10-Q · May 7, 2026
For the three months ended March 31, 2026, Arhaus reported revenue of $314.3 million, reflecting a 0.9% increase from $311.4 million in the corresponding period of 2025. However, net income fell to $2.2 million from…
Earnings analysis · 10-Q
ARHS earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
Arhaus delivered third-quarter revenue of $368.116 million and diluted EPS of $0.05, with revenue up year over year but sequentially lower and EPS below both the prior quarter and consensus. Demand improved, highlighted…
Read full summary
Arhaus delivered third-quarter revenue of $368.116 million and diluted EPS of $0.05, with revenue up year over year but sequentially lower and EPS below both the prior quarter and consensus. Demand improved, highlighted by 13.9% Comparable Written Sales growth, and management raised full-year revenue and Comparable Delivered Sales outlooks while maintaining profit guidance. The principal negative is that disclosure controls remain ineffective due to multiple material weaknesses, although remediation efforts are underway. No material changes to the formal risk factors were reported.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.05
What stood out
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Revenue grew year over year
Third-quarter revenue was $368.116 million, up from $345 million in Q3 2025 but down from $385 million in Q2 2026. Revenue was approximately $2.727 million below the $370.843 million consensus estimate.
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Demand indicators improved
Comparable Written Sales increased 13.9%, indicating improved demand momentum despite total revenue remaining below the prior quarter’s $385 million.
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Full-year revenue outlook raised
Management raised full-year 2026 net revenue outlook to $1.465 billion-$1.485 billion and Comparable Delivered Sales outlook to 2.5%-4%.
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Limited drawn debt exposure
The company reported no borrowings under its 2021 Credit Facility as of September 30, 2026, other than a $5.1 million irrevocable standby letter of credit.
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Control remediation is underway
Management has established a remediation taskforce, outsourced internal audit, hired additional accounting and IT personnel, and begun a multi-year ERP modernization initiative to address control deficiencies.
What to watch
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EPS declined and missed consensus
Diluted EPS was $0.05, down from $0.09 in Q3 2025 and $0.28 in Q2 2026, and approximately $0.03 below the $0.08 consensus estimate.
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Material weaknesses remain unresolved
Management concluded that disclosure controls were not effective as of September 30, 2026 because of material weaknesses in the control environment, accounting policies and procedures, and IT general controls.
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History of financial-reporting corrections
The identified control weaknesses previously resulted in restatements for 2020 and 2019, as well as revisions and restatements covering periods from 2021 through September 30, 2023.
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Remediation timing remains uncertain
Management stated that the material weaknesses cannot be considered remediated until controls have operated effectively and been tested, and that additional material weaknesses could be identified in the future.
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Unhedged foreign-currency cost risk
A decline in the U.S. dollar could increase vendor purchasing costs; the company stated it cannot predict the effect on its financial statements and does not use derivatives to manage the risk.
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Inflation recovery is uncertain
Inflation affects labor, material, transportation and general costs, and the company said it cannot reasonably estimate its future ability to recover those costs through price increases.
Management's outlook
Full-year 2026 net revenue outlook was raised to $1.465 billion-$1.485 billion and Comparable Delivered Sales outlook to 2.5%-4%. Net income guidance was maintained at $71 million-$80 million and Adjusted EBITDA guidance at $160 million-$171 million. No quarterly EPS guidance was provided.
Earlier filings 4
10-K · February 26, 2026
Arhaus reports revenue of $1,379,222,000 for the year ended December 31, 2025, up 8.5% from 2024, driven by omni‑channel growth and showroom expansion to 107 locations. Gross margin compressed to 38.9% (from 39.4% in…
10-Q · November 6, 2025
Arhaus reported Q3 net revenue of $344,570,000 (up from $319,133,000 a year ago) and diluted EPS of $0.09 (vs. $0.07 prior year). Gross margin for the quarter was $133,421,000 (≈38.7%) and operating income was…
10-Q · August 7, 2025
Arhaus reported a strong Q2 (three months ended June 30, 2025) with revenue of $358,435,000 and diluted EPS of $0.25, both meaningfully above the prior-year quarter and consensus. Gross margin and operating margin…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.