by Lifestyle retailer’s performance illustrates the power of its showroom growth and presentation
BOSTON HEIGHTS, Ohio — In its latest Q4 and full year 2025 earnings report, lifestyle furnishings retailer Arhaus showcases not only its recent financial success, but also how it differentiates itself in the marketplace by focusing on craftsmanship, working with several hundred artisans in Mexico, Portugal, Turkey, Romania, Italy, India and China.
The Boston Heights, Ohio-based company also describes its pieces as designed to be “heirloom quality,” with a focus on sustainable materials and responsible sourcing.
Today, the lifestyle retailer represents slightly less than 2% of the total U.S. premium home furnishings market share (valued at approximately $100 billion, according to Arhaus’ report). However, its record-setting 2025 earnings are significant.
“The Arhaus team delivered record net revenue of $1.38 billion in 2025, an increase of 8.5%, underscoring the strength and durability of our differentiated model rooted in artisan craftsmanship and heirloom-quality design,” said John Reed, cofounder and chief executive officer. “This performance was driven by continued expansion of our showroom footprint and strong client engagement across our integrated omnichannel model.”
In Q4, Arhaus earned $365 million in net revenue, representing an increase of 5.1% year over year. Although its comparable written sales for Q4 decreased 2.8%, which the company attributes to “temporary softness in October due to promotional timing shifts,” it rebounded in November and December, for an increase of 1.3% for the full year.
In the fourth quarter of 2025, Arhaus opened four new showrooms in Pasadena, California; Bozeman, Montana; San Diego, California; and Stafford, Texas. Arhaus also relocated one of its existing showrooms in Edina, Minnesota. Earlier in 2025, Arhaus opened a showroom in Wexford, Pennsylvania, relocated six other showrooms, and renovated its location in Naples, Florida. The new locations increased the company’s total showrooms to 107 locations across 31 states, representing 53% growth in its showroom footprint since 2019.
Arhaus’ showroom-focused business model is a large part of the company’s success; it’s also a bellwether of the current retail economy. Arhaus’ latest financial report also stated that 90% of its total sales in 2025 came from clients who live within 50 miles of an Arhaus showroom.
That is a striking statistic; it demonstrates how valuable some consumers find brick-and-mortar spaces despite an increasingly fragmented marketplace. Arhaus employs an omnichannel strategy, and products are available for sale on its website, but it shows that even in today’s era of e-commerce, tangible spaces where shoppers can see, touch and order furnishings are resonating.
The Arhaus report stated that the company currently sees three key drivers of demand: consumers making updates to existing spaces; full-room and whole-home renovations; and new home sales, including primary, second and tertiary residences.
Fittingly, Arhaus reported record total written sales from clients working with its interior designers in 2025. The company noted that its interior design program created an opportunity to drive higher engagement, larger orders and greater lifetime value with customers. Some 40% of shoppers who used Arhaus’ interior design program became repeat purchasers.
Thanks to no long-term debt and substantial cash reserves, Arhaus started 2026 in a competitive position.
“This marks the second time Arhaus has issued a special cash dividend since our initial public offering, reflecting our strong financial performance in 2025 and the strength of our cash position and debt-free balance sheet,” said Michael Lee, chief financial officer. “We generated strong cash flow during the year and finished 2025 with $253 million in cash and cash equivalents, an increase of 28.3% from the prior year, further enhancing our financial flexibility.”
Given the company’s strong start going into 2026, it will be interesting to see how Arhaus fares in the first quarter (ending March 31), which will be disclosed in the company’s next report of its financial results.
