# EDGAR Filing Document

**Accession Number:** 0001875444
**File Stem:** 0001875444-25-000144
**Filing Date:** 2025-11
**Character Count:** 30421
**Document Hash:** c825f2737b225883fe9658dcc5b79282
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001875444-25-000144.hdr.sgml**: 20251106

**ACCESSION NUMBER**: 0001875444-25-000144

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20251106

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251106

**DATE AS OF CHANGE**: 20251106

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Arhaus, Inc.
- **CENTRAL INDEX KEY:** 0001875444
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-FURNITURE STORES [5712]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 871729256
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41009
- **FILM NUMBER:** 251455935

**BUSINESS ADDRESS:**
- **STREET 1:** 51 EAST HINES HILL ROAD
- **CITY:** BOSTON HEIGHTS
- **STATE:** OH
- **ZIP:** 44236
- **BUSINESS PHONE:** 440-439-7700

**MAIL ADDRESS:**
- **STREET 1:** 51 EAST HINES HILL ROAD
- **CITY:** BOSTON HEIGHTS
- **STATE:** OH
- **ZIP:** 44236

?xml version='1.0' encoding='ASCII'? arhs-20251106

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**___________________________________**

**FORM 8-K**

**___________________________________**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d)**

**of the Securities Exchange Act of 1934**

**Date of Report (date of earliest event reported): November 6, 2025**

**___________________________________**

**Arhaus, Inc.**

**(Exact name of registrant as specified in its charter)**

**___________________________________**

---

| | | |
|:---|:---|:---|
| **Delaware**<br>**(State or other jurisdiction of** <br>**incorporation or organization)** | **001-41009**<br>**(Commission File Number)** | **87-1729256**<br>**(I.R.S. Employer Identification Number)** |

---

**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)

**Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:**

**☐** **Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)**

**☐** **Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)**

**☐** **Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))**

**☐** **Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))**

---

| | | |
|:---|:---|:---|
| **Securities registered pursuant to Section 12(b) of the Act:** | **Securities registered pursuant to Section 12(b) of the Act:** | **Securities registered pursuant to Section 12(b) of the Act:** |
| **<u>Title of each class</u>** | **<u>Trading Symbol</u>** | **<u>Name of each exchange on which registered</u>** |
| **Class A common stock, $0.001 par value per share** | **ARHS** | **The Nasdaq Global Select Market** |

---

**Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Exchange Act of 1934.**

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.** ☐

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**Item 2.02 &nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition**

On November 6, 2025, Arhaus, Inc. (the "Company") issued a press release announcing its financial results for the third quarter ended September 30, 2025. A copy of the release is attached as Exhibit 99.1.

**Item 7.01&nbsp;&nbsp;&nbsp;&nbsp;Regulation FD Disclosure**

The information furnished pursuant to Item 2.02 and Exhibit 99.1 of this Current Report on Form 8-K shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section. The information in this Current Report shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this Current Report, regardless of any general incorporation language in the filing.

**Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits**

(d) The following exhibits are being filed herewith:

---

| | |
|:---|:---|
| <u>Exhibit No.</u> | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Description</u> |
| <u>[99.1](arhausincthirdquarter2025e.htm)</u> | Press release dated November 6, 2025 announcing the release of third quarter 2025 results. |
| 104 | Cover Page with Interactive Data File (embedded within the Inline XBRL document). |

---

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**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on this 6th day of November, 2025.

---

| | |
|:---|:---|
| **ARHAUS, INC.** | **ARHAUS, INC.** |
| By: | /s/ Michael Lee |
| Name: | Michael Lee |
| Title: | Chief Financial Officer |

---

## Exhibit 99.1

![imagea.jpg](imagea.jpg)

**ARHAUS REPORTS THIRD QUARTER 2025 FINANCIAL RESULTS** 

BOSTON HEIGHTS, Ohio (November 6, 2025)—Arhaus, Inc. ("Arhaus" or the "Company") (NASDAQ: ARHS), a growing lifestyle brand and omni-channel retailer of premium artisan-crafted home furnishings, reported third quarter 2025 results for the period ended September 30, 2025.

**Third Quarter 2025 Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Net revenue** increased 8.0% to $345 million, compared to the third quarter of 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Gross margin** increased 8.4% to $133 million, compared to the third quarter of 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Selling, general and administrative expenses** increased 4.1% to $117 million, compared to the third quarter of 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Net and comprehensive income** increased 23.1% to $12 million, compared to the third quarter of 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Adjusted EBITDA** increased 35.2% to $31 million, compared to the third quarter of 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Comparable growth**<sup>(1)</sup> of 4.1%

**John Reed, Co-Founder and Chief Executive Officer, said**:

"We delivered another strong quarter, with net revenue of $345 million, up 8.0% year-over-year—marking the highest third-quarter net revenue in our company's history. This performance reflects the strength of our brand, the appeal of our product offering, and the disciplined execution of our long-term strategy.

