Arhaus, Inc. (ARHS)

Price$8.61Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe valuation is reasonable only if improving orders become lasting, cash-backed profit growth.

Using 141.7 million outstanding shares, the market values Arhaus at about $1.15 billion. Management’s 2026 net-income forecast of $71 million to $80 million implies roughly 14 to 16 times earnings. However, that forecast includes a $23.8 million pretax tariff-refund benefit. Removing its estimated after-tax effect raises the multiple to roughly 18 to 21 times normalized earnings. The price also equals about 19 times 2025 free cash flow, meaning cash left after operating and investment spending. That supports a fair-priced verdict.

Big pictureSales are growing again, yet profit quality remains far below its earlier peak.

Premium furniture purchases are easy to postpone, and Arhaus’s results demonstrate that cyclicality. Revenue slipped 1.3% in 2024, while operating margin fell to 6.8% from 12.8% in 2023. Revenue rebounded 8.5% in 2025, but net income still declined 1.9%, leaving operating margin at 6.4%, versus 15.0% in 2022. First-half 2026 revenue grew 4.4%. This suggests showroom expansion supports sales, while store, labor and merchandise costs have absorbed much of the gain.

Business strengthCash and no bank borrowing protect downside, though store leases remain substantial.

At June 30, 2026, Arhaus held $226 million of cash and had no borrowings; current assets of $643 million exceeded current liabilities of $484 million. The SEC-derived $609 million debt total consists of recorded operating and finance lease obligations, mainly for showrooms, so fixed rent remains real. Free cash flow was $59 million in 2025 but fell to $23 million in first-half 2026 from $40 million. Arhaus paid a $49 million special dividend, while shares rose 2.3% since 2022; small tax-withholding buybacks did not offset dilution.

What could change the storyNew orders support the bull case, while weak underlying margins anchor the bear case.

Second-quarter written orders rose 12.5%, an early demand signal, and 109 showrooms plus four to six planned openings offer market-share growth. The bull case strengthens if those orders become delivered sales and profit holds after the refund benefit fades. The bear case remains significant: excluding the $23.8 million one-time benefit, first-half operating profit was roughly 38% below the prior year, while full-year same-store delivered-sales guidance is only 0% to 3%. Financial-reporting controls also remained ineffective. Durable margin recovery would justify upside; stalled comparable sales or weaker cash generation would imply downside.

AI: News

Second-quarter reboundSecond-quarter sales beat expectations, but a tariff refund inflated the profit improvement.

On August 6, Arhaus reported revenue of $385 million, up 7.4%, with same-store delivered sales rising 4.0% and written orders rising 12.5%. Net income increased 13.1% to $40 million, although a $23.8 million tariff-recovery benefit materially boosted profit. Full-year revenue guidance remained $1.43 billion to $1.47 billion, while profit guidance rose to reflect the refund. Shares closed 17.6% higher that day. The timing and elevated trading volume make the report the likely driver, though timing alone cannot prove causation.

First-quarter demand setbackFirst-quarter orders weakened and profits fell sharply, exposing the business to spending cycles.

On May 7, Arhaus reported first-quarter revenue of $314 million, up only 0.9%. Same-store written orders fell 5.7%, delivered sales declined 1.7%, and net income dropped 54.5% to $2 million as operating expenses nearly consumed gross profit. Management nevertheless maintained its full-year outlook and said order trends had improved later in the quarter. Shares closed 6.8% lower that day and fell another 8.1% the following session. The timing suggests concern about demand and profitability, but does not establish exclusive causation.

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Revenue

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Net income

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Free cash flow

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Financial statements

	2025	2024	2023	2022	2021 · Dec 31	2021 · Nov 8	2020	2019
Revenue	$1.38B	$1.27B	$1.29B	$1.23B	$796.9M	—	$507.4M	$494.5M
Gross profit	$536.4M	$501.2M	$540.4M	$525.1M	$329.9M	—	$199.5M	$176.0M
Gross margin	38.89%	39.43%	41.97%	42.72%	41.40%	—	39.32%	35.59%
Operating expenses	$447.5M	$414.2M	$376.1M	$340.4M	$296.6M	—	$168.6M	$146.3M
Operating income	$88.9M	$87.0M	$164.3M	$184.7M	$33.4M	—	$30.9M	$29.7M
Operating margin	6.44%	6.84%	12.76%	15.03%	4.18%	—	6.09%	6.00%
EBITDA	$135.7M	$126.1M	$193.8M	$209.6M	$57.3M	—	$47.8M	$45.6M
EBITDA margin	9.84%	9.92%	15.05%	17.05%	7.19%	—	9.43%	9.23%
Net income	$67.3M	$68.5M	$125.2M	$136.6M	$21.1M	$23.8M	$6.1M	$7.5M
Net profit margin	4.88%	5.39%	9.73%	11.12%	2.65%	—	1.20%	1.52%
Basic EPSper basic share	$0.48	$0.49	$0.90	$0.99	$0.18	—	$0.03	$0.04
Diluted EPSper diluted share	$0.48	$0.49	$0.89	$0.98	$0.18	—	$0.03	$0.04

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Owners

Reported shareholders

Reference date Jun 30, 2026

8.26%of listed shares

BlackRock, Inc.4.51M shares · Jun 30, 2026

View holders

Top 20 reported holders of ARHS
Holder	% owned
BlackRock, Inc.	8.26%4.51M shares
SIGNATUREFD, LLC	5.62%3.07M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	4.80%2.62M shares
Long Focus Capital Management, LLC	4.49%2.45M shares
EMERALD ADVISERS, LLC	4.35%2.38M shares
VANGUARD CAPITAL MANAGEMENT LLC	4.26%2.33M shares
Kanen Wealth Management LLC	4.03%2.2M shares
D. E. Shaw & Co., Inc.	3.75%2.05M shares
BANK OF AMERICA CORP /DE/	3.68%2.01M shares
Meros Investment Management, LP	3.08%1.68M shares
EMERALD MUTUAL FUND ADVISERS TRUST	2.89%1.58M shares
DIMENSIONAL FUND ADVISORS LP	2.55%1.39M shares
AMERICAN CENTURY COMPANIES INC	2.54%1.39M shares
GEODE CAPITAL MANAGEMENT, LLC	2.52%1.38M shares
HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC	2.39%1.31M shares
STATE STREET CORP	2.20%1.2M shares
JACOBS LEVY EQUITY MANAGEMENT, INC	2.18%1.19M shares
CenterBook Partners LP	2.05%1.12M shares
PUNCH & ASSOCIATES INVESTMENT MANAGEMENT, INC.	2.03%1.11M shares
Balyasny Asset Management L.P.	1.78%973.65K shares