0001875444-26-000016 | 10-Q | XBRL Viewer

Merchandise Warranties

3 Months Ended

Mar. 31, 2026

Product Warranties Disclosures [Abstract]

The Company warrants certain merchandise to be free of defects in both construction materials and workmanship from the date the performance obligation was fulfilled to the client for three to ten years depending on the merchandise category. The Company accounts for merchandise warranties by accruing an estimated liability when we recognize revenue on the sale of warrantied merchandise. We estimate future warranty claims based on claim experience which includes materials and labor costs to perform the repairs or replace products. We use judgment in making our estimates. We record differences between our estimated and actual costs when the differences are known.

A reconciliation of the changes in our limited merchandise warranty liability is as follows (amounts in thousands):


	Three months ended
	March 31,
	2026		2025
Balance as of beginning of period	$	8,482	$	7,627
Accruals during the period	3,301		2,949
Settlements during the period	(3,416)		(2,905)
Balance as of end of the period	$	8,367	$	7,671

We recorded accruals in the cost of goods sold line item in the condensed consolidated statements of comprehensive income during the periods presented in the table above, primarily to reflect charges that relate to warranties issued during the respective periods.

Recently Issued Accounting Standards

3 Months Ended

Mar. 31, 2026

Accounting Policies [Abstract]

Recently Issued Accounting Standards

New Accounting Standards Recently Adopted

The Company adopted Accounting Standards Update (“ASU”) 2025-05 — Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets during the three months ended March 31, 2026 and has applied it prospectively. The adoption of ASU 2025-05 did not have a material impact on our accounting policies, financial position or results of operations. Refer to Note 1 — Nature of Business and Basis of Presentation for disclosures required by this ASU.

Accounting Standards Not Yet Adopted

The following table summarizes accounting pronouncements which we have not yet adopted but will be adopted in upcoming fiscal years. ASU 2024-03 and the related ASU 2025-01 are effective for annual periods beginning after December 15, 2026. We are evaluating the impact these pronouncements will have on our consolidated financial statements and related disclosures. ASU 2025-06 is effective for annual periods beginning after December 15, 2027. We are evaluating the impact ASU 2025-06 will have on our consolidated financial statements and related disclosures.

ASU

Description

Adoption Date

ASU 2024-03

Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses

Fiscal Year 2027

ASU 2025-01

Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date

Fiscal Year 2027

ASU 2025-06

Intangibles—Goodwill and Other—Internal Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software

Fiscal Year 2028

Net and Comprehensive Income per Share

3 Months Ended

Mar. 31, 2026

Earnings Per Share [Abstract]

Net and Comprehensive Income per Share

Basic and diluted net and comprehensive income per share were calculated by dividing net and comprehensive income by the number of basic and diluted weighted-average common shares outstanding. The Company has elected to not adjust net and comprehensive income for forfeitable dividend equivalents, when declared, related to unvested equity awards. The Company will recognize dividends paid on common shares when the dividend equivalents are no longer forfeitable, such as if the contingency is met or the share-based payment awards vest into common shares.

Basic and diluted net and comprehensive income per share are as follows (amounts in thousands, except per share data):


	Three months ended
	March 31,
	2026		2025
Numerator
Net and comprehensive income	$	2,223	$	4,882

Denominator—Weighted Average Shares Outstanding
Weighted-average number of common shares outstanding, basic	140,966,908		140,361,588
Effect of dilutive restricted stock (1) (2)	774,966		729,045
Weighted-average number of common shares outstanding, diluted	141,741,874		141,090,633

Net and Comprehensive Income Per Share
Net and comprehensive income per share, basic	$	0.02	$	0.03
Net and comprehensive income per share, diluted	$	0.02	$	0.03

(1) During the three months ended March 31, 2026, 206,768 shares of unvested RSUs and dividend equivalents were excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive. During the three months ended March 31, 2025, 410,380 shares of unvested restricted stock and RSUs were excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive.

(2) During the three months ended March 31, 2026, 445,260 PSUs were excluded from the calculation of the effect of dilutive restricted stock because they did not meet the required performance criteria. During the three months ended March 31, 2025, 386,617 PSUs were excluded from the calculation of the effect of dilutive restricted stock because they did not meet the required performance criteria.

Nature of Business and Basis of Presentation (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2026 USD ($) store	Mar. 31, 2025 USD ($)	Dec. 31, 2025 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of stores \| store	107
Client deposits, percentage collected (at least)	50.00%
Customer deposits, performance obligation term	12 months
Interest income	$ 1,800	$ 1,900
Accounts receivable, net	432		$ 663
Allowance for expected credit losses	300		400
Other accrued expenses
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other accrued expenses, gift cards	$ 500		$ 600

Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Lease costs:
Operating lease costs	$ 19,722	$ 16,444
Finance lease costs
Amortization of right-of-use assets	550	602
Interest expense on lease liabilities	1,277	1,289
Variable lease costs	10,229	12,242
Short term lease costs	44	44
Total lease costs	$ 31,822	$ 30,621

Related Party Transactions (Details) $ in Thousands	1 Months Ended				3 Months Ended
Related Party Transactions (Details) $ in Thousands	Oct. 31, 2025 USD ($)	Mar. 31, 2021 USD ($) option	Aug. 31, 2020 USD ($)	Jul. 31, 2010 USD ($)	Mar. 31, 2026 USD ($)	Mar. 31, 2025 USD ($)	Apr. 30, 2025 option	Jul. 31, 2023 option	Nov. 30, 2000
Related Party \| Distribution Center and Manufacturing Building
Related Party Transaction [Line Items]
Operating lease, term (in years)		12 years
Rent expense					$ 1,000	$ 1,000
Renewal options \| option		2
Related Party \| Distribution Center and Manufacturing Building \| Minimum
Related Party Transaction [Line Items]
Operating lease, renewal term (in years)		5 years
Related Party \| Distribution Center and Manufacturing Building \| Minimum \| Base term, 12 years
Related Party Transaction [Line Items]
Lease monthly payment	$ 29	$ 200
Related Party \| Distribution Center and Manufacturing Building \| Minimum \| Renewal term, 10 years
Related Party Transaction [Line Items]
Lease monthly payment		$ 400
Related Party \| Distribution Center and Manufacturing Building \| Maximum
Related Party Transaction [Line Items]
Operating lease, renewal term (in years)		10 years
Related Party \| Distribution Center and Manufacturing Building \| Maximum \| Base term, 12 years
Related Party Transaction [Line Items]
Lease monthly payment	$ 39	$ 300
Related Party \| Distribution Center and Manufacturing Building \| Maximum \| Renewal term, 10 years
Related Party Transaction [Line Items]
Lease monthly payment		$ 500
Walton Hills, Ohio \| Warehouse
Related Party Transaction [Line Items]
Operating lease, renewal term (in years)								5 years
Number of options to extend \| option								1
Walton Hills, Ohio \| Related Party \| Warehouse
Related Party Transaction [Line Items]
Operating lease, term (in years)									17 years
Operating lease, renewal term (in years)									5 years
Lease monthly payment			$ 100
Rent expense					400	400
Walton Hills, Ohio \| Related Party \| Warehouse \| Minimum
Related Party Transaction [Line Items]
Lease monthly payment					100
Walton Hills, Ohio \| Related Party \| Warehouse \| Maximum
Related Party Transaction [Line Items]
Lease monthly payment					200
Brooklyn, Ohio \| Related Party \| Outlet
Related Party Transaction [Line Items]
Operating lease, term (in years)				15 years
Lease monthly payment				$ 20
Number of options to extend \| option							0
Rent expense					$ 100	$ 100
Pagoda Partners, LLC \| Walton Hills, Ohio \| Chief Executive Officer \| Related Party
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners									50.00%
Brooklyn Arhaus \| Brooklyn, Ohio \| Chief Executive Officer \| Related Party
Related Party Transaction [Line Items]
Ownership percentage by parent				85.00%
Brooklyn Arhaus \| Brooklyn, Ohio \| Director \| Related Party
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners				15.00%
Premier Canover, LLC \| Chief Executive Officer \| Related Party \| Distribution Center and Manufacturing Building
Related Party Transaction [Line Items]
Ownership percentage by noncontrolling owners		40.00%

Leases - Schedule of Supplemental Cash Flow from Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Leases [Abstract]
Operating cash flows for operating leases	$ 21,087	$ 19,437
Operating cash flows for finance leases	1,279	1,217
Financing cash flows for finance leases	184	212
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	29,298	33,481
Finance leases	$ 43
Finance leases		$ (986)

Segment Reporting - Schedule of Net Revenue by Merchandise Sales Channel (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Segment Reporting Information [Line Items]
Total net revenue	$ 314,276	$ 311,372
Cost of goods sold	199,841	195,785
Loss on disposal of assets	104	108
Interest income, net	(454)	(573)
Other income	(847)	(86)
Income before taxes	3,437	6,080
Income tax expense	1,214	1,198
Net income	2,223	4,882
Comprehensive income	2,223	4,882
Reportable Segment
Segment Reporting Information [Line Items]
Total net revenue	314,276	311,372
Cost of goods sold	199,841	195,785
Corporate and administrative expenses	56,751	54,609
Selling expenses	44,654	44,392
Marketing expenses	10,790	11,057
Loss on disposal of assets	104	108
Interest income, net	(454)	(573)
Other income	(847)	(86)
Income before taxes	3,437	6,080
Income tax expense	1,214	1,198
Net income	2,223	4,882
Comprehensive income	2,223	4,882
Reportable Segment \| Retail
Segment Reporting Information [Line Items]
Total net revenue	264,407	255,453
Reportable Segment \| eCommerce
Segment Reporting Information [Line Items]
Total net revenue	$ 49,869	$ 55,919

Equity Based Compensation - Schedule of Equity Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation expense	$ 299	$ 122
Unrecognized compensation cost	$ 100
Unrecognized compensation cost, period for recognition	2 months 12 days
PSU Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation expense	$ 463	73
Unrecognized compensation cost	$ 3,000
Unrecognized compensation cost, period for recognition	1 year 7 months 20 days
RSU Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation expense	$ 1,883	$ 1,400
Unrecognized compensation cost	$ 12,600
Unrecognized compensation cost, period for recognition	2 years 7 months 24 days

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

Equity Based Compensation - Schedule of Unvested Stock Activity (Details)	3 Months Ended
	Mar. 31, 2026 $ / shares shares
PSU Awards
Amount
Unvested, beginning of period (in shares) \| shares	605,039
Granted (in shares) \| shares	0
Forfeited (in shares) \| shares	(1,855)
Vested (in shares) \| shares	0
Unvested, end of period (in shares) \| shares	603,184
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in dollars per share) \| $ / shares	$ 9.78
Granted (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	8.81
Vested (in dollars per share) \| $ / shares	0
Unvested, end of period (in dollars per share) \| $ / shares	$ 9.78
RSU Awards
Amount
Unvested, beginning of period (in shares) \| shares	2,320,867
Granted (in shares) \| shares	0
Forfeited (in shares) \| shares	(14,693)
Vested (in shares) \| shares	(284,111)
Unvested, end of period (in shares) \| shares	2,022,063
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in dollars per share) \| $ / shares	$ 8.73
Granted (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	7.84
Vested (in dollars per share) \| $ / shares	9.48
Unvested, end of period (in dollars per share) \| $ / shares	$ 8.64
Class A \| Restricted Stock
Amount
Unvested, beginning of period (in shares) \| shares	64,187
Granted (in shares) \| shares	0
Forfeited (in shares) \| shares	0
Vested (in shares) \| shares	0
Unvested, end of period (in shares) \| shares	64,187
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in dollars per share) \| $ / shares	$ 18.61
Granted (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	0
Vested (in dollars per share) \| $ / shares	0
Unvested, end of period (in dollars per share) \| $ / shares	$ 18.61

Debt	3 Months Ended
Debt	Mar. 31, 2026
Debt Disclosure [Abstract]
Debt	Debt In November 2021, the Company entered into a revolving credit facility (the “2021 Credit Facility”). The 2021 Credit Facility provides for, among other things, (1) a revolving credit facility in an aggregate amount not to exceed at any time outstanding the amount of such lender’s commitment, (2) a letter of credit commitment in an amount equal to the lesser of (a) $10.0 million, and (b) the amount of the revolving credit facility as of such date, and (3) a swingline loan in an amount equal to the lesser of (a) $5.0 million, and (b) the amount of the revolving credit facility as of such date. The aggregate amount of all commitments of all lenders under the 2021 Credit Facility was initially $50.0 million. The 2021 Credit Facility contains restrictive covenants and has certain financial covenants, including a maximum rent-adjusted total leverage ratio and a minimum fixed charge ratio. The 2021 Credit Facility initially bore variable interest rates at the prevailing Bloomberg Short-Term Bank Yield index rate plus the applicable margin, whereas the applicable margin is adjusted quarterly based on the Company’s consolidated rent-adjusted total leverage ratio. In December 2022, the Company amended the 2021 Credit Facility to increase the revolving credit commitment thereunder by $25.0 million. After giving effect to such increase, the aggregate amount of all commitments under the 2021 Credit Facility was $75.0 million. In August 2024, the Company amended the 2021 Credit Facility to adjust the index rate from the Bloomberg Short-Term Bank Yield Index to Term Secured Overnight Financing Rate. The 2021 Credit Facility bears variable interest rates at the prevailing Term Secured Overnight Financing Rate plus the applicable margin (1.75% at March 31, 2025). In May 2025, the Company issued an irrevocable standby letter of credit under the 2021 Credit Facility in the amount of $5.1 million in connection with a lease, which remained outstanding at March 31, 2026. In October 2025, the Company entered into the Third Amendment to Credit Agreement and Amendment to Security and Pledge Agreement (the “Amendment”). The Amendment further amends the 2021 Credit Facility to, among other things, (1) extend the maturity date of the revolving credit facility from November 8, 2026 to October 17, 2030, and (2) increase the letter of credit commitment to an amount equal to the lesser of (a) $15 million, and (b) the amount of the revolving credit facility as of such date. After giving effect to the Amendment, the aggregate amount of revolving credit commitments under the Credit Agreement remains $75 million. The Company has the option to increase the revolving credit commitment thereunder by an additional $25 million. In connection with the Amendment, the Company has incurred approximately $0.2 million in debt issuance costs. The 2021 Credit Facility bears variable interest rates at the prevailing Term Secured Overnight Financing Rate plus the applicable margin (1.75% at March 31, 2026). At March 31, 2026 and December 31, 2025, we had no borrowings on the 2021 Credit Facility and the available borrowing capacity was $69.9 million and $69.9 million, respectively. Deferred financing costs related to the 2021 Credit Facility of $0.3 million and $0.3 million as of March 31, 2026 and December 31, 2025, respectively, are recorded in other noncurrent assets on the condensed consolidated balance sheets and will be amortized over the term of the 2021 Credit Facility on a straight-line basis. Accumulated amortization related to deferred financing costs for the 2021 Credit Facility was $0.3 million as of March 31, 2026 and $0.3 million as of December 31, 2025. The Company was in compliance with all applicable debt covenants at March 31, 2026 and December 31, 2025, and expects to remain in compliance over the next 12 months.

Leases - Schedule of Weighted Average Discount Rate (Details)	Mar. 31, 2026	Mar. 31, 2025
Leases [Abstract]
Operating leases	6.02%	6.04%
Finance leases	9.68%	9.67%

Net and Comprehensive Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Numerator
Net income	$ 2,223	$ 4,882
Comprehensive income	$ 2,223	$ 4,882
Denominator—Weighted Average Shares Outstanding
Weighted-average number of common shares outstanding, basic (in shares)	140,966,908	140,361,588
Effect of dilutive restricted stock (in shares)	774,966	729,045
Weighted-average number of common shares outstanding, diluted (in shares)	141,741,874	141,090,633
Net and comprehensive income per share, basic (in dollars per share)	$ 0.02	$ 0.03
Net and comprehensive income per share, diluted (in dollars per share)	$ 0.02	$ 0.03
Antidilutive securities excluded from computation of earnings per share (in shares)	206,768	410,380
Securities not meeting performance target, excluded from computation of earnings per share (in shares)	445,260	386,617

Leases - Schedule of Liability for Operating and Finance Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Leases [Abstract]
Operating right-of-use assets	$ 408,763	$ 391,274
Financing right-of-use assets	32,744	33,275
Total leased assets	441,507	424,549
Current portion of operating lease liabilities	64,475	60,115
Operating lease liabilities, long-term	482,109	467,226
Total operating lease liabilities	546,584	527,341
Current portion of financing lease liabilities	964	862
Financing lease liabilities, long-term	52,166	52,374
Total finance lease liabilities	53,130	53,236
Total lease liabilities	$ 599,714	$ 580,577

Net and Comprehensive Income per Share (Tables)

3 Months Ended

Mar. 31, 2026

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Earnings Per Share

Basic and diluted net and comprehensive income per share are as follows (amounts in thousands, except per share data):


	Three months ended
	March 31,
	2026		2025
Numerator
Net and comprehensive income	$	2,223	$	4,882

Denominator—Weighted Average Shares Outstanding
Weighted-average number of common shares outstanding, basic	140,966,908		140,361,588
Effect of dilutive restricted stock (1) (2)	774,966		729,045
Weighted-average number of common shares outstanding, diluted	141,741,874		141,090,633

Net and Comprehensive Income Per Share
Net and comprehensive income per share, basic	$	0.02	$	0.03
Net and comprehensive income per share, diluted	$	0.02	$	0.03

Segment Reporting - Narrative (Details)	3 Months Ended
Segment Reporting - Narrative (Details)	Mar. 31, 2026 segment
Segment Reporting [Abstract]
Number of operating segments	1
Number of reportable segments	1

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2026
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesIncome tax expenses were $1.2 million and $1.2 million in the three months ended March 31, 2026 and March 31, 2025, respectively. The effective tax rate was 35.3% and 19.7% for the three months ended March 31, 2026 and March 31, 2025, respectively. The increase in the effective tax rate was primarily driven by the section 162(m) limitation on the deductibility of certain employee compensation that has a disproportionate impact on the quarterly tax rate.