Demand comparable growth<sup>(3)</sup> was 7.4%, supported by the success of our Fall 2025 Collection and continued client excitement across both core products and newness. September marked the highest total demand month in Arhaus' history. This performance underscores our leadership in design, craftsmanship, and quality, and the resilience of our high-end client base.

We also continue to expand our Showroom footprint, opening our largest Traditional Showroom to date in Pasadena, California, and thoughtfully restoring a century-old building to honor its architectural heritage. This month, we'll open our first Montana Showroom in Bozeman. These additions further strengthen our brand awareness and client engagement as we grow the Arhaus brand.

We're navigating the current environment from a position of strength—debt-free, with ample liquidity. With a powerful brand, a proven model, and a talented team, we remain focused on finishing the year strong and delivering sustainable, long-term shareholder value."

------

**<u>Business Highlights</u>**

Arhaus delivered strong third-quarter results, with net revenue of $345 million, an increase of 8.0%, setting a new record for the highest third-quarter net revenue in Company history. Growth was driven primarily by revenue contributions from new Showrooms openings, with the remainder due to increased demand for Arhaus products.

Comparable growth<sup>(1)</sup> was 4.1% in the third-quarter, reflecting healthy underlying client demand and strong operational execution across the Company's distribution network. The Dallas Distribution Center, which was successfully brought in-house during the second-quarter, continues to ramp effectively, driving meaningful improvements in delivery performance. Ongoing investments in Arhaus' distribution network and technology infrastructure are enhancing efficiency and strengthening the overall client experience.

Demand comparable growth<sup>(3)</sup> was 7.4% in the third-quarter, supported by the success of the Company's Fall 2025 Collection and continued client demand for core and new product offerings. Year-to-date through the third quarter, Demand comparable growth<sup>(3)</sup> was 2.8%.

**<u>Showroom Highlights</u>**

At the end of the third quarter of 2025, Arhaus operated 103 Showrooms across 30 states and all four geographic regions. Through the third quarter, the Company completed 8 Total Showroom Projects<sup>(2)</sup>, including 1 new opening, 6 relocations, and 1 renovation.

In October, the Company opened its largest Traditional Showroom to date in Pasadena, California, expanding its Southern California presence and marking its fifteenth Showroom in the state and fifth in the greater Los Angeles area. In November, Arhaus will open its first Montana Showroom in Bozeman, continuing its expansion across the Mountain West.

Inclusive of the two Traditional Showrooms referenced above, and an additional Outlet location that opened in Texas in October, Arhaus will have completed 11 Total Showroom Projects<sup>(2)</sup>, year-to-date. The Company continues to expect to complete approximately 12 to 15 Total Showroom Projects<sup>(2)</sup> in 2025, consisting of 4 to 6 new openings and 8 to 9 relocations, renovations, or expansions.

**<u>Balance Sheet and Liquidity</u>**

As of September 30, 2025, the Company reported the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• No long-term debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash and cash equivalents totaled $262 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net merchandise inventory of $329 million, a 10.7% increase from December 31, 2024 to September 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Client deposits of $254 million, a 15.0% increase from December 31, 2024 to September 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net cash provided by operating activities totaled $128 million for the nine months ended September 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net cash used in investing activities was approximately $60 million for the nine months ended September 30, 2025. Company-funded capital expenditures<sup>(4)</sup> were approximately $43 million and landlord contributions were approximately $17 million.

------

**<u>Outlook</u>**

The Company is updating its full-year 2025 outlook, as reflected in the table below, raising the low end of its prior ranges while maintaining the high end. This update reflects the momentum Arhaus saw through the third quarter, while maintaining a measured stance on the upper end given continued macroeconomic uncertainty. This approach demonstrates both confidence in the Company's execution and discipline in its outlook as Arhaus navigates a dynamic environment.

The Company is also providing fourth-quarter 2025 guidance for select financial metrics.

