ARHSArhaus, Inc.
Is the business good?
The checks split: earnings fully cash-backed (1.7×), but margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
A balanced mix of margins, efficiency, and leverage. ROE 17% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ARHS?
Arhaus, Inc. earns 39% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 30 points above what the capital costs: growth creates value
- Operating margin
- 6.6%
Operating margin · Specialty Retail median 8.1% · 12 months to Q2 2026
- Cash conversion
- 1.74×
Cash conversion · 2.10× a year ago · operating cash flow covers the operating profit after tax
- 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 Q2 2026
- 40%
- Operating margin12 months to Q2 2026
- 6.6%
- Net margin12 months to Q2 2026
- 4.9%
- Free cash flow margin
- 2.9%
- Revenue, trailing twelve months
- $1.41B
- Free cash flow, trailing twelve months
- $41M
- Net income, trailing twelve months
- $69M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 39%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.