- Definition

The entire disclosure for income tax.

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+ Details

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Mar. 31, 2025
Income Tax Disclosure [Abstract]
Income tax expense	$ 1,214	$ 1,198
Effective income tax rate	35.30%	19.70%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

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+ Details

Related Party Transactions	3 Months Ended
Related Party Transactions	Mar. 31, 2026
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Leasing transactions In November 2000, the Company entered into a lease agreement with Pagoda Partners, LLC, a company of which John Reed, our CEO, indirectly owns 50%, for our warehouse in Walton Hills, Ohio. The base lease term was 17 years with a 5-year renewal option. In August 2020, the Company amended the lease agreement to extend the lease term to April 2024. The monthly rental payments were $0.1 million. In July 2023, the Company amended the lease agreement to extend the lease term to April 2034 with one additional 5-year renewal option. The monthly rental payments range from $0.1 million to $0.2 million. Rent expense was $0.4 million and $0.4 million for the three months ended March 31, 2026 and March 31, 2025, respectively. In July 2010, the Company entered into a lease agreement with Brooklyn Arhaus, a company of which our CEO and Mr. Beargie, a Director of the Company, own 85% and 15%, respectively, for our Loft in Brooklyn, Ohio. The base lease term was 15 years with no lease renewal options. The monthly rental payments were $20 thousand. In April 2025, the Company amended the lease agreement, effective in October 2025, to extend the lease term to September 2040 with no lease renewal options. The monthly rental payments range from $29 thousand to $39 thousand. Rent expense was $0.1 million and $0.1 million for the three months ended March 31, 2026 and March 31, 2025, respectively. In March 2021, the Company entered into a lease agreement with Premier Conover, LLC, a company of which our CEO indirectly owns 40%, for a distribution center and manufacturing building. The base lease term is for 12 years, with a 10-year renewal option and two additional 5-year renewal options at the higher of the minimum base rent or the fair market rent at the time of renewal execution. The monthly rental payments range from $0.2 million to $0.3 million during the 12-year base lease term and from $0.4 million to $0.5 million during the 10-year renewal period. Rent expense was $1.0 million and $1.0 million for the three months ended March 31, 2026 and March 31, 2025, respectively.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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+ Details

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2026	May 01, 2026
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2026
Document Transition Report	false
Entity File Number	001-41009
Entity Registrant Name	Arhaus, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	87-1729256
Entity Address, Address Line One	51 E. Hines Hill Road
Entity Address, City or Town	Boston Heights
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44236
City Area Code	440
Local Phone Number	439-7700
Title of 12(b) Security	Class A common stock, $0.001 par value per share
Trading Symbol	ARHS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001875444
Document Fiscal Year Focus	2026
Document Fiscal Period Focus	Q1
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		54,424,464
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		87,115,600

Nature of Business and Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2026

Accounting Policies [Abstract]

Basis of Presentation

The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying condensed consolidated financial statements include our accounts and those of our wholly owned subsidiaries. Accordingly, all intercompany balances and transactions have been eliminated through the consolidation process.

The accompanying condensed consolidated balance sheets at March 31, 2026 and December 31, 2025, the condensed consolidated statements of comprehensive income, changes in stockholders’ equity and cash flows for the three months ended March 31, 2026 and March 31, 2025, and the related interim condensed consolidated disclosures are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

In management’s opinion, the accompanying condensed consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the Company’s financial position at March 31, 2026 and the results of operations, changes in stockholders’ equity and cash flows for the three months ended March 31, 2026. The condensed consolidated balance sheet as of December 31, 2025 included herein was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP.

The results for the three months ended March 31, 2026 and March 31, 2025 are not necessarily indicative of the operating results to be expected for the full fiscal year or any future period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025.

Use of Estimates

The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The accounting estimates and other matters included within our condensed consolidated financial statements and notes to the condensed consolidated financial statements we have assessed include, but were not limited to, revenue recognition, including a reserve for merchandise returns, inventory reserves, impairment of long-lived assets and fair value of financial instruments which include, but are not limited to, accounts receivable, payables and lease obligations.

Client Deposits and Gift Cards

Client Deposits

Client deposits represent payments made by clients on orders. At the time of order, the Company collects deposits for all orders equivalent to at least 50 percent of the clients’ purchase price. Orders are recognized as revenue when the merchandise is delivered to the client and at the time of delivery the client deposit is no longer recorded as a liability. The

Company expects substantially all client deposits as of March 31, 2026 will be recognized as net revenue within the next 12 months as the performance obligations are satisfied.

Gift Cards

The Company sells gift cards to clients in our Showrooms. Such gift cards do not have expiration dates. We defer revenue when payments are received in advance of performance for unsatisfied obligations related to our gift cards. The liability related to unredeemed gift cards at March 31, 2026 and December 31, 2025 of $0.5 million and $0.6 million, respectively, is recorded in the accrued other expenses line item of the condensed consolidated balance sheets. The Company recognizes income associated with breakage proportional to actual gift card redemptions.

Fair Values of Financial Instruments

The Company’s primary financial instruments are cash and cash equivalent investments, accounts receivable, payables, lease obligations and equity based compensation instruments. Due to the short-term maturities of cash and cash equivalent investments, accounts receivable and payables, the Company believes the fair values of these instruments approximate their respective carrying values at March 31, 2026 and December 31, 2025. See Note 5 — Leases for discussion of our lease obligations and Note 6 — Equity Based Compensation for discussion of our equity based compensation instruments.

The Company has established a hierarchy to measure our financial instruments at fair value, which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect the Company’s own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. The hierarchy defines three levels of inputs that may be used to measure fair value:

Level 1Unadjusted quoted prices in active markets for identical, unrestricted assets and liabilities that the reporting entity has the ability to access at the measurement date.

Level 2Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability.

Level 3Unobservable inputs that reflect the entity’s own assumptions about the assumptions market participants would use in the pricing of the asset or liability and are consequently not based on market activity but rather through particular valuation techniques.

Accounts Receivable

The allowance for expected credit losses is determined by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, the client’s current ability to pay its obligations, and the current and future condition of the general economy and industry as a whole. The Company has elected the practical expedient to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset when estimating expected credit losses. Accounts receivable are written off when they become uncollectible and any payments subsequently received on such receivables are credited to the allowance for expected credit losses. Accounts receivable are recorded at the invoiced amount and do not bear interest.

New Accounting Standards Recently Adopted and Accounting Standards Not Yet Adopted

New Accounting Standards Recently Adopted

Accounting Standards Not Yet Adopted

ASU

Description

Adoption Date

ASU 2024-03

Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses

Fiscal Year 2027

ASU 2025-01

Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date

Fiscal Year 2027

ASU 2025-06

Intangibles—Goodwill and Other—Internal Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software

Fiscal Year 2028

Merchandise Warranties

- Definition

Disclosure of accounting policy for revenue from contract with customer.

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- Definition

Disclosure of accounting policy for the use of estimates in the preparation of financial statements in conformity with generally accepted accounting principles.

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+ Details

Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2026

Segment Reporting [Abstract]

Schedule of Net Revenue by Merchandise Sales Channel

The following table shows revenue by merchandise sales channel and segment expenses (amounts in thousands):


	Three months ended
	March 31,
	2026		2025
Retail	$	264,407	$	255,453
eCommerce	49,869		55,919
Total net revenue	$	314,276	$	311,372
Less costs and expenses(1):
Cost of goods sold	199,841		195,785
Corporate and administrative expenses(2)	56,751		54,609
Selling expenses	44,654		44,392
Marketing expenses	10,790		11,057
Loss on disposal of assets	104		108
Interest income, net	(454)		(573)
Other income	(847)		(86)
Income before taxes	3,437		6,080
Income tax expense	1,214		1,198
Net and comprehensive income	$	2,223	$	4,882

(1) Significant costs and expenses include cost of goods sold, corporate and administrative expenses, selling expenses and marketing expenses.

