Arhaus, Inc. reported a net revenue of $699.2 million for the six months ended June 30, 2026, reflecting a 4.4% increase from $669.8 million in the same period of the previous year. The company’s gross margin also improved, rising to $286.5 million, an 8.6% increase compared to $263.8 million in the prior year. Net and comprehensive income for the first half of 2026 was $41.9 million, up from $39.9 million in 2025. The increase in revenue was primarily attributed to new showroom openings and heightened demand for products, while the gross margin benefited from tariff recoveries amounting to $23.8 million.
In the second quarter of 2026, Arhaus achieved a net revenue of $384.9 million, a 7.4% increase from $358.4 million in the same quarter of 2025. The gross margin for this period was $172.1 million, marking a 16.1% increase year-over-year. The company’s income before taxes for the quarter was $55.4 million, compared to $47.7 million in the previous year. The increase in profitability was supported by a reduction in costs associated with goods sold, despite rising operational expenses.
Operationally, Arhaus expanded its footprint, operating 109 showrooms as of June 30, 2026, up from 107 at the end of 2025. The company opened three new showrooms during the first half of 2026, contributing to its revenue growth. The total number of interior designers employed by the company also increased to 152, up from 142 in the previous year, indicating a strategic focus on enhancing customer engagement and service quality.
The company’s selling, general, and administrative expenses rose to $230.0 million for the first half of 2026, an increase of 8.7% from $211.5 million in the prior year. This rise was primarily due to investments in technology and increased selling expenses related to new showrooms. Arhaus also reported a net cash provided by operating activities of $59.8 million, down from $81.4 million in the previous year, largely due to changes in working capital.
Looking ahead, Arhaus remains optimistic about its growth trajectory, supported by its strategic investments in technology and showroom expansion. The company is currently undergoing a multi-year transformation to modernize its systems, with an expected total investment of approximately $50 million. This initiative aims to enhance operational efficiency and customer experience, positioning Arhaus to capitalize on opportunities in the premium home furnishings market, which is estimated to be around $100 billion in the U.S.
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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