Arhaus, Inc. reported a net revenue of $1.38 billion for the fiscal year ending December 31, 2025, marking an 8.5% increase from $1.27 billion in 2024. The company's gross margin decreased slightly to 38.9% from 39.4% in the previous year, attributed to rising product costs and increased occupancy expenses. Net income for 2025 was $67.3 million, a decrease from $68.6 million in 2024, reflecting the impact of higher operational costs despite revenue growth. The company also reported an adjusted EBITDA of $145.1 million, consistent with the previous year's margin of 10.5%.
In terms of operational developments, Arhaus expanded its showroom footprint, increasing the total number of showrooms to 107 across 31 states, up from 103 in 2024. This included the opening of 12 new showrooms, although the company also closed seven locations for relocations. The company’s eCommerce channel contributed approximately 17% of total net revenue, indicating a steady engagement with online sales. The total employee count rose to approximately 2,800, reflecting the company's growth strategy and operational needs.
Strategically, Arhaus has focused on enhancing its omni-channel model, integrating physical showrooms with eCommerce and design services to improve customer engagement. The company has also invested in technology upgrades, including a new enterprise resource planning (ERP) system, with an expected total investment of around $30 million through 2030. These initiatives are aimed at improving operational efficiency and supporting future growth.
The company faces several risks, including supply chain disruptions and fluctuations in consumer demand, particularly in the high-end home furnishings market, which is sensitive to economic conditions. Arhaus has acknowledged material weaknesses in its internal controls over financial reporting, which it is actively working to remediate. The company remains optimistic about its growth prospects, citing a significant opportunity to capture market share in the fragmented $100 billion U.S. premium home furnishings market.
Looking ahead, Arhaus plans to continue expanding its showroom presence and enhancing its product offerings while managing costs effectively. The company has declared a special cash dividend of $0.35 per share, payable on March 31, 2026, reflecting its commitment to returning value to shareholders while pursuing growth initiatives.
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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