(2) Corporate and administrative expenses primarily include warehouse expenses, equity based compensation costs, information technology, human resources and legal costs, insurance expenses, accounting fees and corporate sustainability costs.

Commitments and Contingencies (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2025
Other Commitments [Line Items]
Accrued legal cost	$ 6,400			$ 6,500
Loss contingency accrual	$ 300			$ 300
Common stock, dividends declared (in dollars per share)	$ 0.35		$ 0.50
Special cash dividend	$ 49,510	$ 239
S 2024 Dividends, Paid in Q1 2025
Other Commitments [Line Items]
Special cash dividend	100
S 2024 Dividends, Paid in Q1 2025
Other Commitments [Line Items]
Special cash dividend		$ 200
S 2026 Dividends
Other Commitments [Line Items]
Special cash dividend	49,400
Liabilities, Current
Other Commitments [Line Items]
Dividends payable	100
Other Noncurrent Liabilities
Other Commitments [Line Items]
Dividends payable	0
Additional Paid-in Capital
Other Commitments [Line Items]
Dividends payable	800
Revolving Credit Facility \| 2021 Credit Facility
Other Commitments [Line Items]
Letters of credit outstanding	$ 5,100

Merchandise Warranties (Tables)

3 Months Ended

Mar. 31, 2026

Product Warranties Disclosures [Abstract]

Schedule of Merchandise Warranty Liability

A reconciliation of the changes in our limited merchandise warranty liability is as follows (amounts in thousands):


	Three months ended
	March 31,
	2026		2025
Balance as of beginning of period	$	8,482	$	7,627
Accruals during the period	3,301		2,949
Settlements during the period	(3,416)		(2,905)
Balance as of end of the period	$	8,367	$	7,671

Leases - Schedule of Weighted Average Lease Term (Details)	Mar. 31, 2026	Mar. 31, 2025
Leases [Abstract]
Operating leases	8 years 9 months 14 days	8 years 8 months 23 days
Finance leases	19 years 3 months 29 days	20 years 2 months 23 days

Equity Based Compensation

3 Months Ended

Mar. 31, 2026

Share-Based Payment Arrangement [Abstract]

Equity Based Compensation

Activity of the Company’s Restricted Stock and their related equity based compensation expense are summarized in the following tables (amounts in thousands, except share and per share data):


	Restricted Stock - Class A
	Amount	Weighted Average Grant Date Fair Value
Unvested at December 31, 2025	64,187	$	18.61
Granted	—	—
Forfeited	—	—
Vested	—	—
Unvested at March 31, 2026	64,187	$	18.61


	Three months ended
	March 31,
	2026		2025
Equity based compensation expense - Restricted Stock(1)	$	299	$	122

(1) Total unrecognized equity based compensation to be recognized in future periods is $0.1 million at March 31, 2026, and will be recognized over a weighted average period of 0.2 years. Equity based compensation expense is recorded within selling, general and administrative expenses on our condensed consolidated statements of comprehensive income.

The Arhaus, Inc. 2021 Equity Incentive Plan (the “2021 Plan”) was adopted in November 2021. The 2021 Plan authorizes the Company the ability to grant stock options (either incentive or non-qualified), stock appreciation rights (“SARs”), restricted stock, restricted stock units (“RSUs”), performance shares, performance share units (“PSUs”) and other stock-based awards with respect to our Class A common stock to our employees, officers, consultants, advisors and directors. The maximum number of Class A common stock that may be granted under the 2021 Plan is 11,205,100 shares.

Per the 2021 Plan, each RSU and PSU represents a contingent right to receive one share of the Company’s Class A common stock upon vesting. The RSUs granted to award recipients will vest over two to five years (depending on the terms of the award) on each anniversary of the grant date, provided that the award recipient continues to serve the Company through the applicable vesting date (“Continuous Service”). If the award recipient’s Continuous Service terminates for any reason other than death, disability or in connection with a change in control (as such terms are defined in the 2021 Plan), unless the Compensation Committee of the Board of Directors determines otherwise, all RSUs that are unvested at the time of such termination shall be forfeited and cancelled immediately without consideration. RSU and PSU awards contain forfeitable rights to dividend equivalents. Dividend equivalents for outstanding awards are accrued when dividends are declared on the Company’s common stock but are not paid until the awards vest, and dividend equivalents

accrued for awards that ultimately do not vest are forfeited. Dividend equivalents are settled in the form of cash or Class A common stock based on the award agreement. The RSUs issued to certain members of the Board of Directors will generally vest on the one-year anniversary of the grant date. The fair value of RSUs is determined based on the market value of the Company’s Class A common stock on the grant date.

The number of PSUs earned will be based on the Company’s financial performance as measured against pre-established target performance goals over the applicable performance period. For PSUs granted in fiscal year 2024, the performance goals are cumulative demand revenue and cumulative adjusted EBITDA. In April 2025, the Company granted PSUs with the aforementioned performance goals and a new performance goal for relative Total Shareholder Return (“TSR”). The fair value of PSUs is determined based on the market value of the Company’s Class A common stock on the grant date. The fair value of the portion of PSUs related to relative TSR is derived from a Monte Carlo valuation model that estimates fair value as of the grant date. The Monte Carlo valuation model uses multiple simulations to evaluate our probability of achieving various stock price levels to determine the Company’s expected TSR ranking relative to a custom peer group. PSUs will vest as of the end of the applicable performance period subject to the award recipient’s Continuous Service, but will not settle and payout until the number of PSUs earned is determined by the Compensation Committee. The award recipient may earn between 0% and 200% of the PSU target award based on the Company’s achievement of the applicable performance goals, with each goal weighted equally. The Company accounts for forfeitures as they occur.

Activity of the Company’s PSU and RSU awards and their related equity based compensation expense are summarized in the following tables (amounts in thousands, except share and per share data):


	PSU Awards			RSU Awards
	Amount	Weighted Average Grant Date Fair Value		Amount	Weighted Average Grant Date Fair Value
Unvested at December 31, 2025	605,039	$	9.78	2,320,867	$	8.73
Granted	—	—		—	—
Forfeited	(1,855)	8.81		(14,693)	7.84
Vested	—	—		(284,111)	9.48
Unvested at March 31, 2026	603,184	$	9.78	2,022,063	$	8.64


	Three months ended
	March 31,
	2026		2025
Equity based compensation expense - PSUs(1)	$	463	$	73
Equity based compensation expense - RSUs(2)	$	1,883	$	1,400

(1) Total unrecognized equity based compensation for the PSUs to be recognized in future periods is $3.0 million at March 31, 2026, and will be recognized over a weighted average period of 1.64 years. Equity based compensation expense is recorded within selling, general and administrative expenses on our condensed consolidated statements of comprehensive income.

(2) Total unrecognized equity based compensation for the RSUs to be recognized in future periods is $12.6 million at March 31, 2026, and will be recognized over a weighted average period of 2.65 years. Equity based compensation expense is recorded within selling, general and administrative expenses on our condensed consolidated statements of comprehensive income.

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Current assets
Cash and cash equivalents	$ 177,111	$ 253,356
Restricted cash	3,224	3,124
Accounts receivable, net	432	663
Merchandise inventory, net	369,457	338,806
Prepaid and other current assets	31,619	25,425
Total current assets	581,843	621,374
Operating right-of-use assets	408,763	391,274
Financing right-of-use assets	32,744	33,275
Property, furniture and equipment, net	322,038	316,216
Deferred tax assets	18,863	19,545
Goodwill	10,961	10,961
Other noncurrent assets	2,308	2,101
Total assets	1,377,520	1,394,746
Current liabilities
Accounts payable	67,925	78,360
Accrued taxes	6,544	10,322
Accrued wages	14,851	20,879
Accrued other expenses	40,379	46,781
Client deposits	271,229	235,943
Current portion of operating lease liabilities	64,475	60,115
Current portion of financing lease liabilities	964	862
Total current liabilities	466,367	453,262
Operating lease liabilities, long-term	482,109	467,226
Financing lease liabilities, long-term	52,166	52,374
Other long-term liabilities	4,193	3,656
Total liabilities	1,004,835	976,518
Commitments and contingencies (Note 9)
Stockholders’ equity
Retained earnings	162,209	210,365
Additional paid-in capital	210,335	207,722
Total stockholders’ equity	372,685	418,228
Total liabilities and stockholders’ equity	1,377,520	1,394,746
Class A
Stockholders’ equity
Stock issued	54	54
Class B
Stockholders’ equity
Stock issued	$ 87	$ 87

