arhs-20250930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-41009

Arhaus, Inc.

(Exact name of registrant as specified in its charter)


Delaware						87-1729256
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

51 E. Hines Hill Road, Boston Heights, Ohio

(Address of Principal Executive Offices)

44236

(Zip Code)

(440) 439-7700

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock, $0.001 par value per share	ARHS	The Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of October 31, 2025 the registrant had 53,947,912 shares of Class A common stock and 87,115,600 shares of Class B common stock outstanding.

Table of Contents


		Page
Part I - Financial Information		2
Item 1.	Financial Statements of Arhaus, Inc. and Subsidiaries	2
	Condensed Consolidated Balance Sheets (unaudited)	2
	Condensed Consolidated Statements of Comprehensive Income (unaudited)	3
	Condensed Consolidated Statements of Changes in Stockholders’ Equity (unaudited)	4
	Condensed Consolidated Statements of Cash Flows (unaudited)	6
	Notes to Condensed Consolidated Financial Statements (unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	30
Part II. Other Information		34
Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 3.	Defaults Upon Senior Securities	35
Item 4.	Mine Safety Disclosures	35
Item 5.	Other Information	35
Item 6.	Exhibits	36
Signatures		37

Part I - Financial Information

Item 1. Financial Statements of Arhaus, Inc. and Subsidiaries


Arhaus, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited, amounts in thousands, except share and per share data)


	September 30, 2025		December 31, 2024
Assets
Current assets
Cash and cash equivalents	$	262,230	$	197,511
Restricted cash	3,625		3,418
Accounts receivable, net	1,071		1,252
Merchandise inventory, net	328,728		297,010
Prepaid and other current assets	30,519		31,852
Total current assets	626,173		531,043
Operating right-of-use assets	384,692		322,302
Financing right-of-use assets	33,752		36,105
Property, furniture and equipment, net	310,356		282,520
Deferred tax assets	10,696		21,091
Goodwill	10,961		10,961
Other noncurrent assets	2,008		2,294
Total assets	$	1,378,638	$	1,206,316

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	69,511	$	68,621
Accrued taxes	12,022		10,480
Accrued wages	21,385		11,538
Accrued other expenses	46,135		47,668
Client deposits	253,973		220,873
Current portion of operating lease liabilities	62,446		42,247
Current portion of financing lease liabilities	684		1,024
Total current liabilities	466,156		402,451
Operating lease liabilities, long-term	455,910		402,916
Financing lease liabilities, long-term	52,569		53,312
Other long-term liabilities	3,587		3,892
Total liabilities	$	978,222	$	862,571
Commitments and contingencies (Note 9)
Stockholders’ equity
Class A shares, par value $0.001 per share (600,000,000 shares authorized, 54,528,424 shares issued and 53,944,958 outstanding as of September 30, 2025; 53,788,036 shares issued and 53,514,062 outstanding as of December 31, 2024)	54		53
Class B shares, par value $0.001 per share (100,000,000 shares authorized, 87,115,600 shares issued and outstanding as of September 30, 2025; 87,115,600 shares issued and outstanding as of December 31, 2024)	87		87
Retained earnings	195,266		142,898
Additional paid-in capital	205,009		200,707
Total stockholders’ equity	400,416		343,745
Total liabilities and stockholders’ equity	$	1,378,638	$	1,206,316

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


Arhaus, Inc. and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (Unaudited, amounts in thousands, except share and per share data)


	Nine months ended				Three months ended
	September 30,				September 30,
	2025		2024		2025		2024
Net revenue	$	1,014,377	$	924,096	$	344,570	$	319,133
Cost of goods sold	617,142		561,598		211,149		196,061
Gross margin	397,235		362,498		133,421		123,072
Selling, general and administrative expenses	328,534		304,085		117,014		112,401
Loss (gain) on disposal of assets	81		—		(27)		—
Income from operations	$	68,620	$	58,413	$	16,434	$	10,671
Interest income, net	(2,137)		(2,582)		(820)		(544)
Other income	(354)		(447)		(118)		(250)
Income before taxes	71,111		61,442		17,372		11,465
Income tax expense	18,945		14,186		5,154		1,542
Net and comprehensive income	$	52,166	$	47,256	$	12,218	$	9,923

