Arhaus (ARHS) AI Stock Analysis

• Market Cap: $1.53B
• Dividend Yield: N/A
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 1.69
• Revenue Growth: 7.36%
• EPS Growth: -6.85%
• Country: US
• Employees: 2,390
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Home Improvement
• EPS (TTM): 0.09
• Shares Outstanding: 53,947,910
• 10 Day Avg. Volume: 1,147,579
• 30 Day Avg. Volume: 1,410,457
• PEG Ratio: -0.42
• Price to Book (P/B): 3.83
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 33.13
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 3.38
• Enterprise Value/Ebitda: 9.74
• 1Y Price Target: $12.19
• Price Target Upside: 12.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 0.46
• Revenue Forecast (FY): $1.37B

• Rating: 76 Outperform
• Price Target: $12.00 ▲(10.40% Upside)

Arhaus's strong financial performance and positive earnings call are the primary drivers of its score. Technical indicators support a bullish outlook, although valuation concerns and operational challenges temper the overall assessment.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust market demand and effective sales strategies, supporting long-term business expansion.

Showroom Expansion

Expanding showroom footprint enhances brand visibility and customer engagement, driving future sales growth.

Strong Financial Position

A strong cash position and lack of debt provide financial stability and flexibility for strategic investments.

Negative Factors

High Leverage

High leverage can increase financial risk and limit the company's ability to invest in growth opportunities.

Tariff Impact

Tariff impacts can increase costs and pressure margins, affecting profitability and pricing strategies.

Demand Volatility

Volatile demand can complicate inventory management and forecasting, potentially impacting revenue stability.

Arhaus Business Overview & Revenue Model

Company Description

Arhaus, Inc. (ARHS) is a leading home furnishings retailer headquartered in Boston Heights, Ohio. Founded in 1986, the company specializes in high-quality, stylish furniture and home decor that are sustainably sourced and crafted. Arhaus operates in the retail sector, offering a wide range of products including sofas, chairs, tables, and accessories, focusing on both indoor and outdoor living spaces. The brand emphasizes a commitment to sustainable practices and artisanal craftsmanship, appealing to environmentally conscious consumers.

How the Company Makes Money

Arhaus generates revenue primarily through the sale of its furniture and home decor products via its retail showrooms and e-commerce platform. The company operates a network of physical retail locations across the United States, which serve as both sales channels and brand experience centers. Key revenue streams include direct product sales, custom orders for furniture, and online sales, which have seen significant growth due to the increasing trend towards digital shopping. Additionally, Arhaus may benefit from partnerships with designers and artisans, enhancing its product offerings and brand appeal. The company also emphasizes an omnichannel approach, integrating online and offline shopping experiences, which helps to drive sales and customer loyalty.

Arhaus Financial Statement Overview

Summary

Arhaus shows strong revenue growth and profitability metrics, with robust cash flow generation. However, high leverage and operational efficiency challenges pose risks.

Income Statement

Arhaus has demonstrated consistent revenue growth, with a notable increase in the TTM period. The gross profit margin remains strong, although slightly below historical highs. Net profit margins are stable, indicating effective cost management. However, EBIT and EBITDA margins have shown some volatility, suggesting potential operational efficiency challenges.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating significant leverage, which could pose risks if not managed carefully. Return on equity is strong, reflecting effective use of shareholder funds. The equity ratio is moderate, suggesting a balanced approach to financing assets.

Cash Flow

Arhaus has shown impressive free cash flow growth in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting good cash conversion. However, the free cash flow to net income ratio indicates room for improvement in cash efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.36B	1.27B	1.29B	1.23B	796.92M	507.43M
Gross Profit	535.43M	501.23M	540.42M	525.06M	329.93M	199.50M
EBITDA	186.00M	161.83M	227.06M	238.62M	57.74M	47.84M
Net Income	73.46M	68.55M	125.24M	136.63M	21.12M	6.08M
Balance Sheet
Total Assets	1.38B	1.21B	1.11B	937.08M	586.55M	322.55M
Cash, Cash Equivalents and Short-Term Investments	262.23M	197.51M	223.10M	145.18M	123.78M	57.09M
Total Debt	571.61M	499.50M	450.42M	387.27M	50.52M	47.60M
Total Liabilities	978.22M	862.57M	764.91M	727.39M	516.78M	356.99M
Stockholders Equity	400.42M	343.75M	340.24M	209.69M	69.77M	-26.75M
Cash Flow
Free Cash Flow	80.79M	39.74M	75.24M	21.80M	98.37M	135.25M
Operating Cash Flow	159.22M	147.11M	172.30M	77.46M	139.83M	148.26M
Investing Cash Flow	-70.55M	-99.53M	-96.72M	-55.67M	-41.46M	-13.01M
Financing Cash Flow	-3.76M	-72.95M	-1.80M	-177.00K	-31.47M	-91.31M

Arhaus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.87
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARHS, the sentiment is Positive. The current price of 10.87 is above the 20-day moving average (MA) of 10.14, above the 50-day MA of 10.09, and above the 200-day MA of 9.60, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 71.90 is Negative, neither overbought nor oversold. The STOCH value of 85.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARHS.

Arhaus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LZB	77 Outperform	$1.64B	18.37	8.82%	2.28%	1.78%	-25.36%
ARHS	76 Outperform	$1.53B	21.62	20.38%	―	7.36%	-6.85%
HVT	73 Outperform	$402.16M	21.16	6.32%	5.15%	-1.05%	-24.24%
HD	66 Neutral	$358.04B	24.52	162.91%	2.58%	7.50%	-0.38%
FND	63 Neutral	$6.59B	31.11	9.69%	―	6.04%	10.26%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LESL	39 Underperform	$22.20M	-0.09	―	―	-6.63%	-904.47%

Arhaus Corporate Events

Arhaus Reports Record-Breaking Q3 2025 Revenue Growth

Arhaus reported a record-breaking third quarter in 2025, with net revenue increasing by 8.0% to $345 million, marking the highest third-quarter net revenue in its history. The company’s growth was driven by new showroom openings and increased demand for its products, with significant improvements in delivery performance due to enhancements in its distribution network. Arhaus also expanded its showroom footprint, including opening its largest traditional showroom in Pasadena, California, and its first showroom in Montana. The company remains debt-free with strong liquidity, and it has updated its full-year 2025 outlook, reflecting confidence in its execution amidst macroeconomic uncertainties.

Arhaus Amends Credit Agreement with Bank of America

On October 17, 2025, Arhaus, Inc. amended its Credit Agreement with Bank of America to extend the maturity date of its revolving credit facility to October 17, 2030, and increased the letter of credit commitment to a maximum of $15 million. This amendment maintains the total revolving credit commitments at $75 million, with an option to increase by an additional $25 million, potentially enhancing Arhaus’s financial flexibility and operational capacity.