---

| | | |
|:---|:---|:---|
| | **Full-Year 2025** | **Q4 2025** |
| Net revenue | $1.35 billion to $1.38 billion | $336 million to $366 million |
| Net revenue growth | 6.2% to 8.6% | (3.3)% to 5.4% |
| Comparable growth<sup>(1)</sup> | 0% to 2.5% | (7)% to 1% |
| Net income<sup>(5)</sup> | $58 million to $68 million | $6 million to $16 million |
| Adjusted EBITDA<sup>(6)</sup> | $135 million to $145 million | $25 million to $35 million |
| ***<u>Other Estimates</u>*** |  |  |
| Company-funded capital expenditures<sup>(4)</sup> | $65 million to $75 million |  |
| Depreciation & amortization | $47 million to $52 million  |  |
| Fully diluted shares | ~ 141 million |  |
| Effective tax rate | ~ 26% |  |
| Showroom openings | 4 to 6 new Showrooms |  |
| Total Showroom Projects<sup>(2)</sup> | 12 to 15 Showroom Projects |  |

---

<sup>(1)</sup> **Comparable growth** is a key performance indicator and is defined as the year-over-year percentage change of the dollar value of orders delivered (based on purchase price), net of the dollar value of returns (based on amount credited to client), from our comparable Showrooms and eCommerce, including through our catalogs and other mailings.

<sup>(2)</sup> **Total Showroom Projects** is defined as the number of Showroom projects completed during the period, including new Showroom openings, strategic relocations, remodels, and expansions. The Company considers all Showroom projects integral to its long-term growth strategy, with each evaluated based on strategic relevance and expected return on investment.

<sup>(3)</sup> **Demand comparable growth** is a key performance indicator and is defined as the year-over-year percentage change of demand from our comparable Showrooms and eCommerce, including through our catalogs and other mailings.

<sup>(4)</sup> **Company-funded capital expenditures** is defined as total net cash used in investing activities less landlord contributions.

<sup>(5)</sup> U.S. GAAP net income (loss).

<sup>(6)</sup> We have not reconciled guidance for Adjusted EBITDA to the corresponding GAAP financial measure because we do not provide guidance for the various reconciling items. These items include, but are not limited to, future share-based compensation expense, income taxes, interest income, and transaction costs. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measure is not available without unreasonable effort.

**<u>Conference Call</u>**

You are invited to listen to Arhaus' conference call to discuss the third quarter 2025 financial results scheduled for today, November 6, 2025, at 8:30 a.m. Eastern Time. The call will be available over the Internet on our website (http://ir.arhaus.com) or by dialing (877) 407-3982 within the U.S., or 1 (201) 493-6780, outside the U.S. The conference ID number is 13748993.

A recorded replay of the conference call will be available within approximately three hours of the conclusion of the call and can be accessed online at http://ir.arhaus.com for approximately twelve months.

------

**<u>About Arhaus</u>**

Founded in 1986, Arhaus is a growing lifestyle brand and omni-channel retailer of premium home furnishings. Through a differentiated proprietary model that directly designs and sources products from leading manufacturers and artisans around the world, Arhaus offers an exclusive assortment of heirloom quality products that are sustainably sourced, lovingly made, and built to last. With more than 100 Showroom and Design Studio locations across the United States, a team of interior designers providing complimentary in-home design services, and robust online and eCommerce capabilities, Arhaus is known for innovative design, responsible sourcing, and client-first service. For more information, please visit www.arhaus.com.

**<u>Investor Contact:</u>**

Tara Atwood-Saja

Vice President, Investor Relations

(440) 439-7700

invest@arhaus.com

**<u>Non-GAAP Financial Measures</u>**

In addition to the results provided in accordance with U.S. GAAP, this press release and related tables include adjusted EBITDA and adjusted EBITDA as a percentage of net revenue, which present operating results on an adjusted basis.

We use non-GAAP measures to help assess the performance of our business, identify trends affecting our business, formulate business plans and make strategic decisions. In addition to our results determined in accordance with U.S. GAAP, we believe that providing these non-GAAP financial measures is useful to our investors as they present an informative supplemental view of our results from period to period by removing the effect of non-recurring items. However, our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items or that the items for which we have made adjustments are unusual or infrequent or will not recur. These non-U.S. GAAP measures are not a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. These measures should only be read together with the corresponding U.S. GAAP measures. Please refer to the reconciliations of adjusted EBITDA to the most directly comparable financial measures prepared in accordance with U.S. GAAP below.

**<u>Forward-Looking Statements</u>**

Certain statements contained herein, including statements under the heading "Outlook" are not based on historical fact and are "forward-looking statements" within the meaning of applicable securities laws.

