arhs-20260331

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 March 31, 2026


☐			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 May 1, 2026 the registrant had 54,424,464 shares of Class A common stock and 87,115,600 shares of Class B common stock outstanding.


		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)	5
	Notes to Condensed Consolidated Financial Statements (unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 4.	Controls and Procedures	26
Part II. Other Information		30
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 3.	Defaults Upon Senior Securities	30
Item 4.	Mine Safety Disclosures	30
Item 5.	Other Information	30
Item 6.	Exhibits	31
Signatures		32


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


	March 31, 2026		December 31, 2025
Assets
Current assets
Cash and cash equivalents	$	177,111	$	253,356
Restricted cash	3,224		3,124
Accounts receivable, net	432		663
Merchandise inventory, net	369,457		338,806
Prepaid and other current assets	31,619		25,425
Total current assets	581,843		621,374
Operating right-of-use assets	408,763		391,274
Financing right-of-use assets	32,744		33,275
Property, furniture and equipment, net	322,038		316,216
Deferred tax assets	18,863		19,545
Goodwill	10,961		10,961
Other noncurrent assets	2,308		2,101
Total assets	$	1,377,520	$	1,394,746

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	67,925	$	78,360
Accrued taxes	6,544		10,322
Accrued wages	14,851		20,879
Accrued other expenses	40,379		46,781
Client deposits	271,229		235,943
Current portion of operating lease liabilities	64,475		60,115
Current portion of financing lease liabilities	964		862
Total current liabilities	466,367		453,262
Operating lease liabilities, long-term	482,109		467,226
Financing lease liabilities, long-term	52,166		52,374
Other long-term liabilities	4,193		3,656
Total liabilities	$	1,004,835	$	976,518
Commitments and contingencies (Note 9)
Stockholders’ equity
Class A shares, par value $0.001 per share (600,000,000 shares authorized, 54,912,375 shares issued and 54,206,609 outstanding as of March 31, 2026; 54,565,242 shares issued and 53,969,149 outstanding as of December 31, 2025)	54		54
Class B shares, par value $0.001 per share (100,000,000 shares authorized, 87,115,600 shares issued and outstanding as of March 31, 2026; 87,115,600 shares issued and outstanding as of December 31, 2025)	87		87
Retained earnings	162,209		210,365
Additional paid-in capital	210,335		207,722
Total stockholders’ equity	372,685		418,228
Total liabilities and stockholders’ equity	$	1,377,520	$	1,394,746


	Three months ended
	March 31,
	2026		2025
Net revenue	$	314,276	$	311,372
Cost of goods sold	199,841		195,785
Gross margin	114,435		115,587
Selling, general and administrative expenses	112,195		110,058
Loss on disposal of assets	104		108
Income from operations	$	2,136	$	5,421
Interest income, net	(454)		(573)
Other income	(847)		(86)
Income before taxes	3,437		6,080
Income tax expense	1,214		1,198
Net and comprehensive income	$	2,223	$	4,882

Net and comprehensive income per share, basic
Weighted-average number of common shares outstanding, basic	140,966,908		140,361,588
Net and comprehensive income per share, basic	$	0.02	$	0.03
Net and comprehensive income per share, diluted
Weighted-average number of common shares outstanding, diluted	141,741,874		141,090,633
Net and comprehensive income per share, diluted	$	0.02	$	0.03


	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 December 31, 2025	53,905	$	54	87,116	$	87	597	$	—	$	210,365	$	207,722	$	418,228
Net income	—	—		—	—		—	—		2,223		—		2,223

Equity based compensation	347	—		—	—		—	—		—		2,645		2,645
Shares withheld to cover employees’ withholding taxes for equity based compensation	(109)	—		—	—		109	—		—		(867)		(867)
Dividends declared	—	—		—	—		—	—		(50,379)		835		(49,544)
Balances as of March 31, 2026	54,143	$	54	87,116	$	87	706	$	—	$	162,209	$	210,335	$	372,685

