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Alphabet, the parent company of Google, has officially crossed the $3 trillion market capitalization threshold, becoming the fourth U.S. company to reach the milestone. Shares jumped more than 4% on Monday, propelling the tech giant into an elite group alongside Apple, Microsoft, and Nvidia.

The rally marks a historic moment for the company, which debuted on the stock market a little over 20 years ago and restructured as Alphabet a decade ago. This latest achievement comes amid heightened regulatory scrutiny, rapid advances in artificial intelligence, and intense competition in the tech sector.

Alphabet’s surge in September was fueled in large part by a favorable antitrust ruling. While a federal district court had previously found that Google held an illegal monopoly in search and advertising, the U.S. Department of Justice had pushed for harsher penalties, including a potential divestiture of the Chrome browser.

Judge Amit Mehta, however, stopped short of imposing the most severe remedies. That decision was viewed positively by investors, eliminating fears of a major breakup and giving Alphabet shares room to climb to record highs.

The judgment was celebrated not only by Wall Street but also drew national attention, with President Donald Trump publicly congratulating the company and calling it “a very good day.”

Alphabet’s $3 trillion valuation underscores its dominant role in the digital economy. The company has continued to grow despite facing challenges from emerging players in artificial intelligence, such as OpenAI and Perplexity, while also navigating increasing scrutiny from regulators in the U.S. and Europe.

CEO Sundar Pichai, who took over leadership of Alphabet in 2019, has steered the company through rapid industry change, balancing its core dominance in search and digital advertising with heavy investments in AI, cloud computing, and next-generation consumer technologies.

Alphabet’s shares are up more than 30% this year, more than double the Nasdaq’s 15% gain over the same period. The milestone reinforces its status as one of the most influential companies in the world, with billions of users relying on its products daily.

Alphabet’s achievement comes in a year when tech has dominated global markets. Nvidia, Apple, and Microsoft have all benefited from AI-driven growth, hardware innovation, and strong investor appetite for large-cap technology stocks. Alphabet’s entry into the $3 trillion club signals continued investor confidence that the company will remain at the center of technological transformation in the decade ahead.

With its valuation now cementing it as one of the world’s most valuable firms, Alphabet faces the dual challenge of maintaining growth while navigating ongoing regulatory battles and increasing competition. For investors, the latest milestone highlights both the resilience of Alphabet’s business model and its ability to adapt to a rapidly changing technology landscape.

California Resources Corporation (NYSE: CRC) and Berry Corporation (NASDAQ: BRY) announced today that they will merge in an all-stock transaction valued at approximately $717 million, including Berry’s net debt. The deal, unanimously approved by both companies’ boards, is set to create a more efficient, financially robust leader in California’s energy sector.

Under the agreement, Berry shareholders will receive 0.0718 shares of CRC common stock for each Berry share owned, representing a 15% premium based on the companies’ closing stock prices on September 12, 2025. Once completed, CRC shareholders will own roughly 94% of the combined company, while Berry investors will hold about 6%.

The merger values the combined entity at more than $6 billion and is expected to close in the first quarter of 2026, subject to shareholder and regulatory approvals. CRC’s executive management team will lead the unified company from its headquarters in Long Beach, California.

CRC President and CEO Francisco Leon emphasized that the merger strengthens the company’s portfolio by adding high-quality, oil-weighted reserves, while positioning it to generate higher free cash flow. The combined company expects to produce approximately 161,000 barrels of oil equivalent per day (81% oil) based on second-quarter 2025 figures and hold nearly 652 million barrels of proved reserves.

Berry brings with it not only valuable oil and gas assets in California and Utah but also ownership of C&J Well Services, an oilfield services subsidiary. This unit is expected to enhance CRC’s operational efficiency, support well maintenance, and help mitigate future cost pressures.

The deal is priced at about 2.9x enterprise value to 2025 estimated adjusted EBITDAX and is expected to be immediately accretive to free cash flow and net cash from operations. CRC anticipates generating annual synergies of $80–90 million within 12 months of closing, with half of those savings expected to be realized in the first six months.

