Arhaus 2025 Q3 Earnings Beats Expectations with 23.1% Net Income Growth

Arhaus (ARHS) reported Q3 2025 results that exceeded estimates, with revenue up 8% to $344.57 million and EPS rising 28.6% to $0.09. , reflecting strong demand and strategic expansion. Analysts noted the positive market reaction and long-term growth potential.

Revenue

Arhaus’s total revenue surged 8.0% year-over-year to $344.57 million in Q3 2025, . The performance was driven by robust demand for the Fall 2025 Collection and new showroom openings. Specifically, , a 7.5% year-over-year increase, . These figures collectively underscore the company’s ability to capitalize on both digital and physical expansion strategies.

Earnings/Net Income

, . . The company has maintained profitability for five consecutive years in this quarter, highlighting operational efficiency and brand resilience. The EPS increase and 23.1% net income growth highlight strong profitability and sustained performance.

Price Action

, , . Despite these declines, historical data suggests a strategy of purchasing shares on earnings announcement days has historically yielded favorable returns.

Post-Earnings Price Action Review

The strategy of purchasing ARHS shares on the earnings announcement date and holding for 30 days has historically shown favorable returns. On November 6, 2025, , . , underscoring the strategy’s effectiveness in capturing market optimism and long-term growth prospects.

CEO Commentary

, Co-Founder and CEO, emphasized Arhaus’s Q3 performance, . He highlighted the company’s debt-free liquidity and strategic expansion, including the largest Traditional Showroom in Pasadena and the first Montana Showroom in Bozeman. Reed expressed confidence in finishing 2025 strongly, balancing disciplined execution with long-term shareholder value amid macroeconomic uncertainties.

Guidance

, . For Q4 2025, . , , while maintaining a cautious outlook amid macroeconomic uncertainty.

Additional News

Arhaus announced the opening of its largest showroom to date in Pasadena, California, and the first Montana showroom in Bozeman, signaling continued retail expansion. The company also emphasized its debt-free liquidity and strategic focus on profitability. Meanwhile, Zacks Investment Research assigned Arhaus a Zacks Rank #2 (Buy), citing its potential to outperform the market. Analysts highlighted the stock’s 28.2% three-year return from the Q3 2025 earnings announcement as a testament to its long-term growth strategy.