# EDGAR Filing Document

**Accession Number:** 0001875444
**File Stem:** 0001875444-25-000133
**Filing Date:** 2025-8
**Character Count:** 30249
**Document Hash:** 6f6cc02750641afd9f9220654132272a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001875444-25-000133.hdr.sgml**: 20250807

**ACCESSION NUMBER**: 0001875444-25-000133

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250807

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

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250807

**DATE AS OF CHANGE**: 20250807

**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:** 251191440

**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-20250807

**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): August 7, 2025**

**___________________________________**

**Arhaus, Inc.**

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

**___________________________________**

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| | | |
|:---|:---|:---|
| **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 August 7, 2025, Arhaus, Inc. (the "Company") issued a press release announcing its financial results for the second quarter ended June 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](arhausincsecondquarter2025.htm)</u> | Press release dated August 7, 2025 announcing the release of second 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 7th day of August, 2025.

---

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

---

## Exhibit 99.1

![image.jpg](image.jpg)

**ARHAUS REPORTS SECOND QUARTER 2025 FINANCIAL RESULTS** 

BOSTON HEIGHTS, Ohio (August 7, 2025)—Arhaus, Inc. ("Arhaus" or the "Company") (NASDAQ: ARHS), a growing lifestyle brand and omni-channel retailer of premium artisan-crafted home furnishings, reported second quarter 2025 results for the period ended June 30, 2025.

**Second Quarter 2025 Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Net revenue** increased 15.7% to $358 million, compared to the second quarter of 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Gross margin** increased 19.1% to $148 million, compared to the second quarter of 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Selling, general and administrative expenses** increased 6.8% to $101 million, compared to the second quarter of 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Net and comprehensive income** increased 57.7% to $35 million, compared to the second quarter of 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Adjusted EBITDA** increased 51.2% to $60 million, compared to the second quarter of 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Comparable growth**<sup>(1)</sup> of 10.5%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Total Showroom Projects**<sup>(2)</sup> of 3 locations, inclusive of 2 relocations and 1 renovation

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

"We achieved the highest quarterly net revenue in Arhaus' history, exceeding $358 million, reflecting an increase of 15.7%. This record reflects the strength of our brand, the loyalty of our clients, and the exceptional execution of teams across the business.

During the quarter, we successfully brought operations of our Dallas Distribution Center in-house which ramped ahead of schedule. This transition enabled us to convert strong first quarter demand into net revenue more efficiently, and at a higher volume, than expected. As a result, Comparable growth<sup>(1)</sup> was 10.5%.

While second-quarter Demand comparable growth<sup>(3)</sup> was (3.6)%, due to macro headwinds, July rebounded sharply, with Demand comparable growth<sup>(3)</sup> up an impressive 15.7%, highlighting strong client engagement and the enduring appeal of our products. Year-to-date, including July, Demand comparable growth<sup>(3)</sup> was up 2.2%.

Additionally, I'm proud to announce the launch of our Arhaus Bath Collection. This thoughtful expansion into a deeply personal space in the home reflects our commitment to timeless design, artisan craftsmanship, and functional beauty.

With a resilient high-end client base, debt-free balance sheet, and a clear strategic plan, we are navigating the current environment from a position of strength, focused on what we can control: disciplined execution, intentional growth, and continued investment in the systems, products, and talent that will drive our next phase.

------

Thank you to our teams, your creativity, care, and commitment make moments like this possible. Your passion is what brings Arhaus to life."

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

Arhaus delivered strong second-quarter results, with net revenue exceeding $358 million, up 15.7% and setting a new record for the highest quarterly net revenue in Company history. In the second quarter, Comparable growth<sup>(1)</sup> was 10.5%, driven by the successful conversion of strong first-quarter demand, while Demand comparable growth<sup>(3)</sup> was (3.6)%, reflecting macroeconomic volatility and external headwinds.

Looking ahead, Demand comparable growth<sup>(3)</sup> in July was up 15.7%, reflecting strong client engagement and the strength of the Arhaus product assortment. Year-to-date, including July, Demand comparable growth<sup>(3)</sup> was 2.2%.

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

At the end of the second quarter of 2025, Arhaus operated 103 Showrooms across 30 states and all four geographic regions. During the quarter, the Company completed 3 Total Showroom Projects<sup>(2)</sup>, including 2 relocations and 1 renovation. Notable updates include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Wexford, Pennsylvania** – A relocated showroom opened in Wexford Plaza, a premium open-air retail destination. The expansive, newly designed space features a dedicated design room and extensive fabric library, serving a key affluent suburb of Pittsburgh and reinforcing Arhaus' luxury positioning.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Scottsdale, Arizona** – A fully renovated showroom at Kierland Commons. Originally opened in 2015, this renovated space more closely reflects the Arhaus aesthetic, blending international design elements with American craftsmanship to create an eclectic, elevated experience.

