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RH Reports Fourth Quarter and Fiscal Year 2025 Results

April 1, 2026  by Karen Parrish in Business Strategy, Industry   

Fourth Quarter and Fiscal Year 2025 results, as well as the First Quarter and Fiscal Year 2026 Outlook, are highlighted below.

FOURTH QUARTER 2025 HIGHLIGHTS
GAAP Net Revenues Increased 3.7% to $843M
GAAP Net Income Increased 107% to $29M
GAAP Operating Margin of 11.5%
EBITDA Margin of 16.2%, Adjusted EBITDA Margin of 17.7%
Free Cash Flow of $55M

The Company’s Fourth Quarter and Fiscal Year 2025 net revenues were negatively impacted by approximately $30M due to higher than expected backorder and special order balances as a result of tariff related resourcing and approximately $10M due to adverse weather at the end of the quarter.

FISCAL YEAR 2025 HIGHLIGHTS
GAAP Net Revenues Increased 8.1% to $3.44B
GAAP Net Income Increased 72% to $125M
GAAP Operating Margin of 11.3%, Adjusted Operating Margin of 11.4%
EBITDA Margin of 15.9%, Adjusted EBITDA Margin of 17.3%
Free Cash Flow of $252M

FISCAL YEAR 2026 OUTLOOK
Revenue Growth of 4% to 8%
Adjusted EBITDA Margin of 14% to 16%
Adjusted Free Cash Flow of $300M to $400M

The above outlook includes an approximate negative 270 basis point Adjusted EBITDA margin impact from preopening and startup costs to support our international expansion.

FIRST QUARTER 2026 OUTLOOK
Revenue Growth of -2% to -4%
Adjusted EBITDA Margin of 5.5% to 6.5%

The above outlook includes an approximate negative 420 basis point Adjusted EBITDA margin impact from preopening and startup costs to support our international expansion.