Arhaus Inc. Class A Common Stock (ARHS)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Arhaus as a cyclical specialty retailer selling premium home furnishings, a discretionary purchase tied to housing and consumer confidence. The brand may have some pricing pull, but I see no wide moat; furniture retail is competitive and switching costs are low. Filed results show uneven momentum: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $384.9M, net income $39.6M, and diluted EPS $0.28, versus fiscal Q2 2025, the quarter ended 2025-06-30, revenue $358.4M, net income $35.1M, and diluted EPS $0.25. Yet in fiscal Q1 2026, the quarter ended 2026-03-31, net income was only $2.2M. Full-year fiscal 2025 net income was $67.3M, down from fiscal 2024's $68.5M and fiscal 2023's $125.2M. So FairStock's FAST GROWER label—based on five-year profit growth of 61.7% a year and revenue growth of 22.1%—has not produced steadily rising recent annual profits. Financial health is mixed. FairStock calculations show a Piotroski F-Score of 8/9, ROE of 17.28%, low ROCE of 3.13%, debt-to-equity of 1.47, and Altman Z-Score of 1.50. Free cash flow is $40.9M, a 3.0% FCF yield. At the 2026-10-13 close of $9.60, FairStock's P/E is 19.20, P/B is 3.28, PEG is 1.47, EV/EBITDA is 9.24, and the Graham Number is $5.74, leaving a negative 67.25% margin of safety. The price already reflects better days. I would want a wider discount before calling it a Graham-style bargain.

In plain English: Arhaus sells higher-end furniture and home goods through stores and online. The company is profitable and has shown recent sales and profit growth, but yearly profits have been uneven and it uses a fair amount of debt. At $9.60 a share, the price looks full compared with the company's profits and net assets, so it does not appear cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer