Arhaus Reports Third Quarter 2025 Financial Results

Core Insights - Arhaus, Inc. reported a record net revenue of $345 million for Q3 2025, reflecting an 8.0% year-over-year increase, driven by strong brand performance and successful showroom expansions [3][6][10] - Demand comparable growth reached 7.4% in Q3 2025, supported by the success of the Fall 2025 Collection and high client engagement [4][8] - The company remains debt-free with significant liquidity, positioning itself strongly in the current market environment [6][17] Financial Performance - Net revenue increased to $345 million, up 8.0% from Q3 2024 [10] - Gross margin rose by 8.4% to $133 million compared to the same quarter last year [10] - Net income increased by 23.1% to $12 million, while adjusted EBITDA grew by 35.2% to $31 million [10][36] Showroom Expansion - Arhaus operated 103 showrooms across 30 states by the end of Q3 2025, completing 8 total showroom projects, including 1 new opening and 6 relocations [9][12] - The company opened its largest Traditional Showroom in Pasadena, California, and plans to open its first Montana showroom in Bozeman [11][12] Balance Sheet and Liquidity - As of September 30, 2025, cash and cash equivalents totaled $262 million, with no long-term debt [17][28] - Net merchandise inventory increased by 10.7% to $329 million compared to December 31, 2024 [17] Outlook - The company updated its full-year 2025 outlook, raising the lower end of its revenue guidance to $1.35 billion to $1.38 billion, while maintaining the high end [13][15] - Fourth-quarter guidance includes expected net revenue of $336 million to $366 million, with a projected net income of $6 million to $16 million [15]