Cult Fitness Phenomenon SoulCycle Files For IPO

Photo: Courtesy SoulCycle.
Spinning giant SoulCycle is stepping up to the big leagues. Today, the company announced that it has filed for IPO (initial public offering), joining the likes of Google, Apple, and Facebook among publicly traded companies.

These days, when we think of IPOs, we tend to think of tech companies and startups, such as Etsy, which went public earlier this year. But, so did our favorite burger-making guilty pleasure, Shake Shack. What an IPO does is provide a company with additional capital — outside of revenues — that it can use to build and expand its business.

And according to SoulCycle's filing, build and expand it will. Here's what you need to know about the studio's IPO.
SoulCycle Plans To Have More Than 250 Studios In The U.S.
The company currently has 38 studios across seven metropolitan areas, but with the money it raises through its IPO, SoulCycle plans to expand that to 250. Right now, most of its studios (and income) are in San Francisco, New York, and Los Angeles.

Over 10,000 People Spin At SoulCycle Per Day
Thus far this year, 10,378 people have gone on 934,500 rides in 25,641 classes. That's a lot of Spinning. No word on how much sweat that equates to.

SoulCycle's Eyeing The Home Market
Can't make it into a studio? The company plans to explore at-home workouts: "We believe there is also an opportunity to expand SoulCycle class content to an 'at-home' audience," it wrote in its filing.

You're Not Alone In Your Monday Sign-Up Panic
On Mondays at noon, 30% of SoulCycle's weekly rides are selected within a 15-minute period. So, if you keep missing out on your favorite spot in the studio, try setting a reminder for Monday at 11:45 a.m.

It's Already Profitable
SoulCycle made $112 million in 2014, with a net income of $25.4 million. Not too shabby for a 21st-century torture chamber we willingly pay money to visit each week.

If It's Already Profitable, Why IPO?
Now that it has filed, SoulCycle is in its so-called "quiet period" and can't comment on the reasons behind the filing. But in general, a company goes public primarily to raise capital (which in this case will be used to expand SoulCycle's presence), to fund research and development, and to pay off existing debt. An IPO also generates a lot of publicity (hi!), which in turn can lead to a larger market share. SoulCycle aims to raise $100 million through its IPO.

SoulCycle's Swift Growth Is A Risk To Its IPO
As part of its filing, SoulCycle listed risks to its IPO, which mostly circle around user expansion and retention. Competition, the ability to attract and retain riders, and gaining acceptance in new markets are all listed as possible hurdles the indoor-cycling company faces.

What's Next?
And now, we wait as the SEC processes SoulCycle's filing. In the weeks and months ahead, the date of the company's actual IPO (when it will begin being traded publicly on the stock market) will be announced.

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