Arhaus (ARHS) AI Stock Analysis

• Market Cap: $1.32B
• Dividend Yield: N/A
• Average Volume (3M): 1.66M
• Price to Earnings (P/E): 18.0
• Beta (1Y): 1.68
• 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: 1,587,916
• 30 Day Avg. Volume: 1,660,475
• 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: 1.37
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 3.38
• Enterprise Value/Ebitda: 9.74
• 1Y Price Target: $12.19
• Price Target Upside: 29.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $10.00 ▲(6.61% Upside)

Arhaus's strong earnings performance and robust financial position are significant positives, but high leverage and bearish technical indicators weigh on the score. The stock's moderate valuation and absence of a dividend yield also impact its attractiveness.

Positive Factors

Revenue Growth

Arhaus's consistent revenue growth, highlighted by record-breaking quarterly results, indicates strong market demand and effective sales strategies.

Showroom Expansion

Expanding showroom footprint enhances brand visibility and customer engagement, supporting long-term growth and market penetration.

Strong Financial Position

A strong cash position and lack of debt provide Arhaus with financial flexibility to invest in growth opportunities and weather economic uncertainties.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially limiting the company's ability to invest in growth and manage economic downturns effectively.

Tariff Impact

Tariff impacts could increase costs and pressure margins, challenging Arhaus's ability to maintain profitability in a competitive market.

Demand Volatility

Fluctuations in demand, influenced by external factors, could lead to revenue instability and complicate inventory and sales planning.

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 products comprise bedroom, dining room, living room, and home office furnishings, which includes sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases and modular storage, etc.; and outdoor products include outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits. It also offers lighting products, such as various distinct and artistic lighting fixtures, including chandeliers, pendants, table and floor lamps, and sconces; textile products comprising handcrafted indoor and outdoor rugs, bed linens, and pillows and throws; and décor products, including various wall art to mirrors, vases to candles, and other decorative accessories. The company distributes its products through an omni-channel model comprising showrooms, e-commerce platform, catalog, and in-home designer services. As of December 31, 2021, it operated through a network of 71 traditional showrooms, 5 Design Studios, and 3 Outlets, as well as 58 showrooms with in-home interior designers. The company was founded in 1986 and is headquartered in Boston Heights, Ohio.

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: Neutral
• Last Price: 9.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARHS, the sentiment is Neutral. The current price of 9.38 is below the 20-day moving average (MA) of 9.56, below the 50-day MA of 10.21, and below the 200-day MA of 9.70, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 44.42 is Neutral, neither overbought nor oversold. The STOCH value of 34.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ARHS.

Arhaus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HVT	72 Outperform	$377.91M	19.87	6.32%	5.72%	-1.05%	-24.24%
LZB	69 Neutral	$1.56B	17.40	8.82%	2.97%	1.78%	-25.36%
ARHS	67 Neutral	$1.32B	18.01	20.38%	―	7.36%	-6.85%
HD	66 Neutral	$341.74B	23.41	162.91%	2.67%	7.50%	-0.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FND	60 Neutral	$6.52B	30.26	9.69%	―	6.04%	10.26%
LESL	39 Underperform	$28.71M	―	―	―	-8.36%	-2950.63%

Arhaus Corporate Events

Arhaus, Inc. Q3 2025 Earnings Call Highlights

Arhaus, Inc. Reports Robust Q3 2025 Performance Amid Challenges

Arhaus Reports Record Third-Quarter Revenue Growth

Arhaus, Inc. is a lifestyle brand and omni-channel retailer specializing in premium artisan-crafted home furnishings, known for its innovative design and responsible sourcing practices. In its third-quarter 2025 earnings report, Arhaus announced a record net revenue of $345 million, marking an 8.0% increase from the previous year, alongside a 23.1% rise in net income to $12 million. The company attributed this growth to strong demand for its Fall 2025 Collection and successful expansion of its showroom footprint, including the opening of its largest showroom in Pasadena, California. Key financial highlights include a gross margin increase of 8.4% to $133 million and a 35.2% rise in adjusted EBITDA to $31 million, reflecting robust operational execution and client demand. Arhaus remains debt-free with $262 million in cash and cash equivalents, and it continues to invest in its distribution network and showroom expansions to enhance client experience. Looking ahead, Arhaus maintains a positive outlook for the remainder of 2025, with projected net revenue between $1.35 billion and $1.38 billion, despite macroeconomic uncertainties, demonstrating confidence in its strategic execution and brand strength.

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.

The most recent analyst rating on (ARHS) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Arhaus stock, see the ARHS Stock Forecast page.

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.

The most recent analyst rating on (ARHS) stock is a Hold with a $11.50 price target. To see the full list of analyst forecasts on Arhaus stock, see the ARHS Stock Forecast page.

Arhaus, Inc. Celebrates Record Revenue Amid Expansion

Arhaus, Inc. Reports Record Revenue Amid Expansion and Challenges