Core Insights - Arhaus, Inc. reported record net revenue of over $358 million for Q2 2025, marking a 15.7% increase year-over-year, driven by brand strength and client loyalty [3][8] - The company successfully transitioned its Dallas Distribution Center operations in-house, enhancing efficiency and volume in revenue generation [4][8] - Demand comparable growth showed a decline of 3.6% in Q2 due to macroeconomic challenges, but rebounded to 15.7% in July, indicating strong client engagement [5][9] Financial Performance - Q2 2025 net revenue reached $358 million, a 15.7% increase compared to Q2 2024 [10] - Gross margin increased by 19.1% to $148 million, while selling, general, and administrative expenses rose by 6.8% to $101 million [10] - Net income surged by 57.7% to $35 million, and adjusted EBITDA rose by 51.2% to $60 million compared to the same quarter last year [10] Showroom Expansion - As of the end of Q2 2025, Arhaus operated 103 showrooms across 30 states, completing 3 showroom projects during the quarter [10][11] - The company plans to complete approximately 12 to 15 showroom projects in 2025, including 4 to 6 new openings [11] Balance Sheet and Liquidity - As of June 30, 2025, Arhaus reported cash and cash equivalents of $235 million and no long-term debt [15] - Net merchandise inventory increased by 4.7% to $311 million from December 31, 2024, and client deposits rose by 5.5% to $233 million [15] Outlook - For full-year 2025, Arhaus expects net revenue between $1.29 billion and $1.38 billion, with comparable growth projected between -5% and 1.5% [13] - Q3 2025 guidance includes net revenue expectations of $320 million to $350 million [13]