Arhaus (ARHS) investor relations material

Executive summary

• Q3 net revenue reached a record $368.1M, up 6.8% YoY; Comparable Written Sales rose 13.9% and Comparable Delivered Sales 2.6%.

• Net income declined 36% to $7.8M and Adjusted EBITDA fell 12.3% to $27.4M; FY26 revenue and delivered-sales outlook rose while earnings guidance held.

Financial highlights

• Q3 gross profit was $144.4M, up 8.2% YoY; gross margin expanded 50 bps to 39.2%.

• SG&A rose 14.8% to $134.3M; operating income declined to $10.1M from $16.4M and diluted EPS was $0.05 versus $0.09.

• 9M revenue was $1.067B versus $1.014B; net income was $49.7M versus $52.2M and Adjusted EBITDA was $115.9M versus $110.1M.

• Q3 Comparable Written Sales rose 13.9% and Comparable Delivered Sales 2.6%; YTD increases were 6.7% and 1.8%, respectively.

Outlook and guidance

• FY26 net revenue guidance rose to $1.465B–$1.485B, up 6.2%–7.7%; Comparable Delivered Sales outlook increased to 2.5%–4.0%.

• FY26 net income guidance remains $71M–$80M and Adjusted EBITDA $160M–$171M; company-funded capex is estimated at $70M–$90M.

• Q4 net revenue guidance is $398M–$418M, Comparable Delivered Sales 6%–12%, net income $21M–$30M and Adjusted EBITDA $44M–$55M.

• FY26 plans include 4–6 new showroom openings and 10–14 total showroom projects, with mid-single-digit net unit growth.

• Stronger demand is offset by transportation costs and expanded marketing investment; delivery throughput is key to realizing Q4 revenue guidance.