Is the business good?
How good a business is ARHS?
Arhaus, Inc. earns 35% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
35%
Return on invested capital · cost of capital 9.0% · 26 points above what the capital costs: growth creates value
- Operating margin
- 6.2%
Operating margin · Specialty Retail median 8.4% · 12 months to Q1 2026
- Cash conversion
- 0.21×
Cash conversion · 0.82× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- +0.46%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 6.1% |
| FY2021 | 4.2% |
| FY2022 | 15% |
| FY2023 | 13% |
| FY2024 | 6.8% |
| FY2025 | 6.4% |
Details›
- Gross margin12 months to Q1 2026
- 39%
- Operating margin12 months to Q1 2026
- 6.2%
- Net margin12 months to Q1 2026
- 4.7%
- Free cash flow margin
- 0.98%
- Revenue, trailing twelve months
- $1.38B
- Free cash flow, trailing twelve months
- $14M
- Net income, trailing twelve months
- $65M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 35%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.