Year-to-date through the second quarter, Arhaus has completed 8 showroom projects, including 1 new opening, 6 relocations, and 1 renovation. The Company continues to expect the completion of 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 June 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 $235 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net merchandise inventory of $311 million, a 4.7% increase from December 31, 2024 to June 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Client deposits of $233 million, a 5.5% increase from December 31, 2024 to June 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net cash provided by operating activities totaled $81 million for the six months ended June 30, 2025.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net cash used in investing activities was approximately $42 million for the six months ended June 30, 2025. Company-funded capital expenditures<sup>(4)</sup> were approximately $31 million and landlord contributions were approximately $11 million.

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

The table below reaffirms Arhaus' previously provided expectations for selected full-year 2025 financial and operating metrics. This outlook reflects currently implemented tariff actions as of the date of this release. The Company has also modestly reduced its full-year capital expenditures outlook by $10 million to reflect updated timing on select investments. In addition, Arhaus is introducing third-quarter 2025 guidance for select financial metrics, as detailed below.

---

| | | |
|:---|:---|:---|
| | **Full-Year 2025** | **Q3 2025** |
| Net revenue | $1.29 billion to $1.38 billion | $320 million to $350 million |
| Net revenue growth | 1.5% to 8.6% | 0.3% to 9.7% |
| Comparable growth<sup>(1)</sup> | (5)% to 1.5% | (4)% to 5% |
| Net income<sup>(5)</sup> | $48 million to $68 million | $7 million to $17 million |
| Adjusted EBITDA<sup>(6)</sup> | $123 million to $145 million | $23 million to $33 million |
| ***<u>Other Estimates</u>*** |  |  |
| Company-funded capital expenditures<sup>(4)</sup> | $80 million to $100 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 second quarter 2025 financial results scheduled for today, August 7, 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 13748992.

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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 Louise Atwood

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; 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

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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 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)** 

---

| | | |
|:---|:---|:---|
| | **June 30,<br>2025** | **December 31,<br>2024** |
| **Assets** | | |
| Current assets |  |  |
| Cash and cash equivalents | $234797 | $197511 |
| Restricted cash | 3622 | 3418 |
| Accounts receivable, net | 970 | 1252 |
| Merchandise inventory, net | 311117 | 297010 |
| Prepaid and other current assets | 27063 | 31852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 577569 | 531043 |
| Operating right-of-use assets | 367524 | 322302 |
| Financing right-of-use assets | 34208 | 36105 |
| Property, furniture and equipment, net | 303425 | 282520 |
| Deferred tax assets | 22620 | 21091 |
| Goodwill | 10961 | 10961 |
| Other noncurrent assets | 2069 | 2294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $1318376 | $1206316 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities |  |  |
| Accounts payable | $70542 | $68621 |
| Accrued taxes | 15602 | 10480 |
| Accrued wages | 16413 | 11538 |
| Accrued other expenses | 43353 | 47668 |
| Client deposits | 233070 | 220873 |
| Current portion of operating lease liabilities | 55096 | 42247 |
| Current portion of financing lease liabilities | 647 | 1024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 434723 | 402451 |
| Operating lease liabilities, long-term | 441945 | 402916 |
| Financing lease liabilities, long-term | 52590 | 53312 |
| Other long-term liabilities | 3505 | 3892 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $932763 | $862571 |
| Commitments and contingencies  |  |  |
| Stockholders' equity |  |  |
| Class A shares, par value $0.001 per share (600,000,000 shares authorized, 54,400,128 shares issued and 53,859,215 outstanding as of June 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 June 30, 2025; 87,115,600 shares issued and outstanding as of December 31, 2024) | 87 | 87 |
| Retained earnings | 183047 | 142898 |
| Additional paid-in capital | 202425 | 200707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 385613 | 343745 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $1318376 | $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)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six months ended** | **Six months ended** | **Three months ended** | **Three months ended** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net revenue | $669807 | $604963 | $358435 | $309801 |
| Cost of goods sold | 405993 | 365537 | 210208 | 185429 |
| &nbsp;&nbsp;&nbsp;Gross margin | 263814 | 239426 | 148227 | 124372 |
| Selling, general and administrative expenses | 211520 | 191684 | 101462 | 94991 |
| Loss on disposal of assets | 108 |  |  |  |
| &nbsp;&nbsp;&nbsp;Income from operations | $52186 | $47742 | $46765 | $29381 |
| Interest income, net | (1317) | (2038) | (744) | (606) |
| Other income | (236) | (197) | (150) | (75) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income before taxes | 53739 | 49977 | 47659 | 30062 |
| Income tax expense | 13791 | 12644 | 12593 | 7828 |
| &nbsp;&nbsp;&nbsp;Net and comprehensive income | $39948 | $37333 | $35066 | $22234 |
| **Net and comprehensive income per share, basic** |  |  |  |  |
| &nbsp;&nbsp;Weighted-average number of common shares outstanding, basic | 140536663 | 139901319 | 140709814 | 139985846 |
| &nbsp;&nbsp;Net and comprehensive income per share, basic | $0.28 | $0.27 | $0.25 | $0.16 |
| **Net and comprehensive income per share, diluted** |  |  |  |  |
| &nbsp;&nbsp;Weighted-average number of common shares outstanding, diluted | 141126879 | 140736096 | 141162310 | 140916161 |
| &nbsp;&nbsp;Net and comprehensive income per share, diluted | $0.28 | $0.27 | $0.25 | $0.16 |