Both companies stressed that the transaction maintains financial strength, with the combined entity projected to carry less than 1.0x leverage. Approximately 70% of expected second-half 2025 oil production will be hedged at a Brent floor price of $68 per barrel, providing a layer of stability amid commodity market volatility.

Beyond California, Berry’s large position in Utah’s Uinta Basin — about 100,000 net acres — adds strategic optionality and development potential for CRC. Four recently drilled horizontal wells in the basin are already producing significant volumes, with peak output expected in the coming weeks.

Berry’s Board Chair Renée Hornbaker highlighted that the merger strengthens both companies’ ability to deliver reliable, affordable energy to California while creating long-term shareholder value.

The transaction underscores a trend of consolidation within the energy sector as companies look to scale up, cut costs, and position themselves for a changing regulatory and market environment.

Friday, September 05, 2025

For more than 45 years, 1-800-Flowers.com has offered truly original floral arrangements, plants and unique gifts to celebrate birthdays, anniversaries, everyday occasions, and seasonal holidays, and to deliver comfort during times of grief. Backed by a caring team obsessed with service, 1-800-Flowers.com provides customers thoughtful ways to express themselves and connect with the most important people in their lives. 1-800-Flowers.com is part of the 1-800-FLOWERS.COM, Inc. family of brands. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Weak Q4 results. Fiscal Q4 revenues declined 6.7% to $336.6 million, roughly in line with our $338.0 million estimate. Adj. EBITDA loss of $24.2 million was larger than our loss estimate of $20.5 million. The quarter benefited by the Easter shift from Q3 a year earlier into Q4 this year. Gross margins declined 290 basis points from the year earlier quarter, in part, due to a highly promotional sales environment. 

Reimagining its business. Management indicated that it is seeking an omnichannel approach to target customers, including opening storefronts, and broadening its reach beyond its own e-commerce sites. The company plans to lower its operating costs beyond the earlier announced $40 million in annualized costs, of which $17 million of annualized costs reductions were achieved in Q4. 

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U.S. stocks slipped on Friday as investors locked in profits heading into the long weekend, but the pullback wasn’t enough to erase August’s gains. The S&P 500 retreated 0.7% after notching a fresh record earlier in the week, while the Nasdaq Composite dropped 1.2% and the Dow Jones Industrial Average fell 123 points, or 0.3%.

Despite the losses, August remains another winning month for equities. The Dow is tracking a roughly 3% gain, the S&P 500 is up nearly 2%, and the Nasdaq has advanced more than 1%. That would mark the fourth consecutive month of gains for the broad market index, underscoring investor resilience even as inflation data and policy uncertainty remain in focus.

A key driver of Friday’s caution was the latest reading of the Federal Reserve’s preferred inflation gauge. Core Personal Consumption Expenditures (PCE) rose 2.9% year-over-year in July, matching expectations but accelerating from the prior month. The increase, the highest since February, highlighted ongoing price pressures just as the Fed prepares for its September policy meeting.

While inflation remains sticky, market consensus still points to a rate cut next month. Analysts note that the Fed is increasingly balancing inflation concerns against signs of cooling in the labor market. For now, many strategists believe the central bank will move forward with a cut, although the pace and magnitude of easing remain open questions.

Friday’s weakness also came against the backdrop of strong recent performance, leading some to view the decline as simple profit-taking. The S&P 500 had just closed above the 6,500 level for the first time, and investors often trim positions after fresh highs ahead of holiday weekends.

Earnings season added another layer to the cautious mood. Nvidia, which recently reported 56% revenue growth and reaffirmed its position at the center of the AI trade, slid 3% as traders digested headlines about China’s Alibaba developing a more advanced chip. The update raised questions about long-term competition and underscored the geopolitical risks surrounding U.S. technology exports.

Elsewhere, tariff worries resurfaced after Caterpillar warned of a potential $1.5 billion to $1.8 billion hit this year from new U.S. trade measures. Retailer Gap also flagged pressure on profits, highlighting how trade policy remains a headwind for corporate America.

