Arhaus, Inc. — Cyborg Score 7/10

Solid
Premium Home Furnishings Retail

Strategic Profile

As a lifestyle brand, it employs a proprietary model to directly design and source exclusive, heirloom-quality products from global manufacturers and artisans. The in-home designer program generates order values four times higher than average. The company differentiated itself by sourcing unique, handcrafted pieces from around the world, emphasizing quality and artistry.

Cyborg Score Rationale

Net income for Q3 2025 rose 23.1% year-over-year to $12 million, and adjusted EBITDA increased 35.2% to $31 million. The company achieved solid SG&A leverage and strong adjusted EBITDA growth, though tariff headwinds loom for 2026 and demand outlook remains uncertain amid ongoing macroeconomic pressures on the furniture sector.

Top Insights

  • Arhaus projects net revenue for full year 2025 between $1.35 billion and $1.38 billion.
  • Q3 2025 gross margin was 38.7% on net revenue with significant increase in bottom-line performance.
  • As of 2024, the chain had 92 locations across 29 states.
  • Arhaus has faced challenges including macroeconomic pressures impacting consumer spending and a weak housing market.

Named Competitors

  • Premium Home Furnishings — Multi-brand retailer including pottery barn home furnishings
  • Outdoor & Home Products — Specialty retailer with pool and outdoor product focus
  • Direct-to-Consumer Furniture — Large online furniture and home goods marketplace

Recent Developments

  • (February 2026) Fourth quarter and full year 2025 results announced
  • (November 2025) Q3 2025 earnings showed 23.1% net income growth YoY
  • (2024) Opened showrooms in Greenwich, Connecticut and Palo Alto, California

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