📊 ARHS Key Takeaways
Is Arhaus, Inc. (ARHS) a Good Investment?
Arhaus demonstrates solid fundamental strength with revenue growth of 8.5% YoY and healthy profitability margins (38.9% gross, 6.4% operating), supported by strong cash generation (FCF of $59M) and a fortress balance sheet with zero debt. However, net income declined slightly YoY despite revenue growth, and modest operating margins limit margin expansion potential in a competitive retail environment.
Arhaus shows solid fundamental quality with 8.5% revenue growth, strong gross margins near 39%, positive free cash flow, and a debt-free balance sheet supported by over $253M in cash. The main constraint is that earnings growth is lagging sales growth, with slight net income and EPS declines indicating margin pressure and uneven operating leverage. Overall, the business appears financially healthy with good growth quality, but sustained margin expansion will be important to strengthen the case further.
Why Buy Arhaus, Inc. Stock? ARHS Key Strengths
- Strong balance sheet with $253.4M cash, zero long-term debt, and Debt/Equity of 0.00x providing financial flexibility
- Robust profitability with 38.9% gross margin and solid ROE of 16.1%, demonstrating efficient capital deployment
- Consistent cash generation with operating cash flow of $136.8M and free cash flow of $59M (4.3% FCF margin)
- Revenue growth of 8.5% YoY in competitive furniture retail sector shows market traction and execution capability
- Debt-free capital structure with strong cash reserves and solid liquidity
- Healthy gross margin and double-digit ROE indicate an attractive underlying business model
- Positive operating cash flow and free cash flow support reinvestment and resilience
ARHS Stock Risks: Arhaus, Inc. Investment Risks
- Net income declined 1.9% YoY despite 8.5% revenue growth, suggesting margin compression or operational headwinds
- Quick ratio of 0.62x indicates potential liquidity constraints relative to current liabilities despite adequate current ratio
- Operating margin of only 6.4% provides limited buffer against cost pressures, supply chain disruptions, or economic downturn
- Furniture retail sector exposure to consumer discretionary spending and economic sensitivity
- Net income and EPS declined despite revenue growth, suggesting margin compression
- Quick ratio of 0.62x indicates reliance on inventory and working capital efficiency
- Free cash flow margin remains modest, leaving less room if demand weakens or capex stays elevated
Key Metrics to Watch
- Gross margin trend - monitor for pricing power retention or input cost pressures
- Operating income growth rate relative to revenue growth to assess operational leverage
- Free cash flow conversion and maintenance of capital discipline given $77.9M capex
- Consumer demand indicators and same-store sales trends in furniture retail
- Operating margin and net margin trend
- Free cash flow conversion relative to net income
Arhaus, Inc. (ARHS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.3% FCF margin may limit capital allocation flexibility.
ARHS Profit Margin, ROE & Profitability Analysis
ARHS vs Consumer Sector: How Arhaus, Inc. Compares
How Arhaus, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Arhaus, Inc. Stock Overvalued? ARHS Valuation Analysis 2026
Based on fundamental analysis, Arhaus, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Arhaus, Inc. Balance Sheet: ARHS Debt, Cash & Liquidity
ARHS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Arhaus, Inc.'s revenue has grown significantly by 73% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.89 reflects profitable operations.
ARHS Revenue Growth, EPS Growth & YoY Performance
ARHS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $319.1M | $9.9M | $0.07 |
| Q2 2025 | $309.8M | $22.2M | $0.16 |
| Q1 2025 | $295.2M | $4.9M | $0.03 |
| Q3 2024 | $319.1M | N/A | $0.07 |
| Q2 2024 | $309.8M | N/A | $0.16 |
| Q1 2024 | $295.2M | N/A | $0.11 |
| Q3 2023 | $320.0M | N/A | $0.14 |
| Q2 2023 | $306.3M | N/A | $0.26 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Arhaus, Inc. Dividends, Buybacks & Capital Allocation
ARHS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Arhaus, Inc. (CIK: 0001875444)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 14, 2026 | 4 | xslF345X06/wk-form4_1776197214.xml | View → |
| Apr 14, 2026 | 4 | xslF345X06/wk-form4_1776197209.xml | View → |
| Apr 14, 2026 | 4 | xslF345X06/wk-form4_1776197201.xml | View → |
| Apr 6, 2026 | 4 | xslF345X06/wk-form4_1775506673.xml | View → |
| Apr 6, 2026 | 4 | xslF345X06/wk-form4_1775506667.xml | View → |
❓ Frequently Asked Questions about ARHS
What is the AI rating for ARHS?
Arhaus, Inc. (ARHS) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ARHS's key strengths?
Claude: Strong balance sheet with $253.4M cash, zero long-term debt, and Debt/Equity of 0.00x providing financial flexibility. Robust profitability with 38.9% gross margin and solid ROE of 16.1%, demonstrating efficient capital deployment. ChatGPT: Debt-free capital structure with strong cash reserves and solid liquidity. Healthy gross margin and double-digit ROE indicate an attractive underlying business model.
What are the risks of investing in ARHS?
Claude: Net income declined 1.9% YoY despite 8.5% revenue growth, suggesting margin compression or operational headwinds. Quick ratio of 0.62x indicates potential liquidity constraints relative to current liabilities despite adequate current ratio. ChatGPT: Net income and EPS declined despite revenue growth, suggesting margin compression. Quick ratio of 0.62x indicates reliance on inventory and working capital efficiency.
What is ARHS's revenue and growth?
Arhaus, Inc. reported revenue of $1.4B.
Does ARHS pay dividends?
Arhaus, Inc. pays dividends, with $0.4M distributed to shareholders in the trailing twelve months.
Where can I find ARHS SEC filings?
Official SEC filings for Arhaus, Inc. (CIK: 0001875444) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ARHS's EPS?
Arhaus, Inc. has a diluted EPS of $0.48.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ARHS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Arhaus, Inc. has a BUY rating with 73% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is ARHS stock overvalued or undervalued?
Valuation metrics for ARHS: ROE of 16.1% (sector avg: 18%), net margin of 4.9% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy ARHS stock in 2026?
Our dual AI analysis gives Arhaus, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ARHS's free cash flow?
Arhaus, Inc.'s operating cash flow is $136.8M, with capital expenditures of $77.9M. FCF margin is 4.3%.
How does ARHS compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 4.9% (avg: 8%), ROE 16.1% (avg: 18%), current ratio 1.37 (avg: 1.5).