Looking ahead, September looms as a potential test for the rally. Historically, the month has been the weakest for stocks, with the S&P 500 averaging a 0.7% decline since 1950, according to The Stock Trader’s Almanac. Bespoke Investment Group notes that the index has posted especially lackluster September performances over the past decade.

Still, momentum heading into the new month suggests investors are willing to look past near-term headwinds. With inflation cooling gradually, the Fed leaning toward easing, and earnings broadly holding up, the market may find support even as seasonal trends turn less favorable.

Fresh inflation data released Friday, August 29, 2025, showed that prices ticked higher in July but remained in line with forecasts, reinforcing expectations that the Federal Reserve will move forward with an interest rate cut in September.

The Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge, showed that core prices—excluding food and energy—rose 2.9% year-over-year, the highest since February and up from 2.8% in June. On a monthly basis, core PCE climbed 0.3%. The headline index increased 2.6% annually and 0.2% month-over-month.

While inflation is still running above the Fed’s 2% target, the pace was anticipated by markets, easing fears of a policy shift. Energy costs declined 2.7% from a year earlier, while food prices rose just 1.9%. Services remained the main driver of inflation, advancing 3.6% compared with a modest 0.5% increase in goods.

Despite higher prices, consumer activity remained resilient. Personal spending grew 0.5% in July, matching forecasts, while personal income rose 0.4%. The strength in household demand suggests that U.S. consumers continue to support the economy even as tariffs and price pressures persist.

The figures indicate that recent tariff measures imposed by President Donald Trump, including a 10% baseline levy on imports and reciprocal duties on key trading partners, are filtering through the economy but not yet significantly curbing demand.

While inflation remains slightly elevated, policymakers have shifted their focus to the labor market. Payroll data for July revealed slower job creation and downward revisions to previous months, raising concerns that employment growth may be softening more sharply than anticipated. Fed Chair Jerome Powell noted last week that both labor supply and demand are cooling, increasing the risk of higher unemployment.

Fed Governor Christopher Waller reiterated his support for a 25-basis-point cut in September, noting that downside labor risks outweigh modest inflation pressures. He added that he would consider a larger move if August employment data, due September 5, shows further weakening.

Markets continue to price in a strong likelihood of a September 17 rate cut, with traders expecting a quarter-point reduction. Analysts suggest that unless upcoming inflation releases—such as the Producer Price Index (PPI) and Consumer Price Index (CPI) in mid-September—surprise sharply to the upside, policymakers will move ahead with easing.

Equities remained under pressure following the release, with the S&P 500 down around 0.7% in midday trading. Treasury yields held firm, reflecting expectations for lower borrowing costs in the months ahead.

For investors, the Fed’s path suggests a supportive environment for equities, particularly small- and mid-cap firms that benefit most from lower financing costs. Fixed income markets may also find support as yields adjust lower. Meanwhile, commodities such as gold are likely to retain a bid, with lower rates reducing the opportunity cost of holding non-yielding assets.

The bottom line: while inflation remains above target, the Fed appears set to prioritize employment risks, keeping September’s policy meeting squarely on track for a rate cut.

The U.S. government’s surprise move to take a nearly 10% stake in Intel has raised fresh questions about whether similar investments could be directed toward defense contractors. Commerce Secretary Howard Lutnick signaled this week that defense remains a central area of discussion, citing its deep ties to government funding and its strategic importance to national security.

The comments sent shares of major defense primes such as Lockheed Martin and Northrop Grumman higher, underscoring how sensitive the sector is to policy developments. But beyond the established giants, investors are now weighing whether small-cap defense firms could become the next beneficiaries of heightened federal interest.

Unlike the household names of the defense world, many smaller contractors play critical yet less visible roles in the military supply chain. These firms often specialize in advanced components, niche technologies, cybersecurity solutions, or unmanned systems. With Washington openly considering how to finance munitions acquisitions and strengthen industrial capacity, smaller players could find themselves on stronger footing.

