Total revenue for the quarter ended September 28 rose 11.2% to $370.75 million, driven by a 10.8% increase in membership revenue to $122.70 million and a 10.5% rise in in‑house revenue to $126.09 million. Other revenue, which includes Soho Home and ancillary services, grew 1.5% to $121.96 million. The modest growth in other revenue reflects a slight slowdown in the home‑goods segment, offset by a 12% uptick in membership‑related services.
Adjusted EBITDA climbed to $53.77 million, an 11.4% year‑over‑year gain, and the margin expanded to 15% from 14% in Q3 2024. The margin lift is largely attributable to higher mix of high‑margin membership and in‑house services, as well as improved operational leverage from the ongoing ERP transformation. Net income attributable to the company was a loss of $18.71 million, a result of one‑time costs associated with the ERP rollout and restructuring charges that were not included in adjusted EBITDA.
Membership revenue, the core driver of growth, increased 10.8% to $122.70 million, reflecting a 3% rise in new member sign‑ups and a 2% increase in average spend per member. In‑house revenue, which covers food, beverage, and event sales, grew 10.5% to $126.09 million, supported by higher footfall at flagship houses and a 4% price lift on premium services. Other revenue, largely from Soho Home, grew modestly, while house‑level contribution reached $67.43 million with a 28% margin, underscoring the profitability of the core hospitality model.
Management highlighted that the net loss is a short‑term cost of investing in the ERP transformation, which is expected to deliver long‑term efficiency gains. CEO Andrew Carnie noted that “the ERP rollout is a strategic investment that will streamline operations and support our membership‑driven growth.” CFO Thomas Allen added that “the restructuring and ERP costs are one‑time items that will be absorbed in the next two quarters, after which we expect adjusted EBITDA to grow at a higher rate.”
Looking ahead, the company maintained its full‑year revenue guidance of $1.18 billion, unchanged from the prior quarter, and reiterated its target for an adjusted EBITDA margin of 15% to 16% for the year. Management expressed confidence that the continued expansion of the membership waitlist—now at 111,000—will sustain demand, while acknowledging that the “choppy consumer environment” could temper short‑term growth. The company’s focus on member experience and strategic investments in high‑margin services positions it to capitalize on the resilient membership model, even as it navigates the temporary drag from ERP implementation.
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