Soho House, the high-end members club chain, has reported improved financial results for the past year, despite facing criticism from short-sellers and considering a potential return to private ownership.
The company, which went public in July 2021, has shifted its focus back to its core business of operating exclusive clubs in major cities, moving away from pandemic-era strategies such as digital memberships and co-working spaces.
In its latest quarterly results, Soho House reported a narrowed loss of $118 million in 2023, compared to $220.6 million in 2022. The company also doubled its adjusted EBITDA profit to $128 million. Despite these improvements, Soho House’s stock has declined nearly 60% from its IPO price, and the company has faced challenges such as the downturn in commercial real estate and increased labor costs.
The earnings announcement comes on the heels of a critical report by short-seller Glasshouse Research, which compared Soho House to WeWork and called its business model “broken.”
CEO Andrew Carnie dismissed the report as “false and inaccurate,” while the company’s board is considering potential transactions, including a return to private ownership. Carnie maintains that he is satisfied with the company’s progress and would be content to continue leading Soho House as a public entity.