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Income Statement [Abstract]
Net revenue	$ 314,276	$ 311,372
Cost of goods sold	199,841	195,785
Gross margin	114,435	115,587
Selling, general and administrative expenses	112,195	110,058
Loss on disposal of assets	104	108
Income from operations	2,136	5,421
Interest income, net	(454)	(573)
Other income	(847)	(86)
Income before taxes	3,437	6,080
Income tax expense	1,214	1,198
Net income	2,223	4,882
Comprehensive income	$ 2,223	$ 4,882
Net and comprehensive income per share, basic
Weighted-average number of common shares outstanding, basic (in shares)	140,966,908	140,361,588
Net and comprehensive income per share, basic (in dollars per share)	$ 0.02	$ 0.03
Net and comprehensive income per share, diluted
Weighted-average number of common shares outstanding, diluted (in shares)	141,741,874	141,090,633
Net and comprehensive income per share, diluted (in dollars per share)	$ 0.02	$ 0.03

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2026
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies The Company is involved in litigation and claims that are incidental to its business. Although the outcome of these matters cannot be determined at the present time, management of the Company believes that the ultimate resolution of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. As of March 31, 2026 and December 31, 2025, the Company has accrued legal costs of $6.4 million and $6.5 million, respectively, that are included within accrued other expenses in our condensed consolidated balance sheet. From time to time, the Company has received inquiries from a number of state and local taxing agencies with respect to the remittance of sales, use, telecommunications, excise, and income taxes. Several jurisdictions are currently conducting tax audits of the Company's records. The Company collects, or has accrued for, taxes that it believes are required to be remitted. The amounts that have been remitted have historically been within the accruals established by the Company. The Company adjusts its accrual when facts relating to specific exposures warrant such adjustment. As of March 31, 2026 and December 31, 2025, we recorded liabilities of $0.3 million and $0.3 million, respectively, in accrued other expenses on the condensed consolidated balance sheets for non-income tax matters that were probable and reasonably estimable. The Company has entered into an irrevocable standby letter of credit arrangement for purposes of protecting a lessor against default on lease payments. As of March 31, 2026, these lease payments are included in the Company’s condensed consolidated balance sheet within operating lease liabilities. As of March 31, 2026, the Company had a maximum financial exposure from the irrevocable standby letter of credit totaling approximately $5.1 million, all of which is applied to reduce capacity under the Company's revolving credit facility. The Company has no history of default claims, nor is it aware of circumstances that would require it to perform under this credit arrangement and believes that the resolution of any claims that might arise in the future, either individually or in the aggregate, would not materially affect the Company's condensed consolidated financial statements. Accordingly, no liability has been recorded with respect to this credit arrangement as of March 31, 2026. On February 29, 2024, the Board of Directors of the Company declared a special cash dividend on the Company’s Class A and Class B common stock of $0.50 per share, payable April 4, 2024, to shareholders of record at the close of business on March 21, 2024 (the “2024 Record Date”). The Company paid $0.1 million and $0.2 million of the aforementioned special cash dividend on its Class A common stock related to dividend equivalents on equity awards that vested during the three months ended March 31, 2026 and March 31, 2025, respectively. On February 17, 2026, the Board of Directors of the Company declared a special cash dividend on the Company’s Class A and Class B common stock of $0.35 per share, payable March 31, 2026, to shareholders of record at the close of business on March 18, 2026 (the “Record Date”). The Company paid $49.4 million of the aforementioned dividend on its Class A and Class B common stock to shareholders as of the Record Date during the three months ended March 31, 2026. As of March 31, 2026, dividends payable of $0.1 million are included within accrued other expenses. Amounts that are included within other long-term liabilities are minimal as of March 31, 2026. As of March 31, 2026, $0.8 million is included within additional paid-in capital. There were no other long-term liabilities or additional paid-in capital balances for dividend equivalents as of December 31, 2025. The remaining liability and equity balances recorded on our condensed consolidated balance sheets relate to dividend equivalents on outstanding equity awards under the Company’s equity incentive plan that were unvested as of the applicable record date. In February 2026, the U.S. Supreme Court issued a ruling invalidating certain tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA). As a result of this ruling, we may be eligible for a refund of tariffs previously paid on imported goods. As the recoverability and timing of any such refund remains uncertain, we have not recognized a receivable and corresponding offset to expense or asset as of March 31, 2026 and will not until such amounts are realized or realizable. We continue to monitor these developments and their potential impact on our results of operations

Segment Reporting

3 Months Ended

Mar. 31, 2026

Segment Reporting [Abstract]

Segment Reporting

Our chief operating decision maker (“CODM”) is our Chief Executive Officer (“CEO”), who reviews financial information presented on a consolidated basis for purposes of making decisions, assessing financial performance and allocating resources. We operate our business as one operating segment and therefore we have one reportable segment that offers an assortment of merchandise across a broad range of categories, including furniture, outdoor, bath, lighting, textiles, and décor. The assortment of merchandise can be purchased through our Retail and eCommerce sales channels.

The majority of our revenue is generated through sales to clients in the United States. Sales to clients outside of the United States are not significant. Further, no single client represents ten percent or more of our net revenue. There are no inter-segment transactions. Additionally, all property, furniture and equipment are located in the United States.

The accounting policies of our single operating segment are the same as those described within our summary of significant accounting policies in the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2025. The CODM assesses performance at the consolidated level and makes business decisions based on various key performance indicators, primarily net income, which is also reported on the condensed consolidated statements of comprehensive income as net and comprehensive income.

Our CODM uses net income to determine the allocation of resources for investments in retail Showrooms, information technology and systems infrastructure, as well as supply chain investments. Net income is also used as a method for planning and forecasting overall expected performance and for evaluating, on a quarterly and annual basis, actual results against such expectations.

Asset information is reported on the condensed consolidated balance sheets as total assets. However, asset information is not used for purposes of making decisions, assessing financial performance or allocating resources.

Refer to the condensed consolidated statements of cash flow for property, furniture and equipment expenditures, related depreciation and amortization and other significant noncash items.

The following table shows revenue by merchandise sales channel and segment expenses (amounts in thousands):


	Three months ended
	March 31,
	2026		2025
Retail	$	264,407	$	255,453
eCommerce	49,869		55,919
Total net revenue	$	314,276	$	311,372
Less costs and expenses(1):
Cost of goods sold	199,841		195,785
Corporate and administrative expenses(2)	56,751		54,609
Selling expenses	44,654		44,392
Marketing expenses	10,790		11,057
Loss on disposal of assets	104		108
Interest income, net	(454)		(573)
Other income	(847)		(86)
Income before taxes	3,437		6,080
Income tax expense	1,214		1,198
Net and comprehensive income	$	2,223	$	4,882

(1) Significant costs and expenses include cost of goods sold, corporate and administrative expenses, selling expenses and marketing expenses.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Equity Based Compensation (Tables)

3 Months Ended

Mar. 31, 2026

Share-Based Payment Arrangement [Abstract]

Schedule of Unvested Stock Activity

Activity of the Company’s Restricted Stock and their related equity based compensation expense are summarized in the following tables (amounts in thousands, except share and per share data):


	Restricted Stock - Class A
	Amount	Weighted Average Grant Date Fair Value
Unvested at December 31, 2025	64,187	$	18.61
Granted	—	—
Forfeited	—	—
Vested	—	—
Unvested at March 31, 2026	64,187	$	18.61


	Three months ended
	March 31,
	2026		2025
Equity based compensation expense - Restricted Stock(1)	$	299	$	122

Activity of the Company’s PSU and RSU awards and their related equity based compensation expense are summarized in the following tables (amounts in thousands, except share and per share data):


	PSU Awards			RSU Awards
	Amount	Weighted Average Grant Date Fair Value		Amount	Weighted Average Grant Date Fair Value
Unvested at December 31, 2025	605,039	$	9.78	2,320,867	$	8.73
Granted	—	—		—	—
Forfeited	(1,855)	8.81		(14,693)	7.84
Vested	—	—		(284,111)	9.48
Unvested at March 31, 2026	603,184	$	9.78	2,022,063	$	8.64


	Three months ended
	March 31,
	2026		2025
Equity based compensation expense - PSUs(1)	$	463	$	73
Equity based compensation expense - RSUs(2)	$	1,883	$	1,400

Equity Based Compensation - Narrative (Details)	3 Months Ended
Equity Based Compensation - Narrative (Details)	Mar. 31, 2026 shares
PSU Awards \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	0.00%
PSU Awards \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting percentage	200.00%
2021 Equity Incentive Plan \| RSU and PSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contingent right, number of common shares received per award unit (in shares)	1
2021 Equity Incentive Plan \| RSU Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	1 year
2021 Equity Incentive Plan \| RSU Awards \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	2 years
2021 Equity Incentive Plan \| RSU Awards \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	5 years
Class A \| 2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	11,205,100

Leases - Narrative (Details) $ in Millions	Mar. 31, 2026 USD ($)
Lessee, Lease, Description [Line Items]
Aggregate minimum rental payments, not yet commenced	$ 218.7
Minimum
Lessee, Lease, Description [Line Items]
Lease term, not yet commenced	10 years
Maximum
Lessee, Lease, Description [Line Items]
Lease term, not yet commenced	16 years

Leases

3 Months Ended

Mar. 31, 2026

Leases [Abstract]

Leases

The Company leases real estate and equipment under operating and finance leases, some of which are from related parties as discussed in Note 10 — Related Party Transactions. The most significant obligations under these lease agreements require the payments of periodic rentals, real estate taxes, insurance and maintenance costs. Depending on particular Showroom leases, the Company can also owe a percentage rent payment if particular Showrooms meet certain sales figures.