Forward-looking statements can generally be identified by the use of forward-looking terminology, including, but not limited to, "may," "could," "seek," "guidance," "predict," "potential," "likely," "believe," "will," "expect," "anticipate," "estimate," "plan," "intend," "forecast," or variations of these terms and similar expressions, or the negative of these terms or similar expressions. Past performance is not a guarantee of future results or returns and no representation or warranty is made regarding future performance. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond our control that could cause our actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: our ability to manage and maintain the growth rate of our business; our ability to obtain quality merchandise in sufficient quantities; challenges with the planning or implementation of our technology upgrades, including a new enterprise resource planning system; disruption in our receiving and distribution system, including delays in the integration of our distribution centers and the possibility that we may not realize the anticipated benefits of multiple distribution centers; effects of new or proposed tariffs and changes to international trade policies and agreements; the possibility of cyberattacks and our ability to maintain adequate cybersecurity systems and procedures; loss, corruption and misappropriation of data and information relating to clients and employees; changes in and compliance with applicable data privacy rules and regulations; risks as a result of constraints in our supply chain or disruptions due to geopolitical events such as acts of war and/or terrorism or other hostilities; a failure of our vendors to meet our quality standards; declines in general economic conditions that affect consumer confidence and consumer spending that could adversely affect our revenue; our ability to anticipate changes in consumer preferences; risks related to maintaining and increasing Showroom traffic and sales; our ability to compete in our market; our ability to adequately protect our intellectual property; compliance with applicable governmental regulations; effectively managing our eCommerce sales channel and digital marketing efforts; our reliance on third-party transportation carriers and risks associated with freight and transportation costs; and compliance with SEC rules and regulations as a public reporting company. These factors should not be construed as exhaustive. Further information on potential factors that could affect the financial results of the Company and its forward-looking statements is included in the Company's filings with the Securities and Exchange Commission. The Company assumes no

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obligation to update any forward-looking statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement.

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**Arhaus, Inc. and Subsidiaries** 

**Condensed Consolidated Balance Sheets**

**(Unaudited, amounts in thousands, except share and per share data)** 

---

| | | |
|:---|:---|:---|
| | **September 30,<br>2025** | **December 31,<br>2024** |
| **Assets** | | |
| Current assets |  |  |
| Cash and cash equivalents | $262230 | $197511 |
| Restricted cash | 3625 | 3418 |
| Accounts receivable, net | 1071 | 1252 |
| Merchandise inventory, net | 328728 | 297010 |
| Prepaid and other current assets | 30519 | 31852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 626173 | 531043 |
| Operating right-of-use assets | 384692 | 322302 |
| Financing right-of-use assets | 33752 | 36105 |
| Property, furniture and equipment, net | 310356 | 282520 |
| Deferred tax assets | 10696 | 21091 |
| Goodwill | 10961 | 10961 |
| Other noncurrent assets | 2008 | 2294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $1378638 | $1206316 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities |  |  |
| Accounts payable | $69511 | $68621 |
| Accrued taxes | 12022 | 10480 |
| Accrued wages | 21385 | 11538 |
| Accrued other expenses | 46135 | 47668 |
| Client deposits | 253973 | 220873 |
| Current portion of operating lease liabilities | 62446 | 42247 |
| Current portion of financing lease liabilities | 684 | 1024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 466156 | 402451 |
| Operating lease liabilities, long-term | 455910 | 402916 |
| Financing lease liabilities, long-term | 52569 | 53312 |
| Other long-term liabilities | 3587 | 3892 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $978222 | $862571 |
| 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 | 195266 | 142898 |
| Additional paid-in capital | 205009 | 200707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 400416 | 343745 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $1378638 | $1206316 |

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**Arhaus, Inc. and Subsidiaries** 

**Condensed Consolidated Statements of Comprehensive Income** 

**(Unaudited, amounts in thousands, except share and per share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Nine months ended** | **Nine months ended** | **Three months ended** | **Three months ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net revenue | $1014377 | $924096 | $344570 | $319133 |
| Cost of goods sold | 617142 | 561598 | 211149 | 196061 |
| &nbsp;&nbsp;&nbsp;Gross margin | 397235 | 362498 | 133421 | 123072 |
| Selling, general and administrative expenses | 328534 | 304085 | 117014 | 112401 |
| Loss (gain) on disposal of assets | 81 |  | (27) |  |
| &nbsp;&nbsp;&nbsp;Income from operations | $68620 | $58413 | $16434 | $10671 |
| Interest income, net | (2137) | (2582) | (820) | (544) |
| Other income | (354) | (447) | (118) | (250) |
| &nbsp;&nbsp;&nbsp;Income before taxes | 71111 | 61442 | 17372 | 11465 |
| Income tax expense | 18945 | 14186 | 5154 | 1542 |
| &nbsp;&nbsp;&nbsp;Net and comprehensive income | $52166 | $47256 | $12218 | $9923 |
| **Net and comprehensive income per share, basic** |  |  |  |  |
| &nbsp;&nbsp;Weighted-average number of common shares outstanding, basic | 140635317 | 139990522 | 140829409 | 140166990 |
| &nbsp;&nbsp;Net and comprehensive income per share, basic | $0.37 | $0.34 | $0.09 | $0.07 |
| **Net and comprehensive income per share, diluted** |  |  |  |  |
| &nbsp;&nbsp;Weighted-average number of common shares outstanding, diluted | 141310742 | 140732337 | 141676722 | 140722915 |
| &nbsp;&nbsp;Net and comprehensive income per share, diluted | $0.37 | $0.34 | $0.09 | $0.07 |

