Arhaus (ARHS)
NASDAQ:ARHS
Top Page
Arhaus
(NASDAQ:ARHS)
Select Model
Select Model
Rating:56Neutral
Price Target:
$7.00
▲(7.36% Upside)
Action:ReiteratedDate:04/01/26
The score is driven primarily by softened fundamentals (margin compression and weaker/volatile free cash flow) and bearish technicals (below major moving averages with negative MACD). Offsetting these are constructive 2026 guidance and shareholder-return support from a high dividend yield.
Positive Factors
Consistent revenue growth
Arhaus scaled revenue from cyclical peers into a larger, more durable base (multi-year growth to $1.38B in 2025). Sustained top-line expansion supports showroom and digital investments, improves negotiating power with suppliers, and underpins long-term cash generation and operating leverage.
Negative Factors
Margin compression
Gross and net margin erosion reflects rising showroom occupancy, higher SG&A and inventory-related charges. Sustained margin pressure reduces operating leverage, limiting free cash flow expansion and returns unless cost structure, pricing or mix improvements offset the trend over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent revenue growth
Arhaus scaled revenue from cyclical peers into a larger, more durable base (multi-year growth to $1.38B in 2025). Sustained top-line expansion supports showroom and digital investments, improves negotiating power with suppliers, and underpins long-term cash generation and operating leverage.
Read all positive factors
Arhaus (ARHS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$920.12M
Dividend YieldN/A
Average Volume (3M)1.29M
Price to Earnings (P/E)23.5
Beta (1Y)1.75
Revenue Growth7.36%
EPS Growth-6.85%
CountryUS
Employees2,390
SectorConsumer Cyclical
Sector Strength84
IndustryHome Improvement
Share Statistics
EPS (TTM)0.11
Shares Outstanding54,006,720
10 Day Avg. Volume1,340,815
30 Day Avg. Volume1,285,825
Financial Highlights & Ratios
PEG Ratio-11.49
Price to Book (P/B)3.77
Price to Sales (P/S)1.14
P/FCF Ratio26.74
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue0.90
Enterprise Value/Gross Profit2.33
Enterprise Value/Ebitda6.84
Forecast
1Y Price Target
$10.97Price Target Upside68.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)0.51
Revenue Forecast (FY)$1.45B
Arhaus Business Overview & Revenue Model
Company Description
Arhaus, Inc. operates as a lifestyle brand and premium retailer in the home furnishings market. It provides merchandise assortments across various categories, including furniture, lighting, textiles, décor, and outdoor. The company's furniture pro...
How the Company Makes Money
Arhaus makes money primarily by selling home furnishings and décor directly to consumers. Its core revenue stream is net sales of products (e.g., furniture, outdoor pieces, lighting, rugs, and accessories) transacted through its retail showrooms, ...
Arhaus Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly constructive tone: record revenue, adjusted EBITDA growth, a stronger cash position, debt-free balance sheet and meaningful progress on product, showroom expansion and domestic manufacturing are clear positives. Offsetting these achievements were margin pressures driven by higher showroom occupancy, an inventory reserve/obsolescence charge in Q4, tariff uncertainty ($30–$40 million estimated impact for 2026), and near-term softness/timing effects (October promotion timing, winter weather, Q1 guide). Management emphasized that the company is in a reinvestment phase with confidence in long-term resilience and margin improvement as investments mature. Overall, the company delivered strong top-line growth and cash generation while outlining how current investments and external factors compress near-term margins but support medium-term upside.Positive Updates
Record Net Revenue
Net revenue for fiscal 2025 was a record $1.38 billion, up 8.5% year-over-year and at the high end of guidance.
Negative Updates
Gross Margin Pressure
Full-year gross margin decreased 50 basis points to 38.9% (gross profit $536 million, +7%); Q4 gross margin declined 190 basis points to 38.1%, driven by higher showroom occupancy and inventory reserves.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Net Revenue
Net revenue for fiscal 2025 was a record $1.38 billion, up 8.5% year-over-year and at the high end of guidance.
