Arhaus (ARHS) investor relations material

Executive summary

• Achieved record quarterly net revenue of $358M, up 15.7% year-over-year, driven by strong brand performance, new showroom openings, and efficient operations.

• Net income rose to $35M, up 57.7% year-over-year, with adjusted EBITDA increasing 51.2% to $60M and margin expansion to 16.8%.

• Launched the Bath Collection, marking a significant product expansion and multi-year innovation effort.

• Operated 103 showrooms across 30 states as of June 30, 2025, with three showroom projects completed in Q2 and eight year-to-date.

• Maintained a debt-free balance sheet with $235M in cash and cash equivalents, supporting ongoing investments in infrastructure and technology.

Financial highlights

• Net revenue for Q2 2025 was $358M, up 15.7% year-over-year; six-month net revenue reached $669.8M, up 10.7%.

• Comparable growth for Q2 was 10.5%, with July demand rebounding 15.7%; six-month comparable growth was 4.7%.

• Gross margin for Q2 was $148M (41.4%), up 130 basis points year-over-year; six-month gross margin was $263.8M (39.4%).

• Net income for Q2 was $35M, up from $22.2M year-over-year; net income margin for Q2 was 9.8%.

• Adjusted EBITDA for Q2 was $60M (16.8% margin); six-month adjusted EBITDA was $78.9M (11.8% margin).

Outlook and guidance

• Full-year 2025 net revenue guidance is $1.29B–$1.38B, with comparable growth of 1.5%–8.6% and net income of $48M–$68M.

• Adjusted EBITDA forecasted at $123M–$145M; capital expenditures outlook reduced by $10M to $80M–$100M.

• Q3 2025 net revenue expected at $320M–$350M, with comparable growth of -4% to +5%.

• 12 to 15 total showroom projects planned for 2025, including 4 to 6 new openings.

• Outlook incorporates $12M in incremental 2025 tariffs, with mitigation efforts underway.