Arhaus Inc logo

Arhaus Inc(ARHS)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$9.71
09/25/2026
(24-hour delay)

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*as per simulation (see disclosures)
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Upturn Advisory & Investor View for ARHS

09/25/2026: ARHS (1-star) is currently NOT-A-BUY. Pass it for now.

Arhaus Inc is a premium lifestyle retailer specializing in artisan-crafted home furnishings sold through its showrooms and digital platform. The company has a solid reputation for design quality and sustainability, providing a distinct brand experience that appeals to upscale consumers. Its primary growth strategy involves expanding its physical showroom footprint across major U.S. markets. However, Arhaus faces risks from intense competition, economic sensitivity, and the capital-intensive nature of its expansion efforts. The stock may interest growth-oriented investors looking for scalable retail exposure, though volatility remains a factor due to the cyclical nature of the home furnishings industry.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorStrong fitThe company's active expansion of its retail footprint and revenue growth profile attracts investors seeking scalable retail concepts.
Momentum investorMixed fitMomentum investors may find opportunity during periods of strong price action, but this remains conditional on a positive market upturn signal.
Value investorMixed fitValue investors may be interested if the valuation reflects temporary economic softness rather than long-term deterioration.
Dividend investorWeak fitAs a company currently focused on reinvestment, Arhaus does not provide income through dividends.
Low-risk investorWeak fitThe cyclical nature of the luxury furniture market creates volatility that may not suit conservative investors.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highConsumer retail stocks are sensitive to interest rates and general economic sentiment.
Valuation riskMediumGrowth expectations are built into the stock price, leaving it vulnerable to earnings misses.
Competition risk (high-end retail)Medium / highFierce competition from established peers like WSM and RH keeps pressure on margins.
Business qualityMediumThe brand has a solid reputation, but long-term endurance relies on maintaining quality during rapid expansion.
Dividend incomeLow / noneInvestors seeking immediate cash flow will not find it here.
Execution riskMediumSuccessful scaling of physical showrooms is complex and requires significant capital expenditure.

Price Behavior

Downtrend
PRICE PATH

Downtrend

The stock has experienced a sustained decline in price over recent periods.

Choppy
PRICE STABILITY

Choppy

The stock has experienced frequent reversals and pronounced short-term price swings.

Analysis of Past Performance

Type Stock
Historic Profit -17.58%
Avg. Invested days 30
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
ARHS receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by soft unit economics, weak price momentum, and limited analyst upside.

Company Fundamentals

★★★★★
ARHS has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, growth and ownership metrics are mixed: slightly negative earnings growth (-1.9%), soft cash generation (FCF margin 4.3%), moderate revenue growth (+8.5%).

Financial Health Rating

★★★★★
ARHS's financial health is supported by solid cash strength, including free-cash-flow generation (4.3% of revenue). Profitability is moderate (3 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is ARHS's strongest growth driver at +48.4% FY2025 versus FY2024 (strong, 5 stars). By comparison, while revenue growth (+8.5%, moderate) and earnings growth (-1.9%, slightly negative) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 102.6% and approximately 95.5% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 4.71% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 3.04%
VOYA INVESTMENT MANAGEMENT LLC 1.95%
Vanguard Portfolio Management, LLC 1.77%
Long Focus Capital Management, LLC 1.73%
Emerald Advisers, LLC 1.68%

Unit Economics (Per $1K Revenue)

★★★★★
ARHS generates approximately $389 of gross profit, $64 of operating income, and $43 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: 26.88%

Quantitative Style Profile

★★★★★
ARHS has a liquid profile. Weak momentum is the primary drawback, while elevated volatility.

Style Classification

Quality Focused

Value-OrientedHigh VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 1.38B USD
Price to earnings Ratio 19.42
1Y Target Price 10.54
Price to earnings Ratio 19.42
1Y Target Price 10.54
Volume (30-day avg) 1.3M shares
Beta 2.32
52 Weeks Range 5.57 - 11.51
Updated Date 09/26/2026
52 Weeks Range 5.57 - 11.51
Updated Date 09/26/2026
Dividends yield (FY) -
Basic EPS (TTM) 0.5

How Company Makes Money

Business areaWhat it includesRetail investor read
Furniture and Decor SalesRevenue generated from the sale of furniture (sofas, tables, beds) and decorative items (rugs, lighting) via stores and e-commerce.Arhaus generates almost all its income by selling high-end furniture directly to customers; its profitability depends on maintaining premium pricing and managing operational costs.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Valuation

Trailing PE 19.42
Forward PE 15.22
Enterprise Value 1.66B
Price to Sales(TTM) 0.98
Enterprise Value 1.66B
Price to Sales(TTM) 0.98
Enterprise Value to Revenue 1.18
Enterprise Value to EBITDA 8.8
Shares Outstanding 54.64M
Shares Floating 52.19M
Shares Outstanding 54.64M
Shares Floating 52.19M
Percent Insiders 4.71
Percent Institutions 102.6

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Arhaus Inc

Exchange NASDAQ
Headquarters Boston Heights, OH, United States
IPO Launch date 2021-11-04
Founder, Chairman, President & CEO Mr. John P. Reed
Sector Consumer Cyclical
Industry Specialty Retail
Full time employees 2700
Full time employees 2700

Arhaus, Inc. operates as a premium retailer in the home furnishings market in the United States. The company offers bedroom, dining room, and living room, as well as home office furnishings, including sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases, modular storage, and other items; and outdoor products, such as outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits. It also provides bath product assortment comprising vanities and storage pieces, faucets and hardware, and Turkish bath towels; lighting fixtures, including chandeliers, pendants, table and floor lamps, and sconces; indoor and outdoor rugs, bed linens, and pillows and throws; and décor products, such as wall art, mirrors, vases, candles, and other decorative accessories. The company distributes its products through an omni-channel model comprising showrooms, ecommerce, catalogs and digital media, interior designer services, trade services, and client engagement. Arhaus, Inc. was founded in 1986 and is headquartered in Boston Heights, Ohio.