The following table summarizes the amounts recognized in our condensed consolidated balance sheets related to leases (amounts in thousands):


	Condensed Consolidated Balance Sheet Classification	March 31, 2026		December 31, 2025
Assets
Operating lease assets	Operating right-of-use assets	$	408,763	$	391,274
Finance lease assets	Financing right-of-use assets	32,744		33,275
Total leased assets		$	441,507	$	424,549

Liabilities
Current operating leases	Current portion of operating lease liabilities	$	64,475	$	60,115
Non-current operating leases	Operating lease liabilities, long-term	482,109		467,226
Total operating lease liabilities		546,584		527,341

Current finance leases	Current portion of financing lease liabilities	964		862
Non-current finance leases	Financing lease liabilities, long-term	52,166		52,374
Total finance lease liabilities		53,130		53,236
Total lease liabilities		$	599,714	$	580,577

The components of lease cost recognized within our condensed consolidated statements of comprehensive income are as follows (amounts in thousands):


	Three months ended
	March 31,
	2026		2025
Lease costs:
Operating lease costs(1)	$	19,722	$	16,444
Finance lease costs
Amortization of right-of-use assets(1)	550		602
Interest expense on lease liabilities(2)	1,277		1,289
Variable lease costs(3)	10,229		12,242
Short term lease costs(4)	44		44

Total lease costs	$	31,822	$	30,621

(1) Operating lease costs and amortization of finance lease right-of-use assets are included in cost of goods sold or selling, general and administrative expenses on the condensed consolidated statements of comprehensive income based on our accounting policy.

(2) Included in interest income, net on the condensed consolidated statements of comprehensive income.

(3) Represents variable lease payments under operating and finance lease agreements, primarily associated with contingent rent that is based on a percentage of retail sales over contractual levels as well as charges associated with common area maintenance, property taxes and insurance. These costs are included in cost of goods sold or selling, general and administrative expenses on the condensed consolidated statements of comprehensive income based on our accounting policy.

(4) Represents leases with an initial term of 12 months or less which are not recorded on the balance sheet and instead expensed on a straight-line basis over the lease term, excluding expenses relating to leases with a lease term of one month or less.

We often have options to renew lease terms for Showrooms and other assets. The exercise of lease renewal options is generally at our sole discretion. In addition, certain lease agreements may be terminated prior to their original expiration date at our discretion. We evaluate each renewal and termination option at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease terms are as follows:


	Three months ended
	March 31,
Weighted Average Remaining Lease Term (In Years)	2026	2025
Operating leases	8.79	8.73
Finance leases	19.33	20.23

When readily determinable, we use the discount rate implicit within the lease as determined at the time of lease commencement. However, the discount rate implicit within many of our leases is generally not determinable at the time of lease commencement and therefore the Company determines the discount rate based on its incremental borrowing rate (“IBR”). For leases in which the discount rate was not readily determinable, the Company utilized a market-based approach to estimate the IBR, which required significant judgment. The Company estimated the base IBR based on an analysis of (i) yields on the Company’s 2021 Credit Facility, as well as comparable companies and (ii) unsecured yields and discount rates. The Company applied adjustments to the base IBRs to account for full collateralization and lease term. The weighted average discount rates used to measure our lease liabilities are as follows:


	Three months ended
	March 31,
Weighted Average Discount Rate	2026		2025
Operating leases	6.02	%	6.04	%
Finance leases	9.68	%	9.67	%

Future lease liabilities at March 31, 2026 are as follows (amounts in thousands):


Year Ending December 31,	Operating Lease Liabilities (1)		Finance Lease Liabilities		Total Lease Liabilities
Remainder of 2026	$	66,111	$	4,542	$	70,653
2027	88,247		6,014		94,261
2028	82,493		5,708		88,201
2029	80,552		5,245		85,797
2030	75,584		5,233		80,817
2031	70,139		5,744		75,883
Thereafter	248,682		93,748		342,430
Total lease payments	711,808		126,234		838,042
Less: Amounts representing interest	(165,224)		(73,104)		(238,328)
Total	$	546,584	$	53,130	$	599,714

(1) Includes leases with related parties. See Note 10 — Related Party Transactions for amounts leased from related parties.

At March 31, 2026, the Company has entered into leases for Showrooms and equipment which have not yet commenced with expected lease terms ranging from 10 to 16 years. The aggregate minimum rental payments over the term of the leases of approximately $218.7 million are not included in the above table.

Supplemental cash flow information related to leases is as follows (amounts in thousands):


	Three months ended
	March 31,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	21,087	$	19,437
Operating cash flows for finance leases	1,279		1,217
Financing cash flows for finance leases	184		212
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	29,298	$	33,481
Finance leases	43		(986)

Leases

The following table summarizes the amounts recognized in our condensed consolidated balance sheets related to leases (amounts in thousands):


	Condensed Consolidated Balance Sheet Classification	March 31, 2026		December 31, 2025
Assets
Operating lease assets	Operating right-of-use assets	$	408,763	$	391,274
Finance lease assets	Financing right-of-use assets	32,744		33,275
Total leased assets		$	441,507	$	424,549

Liabilities
Current operating leases	Current portion of operating lease liabilities	$	64,475	$	60,115
Non-current operating leases	Operating lease liabilities, long-term	482,109		467,226
Total operating lease liabilities		546,584		527,341

Current finance leases	Current portion of financing lease liabilities	964		862
Non-current finance leases	Financing lease liabilities, long-term	52,166		52,374
Total finance lease liabilities		53,130		53,236
Total lease liabilities		$	599,714	$	580,577

The components of lease cost recognized within our condensed consolidated statements of comprehensive income are as follows (amounts in thousands):


	Three months ended
	March 31,
	2026		2025
Lease costs:
Operating lease costs(1)	$	19,722	$	16,444
Finance lease costs
Amortization of right-of-use assets(1)	550		602
Interest expense on lease liabilities(2)	1,277		1,289
Variable lease costs(3)	10,229		12,242
Short term lease costs(4)	44		44

Total lease costs	$	31,822	$	30,621

(2) Included in interest income, net on the condensed consolidated statements of comprehensive income.


	Three months ended
	March 31,
Weighted Average Remaining Lease Term (In Years)	2026	2025
Operating leases	8.79	8.73
Finance leases	19.33	20.23


	Three months ended
	March 31,
Weighted Average Discount Rate	2026		2025
Operating leases	6.02	%	6.04	%
Finance leases	9.68	%	9.67	%

Future lease liabilities at March 31, 2026 are as follows (amounts in thousands):


Year Ending December 31,	Operating Lease Liabilities (1)		Finance Lease Liabilities		Total Lease Liabilities
Remainder of 2026	$	66,111	$	4,542	$	70,653
2027	88,247		6,014		94,261
2028	82,493		5,708		88,201
2029	80,552		5,245		85,797
2030	75,584		5,233		80,817
2031	70,139		5,744		75,883
Thereafter	248,682		93,748		342,430
Total lease payments	711,808		126,234		838,042
Less: Amounts representing interest	(165,224)		(73,104)		(238,328)
Total	$	546,584	$	53,130	$	599,714

(1) Includes leases with related parties. See Note 10 — Related Party Transactions for amounts leased from related parties.

