Arhaus, Inc. Reports Third Quarter Financial Results

November 6, 2025  by Karen Parrish in Business Strategy, Industry   

Third Quarter 2025 Highlights

- Net revenue increased 8.0% to $345 million, compared to the third quarter of 2024

- Gross margin increased 8.4% to $133 million, compared to the third quarter of 2024

- Selling, general and administrative expenses increased 4.1% to $117 million, compared to the third quarter of 2024

- Net and comprehensive income increased 23.1% to $12 million, compared to the third quarter of 2024

- Adjusted EBITDA increased 35.2% to $31 million, compared to the third quarter of 2024

- Comparable growth⁽¹⁾ of 4.1%

John Reed, Co-Founder and Chief Executive Officer, said:

“We delivered another strong quarter, with net revenue of $345 million, up 8.0% year-over-year—marking the highest third-quarter net revenue in our company’s history. This performance reflects the strength of our brand, the appeal of our product offering, and the disciplined execution of our long-term strategy.

Demand comparable growth⁽³⁾ was 7.4%, supported by the success of our Fall 2025 Collection and continued client excitement across both core products and newness. September marked the highest total demand month in Arhaus’ history. This performance underscores our leadership in design, craftsmanship, and quality, and the resilience of our high-end client base.

We also continue to expand our Showroom footprint, opening our largest Traditional Showroom to date in Pasadena, California, and thoughtfully restoring a century-old building to honor its architectural heritage. This month, we’ll open our first Montana Showroom in Bozeman. These additions further strengthen our brand awareness and client engagement as we grow the Arhaus brand.

We’re navigating the current environment from a position of strength—debt-free, with ample liquidity. With a powerful brand, a proven model, and a talented team, we remain focused on finishing the year strong and delivering sustainable, long-term shareholder value.”

Business Highlights

Arhaus delivered strong third-quarter results, with net revenue of $345 million, an increase of 8.0%, setting a new record for the highest third-quarter net revenue in Company history. Growth was driven primarily by revenue contributions from new Showrooms openings, with the remainder due to increased demand for Arhaus products.

Comparable growth⁽¹⁾ was 4.1% in the third quarter, reflecting healthy underlying client demand and strong operational execution across the Company’s distribution network. The Dallas Distribution Center, which was successfully brought in-house during the second quarter, continues to ramp effectively, driving meaningful improvements in delivery performance. Ongoing investments in Arhaus’ distribution network and technology infrastructure are enhancing efficiency and strengthening the overall client experience.

Demand comparable growth⁽³⁾ was 7.4% in the third quarter, supported by the success of the Company’s Fall 2025 Collection and continued client demand for core and new product offerings. Year-to-date through the third quarter, Demand comparable growth⁽³⁾ was 2.8%.

Showroom Highlights

At the end of the third quarter of 2025, Arhaus operated 103 Showrooms across 30 states and all four geographic regions. Through the third quarter, the Company completed 8 Total Showroom Projects⁽²⁾, including 1 new opening, 6 relocations, and 1 renovation.

In October, the Company opened its largest Traditional Showroom to date in Pasadena, California, expanding its Southern California presence and marking its fifteenth Showroom in the state and fifth in the greater Los Angeles area. In November, Arhaus will open its first Montana Showroom in Bozeman, continuing its expansion across the Mountain West.

Inclusive of the two Traditional Showrooms referenced above, and an additional Outlet location that opened in Texas in October, Arhaus will have completed 11 Total Showroom Projects⁽²⁾, year-to-date. The Company continues to expect to complete approximately 12 to 15 Total Showroom Projects⁽²⁾ in 2025, consisting of 4 to 6 new openings and 8 to 9 relocations, renovations, or expansions.

Outlook

The Company is updating its full-year 2025 outlook, as reflected in the table below, raising the low end of its prior ranges while maintaining the high end. This update reflects the momentum Arhaus saw through the third quarter, while maintaining a measured stance on the upper end given continued macroeconomic uncertainty. This approach demonstrates both confidence in the Company’s execution and discipline in its outlook as Arhaus navigates a dynamic environment.

Conference Call

A recorded replay of the conference call can be accessed online at http://ir.arhaus.com for approximately twelve months.