SoulCycle Files For IPO

Services

Published: July 30, 2015 3:21 pm

Last Updated: April 28, 2020 5:12 am

Source: Thinkstock

SoulCycle Inc. filed an S-1 with the Securities and Exchange Commision (SEC) for its initial public offering (IPO). There were no terms given in the filing but the offering is valued up to $100 million, although this number is usually just a placeholder. The company has not yet decided which index to list on or what symbol to list under.

The underwriters for this offering are Goldman Sachs, Merrill Lynch, Citigroup, William Blair, Cowen, and RBC Capital Markets.

The company is a rapidly growing lifestyle brand that strives to empower its riders in an immersive fitness experience. The founders, Elizabeth Cutler and Julie Rice, were introduced at a lunch ten years ago and quickly realized they shared a similar vision about the changing role of fitness in society.

The whole operation started as a single, 31-bike indoor cycling studio in New York City and has grown into a community of over 300,000 unique riders in 38 studios across the U.S. and with social media followers around the world.

In the filing, SoulCycle listed a few of its financial highlights:

Expanded studio count from 12 studios in 2012 to 36 studios in 2014, representing a compounded annual growth rate (CAGR) of 73%.
Increased classes conducted and rides from approximately 25,000 and 969,000 in 2012 to over 81,000 classes and 2.9 million rides in 2014.
Expanded total revenue from $36.2 million in 2012 to $112.0 million in 2014, representing a CAGR of 76%.
Increased Adjusted EBITDA from $11.2 million in 2012 to $35.7 million in 2014, representing a CAGR of 78% and an Adjusted EBITDA Margin of 32% in 2014.
Increased income from operations from $7.8 million in 2012 to $26.5 million in 2014.

Ultimately the company plans to use the net proceeds to pay down its outstanding borrowings. The remaining net proceeds will be used for capital expenditures, working capital and other general corporate purposes, but the amount actually used for such purposes will depend upon several factors, including the growth of the business, the actual cost of capital expenditures and cash flow from operations.

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