Arhaus Reports Fourth Quarter and Full Year 2025 Financial Results; Announces Special Cash Dividend

Core Insights - Arhaus, Inc. reported record net revenue of $1.38 billion for 2025, marking an 8.5% increase from the previous year, driven by showroom expansion and strong client engagement [3][9] - The company announced a special cash dividend of $0.35 per share, reflecting its strong financial performance and cash position [6][17] Financial Performance - Net revenue increased to $1,379 million, up 8.5% compared to 2024 [8] - Gross margin rose by 7.0% to $536 million [8] - Selling, general and administrative expenses increased by 7.7% to $447 million [8] - Net and comprehensive income decreased by 1.9% to $67 million [8] - Adjusted EBITDA increased by 8.9% to $145 million [8] Sales Metrics - Comparable Written Sales increased by 1.3% for the full year [4][11] - Comparable Delivered Sales increased by 3.6%, reflecting strong client demand [10][11] Showroom Expansion - The company completed 13 total showroom projects in 2025, including 5 new openings and 7 relocations [12] - As of December 31, 2025, Arhaus operated 107 showrooms across 31 states [12][62] - The company plans to complete approximately 10 to 14 total showroom projects in 2026, including 4 to 6 new openings [13][70] Balance Sheet and Liquidity - Cash and cash equivalents totaled $253 million, a 28.3% increase from the previous year [16] - The company remains debt-free and has substantial liquidity to support long-term growth [8][16] Outlook for 2026 - Projected net revenue for 2026 is between $1.43 billion and $1.47 billion, representing a growth of 3.7% to 6.6% [19] - Expected net income for 2026 is between $66 million and $75 million [19] - The company anticipates comparable delivered sales growth of 0% to 3% for the year [19]