Supplemental cash flow information related to leases is as follows (amounts in thousands):


	Three months ended
	March 31,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	21,087	$	19,437
Operating cash flows for finance leases	1,279		1,217
Financing cash flows for finance leases	184		212
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	29,298	$	33,481
Finance leases	43		(986)

Nature of Business and Basis of Presentation	3 Months Ended
Nature of Business and Basis of Presentation	Mar. 31, 2026
Accounting Policies [Abstract]
Nature of Business and Basis of Presentation	Nature of Business and Basis of Presentation Nature of Business Arhaus, Inc. (“Arhaus,” “Company,” “we,” “us” or “our”) is a Delaware corporation and is a premium retailer in the home furnishings market, specializing in livable luxury supported by heirloom quality merchandise. We offer merchandise across a broad range of categories, including furniture, outdoor, bath, lighting, textiles, and décor. Our curated assortments are presented across our sales channels in sophisticated, family-friendly and lifestyle-oriented settings. Showrooms are immersive, design-forward spaces that serve as an important driver of brand awareness and client engagement, while our eCommerce channel functions as a seamless extension of the physical Showroom experience. The Company operated 107 Showrooms as of March 31, 2026. Basis of Presentation The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The accompanying condensed consolidated financial statements include our accounts and those of our wholly owned subsidiaries. Accordingly, all intercompany balances and transactions have been eliminated through the consolidation process. The accompanying condensed consolidated balance sheets at March 31, 2026 and December 31, 2025, the condensed consolidated statements of comprehensive income, changes in stockholders’ equity and cash flows for the three months ended March 31, 2026 and March 31, 2025, and the related interim condensed consolidated disclosures are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In management’s opinion, the accompanying condensed consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the Company’s financial position at March 31, 2026 and the results of operations, changes in stockholders’ equity and cash flows for the three months ended March 31, 2026. The condensed consolidated balance sheet as of December 31, 2025 included herein was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The results for the three months ended March 31, 2026 and March 31, 2025 are not necessarily indicative of the operating results to be expected for the full fiscal year or any future period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025. Use of Estimates The preparation of our condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The accounting estimates and other matters included within our condensed consolidated financial statements and notes to the condensed consolidated financial statements we have assessed include, but were not limited to, revenue recognition, including a reserve for merchandise returns, inventory reserves, impairment of long-lived assets and fair value of financial instruments which include, but are not limited to, accounts receivable, payables and lease obligations. Client Deposits Client deposits represent payments made by clients on orders. At the time of order, the Company collects deposits for all orders equivalent to at least 50 percent of the clients’ purchase price. Orders are recognized as revenue when the merchandise is delivered to the client and at the time of delivery the client deposit is no longer recorded as a liability. The Company expects substantially all client deposits as of March 31, 2026 will be recognized as net revenue within the next 12 months as the performance obligations are satisfied. Gift Cards The Company sells gift cards to clients in our Showrooms. Such gift cards do not have expiration dates. We defer revenue when payments are received in advance of performance for unsatisfied obligations related to our gift cards. The liability related to unredeemed gift cards at March 31, 2026 and December 31, 2025 of $0.5 million and $0.6 million, respectively, is recorded in the accrued other expenses line item of the condensed consolidated balance sheets. The Company recognizes income associated with breakage proportional to actual gift card redemptions. Fair Values of Financial Instruments The Company’s primary financial instruments are cash and cash equivalent investments, accounts receivable, payables, lease obligations and equity based compensation instruments. Due to the short-term maturities of cash and cash equivalent investments, accounts receivable and payables, the Company believes the fair values of these instruments approximate their respective carrying values at March 31, 2026 and December 31, 2025. See Note 5 — Leases for discussion of our lease obligations and Note 6 — Equity Based Compensation for discussion of our equity based compensation instruments. The Company has established a hierarchy to measure our financial instruments at fair value, which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect the Company’s own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. The hierarchy defines three levels of inputs that may be used to measure fair value: Level 1Unadjusted quoted prices in active markets for identical, unrestricted assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 2Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability. Level 3Unobservable inputs that reflect the entity’s own assumptions about the assumptions market participants would use in the pricing of the asset or liability and are consequently not based on market activity but rather through particular valuation techniques. The Company invests in Level 1 cash and cash equivalent investments such as money market funds and interest-bearing checking accounts. For the three months ended March 31, 2026 and March 31, 2025, the Company earned $1.8 million and $1.9 million in interest income, respectively. Interest income is included within interest income, net on our condensed consolidated statements of comprehensive income. Accounts Receivable The Company’s accounts receivables are $0.4 million and $0.7 million, respectively, at March 31, 2026 and December 31, 2025, net of allowance for expected credit losses of $0.3 million and $0.4 million, respectively. The allowance for expected credit losses is determined by considering a number of factors, including the length of time trade accounts receivable are past due, previous loss history, the client’s current ability to pay its obligations, and the current and future condition of the general economy and industry as a whole. The Company has elected the practical expedient to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset when estimating expected credit losses. Accounts receivable are written off when they become uncollectible and any payments subsequently received on such receivables are credited to the allowance for expected credit losses. Accounts receivable are recorded at the invoiced amount and do not bear interest.

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Cash flows from operating activities
Net income	$ 2,223	$ 4,882
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	12,370	11,362
Amortization of operating lease right-of-use asset	11,851	10,046
Amortization of deferred financing fees, interest on finance lease in excess of principal paid and interest on operating leases	7,844	6,902
Equity based compensation	2,645	1,595
Deferred tax assets	682	(358)
Amortization of cloud computing arrangements	752	413
Loss on disposal of assets	104	108
Gain on insurance claims	(583)	0
Changes in operating assets and liabilities
Accounts receivable	231	202
Merchandise inventory	(30,651)	(4,393)
Prepaid and other assets	(7,167)	(380)
Other noncurrent liabilities	515	(377)
Accounts payable	(11,895)	(8,685)
Accrued expenses	(16,059)	(3,209)
Operating lease liabilities	(17,852)	(13,926)
Client deposits	35,286	42,333
Net cash (used in) provided by operating activities	(9,704)	46,515
Cash flows from investing activities
Purchases of property, furniture and equipment	(16,880)	(27,621)
Insurance proceeds	1,000	0
Net cash used in investing activities	(15,880)	(27,621)
Cash flows from financing activities
Principal payments under finance leases	(184)	(212)
Repurchase of shares for payment of withholding taxes for equity based compensation	(867)	(1,458)
Cash dividend payments	(49,510)	(239)
Net cash used in financing activities	(50,561)	(1,909)
Net (decrease) increase in cash, cash equivalents and restricted cash	(76,145)	16,985
Cash, cash equivalents and restricted cash
Beginning of period	256,480	200,929
End of period	180,335	217,914
Supplemental disclosure of cash flow information
Interest paid in cash	1,287	1,258
Interest received in cash	1,818	1,938
Income taxes paid in cash	681	541
Noncash investing activities:
Purchases of property, furniture and equipment in current liabilities	$ 8,688	$ 6,648

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2026	Dec. 31, 2025
Class A
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock , shares authorized (in shares)	600,000,000	600,000,000
Common stock, shares issued (in shares)	54,912,375	54,565,242
Common stock, shares outstanding (in shares)	54,206,609	53,969,149
Class B
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock , shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	87,115,600	87,115,600
Common stock, shares outstanding (in shares)	87,115,600	87,115,600

Debt (Details) - 2021 Credit Facility - USD ($)			1 Months Ended
Debt (Details) - 2021 Credit Facility - USD ($)	Mar. 31, 2026	Mar. 31, 2025	Oct. 31, 2025	Dec. 31, 2022	Dec. 31, 2025	Nov. 30, 2021
Debt Instrument [Line Items]
Revolving credit facility, additional borrowing capacity			$ 25,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity			75,000,000	$ 75,000,000.0		$ 50,000,000.0
Revolving credit facility, additional borrowing capacity				$ 25,000,000.0
Letters of credit outstanding	$ 5,100,000
Loan costs, net	300,000		200,000		$ 300,000
Borrowings on credit facility	0				0
Remaining borrowing capacity	69,900,000				69,900,000
Accumulated amortization, deferred loan costs	$ 300,000				$ 300,000
Revolving Credit Facility \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Credit facility, basis spread on variable rate	1.75%
Revolving Credit Facility \| Bloomberg Short-Term Bank Yield Index Rate
Debt Instrument [Line Items]
Credit facility, basis spread on variable rate		1.75%
Revolving Credit Facility \| Letter of Credit
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity			$ 15,000,000			10,000,000.0
Revolving Credit Facility \| Swingline Loan
Debt Instrument [Line Items]
Revolving credit facility, maximum borrowing capacity						$ 5,000,000.0

Merchandise Warranties - Narrative (Details)	3 Months Ended
Merchandise Warranties - Narrative (Details)	Mar. 31, 2026
Minimum
Product Warranty Liability [Line Items]
Merchandise warranty, term	3 years
Maximum
Product Warranty Liability [Line Items]
Merchandise warranty, term	10 years

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2026
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Merchandise Warranties - Schedule of Merchandise Warranty Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance as of beginning of period	$ 8,482	$ 7,627
Accruals during the period	3,301	2,949
Settlements during the period	(3,416)	(2,905)
Balance as of end of the period	$ 8,367	$ 7,671

