SoulCycle may be gearing up to go public, according to Reuters. The company offers full-body cycling workouts with a price tag of about $34 per 45-minute session.
CEOs Elizabeth Cutler and Julie Rice, who founded the company in 2006, are looking to sell their remaining stake of the company to Equinox Holdings Inc. after selling a majority stake to the fitness chain back in 2011, according to Reuters. The "dance party on a bike" company is talking with Goldman Sachs Groups to explore its options. So far, Reuters reported, unidentified sources "stressed that no decision to pursue a specific route, such as an IPO, has been made."
About 50,000 exercisers work out per week at SoulCycle's 37 locations in New York, California, Massachusetts, Connecticut, New Jersey, Washington, DC, Florida and Maryland. In the next year, the company plans to open 50 to 60 more studios, and the Chicago Business Journal reported that SoulCycle will open its first location in that city in April.
SoulCycle's cult following and the brand's loyalty among its clients would make an IPO promising, Reuters reported.
"Many SoulCycle classes with popular instructors sell out in a matter of minutes, and some customers pay up to $70 a class for perks such as early registration and a concierge service," the Reuters article stated.
According to an article in Bizwomen, GVS Capital estimated the cycling chain's revenues were about $75 million for 2014. SoulCycle accounted for about 12 percent of Equinox Holdings' earnings last year, but is the "fitness chain's fastest growing segment," according to Moody's Investors Service.