---

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**Arhaus, Inc. and Subsidiaries**

**Condensed Consolidated Statements of Cash Flows**

**(Unaudited, amounts in thousands)**

---

| | | |
|:---|:---|:---|
| | **Six months ended** | **Six months ended** |
| | **June 30,** | **June 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 | $39948 | $37333 |
| Adjustments to reconcile net income to net cash provided by operating activities |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 22959 | 17709 |
| &nbsp;&nbsp;&nbsp;Amortization of operating lease right-of-use asset | 20335 | 17942 |
| &nbsp;&nbsp;&nbsp;Amortization of deferred financing fees, interest on finance lease in excess of principal paid and interest on operating leases | 14156 | 13008 |
| &nbsp;&nbsp;&nbsp;Equity based compensation | 3390 | 3351 |
| &nbsp;&nbsp;&nbsp;Deferred tax assets | (1529) | 4870 |
| &nbsp;&nbsp;&nbsp;Amortization of cloud computing arrangements | 853 | 762 |
| &nbsp;&nbsp;&nbsp;Loss on disposal of property, furniture and equipment | 108 |  |
| &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 | 282 | 850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merchandise inventory | (14107) | (19265) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid and other assets | 4398 | (11545) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent liabilities | (172) | 332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 1816 | 4571 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 4746 | (11254) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (27952) | (10740) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Client deposits | 12197 | 36460 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 81428 | 84304 |
| **Cash flows from investing activities** |  |  |
| Purchases of property, furniture and equipment | (41622) | (62158) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (41622) | (62158) |
| **Cash flows from financing activities** |  |  |
| Principal payments under finance leases | (365) | (448) |
| Repurchase of shares for payment of withholding taxes for equity based compensation | (1675) | (548) |
| Cash dividend payments | (276) | (70056) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (2316) | (71052) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in cash, cash equivalents and restricted cash | 37490 | (48906) |
| **Cash, cash equivalents and restricted cash** |  |  |
| Beginning of period | 200929 | 226305 |
| End of period | $238419 | $177399 |
| **Supplemental disclosure of cash flow information** |  |  |
| Interest paid in cash | $2513 | $2143 |
| Interest received in cash | 4040 | 5155 |
| Income taxes paid in cash | 13030 | 15815 |
| Noncash investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of property, furniture and equipment in current liabilities | 7190 | 12672 |

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**Arhaus, Inc. and Subsidiaries**

**Reconciliation of Net Income to Adjusted EBITDA** 

**(Unaudited, amounts in thousands)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six months ended** | **Six months ended** | **Three months ended** | **Three months ended** |
| | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net and comprehensive income | $39948 | $37333 | $35066 | $22234 |
| Interest income, net | (1317) | (2038) | (744) | (606) |
| Income tax expense | 13791 | 12644 | 12593 | 7828 |
| Depreciation and amortization | 22959 | 17709 | 11597 | 9106 |
| EBITDA | 75381 | 65648 | 58512 | 38562 |
| Equity based compensation | 3390 | 3351 | 1795 | 1327 |
| Other expenses <sup>(1)</sup> | 108 |  |  |  |
| Adjusted EBITDA | $78879 | $68999 | $60307 | $39889 |
| Net revenue | $669807 | $604963 | $358435 | $309801 |
| Net and comprehensive income as a % of net revenue | 6.0% | 6.2% | 9.8% | 7.2% |
| Adjusted EBITDA as a % of net revenue | 11.8% | 11.4% | 16.8% | 12.9% |

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

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