Arhaus(US:ARHS)2025-11-06 11:06Financial Performance - Net revenue for Q3 2025 reached $345 million, an increase of 8.0% year-over-year, marking the highest third-quarter net revenue in the company's history[4] - Demand comparable growth was 7.4% in Q3 2025, driven by the success of the Fall 2025 Collection and strong client demand for both core and new products[5] - Gross margin increased 8.4% to $133 million compared to Q3 2024[6] - Net income rose 23.1% to $12 million in Q3 2025 compared to the same period last year[6] - Adjusted EBITDA increased 35.2% to $31 million in Q3 2025 compared to Q3 2024[6] - Net revenue for the nine months ended September 30, 2025, was $1,014,377, an increase of 9.8% compared to $924,096 for the same period in 2024[24] - Gross margin for the nine months ended September 30, 2025, was $397,235, representing a gross margin percentage of 39.2%[24] - Net and comprehensive income for the nine months ended September 30, 2025, was $52,166, up 10.5% from $47,256 in the prior year[26] - Adjusted EBITDA for the nine months ended September 30, 2025, was $110,115, which is 10.9% of net revenue, compared to 10.0% in 2024[26] Cash and Assets - As of September 30, 2025, the company reported cash and cash equivalents of $262 million and no long-term debt[10] - Total assets as of September 30, 2025, were $1,378,638, an increase of 14.3% from $1,206,316 as of December 31, 2024[22] - Cash and cash equivalents increased to $262,230 as of September 30, 2025, compared to $197,511 at the end of 2024, marking a growth of 32.7%[22] - The company reported a net cash provided by operating activities of $127,538 for the nine months ended September 30, 2025, compared to $115,426 in the same period of 2024[25] - The company’s retained earnings increased to $195,266 as of September 30, 2025, up from $142,898 as of December 31, 2024[22] Company Outlook and Expansion - The company updated its full-year 2025 outlook, raising the low end of its prior net revenue guidance to a range of $1.35 billion to $1.38 billion[11] - The company plans to complete approximately 12 to 15 Total Showroom Projects in 2025, including 4 to 6 new openings[10] - The company opened its largest Traditional Showroom in Pasadena, California, and plans to open its first Montana Showroom in Bozeman[9] Client Deposits and Liabilities - Client deposits increased by 15.0% to $254 million from December 31, 2024, to September 30, 2025[10] - Total liabilities as of September 30, 2025, were $978,222, reflecting a rise of 13.4% from $862,571 as of December 31, 2024[22] Share Information - The weighted-average number of common shares outstanding, basic, was 140,635,317 for the nine months ended September 30, 2025, compared to 139,990,522 in 2024[24]