For small-cap stocks, the potential upside comes from two angles. First, government scrutiny of prime contractors could create opportunities for subcontractors to capture a greater share of defense budgets. If policy shifts encourage more competition in procurement, companies developing next-generation drones, satellite systems, or precision components could see contracts flow their way. Second, direct or indirect investment by the U.S. could help shore up balance sheets and provide access to growth capital that is often scarce in the sector.

The Intel deal also signals a broader shift in Washington’s approach to industrial policy. By taking an equity stake rather than simply providing subsidies, the government aligned its financial interests with a major company’s success. If similar mechanisms are applied in defense, even at smaller scales, it could transform the risk–reward profile for publicly traded small-cap contractors. Investors would be betting not just on execution, but on the implicit backing of federal policy.

Still, risks remain. The defense sector is highly regulated, and the prospect of deeper government involvement raises questions about oversight and shareholder rights. The Intel deal gave the U.S. no board seat or governance role, but uncertainty lingers over how similar arrangements might play out in defense. Additionally, defense budgets are subject to political cycles, making small-cap firms vulnerable to swings in appropriations and shifting strategic priorities.

Market reaction to Lutnick’s remarks illustrates how policy talk alone can move stocks, but investors should be cautious about reading too much into early signals. Large primes like Lockheed Martin remain deeply entrenched as key suppliers, and any structural changes would take time to ripple through the industry. For smaller contractors, however, the current environment could present a rare window of opportunity.

If the government follows through on exploring new financing models for defense, small-cap stocks could benefit disproportionately, gaining visibility, liquidity, and growth momentum. For investors willing to tolerate the volatility, Lutnick’s comments may have opened the door to a new chapter in defense-sector investing—one where the biggest opportunities lie not only with the giants, but with the up-and-coming firms that keep the supply chain moving.

Crescent Energy Company (NYSE: CRGY) has struck a $3.1 billion all-stock deal to acquire Vital Energy, Inc. (NYSE: VTLE), positioning the combined business as one of the top 10 independent oil and gas producers in the United States. The merger, unanimously approved by both companies’ boards, will establish a scaled operator with a strategy anchored in free cash flow generation, disciplined capital allocation, and shareholder returns.

The agreement values Vital at a modest premium, with its shareholders receiving 1.9062 shares of Crescent Class A common stock for each Vital share. Upon closing, Crescent shareholders will own roughly 77% of the combined entity, while Vital investors will hold about 23%. The deal, inclusive of Vital’s net debt, represents a significant consolidation move in the energy sector, with closing targeted by year-end 2025 pending shareholder and regulatory approvals.

The transaction is framed as accretive across all major financial metrics, with Crescent projecting $90 million to $100 million in annual synergies right out of the gate. The company also sees room for additional efficiencies as operations are integrated. The deal strengthens Crescent’s already formidable position in the Eagle Ford, Permian, and Uinta basins, giving it more than a decade of high-quality drilling inventory and greater flexibility in capital deployment.

Management emphasized that the acquisition fits squarely within Crescent’s long-standing strategy: acquiring assets at attractive valuations, running them with lower activity levels, and emphasizing free cash flow and sustainable shareholder returns. The merger will also advance Crescent’s goal of sharpening its balance sheet, supported by a $1 billion pipeline of planned non-core asset sales.

The combined company is expected to become the largest U.S. liquids-weighted producer without an investment-grade rating, but Crescent’s leadership underscored its line of sight toward achieving that milestone in the coming years. With the expanded scale and diversified asset base, executives believe the business will be better positioned to weather commodity cycles while maintaining peer-leading dividends.

For Vital, the deal represents both recognition of its progress and an opportunity to accelerate growth. By merging into Crescent’s platform, Vital gains access to broader capital allocation flexibility and a proven framework for free cash flow optimization. The addition of Vital’s resources is anticipated to further strengthen Crescent’s ability to generate stable returns even as the energy sector faces volatility in prices and regulatory pressures.

