Company Overview
Soho House & Co Inc. operates a global membership platform comprising physical and digital spaces designed to connect members across the United Kingdom, the Americas, Europe, and international markets. Within this framework, the company facilitates activities ranging from professional work and socialization to creative endeavors and leisure, effectively curating an ecosystem for its user base. The enterprise is classified within the Consumer Cyclical sector and specifically operates in the Lodging industry, a classification that reflects its reliance on discretionary spending and consumer sentiment regarding lifestyle amenities. With a market capitalization of $1.76B, the company demonstrates a significant valuation within its peer group, supported by an annual revenue of $1.29B and a workforce of 8038 employees. These financial scales indicate that Soho House & Co Inc. has established itself as a substantial entity capable of sustaining operations across multiple geographies while managing a large operational footprint.
Financial Health
The company reported a trailing twelve-month revenue of $1.29B, yet it generated a net income of $-77,340,000, while maintaining an EBITDA of $119.52M. The substantial gap between the reported net income and the positive EBITDA figure reveals a cost structure heavily impacted by interest expenses and non-operating costs, as the EBITDA metric strips out these financing charges to isolate operational profitability. The firm generated $20.14M in free cash flow, which provides a degree of financial flexibility to fund operations or return capital despite the reported net losses. This positive free cash flow stands in contrast to the negative net income, suggesting that non-cash charges or interest obligations are driving the reported loss rather than a lack of operational cash generation. Margins across the business show a gross margin of 63.5%, indicating efficient management of direct costs relative to sales, while an operating margin of 2.6% highlights the challenges of covering fixed overheads. However, the profit margin stands at -6.0%, confirming that the company is currently operating at a loss on a net basis. On the balance sheet, the company holds $142.49M in cash against total debt of $2.51B, resulting in a debt-to-equity ratio that is listed as N/A due to the capital structure dynamics. The current ratio is 0.72, which indicates that the company's current assets are insufficient to cover its current liabilities without relying on external financing or asset sales. Return on Equity is listed as N/A, likely due to the equity base being negative or the accounting treatment of the losses, while the Return on Assets is 0.5%, revealing a minimal positive return generated on the total asset base relative to the scale of assets employed.
Valuation Assessment
The trailing P/E ratio is N/A due to the negative net income, whereas the forward P/E is -64.21, which implies that future earnings expectations are currently priced as negative or that the market is pricing in significant recovery potential. The price-to-book ratio is -5.00, a negative figure that indicates the market values the company at a significant discount relative to its book value, often seen in distressed or turnaround situations where tangible assets exceed the market cap. The price-to-sales ratio is 1.36, and the EV/EBITDA stands at 34.53; these alternative metrics suggest that the market is willing to pay a premium of roughly 1.36 times revenue, but the high EV/EBITDA multiple reflects the high enterprise value relative to the adjusted earnings before interest, taxes, depreciation, and amortization. The stock has traded between a 52-week low of $4.77 and a 52-week high of $9.00, and without a specific current price provided in the facts, the valuation range establishes the volatility band within which the security has operated over the last year. The beta value is 0.69, which indicates that the stock price is less volatile than the broader market, moving at approximately 31% lower intensity than the market index during periods of standard fluctuation.
Growth & Income
Revenue growth year-over-year is 11.2%, demonstrating a robust expansion in top-line sales, while earnings growth is listed as N/A due to the negative earnings baseline. The absence of positive earnings growth data combined with the strong revenue expansion implies that the company is currently in a reinvestment phase where top-line gains are not yet translating into bottom-line profitability. The company does not pay a dividend, as evidenced by a dividend yield of N/A and a payout ratio of 0.0%. Since there are no dividends to analyze for sustainability, the company effectively reinvests its operational cash flows and retained earnings into business growth initiatives rather than distributing income to shareholders. The overall growth and income profile is characterized by strong revenue expansion that is currently decoupled from profitability, with no income distribution to shareholders as the firm prioritizes capital allocation toward operational scaling and market penetration.