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**Arhaus, Inc. and Subsidiaries**

**Condensed Consolidated Statements of Cash Flows**

**(Unaudited, amounts in thousands)**

---

| | | |
|:---|:---|:---|
| | **Nine months ended** | **Nine months ended** |
| | **September 30,** | **September 30,** |
| | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2025** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2024** |
| **Cash flows from operating activities** | | |
| Net income | $52166 | $47256 |
| Adjustments to reconcile net income to net cash provided by operating activities |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 34716 | 27895 |
| &nbsp;&nbsp;&nbsp;Amortization of operating lease right-of-use asset | 31358 | 27432 |
| &nbsp;&nbsp;&nbsp;Amortization of deferred financing fees, interest on finance lease in excess of principal paid and interest on operating leases | 21842 | 19859 |
| &nbsp;&nbsp;&nbsp;Equity based compensation | 6344 | 5352 |
| &nbsp;&nbsp;&nbsp;Deferred tax assets | 10395 | 3769 |
| &nbsp;&nbsp;&nbsp;Amortization of cloud computing arrangements | 1905 | 1206 |
| &nbsp;&nbsp;&nbsp;Loss on disposal of property, furniture and equipment | 81 |  |
| &nbsp;&nbsp;&nbsp;Amortization and write-off of lease incentives |  | (80) |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | 181 | 1198 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merchandise inventory | (31718) | (40304) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid and other assets | (19) | (6527) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent liabilities | (92) | 224 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 556 | 8983 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 9150 | (8096) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (42427) | (23071) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Client deposits | 33100 | 50330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 127538 | 115426 |
| **Cash flows from investing activities** |  |  |
| Purchases of property, furniture and equipment | (59751) | (88686) |
| Proceeds from the sale of property, furniture and equipment | 54 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (59697) | (88686) |
| **Cash flows from financing activities** |  |  |
| Principal payments under finance leases | (530) | (686) |
| Repurchase of shares for payment of withholding taxes for equity based compensation | (2045) | (1277) |
| Cash dividend payments | (340) | (70144) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (2915) | (72107) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in cash, cash equivalents and restricted cash | 64926 | (45367) |
| **Cash, cash equivalents and restricted cash** |  |  |
| Beginning of period | 200929 | 226305 |
| End of period | $265855 | $180938 |
| **Supplemental disclosure of cash flow information** |  |  |
| Interest paid in cash | $3773 | $3402 |
| Interest received in cash | 6226 | 7068 |
| Income taxes paid in cash | 14046 | 16001 |
| Noncash investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of property, furniture and equipment in current liabilities | 7583 | 12650 |

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**Arhaus, Inc. and Subsidiaries**

**Reconciliation of Net Income to Adjusted EBITDA** 

**(Unaudited, amounts in thousands)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Nine months ended** | **Nine months ended** | **Three months ended** | **Three months ended** |
| | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net and comprehensive income | $52166 | $47256 | $12218 | $9923 |
| Interest income, net | (2137) | (2582) | (820) | (544) |
| Income tax expense | 18945 | 14186 | 5154 | 1542 |
| Depreciation and amortization | 34716 | 27895 | 11757 | 10186 |
| EBITDA | 103690 | 86755 | 28309 | 21107 |
| Equity based compensation | 6344 | 5352 | 2954 | 2001 |
| Other expenses (income) <sup>(1)</sup> | 81 |  | (27) |  |
| Adjusted EBITDA | $110115 | $92107 | $31236 | $23108 |
| Net revenue | $1014377 | $924096 | $344570 | $319133 |
| Net and comprehensive income as a % of net revenue | 5.1% | 5.1% | 3.5% | 3.1% |
| Adjusted EBITDA as a % of net revenue | 10.9% | 10.0% | 9.1% | 7.2% |

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<sup>(1)</sup> Other expenses (income) represent costs and investments not indicative of ongoing business performance, such as loss (gain) on disposal of assets.

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