RH (RH) Q4 2026 earnings summary

Executive summary

• Achieved 8.1% revenue growth in 2025 to $3.44B, with two-year growth of 15%, outpacing industry peers by 8-30 points.

• Adjusted EBITDA reached $597M (17.3% margin), up from $539M (16.9%) in 2024; GAAP net income rose 72% to $125M.

• Free cash flow improved to $252M from negative $214M, a $466M year-over-year increase.

• 2025 marked a peak investment year with $289M in adjusted CapEx and $37M in acquisitions to support global expansion and new brand launches.

• Despite macro headwinds, positioned for long-term growth through innovation, global expansion, and brand elevation.

Financial highlights

• Fiscal year 2025 GAAP net revenues grew 8.1% to $3.44B; Q4 revenues rose 3.7% to $843M.

• Adjusted EBITDA of $597M (17.3% of revenue), up from $539M (16.9%) in 2024.

• Free cash flow of $252M, a $466M improvement year-over-year.

• Adjusted net income for the year was $124M; adjusted diluted EPS was $6.29.

• Adjusted gross margin for the year was 44.2%.

Outlook and guidance

• 2026 revenue growth expected in the 4%-8% range, accelerating to 10%-12% in 2027.

• Revenue projected to reach $5.4B-$5.8B by 2030.

• Adjusted EBITDA margin guidance: 14%-16% in 2026, 25%-28% by 2030.

• Cash flow expected at $300M-$400M in 2026, $500M-$600M in 2027, with $3B cumulative by 2030.

• Plan to be debt-free by 2029.