Net and comprehensive income per share, basic
Weighted-average number of common shares outstanding, basic	140,635,317		139,990,522		140,829,409		140,166,990
Net and comprehensive income per share, basic	$	0.37	$	0.34	$	0.09	$	0.07
Net and comprehensive income per share, diluted
Weighted-average number of common shares outstanding, diluted	141,310,742		140,732,337		141,676,722		140,722,915
Net and comprehensive income per share, diluted	$	0.37	$	0.34	$	0.09	$	0.07

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


Arhaus, Inc. and Subsidiaries Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited, amounts in thousands)


	Nine months ended
	Common Stock						Treasury Stock			Total Stockholders’ Equity
	Class A			Class B			Class A
	Shares	Amount		Shares	Amount		Shares	Amount		Retained Earnings		Additional Paid-in Capital		Total Stockholders’ Equity
Balances as of December 31, 2024	53,289	$	53	87,116	$	87	274	$	—	$	142,898	$	200,707	$	343,745
Net income	—	—		—	—		—	—		52,166		—		52,166
Shareholder capital contribution	—	—		—	—		—	—		—		4		4
Equity based compensation	812	1		—	—		—	—		—		6,343		6,344
Shares withheld to cover employees’ withholding taxes for equity based compensation	(229)	—		—	—		310	—		—		(2,045)		(2,045)
Dividends declared	—	—		—	—		—	—		202		—		202
Balances as of September 30, 2025	53,872	$	54	87,116	$	87	584	$	—	$	195,266	$	205,009	$	400,416

	Nine months ended
	Common Stock						Treasury Stock			Total Stockholders’ Equity
	Class A			Class B			Class A
	Shares	Amount		Shares	Amount		Shares	Amount		Retained Earnings		Additional Paid-in Capital		Total Stockholders’ Equity
Balances as of December 31, 2023	52,669	$	52	87,116	$	87	84	$	—	$	145,292	$	194,807	$	340,238
Net income	—	—		—	—		—	—		47,256		—		47,256
Shareholder capital contribution	—	—		—	—		—	—		—		24		24
Equity based compensation	609	1		—	—		—	—		—		5,351		5,352
Shares withheld to cover employees’ withholding taxes for equity based compensation	(139)	—		—	—		139	—		—		(1,277)		(1,277)
Dividends declared	—	—		—	—		—	—		(70,948)		—		(70,948)
Balances as of September 30, 2024	53,139	$	53	87,116	$	87	223	$	—	$	121,600	$	198,905	$	320,645

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


Arhaus, Inc. and Subsidiaries Condensed Consolidated Statements of Changes in Stockholders’ Equity (continued) (Unaudited, amounts in thousands)


	Three months ended
	Common Stock						Treasury Stock			Total Stockholders’ Equity
	Class A			Class B			Class A
	Shares	Amount		Shares	Amount		Shares	Amount		Retained Earnings		Additional Paid-in Capital		Total Stockholders’ Equity
Balances as of June 30, 2025	53,787	$	54	87,116	$	87	541	$	—	$	183,047	$	202,425	$	385,613
Net income	—	—		—	—		—	—		12,218		—		12,218
Shareholder capital contribution	—	—		—	—		—	—		—		—		—
Equity based compensation	128	—		—	—		—	—		—		2,954		2,954
Shares withheld to cover employees' withholding taxes for equity based compensation	(43)	—		—	—		43	—		—		(370)		(370)
Dividends declared	—	—		—	—		—	—		1		—		1
Balances as of September 30, 2025	53,872	$	54	87,116	$	87	584	$	—	$	195,266	$	205,009	$	400,416

	Three months ended
	Common Stock						Treasury Stock			Total Stockholders’ Equity
	Class A			Class B			Class A
	Shares	Amount		Shares	Amount		Shares	Amount		Retained Earnings		Additional Paid-in Capital		Total Stockholders’ Equity
Balances as of June 30, 2024	52,994	$	53	87,116	$	87	121	$	—	$	111,544

SEC Form 10-Q filed by Arhaus Inc.