Arhaus, Inc. reported a significant increase in financial performance for the nine months ending September 30, 2025, with net revenue reaching $1.014 billion, a 9.8% increase from $924.1 million in the same period last year. The company's gross margin also rose to $397.2 million, up 9.6% from $362.5 million, while net and comprehensive income increased to $52.2 million, compared to $47.3 million in the prior year. For the third quarter alone, net revenue was $344.6 million, reflecting an 8.0% increase from $319.1 million in Q3 2024, driven primarily by new showroom openings and increased demand for products.
The company experienced notable changes in its operational metrics, including a rise in selling, general, and administrative (SG&A) expenses, which increased by 8.0% to $328.5 million for the nine-month period. This increase was attributed to higher selling expenses related to new showrooms and general administrative costs associated with corporate expenses and strategic investments. Despite the rise in expenses, SG&A as a percentage of net revenue decreased slightly to 32.4% from 32.9% year-over-year, indicating improved operational efficiency.
Arhaus continued to expand its footprint, maintaining 103 showrooms as of September 30, 2025, with a total square footage of 1.718 million. The company opened seven new showrooms since the beginning of the year, contributing to revenue growth. The retail segment generated $839.8 million in revenue, while eCommerce sales accounted for $174.6 million, reflecting a growing online presence. The company also reported a 4.5% increase in comparable growth, indicating a positive trend in customer engagement and sales performance.
In terms of financial health, Arhaus reported cash and cash equivalents of $262.2 million, up from $197.5 million at the end of 2024. The company generated $127.5 million in net cash from operating activities, an increase from $115.4 million in the previous year. The company’s liquidity position remains strong, with no borrowings on its $75 million revolving credit facility as of September 30, 2025. The company has also initiated a multi-year transformation to upgrade its technology infrastructure, with an expected investment of approximately $30 million through 2030.
Looking ahead, Arhaus remains optimistic about its growth trajectory, driven by ongoing investments in showroom expansion and technology enhancements. The company anticipates that its operating cash flows will be sufficient to meet working capital needs and support future growth initiatives. However, management acknowledges potential risks, including market conditions and supply chain challenges, which could impact performance. The company is committed to addressing its internal control weaknesses and enhancing its financial reporting processes to ensure continued compliance and operational effectiveness.
About Arhaus, Inc.
Arhaus, Inc. is a premium lifestyle brand and omni-channel retailer specializing in artisan-crafted home furnishings, including furniture, outdoor products, lighting, textiles, and décor. Operating primarily in the U.S. market, Arhaus offers exclusive, responsibly sourced products through its vertically integrated model combining in-house design, manufacturing, and direct global sourcing. Its business model leverages experiential showrooms, eCommerce, and personalized in-home design services to deliver high-quality, livable luxury to discerning customers.
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