	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 December 31, 2024	53,289	$	53	87,116	$	87	274	$	—	$	142,898	$	200,707	$	343,745
Net income	—	—		—	—		—	—		4,882		—		4,882
Shareholder capital contribution	—	—		—	—		—	—		—		4		4
Equity based compensation	478	1		—	—		—	—		—		1,594		1,595
Shares withheld to cover employees’ withholding taxes for equity based compensation	(159)	—		—	—		208	—		—		(1,458)		(1,458)
Dividends declared	—	—		—	—		—	—		60		—		60
Balances as of March 31, 2025	53,608	$	54	87,116	$	87	482	$	—	$	147,840	$	200,847	$	348,828


Arhaus, Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited)


	Condensed Consolidated Balance Sheet Classification	March 31, 2026		December 31, 2025
Assets
Operating lease assets	Operating right-of-use assets	$	408,763	$	391,274
Finance lease assets	Financing right-of-use assets	32,744		33,275
Total leased assets		$	441,507	$	424,549

Liabilities
Current operating leases	Current portion of operating lease liabilities	$	64,475	$	60,115
Non-current operating leases	Operating lease liabilities, long-term	482,109		467,226
Total operating lease liabilities		546,584		527,341

Current finance leases	Current portion of financing lease liabilities	964		862
Non-current finance leases	Financing lease liabilities, long-term	52,166		52,374
Total finance lease liabilities		53,130		53,236
Total lease liabilities		$	599,714	$	580,577


	Three months ended
	March 31,
Weighted Average Remaining Lease Term (In Years)	2026	2025
Operating leases	8.79	8.73
Finance leases	19.33	20.23


	Three months ended
	March 31,
Weighted Average Discount Rate	2026		2025
Operating leases	6.02	%	6.04	%
Finance leases	9.68	%	9.67	%


Year Ending December 31,	Operating Lease Liabilities (1)		Finance Lease Liabilities		Total Lease Liabilities
Remainder of 2026	$	66,111	$	4,542	$	70,653
2027	88,247		6,014		94,261
2028	82,493		5,708		88,201
2029	80,552		5,245		85,797
2030	75,584		5,233		80,817
2031	70,139		5,744		75,883
Thereafter	248,682		93,748		342,430
Total lease payments	711,808		126,234		838,042
Less: Amounts representing interest	(165,224)		(73,104)		(238,328)
Total	$	546,584	$	53,130	$	599,714


	Three months ended
	March 31,
	2026		2025
Lease costs:
Operating lease costs(1)	$	19,722	$	16,444
Finance lease costs
Amortization of right-of-use assets(1)	550		602
Interest expense on lease liabilities(2)	1,277		1,289
Variable lease costs(3)	10,229		12,242
Short term lease costs(4)	44		44

Total lease costs	$	31,822	$	30,621


	PSU Awards			RSU Awards
	Amount	Weighted Average Grant Date Fair Value		Amount	Weighted Average Grant Date Fair Value
Unvested at December 31, 2025	605,039	$	9.78	2,320,867	$	8.73
Granted	—	—		—	—
Forfeited	(1,855)	8.81		(14,693)	7.84
Vested	—	—		(284,111)	9.48
Unvested at March 31, 2026	603,184	$	9.78	2,022,063	$	8.64


	Restricted Stock - Class A
	Amount	Weighted Average Grant Date Fair Value
Unvested at December 31, 2025	64,187	$	18.61
Granted	—	—
Forfeited	—	—
Vested	—	—
Unvested at March 31, 2026	64,187	$	18.61


	March 31, 2026	December 31, 2025
Traditional Showrooms	90	90
Design Studios	9	9
Lofts	8	8
Total Showrooms	107	107
Total gross square footage (in thousands)	1,835	1,836
Showrooms with interior designers	96	97
Total interior designers	146	142
States where we operate	31	31

SEC Form 10-Q filed by Arhaus Inc.