Arhaus, Inc. reported a significant increase in financial performance for the six months ending June 30, 2025, with net revenue reaching $669.8 million, a 10.7% increase from $604.9 million in the same period last year. The company also saw a rise in net and comprehensive income, which grew to $39.9 million from $37.3 million, reflecting a 4.4% increase. For the second quarter alone, net revenue surged by 15.7% to $358.4 million, compared to $309.8 million in the prior year. The gross margin for the first half of 2025 was $263.8 million, representing 39.4% of net revenue, slightly down from 39.6% in the previous year.
The company attributed its revenue growth primarily to the opening of new showrooms, which contributed approximately $36.9 million to the revenue increase. Arhaus operated 103 showrooms as of June 30, 2025, maintaining the same number as at the end of 2024, but with a slight increase in the number of showrooms featuring in-home interior designers, from 89 to 93. The company’s selling, general, and administrative expenses also rose, totaling $211.5 million for the first half of 2025, up from $191.7 million, driven by increased corporate and warehouse expenses.
In terms of operational metrics, Arhaus reported a demand comparable growth of 0.4% for the first half of 2025, indicating a modest increase in client orders. The company’s cash and cash equivalents stood at $234.8 million at the end of the reporting period, up from $197.5 million at the end of 2024. The company also noted a decrease in net cash used in investing activities, which was $41.6 million compared to $62.2 million in the previous year, reflecting a strategic focus on capital expenditures related to showroom openings and supply chain improvements.
Looking ahead, Arhaus remains optimistic about its growth trajectory, planning to invest between $80 million and $100 million in capital expenditures for the fiscal year 2025, primarily for new showroom openings. The company has also made strides in addressing internal control weaknesses, with ongoing efforts to enhance its financial reporting processes. However, it acknowledged that these material weaknesses could impact its ability to accurately report financial information until fully remediated. Overall, Arhaus is positioned to leverage its operational strengths and market opportunities to drive future growth.
About Arhaus, Inc.
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