Filing Flows › Arhaus (ARHS) › Q1 2025
Arhaus (ARHS) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 8, 2025
Arhaus (ARHS) reported revenue of $311M for the first quarter 2025 (Q1 2025), +5% from a year earlier and -10% from the quarter before. Operating margin was 1.7%, net earnings $4.9M (1.6% of revenue).
Arhaus, Q1 2025: revenue $311M (+6% year over year), operating margin 1.7%, net earnings $4.9M, operating cash flow $46.5M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $311M | -10% | +5% |
| Gross profit | $116M | -17% | +0.5% |
| Operating profit | $5.4M | -81% | -70% |
| Net earnings | $4.9M | -77% | -68% |
| Operating cash flow | $46.5M | +47% | +26% |
| Free cash flow | $18.9M | +45% | +73% |
What changed
Revenue was $311.4M in Q1 2025, up 5% year over year and down 10% from the previous quarter.
Gross margin was 37.1%, down 1.9 points from a year earlier. Operating profit was $5.4M, a 1.7% margin (down 4.5 points year over year). Operating profit fell $12.9M even though revenue rose $16.2M versus a year earlier, so costs grew faster than sales. Operating expenses grew 14% against revenue growth of 5%. Net earnings were $4.9M, down 68% year over year. The effective tax rate was 19.7%.
Operating cash flow was $46.5M (up 26% year over year), 953% of net earnings. Non-cash charges added back $11.4M of depreciation and amortization and $1.6M of share-based compensation. Working capital and other items added $28.7M. Capital expenditures of $27.6M left free cash flow of $18.9M.
Questions
What was Arhaus' revenue in the first quarter 2025?
Arhaus (ARHS) reported revenue of $311M for the first quarter 2025 (Q1 2025), +5% from a year earlier and -10% from the quarter before.
Was Arhaus profitable in the first quarter 2025?
Operating profit was $5.4M (1.7% of revenue) and net earnings $4.9M.
Source: Arhaus 10-Q on SEC EDGAR.