Arhaus, Inc.

Good morning and welcome to the Our House 3rd Quarter 2025 Earnings Call. Please note that this call is being recorded and the reproduction of any part of this call is not permitted without written authorization from the company. I will now turn the call over to your host, Tara Adputsaja, Vice President of Investor Relations. Please go ahead.

Good morning, and thank you for joining us for the Our House third quarter 2025 earnings call. Joining me on today's call for prepared remarks are John Reed, our founder, chairman, and chief executive officer, and Michael Lee, our chief financial officer. After our prepared remarks, we will open up the line for a Q&A session. Jennifer Porter, our chief marketing and e-commerce officer, will join us for the Q&A portion of the call. During Q&A, please limit yourself to one question and one follow-up. We issued our earnings press release and 10Q for the quarter ended September 30th, 2025 before the market opened today. Those documents are available on our investor relations website at ir.rhouse.com. A replay of the call will be available on our website within 24 hours. I would like to remind everyone that our remarks today concerning future expectations, events, objectives, strategies, trends, or results constitute forward-looking statements. Actual results or events may differ materially due to a number of risks and uncertainties. For a summary of these risk factors and additional information, please refer to this morning's press release and the cautionary statements and risk factors described in our most recent annual report on Form 10-K and subsequent 10-Qs. as factors may be updated from time to time in our filings with the SEC. The forward-looking statements are made as of today's date, and except as may be required by law, the company undertakes no obligation to update or revise these statements. We will also defer to certain non-GAAP financial measures, and this morning's press release includes the relevant non-GAAP reconciliation. Now I will turn the call over to John.

