Arhaus (NASDAQ:ARHS) Releases Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Arhaus (NASDAQ:ARHS) posted its quarterly earnings data on Thursday. The company reported $0.11 earnings per share for the quarter, topping the consensus estimate of $0.10 by $0.01, FiscalAI reports. The company had revenue of $364.85 million for the quarter, compared to analysts’ expectations of $351.53 million. Arhaus had a net margin of 5.40% and a return on equity of 19.62%. Arhaus’s revenue for the quarter was up 5.1% compared to the same quarter last year. During the same period in the prior year, the business earned $0.15 earnings per share.

Here are the key takeaways from Arhaus’ conference call:

• Record FY‑2025 results: Net revenue reached $1.38 billion (+8.5% YoY) and adjusted EBITDA was $145 million (+8.9%), which management cites as proof the company’s premium, customization‑led model is working.
• Q4 margin and earnings pressure: Q4 gross margin and net income were hurt by an increase in inventory reserves for obsolete stock and higher showroom occupancy costs, causing Q4 adjusted EBITDA to decline versus last year.
• Tariff headwind for 2026: Management now estimates incremental tariff impacts of roughly $30–$40 million next year, and expects to mitigate some of that through sourcing shifts, vendor negotiations and selective pricing.
• Showroom and design channel growth: Arhaus ended 2025 with 107 showrooms (net growth 3.9%), plans ~10–14 showroom projects in 2026, and is prioritizing the trade/interior designer channel where designer‑led orders have much higher AOVs (≈4x) and drive repeat business.
• Strong liquidity and capital allocation: Cash was $253 million with free cash flow of $59 million, the board declared a $0.35/share special dividend, and the company remains debt‑free while funding a multiyear digital transformation (≈$12M cash in 2026) aimed at improving long‑term operating leverage.

Arhaus Trading Up 10.5%

Shares of NASDAQ:ARHS traded up $0.88 during trading on Thursday, reaching $9.26. 3,841,079 shares of the company traded hands, compared to its average volume of 1,260,570. The company has a current ratio of 1.34, a quick ratio of 0.64 and a debt-to-equity ratio of 0.13. Arhaus has a 52-week low of $6.61 and a 52-week high of $12.98. The firm has a market capitalization of $1.31 billion, a price-to-earnings ratio of 17.81, a P/E/G ratio of 4.34 and a beta of 2.51. The business’s fifty day moving average is $10.51 and its 200-day moving average is $10.64.

Key Arhaus News

Here are the key news stories impacting Arhaus this week:

• Positive Sentiment: Board declared a special cash dividend of $0.35/share payable March 31, signaling strong cash generation and shareholder return. Quiver Quant: Special Dividend & Results
• Positive Sentiment: Q4 beat and record FY revenue — Q4 EPS $0.11 vs. consensus $0.10 and Q4 revenue $364.8M (vs. est. ~$351.5M); full‑year net revenue rose 8.5% to ~$1.38B and adjusted EBITDA increased ~8.9%, supporting the positive reaction. GlobeNewswire: FY2025 Results & Dividend
• Positive Sentiment: Strong balance sheet & showroom expansion — cash ~$253M, no long‑term debt and net unit growth with 107 showrooms (13 projects in 2025). These support reinvestment and the dividend. GlobeNewswire: Balance Sheet & Showrooms
• Positive Sentiment: Analyst action — Telsey Advisory raised its price target from $12 to $13 (market perform), which can lift investor sentiment. Benzinga: Price Target Raise
• Neutral Sentiment: Management outreach — CFO and IR will meet investors at the Raymond James conference (Mar 3), providing additional visibility but no immediate fundamental change. GlobeNewswire: Investor Conferences
• Neutral Sentiment: Earnings call/transcript available — useful for details on margin drivers, inventory and capex (transcript linked). Seeking Alpha: Q4 2025 Call Transcript
• Neutral Sentiment: Reported short‑interest data appears inconsistent (entries show 0 shares / NaN changes); there’s no clear short squeeze signal and the data should be treated cautiously. (internal data)
• Negative Sentiment: Profitability and comps show soft spots — Q4 EPS and diluted EPS are down year‑over‑year (from $0.15 to $0.11); full‑year net income declined ~1.9% despite revenue growth, indicating margin pressure. GlobeNewswire: Profitability Details
• Negative Sentiment: Q1 guidance came in light — company guided Q1 2026 revenue $300–$320M vs. consensus ~$327M (and comparable delivered sales may be down), suggesting near‑term softness that can cap upside. GlobeNewswire: Guidance

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on ARHS shares. Wall Street Zen lowered shares of Arhaus from a “buy” rating to a “hold” rating in a report on Saturday, November 8th. Morgan Stanley upped their target price on shares of Arhaus from $10.50 to $12.00 and gave the stock an “equal weight” rating in a research report on Thursday, January 15th. Weiss Ratings reissued a “hold (c)” rating on shares of Arhaus in a research note on Monday, December 29th. Telsey Advisory Group lifted their price target on Arhaus from $12.00 to $13.00 and gave the stock a “market perform” rating in a research note on Thursday. Finally, Zacks Research cut Arhaus from a “strong-buy” rating to a “hold” rating in a report on Friday, November 7th. Three equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $11.31.

Institutional Investors Weigh In On Arhaus

Institutional investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd bought a new position in shares of Arhaus during the third quarter valued at about $30,000. Larson Financial Group LLC raised its position in Arhaus by 89.8% during the 3rd quarter. Larson Financial Group LLC now owns 2,780 shares of the company’s stock valued at $30,000 after purchasing an additional 1,315 shares during the last quarter. Global Retirement Partners LLC purchased a new stake in Arhaus in the 4th quarter worth approximately $39,000. Quarry LP lifted its holdings in Arhaus by 203.0% in the 3rd quarter. Quarry LP now owns 4,996 shares of the company’s stock worth $53,000 after buying an additional 3,347 shares during the period. Finally, Tower Research Capital LLC TRC grew its position in shares of Arhaus by 224.9% in the 2nd quarter. Tower Research Capital LLC TRC now owns 7,391 shares of the company’s stock worth $64,000 after buying an additional 5,116 shares during the last quarter. Hedge funds and other institutional investors own 27.88% of the company’s stock.

About Arhaus

Arhaus (NASDAQ:ARHS) is a U.S.-based retailer specializing in high-end home furnishings and décor. Since its founding in 1986 in northeastern Ohio, the company has built a reputation for curating unique, design-forward products that blend contemporary aesthetics with artisanal craftsmanship. Headquartered in Boston Heights, Ohio, Arhaus operates a network of brick-and-mortar galleries across the United States alongside a robust e-commerce platform, serving customers from coastal metropolitan areas to interior regions.

The company’s product portfolio encompasses a wide range of furniture categories—including sofas, dining tables, bedroom pieces and storage solutions—complemented by lighting fixtures, rugs, pillows, wall art and decorative accessories.