent periods, showcasing a strong growth trajectory with a notable revenue growth rate. However, the company faces profitability challenges as indicated by negative net profit margins and EBIT margins, suggesting operating inefficiencies. The positive trend in EBITDA margin is a positive sign, yet the overall profitability needs improvement.

Balance Sheet

The balance sheet of Soho House & Co reveals a concerning financial structure with negative stockholders' equity and a high debt-to-equity ratio, indicating heavy reliance on debt financing. The return on equity is not applicable due to negative equity, and the equity ratio highlights the financial risk associated with the company's current capital structure. These factors suggest potential financial instability.

Cash Flow

The company's cash flow statement shows improvement in operating cash flow, and a positive free cash flow in the latest period suggests effective cash management. The free cash flow growth rate is strong, indicating enhanced liquidity. However, the operating cash flow to net income ratio suggests that cash generation is still strained due to persistent net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.20B	1.14B	972.21M	560.55M	384.38M
Gross Profit	497.00M	565.47M	546.52M	97.02M	357.71M	164.34M
EBITDA	164.07M	34.80M	85.98M	-43.22M	-113.95M	-88.46M
Net Income	-58.46M	-162.97M	-117.95M	-220.58M	-265.39M	-228.46M
Balance Sheet
Total Assets	2.59B	2.44B	2.54B	2.47B	2.38B	2.10B
Cash, Cash Equivalents and Short-Term Investments	150.31M	155.09M	162.98M	190.04M	213.71M	59.97M
Total Debt	1.52B	2.34B	2.31B	2.12B	1.90B	2.03B
Total Liabilities	2.94B	2.77B	2.70B	2.48B	2.20B	2.48B
Stockholders Equity	-346.26M	-335.06M	-174.89M	-22.44M	176.13M	-432.42M
Cash Flow
Free Cash Flow	33.81M	7.75M	-36.89M	-80.72M	-230.50M	-177.67M
Operating Cash Flow	108.52M	89.68M	46.99M	14.68M	-127.42M	-38.23M
Investing Cash Flow	-89.20M	-71.24M	-82.36M	-94.14M	-119.14M	-139.87M
Financing Cash Flow	-21.34M	-19.91M	4.91M	52.84M	408.16M	179.70M

Soho House & Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHCO, the sentiment is Positive. The current price of 8.8 is above the 20-day moving average (MA) of 7.36, above the 50-day MA of 7.18, and above the 200-day MA of 6.57, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 78.22 is Negative, neither overbought nor oversold. The STOCH value of 95.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SHCO.

Soho House & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATAT	80 Outperform	$4.78B	27.53	44.99%	3.61%	42.60%	27.14%
WH	74 Outperform	$6.61B	20.30	56.16%	1.78%	3.65%	38.50%
HTHT	73 Outperform	$10.81B	22.38	30.38%	4.68%	4.43%	1.61%
H	69 Neutral	$13.12B	32.41	11.66%	0.42%	0.74%	-54.42%
Sector *	67 Neutral	¥282.84B	15.30	6.82%	2.46%	5.05%	-19.57%
CHH	58 Neutral	$5.62B	18.65	-661.94%	0.94%	1.67%	35.34%
SHCO	54 Neutral	$1.71B	―	49.70%	―	7.89%	67.07%

Soho House & Co Corporate Events

Soho House & Co Appoints New CFO Amid Merger

On August 15, 2025, Soho House & Co entered into a merger agreement with EH Parent LLC and affiliates, with the company continuing as the surviving corporation. The merger, recommended by a special committee, offers $9.00 per share to stockholders, representing an 83% premium over the unaffected share price. The transaction, supported by significant shareholders and financial backers like Apollo and Goldman Sachs, aims to take the company private, delist it from the NYSE, and leverage new investments for growth. Additionally, on August 18, 2025, Neil Thomson was appointed as the new CFO, succeeding Thomas Allen, to lead the company’s financial strategies post-merger.

Soho House & Co Holds Virtual Annual Meeting

On June 18, 2025, Soho House & Co Inc. held its Annual Meeting of Stockholders virtually, where two key proposals were addressed. The election of directors resulted in Ron Burkle, Nick Jones, Andrew Carnie, and Richard Caring being elected as Class I directors until 2028, while Alice Delahunt and Dasha Zhukova were elected as Class II directors until 2026. Additionally, the stockholders ratified the appointment of BDO LLP as the independent registered public accounting firm for the 2025 fiscal year.