Highlights

  • Third quarter net Revenue rose 6.8% to USD 368.1 million, and comparable written sales increased 13.9% from a year earlier.
  • Net income fell to USD 7.8 million, or USD 0.05 per diluted share, from USD 12.2 million, or USD 0.09.
  • Cash and cash equivalents reached USD 318.0 million, and the company paid a USD 0.35 per share Special Dividend in March.
  • Management guided fourth quarter net revenue to a range of USD 398 million to USD 418 million.

Arhaus, Inc. (NASDAQ:ARHS) shares were trading near their 52-week high at USD 14.19 on November 6, 2026, up 9.66%. The home furnishings retailer paid a special dividend in March, named a new Chief Digital Officer in September, and reported third quarter results on November 5 with fourth quarter net revenue guidance.

Based in Boston Heights, Ohio, Arhaus is a Delaware corporation and a premium home furnishings Brand with a vertically integrated model that covers design, direct sourcing and upholstery Manufacturing at its own North Carolina facility. It sells furniture, outdoor, bath, lighting, textiles and decor through 109 showrooms and eCommerce. Arhaus has a market Capitalization of USD 2.01 billion and a price to Earnings ratio of 29.08, and its fiscal year ends December 31.

Third Quarter Results

Net revenue was USD 368.1 million against USD 344.6 million a year earlier, an increase of 6.8%, and management said it was above the midpoint of guidance. Gross Margin was USD 144.4 million against USD 133.4 million, and the gross margin rate expanded 50 basis points to 39.2%. Management said fuel and transportation costs were a net 40 basis point benefit, showroom occupancy costs rose 110 basis points, and a higher level of clearance activity through Loft locations reduced margin by 100 basis points.

Selling, general and administrative expenses rose 14.8% to USD 134.3 million from USD 117.0 million, which raised the expense ratio by 250 basis points to 36.5% of net revenue. Management attributed 100 basis points of the increase to variable compensation tied to written sales growth. Income from operations was USD 10.1 million against USD 16.4 million, and Net Income was USD 7.8 million against USD 12.2 million.

Adjusted EBITDA, a non-GAAP measure, was USD 27 million, down 12.3%, with a margin of 7.4%, a decrease of 170 basis points.

Nine Month Results and Showroom Base

For the nine months, net revenue was USD 1,067.3 million against USD 1,014.4 million, and net income was USD 49.7 million against USD 52.2 million, or USD 0.35 per diluted share against USD 0.37. Gross margin was USD 430.9 million against USD 397.2 million, and income from operations was USD 66.5 million against USD 68.6 million. Net cash provided by Operating Activities rose to USD 173.0 million from USD 127.5 million.

Arhaus operated 109 showrooms at September 30, 2026 against 107 a year earlier. Comparable written sales, the dollar value of client orders placed, rose 13.9% in the third quarter on top of growth in the prior year period, for a two year increase of 21.4%.

Balance Sheet and Capital Returns

Cash and cash equivalents were USD 318.0 million against USD 253.4 million at the end of 2025. Total Assets were USD 1,538.7 million, total liabilities were USD 1,113.5 million, and stockholders' Equity was USD 425.2 million. The revolving Credit Facility matures on October 17, 2030.

On February 17, 2026, the board declared a special Cash Dividend of USD 0.35 per share on Class A and Class B common stock, payable March 31, 2026 to holders of record on March 18.

Outlook and Priorities

For the fourth quarter, management expects net revenue between USD 398 million and USD 418 million. It expects the gap between comparable written and delivered sales to reverse in the fourth quarter and said October price increases are in place to offset cost pressures. The company targets USD 45 million of annualized savings at full scale, with benefits increasing in 2027.

Technology projects continue. The new point of sale platform begins piloting in the fourth quarter with a go-live in the first quarter of 2027. K.C. Moss joined in September as Chief Digital Officer.