Governance of the new company will reflect the integration, with Crescent expanding its board to 12 members, including two directors from Vital. John Goff will remain Crescent’s non-executive chairman, and David Rockecharlie will continue as chief executive officer. Headquarters will stay in Houston, reinforcing Crescent’s position as a central player in the U.S. energy heartland.

With U.S. oil and gas companies under increasing pressure to deliver efficiency and capital discipline, this merger highlights the ongoing consolidation trend across the sector. By combining two mid-cap operators into a top-tier independent, Crescent is betting that scale, synergies, and a relentless focus on free cash flow will be the winning formula for long-term shareholder value.

Markets are experiencing a rare moment in financial history. Nearly every major benchmark or asset class is sitting at record levels — from the Dow Jones and Nasdaq to gold, Bitcoin, housing values, rents, IPOs, and merger activity. Even the U.S. national debt has climbed to historic highs. The only notable exception is the Russell 2000 small-cap index, which has lagged behind its larger-cap peers.

This convergence of highs across so many areas raises critical questions: Is this sustainable, and where should investors look next?

At the heart of the rally is anticipation. Inflation has eased enough for Wall Street to believe the Federal Reserve will begin cutting interest rates in the coming months. Markets tend to price in expectations before policy changes occur, which explains why equities, real estate, and digital assets have surged despite borrowing costs still being elevated.

Corporate strength is also contributing. Tech giants continue to deliver outsized earnings, fueling growth in the Nasdaq, while strong balance sheets across industries are powering mergers and acquisitions at a record pace. Investors aren’t just chasing momentum; they’re betting on resilient fundamentals.

Interestingly, the surge is not limited to risk assets. Gold and Bitcoin, often viewed as hedges against uncertainty, have also reached record highs. That signals investors are not fully comfortable with the backdrop of ballooning U.S. debt, currency volatility, and geopolitical tensions.

In short, markets are climbing on optimism — but they’re also hedging.

The biggest challenge is valuation. Equities trading at record levels are vulnerable if earnings slow or if rate cuts fail to materialize. Housing markets, while supported by supply shortages, remain stretched on affordability. IPOs and M&A often peak late in a cycle, suggesting companies may be capitalizing on favorable conditions before they shift.

The Federal Reserve is the wild card. If policymakers cut rates in September as many expect, small-cap stocks — represented by the Russell 2000 — could see sharp gains. These companies are more sensitive to borrowing costs and have lagged during the tightening cycle. Conversely, if the Fed holds rates steady or signals fewer cuts, markets could face a correction.

Where Investors Should Look

Given the uncertainty, balance is essential. Investors might consider:

• Small Caps (Russell 2000): The one major index not at record highs, offering upside potential if rates decline.
• Defensive Dividend Stocks: Companies with consistent cash flow in healthcare, consumer staples, and utilities provide resilience.
• Gold and Bitcoin: Effective hedges amid debt concerns and potential dollar weakness.
• Global Diversification: International markets, many of which trade at lower valuations, offer opportunity.
• Cash and Treasuries: With attractive short-term yields, keeping dry powder for potential volatility makes sense.

Markets are in uncharted territory, with nearly everything at record highs. Optimism about rate cuts and earnings strength is driving the surge, but stretched valuations and policy uncertainty suggest caution. Investors who balance growth exposure with hedges and defensive positions may be best positioned for what comes next.

Guess?, Inc. (NYSE: GES) will exit public markets after agreeing to a $1.4 billion buyout led by its co-founders and Authentic Brands Group, in a move that highlights the growing shift of heritage fashion labels into private ownership backed by global licensing platforms.

The transaction values Guess? at $16.75 per share, representing a premium of about 73% to the company’s unaffected stock price as of mid-March. The offer ranks among the year’s largest fashion buyouts, underscoring the resilience of brand-driven retail even in a challenging consumer environment.

Under the terms of the agreement, Authentic Brands will acquire a majority stake in Guess?’s intellectual property portfolio, while the Marciano family and CEO Carlos Alberini will retain the remaining interest. The operating company, which runs Guess?’s stores, e-commerce, and wholesale operations, will remain entirely under existing management. This structure reflects Authentic’s typical playbook: leveraging its brand management expertise and global licensing network, while entrusting day-to-day operations to experienced retail leaders.

