Despite an in-line EPS and slight revenue beat, the 54.5% net income collapse, negative cash flow, and 5.7% drop in written sales point to deteriorating demand. The Q2 guidance midpoint implies potential revenue decline, and the stock may face continued pressure. Watch for any tariff refund updates that could provide a catalyst, but the underlying trend is weak.
Price Chart
Executive Summary
Arhaus reported Q1 2026 EPS of $0.02, in line with consensus of $0.02, and revenue of $314M, slightly above the $313.6M estimate. However, net income plunged 54.5% YoY to $2M, comparable written sales fell 5.7%, and operating cash flow was negative $9.7M. The company reaffirmed full-year guidance but guided Q2 revenue down 2.4% at the midpoint, signaling continued headwinds.
Key Financial Metrics
Key Facts
- Q1 2026 EPS $0.02 vs consensus $0.02 (in line)
- Q1 2026 revenue $314M vs consensus $313.6M (slight beat)
- Net income fell 54.5% YoY to $2.2M from $4.9M
- Comparable written sales declined 5.7% YoY
- Comparable delivered sales declined 1.7% YoY
- Operating cash flow was negative $9.7M vs positive $46.5M a year ago
- Free cash flow was negative $25.6M vs positive $18.9M a year ago
- Q2 2026 revenue guidance midpoint $360M implies up to 3.2% growth or a decline of 2.4% YoY
- Full-year 2026 revenue guidance reaffirmed at $1.43B-$1.47B (3.7%-6.6% growth)
- No long-term debt; cash $177M after $49M special dividend paid in March
Financial Impact
Net income declined $2.7M YoY (54.5%); operating cash flow swung from +$46.5M to -$9.7M; free cash flow swung from +$18.9M to -$25.6M
Risk Factors
- Comparable written sales declining 5.7% signals weakening demand that may persist
- Negative operating cash flow and free cash flow raise liquidity concerns despite no debt
- Q2 guidance midpoint implies possible YoY revenue decline, lapping a strong prior-year quarter
- Macro uncertainty and tariffs could further pressure consumer spending on home furnishings
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3289719 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 30, 2026 27d ago | 8-K | $9.87 $9.75 | ▼ −1.22% | ▼ −2.52% | $11.63 (+17.83%) |
Sep 4, 2026 7w ago | 144 | $8.47 $7.31 | ▼ −13.75% | ▼ −12.64% | $11.63 (+37.31%) |
Aug 15, 2026 10w ago | Institutional Cluster | $9.53 $9.24 | ▲ +3.04% | ▲ +1.85% | $11.63 (−22.04%) |
Aug 6, 2026 11w ago | Press Release | $9.68 $9.70 | ▲ +0.21% | ▼ −1.01% | $11.63 (+20.14%) |
Jul 30, 2026 12w ago | Press Release | $7.41 | awaiting T+5 | — | $11.63 (+56.95%) |
Jul 13, 2026 15w ago | 8-K | $7.83 $7.48 | ▼ −4.47% | ▼ −3.17% | $11.63 (+48.53%) |
Jun 11, 2026 19w ago | Institutional Cluster | $7.07 $6.88 | ▲ +2.69% | ▲ +3.12% | $11.63 (−64.50%) |
May 7, 2026 24w ago | 8-K | $7.08 $5.87 | ▲ +17.03% | ▲ +18.54% | $11.63 (−64.38%) |
May 7, 2026 24w ago | Press Release | $7.08 $5.87 | ▲ +17.03% | ▲ +18.54% | $11.63 (−64.38%) |
Feb 26, 2026 34w ago | 8-K | $8.83 $7.49 | ▼ −15.12% | ▼ −13.99% | $11.63 (+31.78%) |
US Market Status
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