Wednesday, October 28, 2026
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
George Proost, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Investment weighs on Q3. Revenue increased 3% to $22.9 million, in line with expectations. Adjusted EBITDA fell to a loss of $2.2 million, modestly wider than our estimated loss of $1.5 million. The earnings shortfall largely reflected higher sales and marketing expenditures associated with the company’s transition to a paid membership model.
Membership growth accelerates. Club Members increased 65% year over year, supported by $5.8 million in direct membership acquisition spending during the quarter. Encouragingly, average U.S. customer acquisition cost fell to $54 from $62 in the second quarter, while deferred revenue rose to $13.5 million, providing greater visibility into future recurring membership revenue.
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