Arhaus reported record net revenue of $1.38 billion for 2025, an 8.5% increase from the prior year, and a Q4 net revenue of $364.8 million, up 5.1% YoY. Diluted earnings per share were $0.11, beating the consensus estimate of $0.096 by $0.014, or 15.8%.
Comparable delivered sales grew 3.6% and comparable written sales rose 1.3%, reflecting strong demand across the company’s showroom and e‑commerce channels. The growth was driven by continued expansion of the showroom footprint and robust client engagement, which helped offset modest headwinds in legacy product categories.
Gross margin increased 7.0% to $536 million for the full year, while operating margin fell to 5.6% in Q4 from 8.2% in Q4 2024, largely due to a 7.7% rise in selling, general, and administrative expenses. Net income for the year was $67.3 million, a 1.9% decline from the prior year, reflecting the impact of higher operating costs despite revenue growth.
Management guided for full‑year 2026 net revenue of $1.43 billion to $1.47 billion, below analyst consensus, and for Q1 2026 revenue of $300 million to $320 million, also below expectations. The cautious outlook signals management’s concern about near‑term macro conditions while maintaining confidence in maintaining profitability through cost discipline.
The Board declared a special cash dividend of $0.35 per share, payable on March 31, 2026 to shareholders of record on March 18, 2026. The dividend reflects the company’s strong cash flow and debt‑free balance sheet, underscoring confidence in its long‑term financial position.
Investors responded positively to the earnings beat and dividend declaration, though the cautious 2026 guidance tempered enthusiasm, indicating a balanced view of short‑term growth prospects and long‑term execution.
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