Fri, May 9, 11:38 AM (14 days ago)
**Soho House & Co Inc. (SHCO) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $282.9M, up 8% YoY. - **Net Income:** $8.2M, a significant recovery from a $41.6M loss in Q1 2024. - **Operating Income:** $34.9M, a notable improvement from a $24.3M loss in Q1 2024. - **Cash Flow:** Positive operating cash flow of $22.8M, indicating strong liquidity. **Profit Margins:** - **Operating Margin:** 12% (improved from -9% in Q1 2024). - **Net Margin:** 2.9% (improved from -16% in Q1 2024). **Cash Flow:** - **Operating Cash Flow:** $22.8M (improved from $6.2M in Q1 2024). - **Investing Cash Flow:** -$18.3M (primarily due to capital expenditures). - **Financing Cash Flow:** -$8.5M (mainly due to debt repayments and distributions). **Earnings Changes:** - **EPS:** $0.04 (improved from -$0.21 in Q1 2024). **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by membership and in-house revenues. - **Cost Management:** Effective control over operating expenses. - **Cash Flow:** Strong operating cash flow supports liquidity and investment. **Trends & Uncertainties:** - **Positive Trends:** Membership growth and increased in-house spending. - **Uncertainties:** Economic conditions, inflation, and geopolitical risks. **Future Operations Impact:** - **Expansion:** Continued investment in new houses and digital platforms. - **Cost Control:** Ongoing efforts to manage operating expenses and debt. **Key Metrics:** - **Membership Growth:** 212,000 Soho House Members, up from 198,000 in Q1 2024. - **Retention:** High member retention rates, indicating strong brand loyalty. - **Revenue Streams:** Diversification into digital channels and retail products. **Conclusion:** SHCO's Q1 2025 performance shows significant improvement in revenue, profitability, and cash flow. The company continues to focus on membership growth, cost management, and strategic investments to drive future growth. However, economic uncertainties and geopolitical risks remain potential challenges.