Arhaus reported record net revenue of $358.4 million for the second quarter of 2025, an increase of 15.7% year-over-year. This marks the highest quarterly net revenue in the company's history.
Comparable growth for the quarter was 10.5%, driven by the efficient conversion of strong first-quarter demand. The successful in-sourcing and early ramping of the Dallas Distribution Center operations contributed to this performance.
Net income surged 57.7% to $35.1 million, and adjusted EBITDA increased 51.2% to $60.3 million, representing an adjusted EBITDA margin of 16.8%, up 390 basis points. This demonstrates significant earnings leverage.
Despite Q2 demand comparable growth of (3.6)%, July rebounded sharply with a 15.7% increase in demand comparable growth. The company reaffirmed its full-year 2025 outlook for net revenue between $1.29 billion and $1.38 billion, and adjusted EBITDA between $123 million and $145 million.
Arhaus ended the quarter with a robust liquidity position, holding $234.8 million in cash and cash equivalents and remaining debt-free. Capital expenditures for the full year were modestly reduced by $10 million to a range of $80 million to $100 million.
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