Soho House 2025 Q3 Earnings Revenue Beats Estimates but Net Loss Widens Sharply

Soho House (SHCO) reported Q3 2025 results that split on key metrics: revenue exceeded expectations by 4.5% while net income collapsed 2469% to a $17.01M loss. The stock gained 0.23% in the latest session but remains near pre-earnings levels as analysts maintain a cautious "hold" rating.

Revenue

Soho House’s total revenue surged 11.2% to $370.75 million in Q3 2025, driven by robust performance across all segments. Membership revenue climbed 14.3% to $122.70 million, reflecting strong member engagement and retention. In-House revenue grew 4.5% to $126.09 million, supported by a 2% rise in RevPAR. Other revenue streams, including Scorpios and Soho Home, surged 15.8% to $121.96 million, underscoring diversification gains.

Earnings/Net Income

The company reported a net loss of $17.01 million, or $0.10 per share, a stark deterioration from $0.718 million net income in the prior-year period. Despite stable EPS, the net loss reflects $14.0 million in non-cash foreign exchange losses and operational challenges.

Post-Earnings Price Action Review

Soho House’s stock edged up 0.23% in the latest trading day but declined 0.00% for the week and gained 0.34% month-to-date. The muted post-earnings reaction aligns with analyst sentiment, as only one analyst maintains a "hold" rating. Wall Street’s median 12-month price target of $9.00, a 1.2% premium to the November 6 closing price of $8.89, suggests limited upside potential. The shares have risen 19.3% year-to-date versus the S&P 500’s 14.3% gain, but optimism remains tempered by the company’s profitability struggles.

CEO Commentary

CEO Andrew Carnie acknowledged macroeconomic and consumer behavior headwinds but emphasized strategic investments in digital transformation and hybrid workspaces. He highlighted a 11% revenue increase and 11% growth in Adjusted EBITDA, signaling confidence in long-term positioning despite the Q3 loss.

Guidance

The company provided no forward-looking guidance, leaving investors to speculate on future performance.

Additional News

1. Take-Private Agreement: Soho House confirmed a $9.00-per-share buyout offer from a consortium led by MCR and Apollo Funds, valuing the company at $2.7 billion. The deal includes an 83% premium over the December 2024 price and requires regulatory and shareholder approvals.

2. CFO Transition: Neil Thomson, a 30-year hospitality veteran, was appointed CFO effective August 18, 2025, succeeding Thomas Allen. Thomson aims to enhance operational efficiency and profitability.

3. Strategic Expansion: The company opened Soho Farmhouse Ibiza and upgraded UK properties, while introducing new wellness concepts like Lazy Lab. These initiatives reflect a focus on member experience and health-driven offerings.

Soho House’s Q3 results highlight resilience in revenue growth amid profitability challenges. While membership and diversification efforts are paying off, currency volatility and operational costs remain headwinds. Investors will closely watch the take-private process and strategic execution under new leadership.