Thanks, Tara. Good morning, everyone, and thank you for joining us. We appreciate your continued interest in and support of our house. I am very pleased to report another strong quarter, reflecting the strength of our brand, the appeal of our product offering, and the disciplined execution of our long-term strategy. Net revenue for the quarter was $345 million, up 8% year-over-year, and near the high end of our guidance range, marking the highest third quarter net revenue in our company's history. This performance was driven by growth in our showroom footprints and increased demand for our products. Comparable growth of 4.1% reflects healthy underlying client demand and strong operational execution across our distribution network. I'm also very pleased to share that the demand comparable growth was 7.4% for the quarter, highlighting the strength of our brand and the continued momentum of our high-end clients. I'll share a few highlights on demand, including the success of our fall collection in a moment. And then Mike will walk you through the details driving quarterly and year-to-date demand performance. Turning to products. Our fall 2025 collection represents our strongest launch in company history, resonating deeply with clients across our catalog, website, and showrooms, and reinforcing our design leadership and highly differentiated artisan crafted products. The collection embodies the essence of our house, warm, inviting, and timeless, blending modern and traditional silhouettes, with natural materials and artisan craftsmanship. From warm woods to stone to tailored upholstery and refined finishes, each piece is designed to feel layered and personal, reflecting our belief that home is a feeling. Our fall product collection translated directly into record performance, supported by newness, upholstery, customization, and our in-home design programs. Four differentiators that create a powerful growth engine driving demand. September marked the highest total demand month in our house history. Let me highlight a few additional key performance wins for the quarter. New product introductions achieved the highest level of total demand for September in our history, underscoring the strength of our design leadership and product innovations. Upholstery also delivered exceptional performance in September. Upholstery has always been the heart of our house. It's where our story began and remains one of the most powerful differentiators. With nearly 70% of our upholstery sourced domestically as of the third quarter and the largest portion produced in our North Carolina facility, our vertically integrated model continues to be a competitive advantage. It allows us to control design, quality, and lead times, while reducing exposure to tariffs and global supply chain volatility. We're proud of our North Carolina artisans, whose craftsmanship, detail, and use of the finest materials set our upholstery apart. Customization also remains a key driver of our success, with clients able to personalize pieces across more than 600 fabrics and over 90 leathers. one of the broadest offerings in the industry. Custom orders performed particularly well, achieving the highest September total demand in company history, supported by strong reception to newly introduced upholstery collections that represented a meaningful portion of this growth. The fall upholstery assortment struck the perfect balance of newness and timeless design, resonating deeply with our clients and reinforcing the strength of our upholstery business. Lastly, our in-home designer program continues to be one of the most powerful differentiators and drivers of demand. September marked record performance for our in-home design team, achieving the highest total demand in company history. Each designer creates a personalized experience tailored to every client's project, priorities, and styles. Clients who work with our interior designers generate order values roughly four times higher than those without, a testament to the program's impact on engagement, conversion, and loyalty. Together, these initiatives create a powerful flywheel. Our storytelling through our catalogs and product imagery drives discovery. Our newness and customization deepen engagement. and our design services and showroom experiences convert inspiration into long-term client relationships. Each element strengthens the next, creating a self-reinforcing engine of growth and demand. Looking ahead to 2026, I'm incredibly excited about what's next. Our upcoming collections feature some of the most innovative designs in our history, pieces that will further distinguish our house in creativity, craftsmanship, and design leadership. The enthusiasm across our teams is incredible, and I'm confident our clients will share that excitement when these products debut. I want to recognize the extraordinary work of our teams across Our House, whose creativity and dedication continue to elevate the Our House brand and strengthen our connection with clients. Moving to showrooms, with roughly 90% of our clients Across retail and e-commerce living within 50 miles of an Our House showroom, it is important to have physical presence to drive brand awareness and engage in client relationships. I am thrilled to share that in October, we opened our largest traditional showroom to date in Pasadena, California, spanning nearly 40,000 feet within the historic Penn Oil building. This is a century-old building that we thoughtfully restored in order to honor its architectural heritage. The result is a stunning showroom that's been warmly received by the local community. The showroom features our full product assortment, extensive custom upholstery offerings, and our best-in-class design team. And this month we'll be opening our first Montana showroom in Bozeman. Located in a lifestyle-rich setting surrounded by mountain views, Bozeman embodies a remarkable sense of place where design and the outdoors are wholly intertwined. Turning to sustainability, our commitment in this area has been at the heart of our house since I founded the company nearly 40 years ago. Our philosophy is simple. Furniture should be responsibly sourced, lovingly made, and built to last for generations. Sustainability extends beyond the product we create to the people, the artisans, the vendors who bring them to life. We collaborate with skilled artisans around the world who share our values using sustainability harvest and reclaim materials and time-honored techniques that preserve natural resources and celebrate craftsmanship. Before I close, I want to briefly address the broader macro backdrop. While conditions remain uncertain, we remain confident in our outlook and we are focused on what we can control. Looking ahead, several themes continue to reinforce our confidence and clearly differentiate our house within the industry. First, our people and culture. Our success is built on the dedication and passion of our teams. Every team member at our house plays a critical role in delivering our exceptional product and experiences. Our people are our greatest assets and the driving force behind our growth and success. Second, our artisans and vendors. Our unique sourcing model and long-standing relationships with our artisans and vendors around the world is a strategic advantage and sets us apart. These trusted relationships Build on collaboration, shared values, and exceptional craftsmanship allow us to adapt to global dynamics while maintaining the high-quality standards that defined our brand. And our strategy is not to compromise on quality at this time as prices have gone up. Third, our growth strategy. We remain focused on discipline, profitability growth, even in dynamic environments. We continue to lean into innovation, expanding our footprint, launching inspiring new products, and investing in scalable systems and leadership to fuel the next phase of our growth. Fourth, our operational strength and agility. We continue to operate from a position of strength, supported by our disciplined execution and our end-to-end control from product development, Through distribution enables us to adapt quickly to shifting markets, dynamics, and client demand. And through continued strategic investments, we are enhancing efficiencies, improving service levels, and strengthening our foundation for the future growth. And fifth, our resilient high-end client base. While the macro environment remains uneven, our high-end client continues to demonstrate engagement and loyalty. We're seeing strength in our in-home design services and trade channels reflecting the enduring appeal of our brand and strength of our clients. In short, despite the noise, we're navigating the current environment from a position of strength, debt-free with ample of liquidity. We're confident in our path forward with a powerful brand, a proven model, and a talented team. Our house is well-positioned to continue delivering growth and long-term value to our clients, employees, and shareholders. With that, I'll turn the call over to Mike Lee, our Chief Financial Officer, to walk you through our financial results. Mike, over to you.