$ARHS

Arhaus, Inc.

CIK:0001875444|SEC Filings

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net revenue	$ 384,897	$ 358,435	$ 699,173	$ 669,807
Cost of goods sold	212,824	210,208	412,665	405,993
Gross margin	172,073	148,227	286,508	263,814
Selling, general and administrative expenses	117,807	101,462	230,002	211,520
Loss on disposal of assets	0	0	104	108
Income from operations	54,266	46,765	56,402	52,186
Interest income, net	(1,064)	(744)	(1,518)	(1,317)
Other income	(45)	(150)	(892)	(236)
Income before taxes	55,375	47,659	58,812	53,739
Income tax expense	15,729	12,593	16,943	13,791
Net income	39,646	35,066	41,869	39,948
Comprehensive income	$ 39,646	$ 35,066	$ 41,869	$ 39,948
Net and comprehensive income per share, basic
Weighted-average number of common shares outstanding, basic (in shares)	141,466,361	140,709,814	141,218,014	140,536,663
Net and comprehensive income per share, basic (in dollars per share)	$ 0.28	$ 0.25	$ 0.30	$ 0.28
Net and comprehensive income per share, diluted
Weighted-average number of common shares outstanding, diluted (in shares)	141,808,253	141,162,310	141,776,353	141,126,879
Net and comprehensive income per share, diluted (in dollars per share)	$ 0.28	$ 0.25	$ 0.30	$ 0.28

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities
Net income	$ 41,869	$ 39,948
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	25,114	22,959
Amortization of operating lease right-of-use asset	24,181	20,335
Amortization of interest on operating leases	16,004	14,156
Equity based compensation	6,058	3,390
Deferred tax assets	4,159	(1,529)
Amortization of cloud computing arrangements	1,749	853
Loss on disposal of assets	104	108
Insurance proceeds	176	0
Gain on insurance claims	(952)	0
Changes in operating assets and liabilities
Accounts receivable	427	282
Merchandise inventory	(14,725)	(14,107)
Prepaid and other assets	(38,214)	4,398
Other noncurrent liabilities	1,378	(172)
Accounts payable	(8,254)	1,816
Accrued expenses	8,108	4,746
Operating lease liabilities	(35,242)	(27,952)
Client deposits	27,844	12,197
Net cash provided by operating activities	59,784	81,428
Cash flows from investing activities
Purchases of property, furniture and equipment	(38,093)	(41,622)
Insurance proceeds	1,193	0
Net cash used in investing activities	(36,900)	(41,622)
Cash flows from financing activities
Principal payments under finance leases	(425)	(365)
Repurchase of shares for payment of withholding taxes for equity based compensation	(1,664)	(1,675)
Cash dividend payments	(49,590)	(276)
Net cash used in financing activities	(51,679)	(2,316)
Net (decrease) increase in cash, cash equivalents and restricted cash	(28,795)	37,490
Cash, cash equivalents and restricted cash
Beginning of period	256,480	200,929
End of period	227,685	238,419
Supplemental disclosure of cash flow information
Interest paid in cash	2,630	2,513
Interest received in cash	3,539	4,040
Income taxes paid in cash	8,628	13,030
Noncash investing activities:
Purchases of property, furniture and equipment in current liabilities	$ 10,907	$ 7,190

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 226,399	$ 253,356
Restricted cash	1,286	3,124
Accounts receivable, net	236	663
Merchandise inventory, net	353,531	338,806
Prepaid and other current assets	61,065	25,425
Total current assets	642,517	621,374
Operating right-of-use assets	415,884	391,274
Financing right-of-use assets	32,184	33,275
Property, furniture and equipment, net	331,038	316,216
Deferred tax assets	15,386	19,545
Goodwill	10,961	10,961
Other noncurrent assets	2,483	2,101
Total assets	1,450,453	1,394,746
Current liabilities
Accounts payable	71,910	78,360
Accrued taxes	12,825	10,322
Accrued wages	19,447	20,879
Accrued other expenses	53,269	46,781
Client deposits	263,787	235,943
Current portion of operating lease liabilities	62,156	60,115
Current portion of financing lease liabilities	970	862
Total current liabilities	484,364	453,262
Operating lease liabilities, long-term	494,179	467,226
Financing lease liabilities, long-term	51,931	52,374
Other long-term liabilities	5,032	3,656
Total liabilities	1,035,506	976,518
Commitments and contingencies (Note 9)
Stockholders’ equity
Retained earnings	202,037	210,365
Additional paid-in capital	212,768	207,722
Total stockholders’ equity	414,947	418,228
Total liabilities and stockholders’ equity	1,450,453	1,394,746
Class A
Stockholders’ equity
Stock issued	55	54
Class B
Stockholders’ equity
Stock issued	$ 87	$ 87