Soho House & Co Inc.

Q3 total revenue increased 14% year over year to $333 million. Membership revenue rose 17% to $107 million, in-house revenue was up 5%, and other revenue increased 22%; house-level contribution rose $9 million, or 17%, with house-level margin of about 28% (up roughly 150 basis points). Adjusted EBITDA was $48 million, up 38% year over year, with margins up about 250 basis points and around 14.5%; net income was positive versus a $49 million loss in Q3 last year. For full-year guidance, Soho House reiterated membership expectations of over 212,000 members and membership revenue of $410 million to $420 million, but lowered total revenue guidance to around $1.2 billion and adjusted EBITDA guidance to approximately $140 million from prior ranges of $1.2 billion to $1.25 billion and $157 million to $165 million, respectively.

Andrew Carnie said the quarter showed continued progress on the company’s two main priorities: growing and enhancing membership and improving operational excellence. He highlighted strong membership demand, record waitlist levels, new house ramp-ups, and improving member experience through events, house upgrades, and elevated concepts like Soho Mews House. His tone was constructive, but he acknowledged the quarter also carried “noise” from restructuring, ERP work, and one-off disruptions, which he said should become a tailwind in 2025 and beyond.

Thomas Allen emphasized that the company remains strong in its core membership driver, but softened expectations for in-house and other revenue because consumer spending on food, beverage, and accommodations has been weaker than hoped. He pointed to $147 million of cash and cash equivalents, $686 million of net debt, and 5x net debt to adjusted EBITDA, while noting $13 million of share repurchases in the quarter. He also detailed over $1 million of consultant costs this quarter, a 50% increase in the accounting team, and the remediation of prior-period misstatements tied to manual errors and ERP-related work.

Analysts pressed management on how much of the EBITDA guide cut was one-time versus recurring, and Thomas said about half of the change was tied to unique items such as flooding, first-half revisions, consulting, and restructuring/ERP costs. Questions also focused on geographic trends, with Andrew saying October weakness was mainly in the UK and U.S. ahead of macro events, while November rebounded and Asia stayed okay; post-election, New York and Central Miami improved while the West Coast lagged. On the strategic review and $9-per-share offer, management repeatedly declined to comment because it is a board-level process.