For Guess?, going private provides greater strategic flexibility. Freed from the pressures of quarterly earnings, the company will be positioned to pursue long-term brand building, international expansion, and potential new product categories. The involvement of Authentic Brands, which manages more than 50 global names across fashion, sports, and lifestyle, signals a push to extend Guess?’s reach through licensing deals, partnerships, and new distribution channels.

The premium offered to shareholders is intended to deliver immediate value while also recognizing the enduring equity of Guess?’s brand. After more than four decades in business, Guess? has built one of the most recognizable names in denim and lifestyle apparel. Despite industry headwinds, the company has improved its financial discipline in recent years, strengthened its e-commerce channels, and invested in expanding its global footprint.

For Authentic Brands, the deal further consolidates its position as a dominant force in fashion and brand licensing. Adding Guess? to its portfolio not only diversifies its holdings but also provides another globally recognized fashion label that can be scaled across markets and categories.

The buyout reflects broader trends in retail, where public markets have often undervalued legacy fashion brands relative to their long-term licensing potential. By combining private ownership with Authentic’s infrastructure, Guess? is expected to transition from being primarily a retail operator to becoming a broader lifestyle platform with stronger global licensing opportunities.

The transaction is expected to close in Guess?’s fiscal fourth quarter of 2026, subject to regulatory approvals and a shareholder vote. Once complete, Guess? shares will be delisted from the New York Stock Exchange, marking the company’s shift into a new era of private ownership and long-term brand development.

Federal Reserve Chair Jerome Powell will take the stage at this week’s Jackson Hole Economic Symposium under some of the most difficult circumstances of his tenure, with markets, policymakers, and global counterparts all watching for signals about the path ahead.

The annual gathering in Wyoming comes at a pivotal time. Inflation has remained stubbornly above the Fed’s 2% target for four years, with recent indicators pointing to renewed upward momentum. At the same time, signs of a weakening labor market have begun to surface, raising questions about the balance between price stability and employment—two pillars of the central bank’s mandate.

Powell’s address is expected to be his last as Fed chair, adding even more weight to his words. Yet the environment he faces is unusually complex. Not only is the economy sending mixed signals, but political scrutiny of the central bank is intensifying, and divisions within the Federal Open Market Committee have become increasingly visible. The recent dissent among Fed governors—the first in decades—underscores that fracture. Meanwhile, the nomination of a new governor known for his sharp critiques of recent policy decisions further complicates Powell’s ability to unify the institution.

Investors remain split on what they hope to hear. Some want clarity on whether the Fed will move to cut interest rates as soon as September, while others are looking for insights into the deeper structural changes reshaping the labor market. The official theme of this year’s symposium is employment, but the debate over monetary policy and the Fed’s long-term framework is expected to dominate conversations.

Data dependence has long been the hallmark of Powell’s approach, but that strategy is increasingly being tested. Inflation readings have painted a conflicting picture: headline CPI slowed last month, but producer prices accelerated, and consumer surveys revealed rising inflation expectations. On the labor front, headline unemployment remains steady at just above 4%, yet underlying weakness is evident in reduced hiring, sector-specific job growth, and challenges facing new graduates.

Layered onto this economic backdrop are broader forces complicating the outlook. Tighter immigration policies under the Trump administration are reshaping the available workforce, while artificial intelligence raises new uncertainties about whether technology will ultimately augment or displace labor. Both trends make it harder to interpret traditional indicators.

Powell must also navigate the unveiling of a revised Monetary Policy Framework, which will guide how the Fed pursues its dual mandate in the years ahead. The last framework, designed to combat inflation undershooting, proved inadequate for the structural shocks that emerged after 2020. Whether the new iteration will address current challenges—or simply repackage old assumptions—remains an open question.