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Class A	Class B	Common Stock Class A	Common Stock Class B	Treasury Stock Class A	Retained Earnings	Additional Paid-in Capital
Beginning balance (in shares) at Dec. 31, 2024				53,289,000	87,116,000
Beginning balance at Dec. 31, 2024	$ 343,745			$ 53	$ 87	$ 0	$ 142,898	$ 200,707
Beginning balance (in shares) at Dec. 31, 2024						274,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,882						4,882
Shareholder capital contribution	4							4
Equity based compensation (in shares)				478,000
Equity based compensation	1,595			$ 1				1,594
Shares withheld to cover employees' withholding taxes for equity based compensation (in shares)				159,000		208,000
Shares withheld to cover employees’ withholding taxes for equity based compensation	(1,458)							(1,458)
Dividends declared	60						60
Ending balance (in shares) at Mar. 31, 2025				53,608,000	87,116,000
Ending balance at Mar. 31, 2025	348,828			$ 54	$ 87	$ 0	147,840	200,847
Ending balance (in shares) at Mar. 31, 2025						482,000
Beginning balance (in shares) at Dec. 31, 2025		53,969,149	87,115,600	53,905,000	87,116,000
Beginning balance at Dec. 31, 2025	418,228			$ 54	$ 87	$ 0	210,365	207,722
Beginning balance (in shares) at Dec. 31, 2025						597,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,223						2,223
Equity based compensation (in shares)				347,000
Equity based compensation	2,645							2,645
Shares withheld to cover employees' withholding taxes for equity based compensation (in shares)				109,000		109,000
Shares withheld to cover employees’ withholding taxes for equity based compensation	(867)							(867)
Dividends declared	(49,544)						(50,379)	835
Ending balance (in shares) at Mar. 31, 2026		54,206,609	87,115,600	54,143,000	87,116,000
Ending balance at Mar. 31, 2026	$ 372,685			$ 54	$ 87	$ 0	$ 162,209	$ 210,335
Ending balance (in shares) at Mar. 31, 2026						706,000

Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Operating Lease Liabilities
Remainder of 2026	$ 66,111
2027	88,247
2028	82,493
2029	80,552
2030	75,584
2031	70,139
Thereafter	248,682
Total lease payments	711,808
Less: Amounts representing interest	(165,224)
Total	546,584	$ 527,341
Finance Lease Liabilities
Remainder of 2026	4,542
2027	6,014
2028	5,708
2029	5,245
2030	5,233
2031	5,744
Thereafter	93,748
Total lease payments	126,234
Less: Amounts representing interest	(73,104)
Total	53,130	$ 53,236
Total Lease Liabilities
Remainder of 2026	70,653
2027	94,261
2028	88,201
2029	85,797
2030	80,817
2031	75,883
Thereafter	342,430
Total lease payments	838,042
Less: Amounts representing interest	(238,328)
Total	$ 599,714

Leases (Tables)

3 Months Ended

Mar. 31, 2026

Leases [Abstract]

Schedule of Liability for Operating and Finance Leases

The following table summarizes the amounts recognized in our condensed consolidated balance sheets related to leases (amounts in thousands):


	Condensed Consolidated Balance Sheet Classification	March 31, 2026		December 31, 2025
Assets
Operating lease assets	Operating right-of-use assets	$	408,763	$	391,274
Finance lease assets	Financing right-of-use assets	32,744		33,275
Total leased assets		$	441,507	$	424,549

Liabilities
Current operating leases	Current portion of operating lease liabilities	$	64,475	$	60,115
Non-current operating leases	Operating lease liabilities, long-term	482,109		467,226
Total operating lease liabilities		546,584		527,341

Current finance leases	Current portion of financing lease liabilities	964		862
Non-current finance leases	Financing lease liabilities, long-term	52,166		52,374
Total finance lease liabilities		53,130		53,236
Total lease liabilities		$	599,714	$	580,577

Schedule of Components of Lease Expense

The components of lease cost recognized within our condensed consolidated statements of comprehensive income are as follows (amounts in thousands):


	Three months ended
	March 31,
	2026		2025
Lease costs:
Operating lease costs(1)	$	19,722	$	16,444
Finance lease costs
Amortization of right-of-use assets(1)	550		602
Interest expense on lease liabilities(2)	1,277		1,289
Variable lease costs(3)	10,229		12,242
Short term lease costs(4)	44		44

Total lease costs	$	31,822	$	30,621

(2) Included in interest income, net on the condensed consolidated statements of comprehensive income.

The weighted average remaining lease terms are as follows:


	Three months ended
	March 31,
Weighted Average Remaining Lease Term (In Years)	2026	2025
Operating leases	8.79	8.73
Finance leases	19.33	20.23

The weighted average discount rates used to measure our lease liabilities are as follows:


	Three months ended
	March 31,
Weighted Average Discount Rate	2026		2025
Operating leases	6.02	%	6.04	%
Finance leases	9.68	%	9.67	%

Schedule of Lessee, Operating Lease, Liability, Maturity

Future lease liabilities at March 31, 2026 are as follows (amounts in thousands):


Year Ending December 31,	Operating Lease Liabilities (1)		Finance Lease Liabilities		Total Lease Liabilities
Remainder of 2026	$	66,111	$	4,542	$	70,653
2027	88,247		6,014		94,261
2028	82,493		5,708		88,201
2029	80,552		5,245		85,797
2030	75,584		5,233		80,817
2031	70,139		5,744		75,883
Thereafter	248,682		93,748		342,430
Total lease payments	711,808		126,234		838,042
Less: Amounts representing interest	(165,224)		(73,104)		(238,328)
Total	$	546,584	$	53,130	$	599,714

(1) Includes leases with related parties. See Note 10 — Related Party Transactions for amounts leased from related parties.

Schedule of Finance Lease, Liability, Fiscal Year Maturity

Future lease liabilities at March 31, 2026 are as follows (amounts in thousands):


Year Ending December 31,	Operating Lease Liabilities (1)		Finance Lease Liabilities		Total Lease Liabilities
Remainder of 2026	$	66,111	$	4,542	$	70,653
2027	88,247		6,014		94,261
2028	82,493		5,708		88,201
2029	80,552		5,245		85,797
2030	75,584		5,233		80,817
2031	70,139		5,744		75,883
Thereafter	248,682		93,748		342,430
Total lease payments	711,808		126,234		838,042
Less: Amounts representing interest	(165,224)		(73,104)		(238,328)
Total	$	546,584	$	53,130	$	599,714

(1) Includes leases with related parties. See Note 10 — Related Party Transactions for amounts leased from related parties.

Schedule of Supplemental Cash Flow from Leases

Supplemental cash flow information related to leases is as follows (amounts in thousands):


	Three months ended
	March 31,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	21,087	$	19,437
Operating cash flows for finance leases	1,279		1,217
Financing cash flows for finance leases	184		212
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	29,298	$	33,481
Finance leases	43		(986)

Equity Based Compensation - Schedule of Unvested Stock Activity (Details)	3 Months Ended
	Mar. 31, 2026 $ / shares shares
PSU Awards
Amount
Unvested, beginning of period (in shares) \| shares	605,039
Granted (in shares) \| shares	0
Forfeited (in shares) \| shares	(1,855)
Vested (in shares) \| shares	0
Unvested, end of period (in shares) \| shares	603,184
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in dollars per share) \| $ / shares	$ 9.78
Granted (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	8.81
Vested (in dollars per share) \| $ / shares	0
Unvested, end of period (in dollars per share) \| $ / shares	$ 9.78
RSU Awards
Amount
Unvested, beginning of period (in shares) \| shares	2,320,867
Granted (in shares) \| shares	0
Forfeited (in shares) \| shares	(14,693)
Vested (in shares) \| shares	(284,111)
Unvested, end of period (in shares) \| shares	2,022,063
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in dollars per share) \| $ / shares	$ 8.73
Granted (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	7.84
Vested (in dollars per share) \| $ / shares	9.48
Unvested, end of period (in dollars per share) \| $ / shares	$ 8.64
Class A \| Restricted Stock
Amount
Unvested, beginning of period (in shares) \| shares	64,187
Granted (in shares) \| shares	0
Forfeited (in shares) \| shares	0
Vested (in shares) \| shares	0
Unvested, end of period (in shares) \| shares	64,187
Weighted Average Grant Date Fair Value
Unvested, beginning of period (in dollars per share) \| $ / shares	$ 18.61
Granted (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	0
Vested (in dollars per share) \| $ / shares	0
Unvested, end of period (in dollars per share) \| $ / shares	$ 18.61