Soho House & Co (SHCO) AI Stock Analysis

• Market Cap: $1.52B
• Dividend Yield: N/A
• Average Volume (3M): 722.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: 8.09%
• EPS Growth: 43.02%
• Country: US
• Employees: 8,038
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): -0.10
• Shares Outstanding: 54,149,150
• 10 Day Avg. Volume: 783,255
• 30 Day Avg. Volume: 722,393
• PEG Ratio: -0.23
• Price to Book (P/B): -4.34
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 187.73
• Enterprise Value/Market Cap: 2.69
• Enterprise Value/Revenue: 3.17
• Enterprise Value/Gross Profit: 6.19
• Enterprise Value/Ebitda: 28.85
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $7.50 ▼(-3.60% Downside)

Overall score is held down primarily by weak financial performance (losses, negative equity/high leverage, and weakening free cash flow) and bearish technicals (below major moving averages with negative MACD). Corporate events provide some support via merger progress and secured financing, but deal uncertainty remains a risk; valuation is constrained by a negative P/E and no dividend.

Positive Factors

Recurring membership revenue

A high share of recurring membership fees creates a stable, predictable revenue backbone and promotes member lifetime value. Over months this supports steady cash inflows, allows forward planning of club openings and recurring service investment, and cushions against cyclical hospitality swings.

Global brand and network

Soho House's curated global network and strong lifestyle brand create differentiated customer loyalty and network effects. This positional advantage drives higher utilization, cross-selling between clubs/hotels/events, and long-term pricing power within affluent creative-market segments.

Shareholder approval for take‑private merger

Shareholder approval clears a major governance hurdle for the planned take‑private transaction, enabling strategic restructuring away from public reporting. As a private company, management can pursue multi‑year operational changes and cost discipline without short‑term public market pressures.

Negative Factors

Negative shareholders' equity and high leverage

Negative equity and heavy reliance on debt indicate material balance sheet stress. This constrains financial flexibility, raises refinancing and covenant risks, and can force asset sales or higher borrowing costs, undermining capacity to invest in growth or absorb shocks over months.

Deteriorating free cash flow

Falling free cash flow and weak operating cash conversion suggest the business struggles to turn revenue into sustainable cash. Over the medium term this limits reinvestment, debt reduction, and cushioning for seasonality, increasing reliance on external financing for operations.

Merger financing uncertainty

A material funding gap for the proposed take‑private deal creates execution risk: the merger may be delayed, require replacement equity or more debt, or be renegotiated. Such outcomes can materially alter post‑transaction capital structure and strategic plans, with lasting impacts.

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 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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 7.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHCO, the sentiment is Negative. The current price of 7.78 is below the 20-day moving average (MA) of 8.70, below the 50-day MA of 8.79, and above the 200-day MA of 7.69, indicating a neutral trend. The MACD of -0.24 indicates Positive momentum. The RSI at 17.91 is Positive, neither overbought nor oversold. The STOCH value of 45.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SHCO.

Soho House & Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATAT	75 Outperform	$5.53B	26.44	45.85%	1.76%	36.17%	25.41%
HTHT	74 Outperform	$15.04B	28.37	32.28%	3.60%	5.70%	9.53%
WH	67 Neutral	$5.94B	18.55	57.98%	2.13%	3.38%	38.04%
CHH	63 Neutral	$4.95B	13.30	1418.13%	1.32%	2.76%	56.02%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GHG	53 Neutral	$167.52M	11.10	―	2.85%	―	―
SHCO	41 Neutral	$1.52B	-19.75	―	―	8.09%	43.02%

Soho House & Co Corporate Events

Soho House secures new financing to complete take-private

On August 15, 2025, Soho House & Co. Inc. agreed to be taken private through a merger with EH Parent LLC, an affiliate of The Yucaipa Companies, via a transaction in which a Yucaipa-controlled subsidiary will merge into the company, leaving Soho House as the surviving corporation. After MCR Hospitality Funds informed Yucaipa on January 5, 2026 that they could not fully fund their original $200 million equity commitment, the parties secured approximately $200 million in alternative financing on January 13–14, 2026, including a new $50 million equity commitment from Morse Ventures backed by a third‑party secured note facility, a revised $50 million equity commitment from MCR, an upsized senior unsecured notes facility for Soho House Holdings Limited from $150 million to $220 million, and rollover amendments by GS Funds and major shareholder Richard Caring that reduce cash needed to close by about $50 million; subject to final documentation and funding of these commitments, the parties currently plan to complete the merger by late January 2026.

The most recent analyst rating on (SHCO) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Soho House & Co stock, see the SHCO Stock Forecast page.

Soho House shareholders approve merger with EH Parent

On January 9, 2026, Soho House & Co. Inc. held a virtual special meeting of stockholders at which holders of both its Class A and higher-vote Class B common stock were represented by approximately 99.15% of the total voting power, establishing a strong quorum. At the meeting, stockholders voted overwhelmingly to adopt and approve the previously announced Agreement and Plan of Merger with EH Parent LLC and its wholly owned subsidiary, with 99.14% of the voting power of outstanding common stock in favor and 99.79% of votes cast by unaffiliated stockholders supporting the transaction, thereby satisfying both the overall majority and unaffiliated stockholder approval conditions and rendering a proposed adjournment vote unnecessary.

The most recent analyst rating on (SHCO) stock is a Sell with a $7.50 price target. To see the full list of analyst forecasts on Soho House & Co stock, see the SHCO Stock Forecast page.

Soho House merger funding uncertainty clouds shareholder vote

On August 15, 2025, Soho House & Co Inc. agreed to be taken private via a merger with EH Parent LLC, an affiliate of The Yucaipa Companies, through a structure in which EH MergerSub Inc. will merge into Soho House, leaving the company as the surviving entity. The deal financing has come under pressure after MCR Hospitality Fund IV informed Yucaipa on January 5, 2026 that it would not be able to fund in full its previously committed $200 million equity purchase in Merger Sub at $9 per share by the anticipated closing date, forcing Yucaipa, Soho House’s special committee and their advisers to seek replacement or supplemental funding from MCR affiliates and other parties with no assurance of success. Despite this uncertainty around a key funding component, Soho House plans to proceed with its January 9, 2026 special meeting for shareholders to vote on adoption of the merger agreement and the parties continue to aim to close the transaction as soon as all conditions are satisfied, leaving the timing and certainty of completion a central concern for investors and other stakeholders.

The most recent analyst rating on (SHCO) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Soho House & Co stock, see the SHCO Stock Forecast page.

Soho House Issues Supplemental Proxy Details on Merger

Soho House & Co Inc. disclosed additional details and corrections to its definitive proxy statement ahead of a January 9, 2026 special shareholders’ meeting to vote on its previously announced merger under which EH MergerSub Inc., a subsidiary of EH Parent LLC, will merge into Soho House, leaving Soho House as the surviving corporation. The supplemental filing responds to letters from purported shareholders alleging disclosure deficiencies, and, while the company denies any legal shortcomings, it is voluntarily expanding information on the merger background, the role of potential equity investors, Morgan Stanley’s valuation work and leveraged buyout analysis, Citi’s contingent advisory fees, and the bylaws that will govern the post‑merger surviving entity, in an effort to reduce litigation risk and avoid delays to closing, thereby providing shareholders with more transparency around the proposed take‑private transaction and its underlying assumptions.

The most recent analyst rating on (SHCO) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Soho House & Co stock, see the SHCO Stock Forecast page.