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Soho House & Co Inc. (SHCO)
:SHCO
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Soho House & Co
(NYSE:SHCO)
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Rating:44Neutral
Price Target:
$8.50
▼(-4.17% Downside)
Soho House & Co's overall stock score is primarily impacted by its weak financial performance, characterized by high leverage and negative profitability. Technical analysis provides some neutral signals, but valuation remains unattractive due to ongoing losses. The absence of earnings call insights and corporate events leaves the financial and valuation concerns as the dominant factors.
Positive Factors
Revenue Growth
Despite financial challenges, Soho House & Co's ability to maintain revenue growth indicates a resilient demand for its services and potential for future expansion.
Membership Model
The membership model provides a stable and recurring revenue stream, enhancing financial predictability and customer loyalty over time.
Global Presence
A strong global presence in major cities supports brand recognition and offers diverse revenue opportunities from varied markets.
Negative Factors
High Debt Levels
High debt levels pose a risk to financial stability, potentially limiting the company's ability to invest in growth and manage economic downturns.
Negative Profit Margins
Persistent negative profit margins highlight ongoing profitability challenges, which could hinder long-term financial health and investor confidence.
Weak Cash Flow
Weak cash flow generation limits the company's ability to fund operations and growth initiatives, potentially impacting its competitive position.
Soho House & Co (SHCO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.72B
Dividend YieldN/A
Average Volume (3M)519.20K
Price to Earnings (P/E)―
Beta (1Y)1.31
Revenue Growth8.09%
EPS Growth43.02%
CountryUS
Employees8,038
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Lodging
Share Statistics
EPS (TTM)-0.10
Shares Outstanding54,067,340
10 Day Avg. Volume693,335
30 Day Avg. Volume519,204
Financial Highlights & Ratios
PEG Ratio-0.23
Price to Book (P/B)-4.34
Price to Sales (P/S)1.21
P/FCF Ratio187.73
Enterprise Value/Market Cap2.37
Enterprise Value/Revenue3.17
Enterprise Value/Gross Profit6.19
Enterprise Value/Ebitda28.85
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Soho House & Co Business Overview & Revenue Model
Company DescriptionSoho House & Co (SHCO) is a global membership organization and hospitality company that operates a network of private members' clubs, hotels, and restaurants. Founded in London in 1995, the company caters primarily to individuals in creative industries, offering a unique blend of social and workspaces designed to foster community and collaboration. With locations across major cities worldwide, Soho House provides a range of services including dining, event spaces, and curated experiences tailored to its members' interests and lifestyle.
How the Company Makes MoneySoho House & Co generates revenue through several key streams. The primary source is membership fees, which provide access to its exclusive clubs and facilities. Members pay an initial joining fee and annual subscriptions, which vary based on the type of membership. Additionally, the company earns revenue from food and beverage sales at its restaurants and bars, hotel accommodations, and private events hosted at its venues. The brand also engages in partnerships with various lifestyle and luxury brands, enhancing its offerings and creating additional revenue opportunities. Other income sources include merchandise sales and curated experiences, such as workshops and cultural events, that attract both members and non-members. Overall, the combination of membership fees, hospitality services, and strategic partnerships contributes to SHCO's financial success.
Soho House & Co Earnings Call Summary
Earnings Call Date:Dec 19, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Mar 12, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong membership growth and operational improvements. However, financial misstatements, reduced guidance, and external challenges such as natural disasters impacted the company's financial outlook. The sentiment is balanced between positive membership and operational highlights and significant financial and environmental lowlights.Q3-2024 Updates
Positive Updates
Strong Membership Growth
Membership revenues increased 17% year-on-year and 5% quarter-on-quarter, with 4,000 new Soho House members, reaching approximately 208,000 members globally.
Total Revenue Growth
Total revenues grew 14% year-on-year to $333 million, driven by membership growth and improved spend per visit.
Adjusted EBITDA Improvement
Q3 adjusted EBITDA was $48 million, showing a 38% increase year-on-year, with margins improving approximately 250 basis points year-over-year.
Successful Opening of New Locations
Scorpios, Mykonos had a record-breaking season, and a new location opened in Bodrum. Soho Mews House opened in London with positive reception.
Operational Improvements
Focus on operational excellence with improvements in food and beverage margins and RevPAR up 5% year-over-year.
Negative Updates
Lowered Revenue and EBITDA Guidance
Total revenue guidance lowered to around $1.2 billion and adjusted EBITDA guidance reduced to approximately $140 million due to weaker demand in food and beverage and accommodations.
Choppy Revenue Environment
In October, in-house revenue saw the weakest month for like-for-like year-over-year growth, with a mid-single-digit decline.
Financial Misstatements
Revisions made to financial statements from 2022 through the first half of 2024 due to misstatements found in prior period financial statements.
Impact of Natural Disasters
Operations affected by significant flooding at Soho-FarmHouse and recent Malibu fires, leading to temporary closures.
Increased Costs and Investments
Ongoing costs associated with ERP implementation and consulting fees, impacting current financial performance.