Read all positive updates
Company Guidance
Arhaus guided full-year 2026 net revenue of $1.43–$1.47 billion (up +3.7% to +6.6% YOY), comparable delivered sales flat to +3%, net income of $66–$75 million and adjusted EBITDA of $150–$161 million (implying ~10.5%–11% adjusted EBITDA margin); for Q1 2026 it expects net revenue of $300–$320 million (down −3.7% to up +2.8%), comparable delivered sales −5% to +1%, net income $0–$5 million and adjusted EBITDA $13–$20 million. Management also flagged 2026 tariff headwinds of roughly $30–$40 million (partially mitigated), plans ~$12 million of cash investment in the multiyear digital transformation in 2026 (with ~30%–40% recognized in the P&L), expects to complete ~10–14 showroom projects in 2026 (4–6 new, 6–8 relocations/renovations) after 2025 net unit growth of 3.9% to 107 showrooms, and is entering 2026 debt-free with $253 million cash on hand.Arhaus Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
52
Neutral
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.38B | 1.27B | 1.29B | 1.23B | 796.92M |
| Gross Profit | 536.41M | 501.23M | 540.42M | 525.06M | 329.93M |
| EBITDA | 181.56M | 161.83M | 227.06M | 238.62M | 57.74M |
| Net Income | 67.26M | 68.55M | 125.24M | 136.63M | 21.12M |
Balance Sheet | |||||
| Total Assets | 1.39B | 1.21B | 1.11B | 937.08M | 586.55M |
| Cash, Cash Equivalents and Short-Term Investments | 253.36M | 197.51M | 223.10M | 145.18M | 123.78M |
| Total Debt | 580.58M | 499.50M | 450.42M | 387.27M | 50.52M |
| Total Liabilities | 976.52M | 862.57M | 764.91M | 727.39M | 516.78M |
| Stockholders Equity | 418.23M | 343.75M | 340.24M | 209.69M | 69.77M |
Cash Flow | |||||
| Free Cash Flow | 58.98M | 39.74M | 75.24M | 21.80M | 98.37M |
| Operating Cash Flow | 136.85M | 147.11M | 172.30M | 77.46M | 139.83M |
| Investing Cash Flow | -77.82M | -99.53M | -96.72M | -55.67M | -41.46M |
| Financing Cash Flow | -3.48M | -72.95M | -1.80M | -177.00K | -31.47M |
Arhaus Technical Analysis
Negative
6.52
Price Trends
7.97
Negative
9.04
Negative
9.44
Negative
Market Momentum
-0.41
Negative
39.76
Neutral
30.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARHS, the sentiment is Negative. The current price of 6.52 is below the 20-day moving average (MA) of 6.72, below the 50-day MA of 7.97, and below the 200-day MA of 9.44, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 39.76 is Neutral, neither overbought nor oversold. The STOCH value of 30.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARHS.
Arhaus Risk Analysis
Arhaus disclosed 60 risk factors in its most recent earnings report. Arhaus reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arhaus Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $334.82B | 26.52 | 130.02% | 2.67% | 7.50% | -0.38% | |
65 Neutral | $1.34B | 18.08 | 8.12% | 2.39% | 1.78% | -25.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $359.68M | 18.64 | 2.79% | 5.44% | -1.05% | -24.24% | |
56 Neutral | $920.12M | 23.45 | 20.38% | ― | 7.36% | -6.85% | |
56 Neutral | $5.52B | 43.30 | 8.99% | ― | 6.04% | 10.26% | |
47 Neutral | $12.76M | -0.05 | ― | ― | -6.63% | -904.47% |
* Consumer Cyclical Sector Average
ARHS
Arhaus
6.52
-1.09
-14.37%
HVT
Haverty
22.21
5.07
29.60%
HD
Home Depot
336.16
-8.74
-2.53%
LZB
La-Z-Boy Incorporated
32.71
-4.77
-12.73%
FND
Floor & Decor Holdings
51.13
-23.11
-31.13%
LESL
Leslie's
1.37
-10.07
-88.02%
Arhaus Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Arhaus Declares Special Dividend Amid Strong 2025 Results
Positive
Feb 26, 2026
For 2025, Arhaus reported record net revenue of $1.379 billion, up 8.5% year over year, with gross margin rising to $536 million and adjusted EBITDA increasing 8.9% to $145 million, although net income dipped 1.9% to $67 million. Operational momen...
Business Operations and StrategyExecutive/Board Changes
Arhaus Appoints New Chief Merchandising Officer for Growth
Positive
Feb 12, 2026
On February 12, 2026, Arhaus, Inc., the premium home furnishings retailer, announced the appointment of Michael Rengel as Chief Merchandising Officer, effective February 23, 2026. Rengel will report to founder and CEO John Reed and lead merchandis...
Executive/Board Changes
Arhaus Announces Board Resignation and Governance Adjustments
Neutral
Feb 5, 2026
On February 2, 2026, Arhaus, Inc. announced that director John M. Roth resigned from its Board of Directors, with the company specifying that his departure did not stem from any disagreement regarding its operations, policies, or practices. Follow...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.