SoulCycle Readies for IPO

By Chris Lange Updated Jan 13, 4:14PM EST · Published Dec 10, 12:10PM EST

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SoulCycle Readies for IPO — © Thinkstock

SoulCycle has filed an amended S-1 form with the Securities and Exchange Commission (SEC) for its initial public offering (IPO). No pricing terms were given in the filing. The company intends to list on the New York Stock Exchange under the symbol SLCY.

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 10 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 United States 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.

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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 on several factors, including the growth of the business, the actual cost of capital expenditures and cash flow from operations.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.