Markets are bracing for potential volatility. If Powell leans too heavily on flexibility and avoids specifics, investors may interpret it as indecision, further eroding confidence in the Fed’s direction. Conversely, signaling aggressive easing could push bond markets to react sharply, steepening the yield curve in ways reminiscent of last year’s turbulence.

The stakes at Jackson Hole could hardly be higher. Powell will not only be judged on how he balances immediate economic risks but also on how he frames the Fed’s strategic direction for a world that looks markedly different than when he first assumed the chair. With his legacy and the institution’s credibility on the line, his final address may shape how policymakers, markets, and history remember his leadership.

Soho House & Co Inc., the global private members’ club operator, has agreed to a definitive take-private transaction valued at approximately $2.7 billion. The deal will see investors led by MCR acquire outstanding shares not already held by key stakeholders, while longtime backers Ron Burkle and Yucaipa will maintain majority control by rolling their existing equity.

Under the terms of the agreement, shareholders will receive $9.00 per share in cash—an 83% premium to Soho House’s unaffected stock price in December 2024. Once completed, the company’s shares will be delisted from the New York Stock Exchange, marking a return to private ownership just four years after its 2021 IPO.

MCR, one of the largest hotel owner-operators in the U.S., is set to become a significant shareholder, bringing with it a portfolio of high-profile properties including the TWA Hotel at JFK, The High Line Hotel, and the Gramercy Park Hotel. MCR’s Chairman and CEO, Tyler Morse, will join Soho House’s board as Vice Chairman, signaling the group’s intent to expand its hospitality expertise across the brand.

Financial backing comes from Apollo Funds, which structured a hybrid capital solution combining debt and equity to refinance Soho House’s existing senior notes while injecting new liquidity. Goldman Sachs Alternatives, an investor since 2021, will continue its support with additional capital commitments.

The transaction will also introduce fresh strategic partners, including actor and tech investor Ashton Kutcher, who will join the board following completion. Other significant shareholders—such as Richard Caring, Soho House founder Nick Jones, and Goldman Sachs Alternatives—are retaining the majority of their equity positions, further reinforcing long-term confidence in the business.

Soho House has expanded its network of private members’ clubs to 46 locations worldwide, with recent openings in São Paulo, Mexico City, Nashville, and Paris. From 2022 through 2024, the company achieved consistent double-digit revenue growth alongside a more than 50% average annual increase in adjusted EBITDA, despite a challenging global economy.

The shift back to private ownership is expected to give the company greater flexibility to pursue its long-term strategy. Executives believe the move will allow Soho House to focus on enhancing the member experience, scaling operational systems, and expanding its global footprint without the quarterly scrutiny of public markets.

With four new Houses slated to open in the near future, the company’s leadership and new investor group see significant opportunity to deepen Soho House’s cultural influence while driving sustainable profitability. The combination of MCR’s hospitality expertise, Apollo’s capital resources, and Goldman Sachs Alternatives’ continued backing is expected to position the brand for accelerated international growth.

The deal is expected to close by the end of 2025, pending shareholder and regulatory approvals. Once finalized, Soho House will continue its mission of connecting a diverse global community of creatives, entrepreneurs, and cultural leaders within its expanding network of clubs and lifestyle businesses.

Friday, August 15, 2025

DLH delivers improved health and readiness solutions for federal programs through research, development, and innovative care processes. The Company’s experts in public health, performance evaluation, and health operations solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,300 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to public health to improve the lives of millions. For more information, visit www.DLHcorp.com.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Task Order. DLH has been awarded a task order valued at up to $46.9 million to continue providing information technology services, including enterprise IT systems management, cyber security, software development, cloud computing, and more, to the National Institutes of Health’s Office of Information Technology (“OIT”).

Details. The task order includes a base period and multiple options aggregating to a three-year period of performance. Through this award, DLH will leverage a comprehensive suite of digital transformation and cyber security solutions to support approximately 7,000 end-customers. As part of this new effort, DLH will design and implement a cloud migration strategy built on partnerships with leading commercial CSP vendors, including Azure, AWS, and Google.

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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.