Arhaus Delivers $314M Q1 Revenue, Net Income Falls 54.5% to $2M
Arhaus posted Q1 net revenue of $314M, up 0.9% year-over-year, while net income plunged 54.5% to $2M and adjusted EBITDA fell 3.1% to $18M. Management paid a $0.35 per share special cash dividend and reaffirmed full-year 2026 guidance with revenue expected up 3.7–6.6%.
1. Q1 Financial Performance
Arhaus reported net revenue of $314 million, a 0.9% increase year-over-year, while gross margin fell 1.0% to $114 million. Selling, general and administrative expenses rose 1.9% to $112 million, driving net income down 54.5% to $2 million and adjusted EBITDA down 3.1% to $18 million.
2. Special Cash Dividend and Liquidity
The board declared a $0.35 per share special cash dividend paid on March 31, contributing to a 30.1% decline in cash and cash equivalents to $177 million. Client deposits increased 15.0% to $271 million and net merchandise inventory rose 9.0% to $369 million, while no long-term debt remains on the balance sheet.
3. Showroom Expansion
At quarter-end, Arhaus operated 107 showrooms across 31 states, opening a new showroom in Ashburn, Virginia and expanding its Park Meadows, Colorado location. The company plans 4–6 new openings and 6–8 relocations or expansions in 2026, targeting mid-single-digit net unit growth.
4. Outlook and Guidance
Arhaus reaffirmed its full-year 2026 outlook, projecting net revenue of $1.43–$1.47 billion, adjusted EBITDA of $150–$161 million and net income of $66–$75 million. Second-quarter revenue is forecast at $350–$370 million with comparable delivered sales of (5)% to 0%.