Company Guidance
During the Soho House & Co Q3 2024 earnings call, guidance was provided with several key metrics highlighted. Membership revenues increased by 17% year-on-year to $107 million, contributing to total revenues of $333 million, a 14% increase from the previous year. The company achieved an adjusted EBITDA of $48 million, marking a 38% growth year-on-year, although slightly below expectations, with margins improving by approximately 250 basis points. House level contribution rose by 17%, with margins up 150 basis points. Despite these gains, the company adjusted its total revenue guidance to around $1.2 billion, down from the previous range of $1.2 billion to $1.25 billion, due to weaker-than-expected demand in food, beverage, and accommodation segments. Adjusted EBITDA guidance was also revised to approximately $140 million, citing unique factors impacting results. Net debt was reported at $686 million, with a reduction in net debt to adjusted EBITDA ratio to 5x.Soho House & Co Financial Statement Overview
Summary
Soho House & Co faces significant financial challenges, including negative net profit margins, high debt levels, and negative equity. While there is some revenue growth, profitability remains elusive, and cash flow issues further exacerbate financial instability.Income Statement
Soho House & Co has shown some revenue growth over the years, with a TTM revenue growth rate of 2.99%. However, profitability remains a concern, as indicated by negative net profit margins and EBIT margins over the years. The gross profit margin has decreased from previous years, suggesting increased cost pressures. Overall, while there is revenue growth, the company struggles with profitability.45
Neutral
Balance Sheet
The balance sheet of Soho House & Co reveals significant financial leverage, with a negative debt-to-equity ratio indicating high debt levels compared to equity. The negative stockholders' equity is a major concern, reflecting potential financial instability. Return on equity is positive but misleading due to negative equity. The equity ratio is also negative, highlighting the company's reliance on debt financing.30
Negative
Cash Flow
Cash flow analysis shows a declining trend in free cash flow, with a significant drop in the TTM period. The operating cash flow to net income ratio is low, indicating challenges in converting income into cash. Although there is some positive operating cash flow, the overall cash flow situation is weak, with free cash flow growth turning negative.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.29B | 1.20B | 1.14B | 976.00M | 560.55M | 384.38M |
| Gross Profit | 660.17M | 565.47M | 546.52M | 445.27M | 251.71M | 164.34M |
| EBITDA | 141.74M | 34.80M | 85.98M | -46.79M | -99.83M | -88.46M |
| Net Income | -77.34M | -162.97M | -117.95M | -224.16M | -265.39M | -228.46M |
Balance Sheet | ||||||
| Total Assets | 2.68B | 2.44B | 2.53B | 2.47B | 2.38B | 2.10B |
| Cash, Cash Equivalents and Short-Term Investments | 145.41M | 155.09M | 160.48M | 183.61M | 213.71M | 59.97M |
| Total Debt | 2.51B | 2.34B | 2.31B | 2.12B | 1.90B | 2.03B |
| Total Liabilities | 3.03B | 2.77B | 2.70B | 2.48B | 2.20B | 2.48B |
| Stockholders Equity | -351.63M | -335.06M | -174.89M | -22.44M | 176.13M | -432.42M |
Cash Flow | ||||||
| Free Cash Flow | 25.53M | 7.75M | -36.89M | -82.15M | -230.50M | -177.67M |
| Operating Cash Flow | 125.64M | 89.68M | 46.99M | 11.86M | -127.42M | -38.23M |
| Investing Cash Flow | -115.72M | -71.24M | -82.36M | -92.75M | -119.14M | -139.87M |
| Financing Cash Flow | -9.54M | -19.91M | 4.91M | 52.84M | 408.16M | 179.70M |
Soho House & Co Technical Analysis
Neutral
8.87
Price Trends
8.85
Negative
8.35
Positive
7.41
Positive
Market Momentum
>-0.01
Negative
49.31
Neutral
66.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHCO, the sentiment is Neutral. The current price of 8.87 is above the 20-day moving average (MA) of 8.83, above the 50-day MA of 8.85, and above the 200-day MA of 7.41, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.31 is Neutral, neither overbought nor oversold. The STOCH value of 66.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SHCO.
Soho House & Co Risk Analysis
Soho House & Co disclosed 69 risk factors in its most recent earnings report. Soho House & Co reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Soho House & Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $5.59B | 27.64 | 45.97% | 2.30% | 35.65% | 24.81% | |
74 Outperform | $14.12B | 27.05 | 32.62% | 3.76% | 6.06% | 8.01% | |
65 Neutral | $4.13B | 10.96 | 1418.13% | 1.25% | 2.76% | 56.02% | |
65 Neutral | $5.51B | 16.79 | 57.98% | 2.23% | 3.38% | 38.04% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $203.05M | 12.76 | ― | 2.80% | ― | ― | |
44 Neutral | $1.72B | ― | ― | ― | 8.09% | 43.02% |
* Consumer Cyclical Sector Average
SHCO
Soho House & Co
8.83
3.81
75.90%
HTHT
H World Group
47.28
15.97
51.01%
CHH
Choice Hotels
91.66
-57.85
-38.69%
GHG
Greentree Hospitality Group
1.82
-0.82
-31.03%
WH
Wyndham Hotels & Resorts
73.89
-25.34
-25.54%
ATAT
Atour Lifestyle Holdings
42.90
16.68
63.62%
Soho House & Co Corporate Events
Soho House & Co Inc. Reports Q3 2025 Earnings
Nov 8, 2025
Soho House & Co Inc. is a global membership platform that offers a network of private members’ clubs, hotels, and digital spaces, catering to a diverse group of members worldwide. The company operates in the hospitality and leisure sector, known for its exclusive membership model and unique offerings.
Executive/Board ChangesDelistings and Listing ChangesM&A Transactions
Soho House & Co Appoints New CFO Amid Merger
Positive
Aug 18, 2025
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.
The most recent analyst rating on (SHCO) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Soho House & Co stock, see the SHCO Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.