Arhaus (ARHS) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw record net revenue of $385M, up 7.4% year-over-year, with a 12.5% increase in Comparable Written Sales and 4.0% growth in Comparable Delivered Sales, reflecting strong demand and easing of temporary disruptions.

• Performance was driven by broad-based assortment strength, continued momentum in the Interior Design program, increased marketing, and robust engagement from high-end consumers.

Financial highlights

• Net revenue for Q2 2026 reached $385M, the highest in company history, up 7.4% year-over-year.

• Comparable Written Sales rose 12.5% year-over-year; year-to-date Comparable Written Sales up 2.8%.

• Comparable Delivered Sales increased 4.0% year-over-year; year-to-date Comparable Delivered Sales up 1.4%.

• Adjusted EBITDA for Q2 2026 was $70M reported, or $55M normalized (excluding IEEPA tariff recovery), with a normalized margin of 14.3%.

• Gross margin normalized at 40.7%, down 70 bps year-over-year, primarily due to higher fuel and shipping costs.

Outlook and guidance

• Full-year 2026 net revenue guidance raised to $1.43–$1.47B, with 3.7%–6.6% growth expected.

• Net income projected at $71–$80M and Adjusted EBITDA at $160–$171M for 2026.

• Q3 2026 net revenue expected at $355–$375M, with net income of $8–$13M and Adjusted EBITDA of $26–$34M.

• Guidance reflects IEEPA tariff recovery, offset by $7–$10M in strategic reinvestment and $20M in elevated fuel and shipping costs.

• Assumes no significant improvement in housing turnover or macroeconomic environment.