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 number 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. 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 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 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 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 significant segment expenses (amounts in thousands):


	Year Ended
	December 31,
	2025		2024		2023
Retail	$	1,145,483	$	1,051,510	$	1,045,079
eCommerce	233,739		219,597		242,625
Total net revenue	$	1,379,222	$	1,271,107	$	1,287,704
Less significant costs and expenses(1):
Cost of goods sold	842,814		769,878		747,281
Corporate and administrative expenses(2)	223,925		206,433		190,814
Selling expenses	171,140		155,522		136,331
Marketing expenses	52,376		53,471		48,967
Loss (gain) on disposal of assets	81		(1,202)		—
Interest income, net	(3,032)		(3,163)		(3,351)
Other income	(61)		(754)		(1,027)
Income before taxes	91,979		90,922		168,689
Income tax expense	24,723		22,372		43,450
Net and comprehensive income	$	67,256	$	68,550	$	125,239

(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.

Historical Timeline

Fiscal Year	Filed
2025	Feb 26, 2026	Showing above
2024	Feb 26, 2025

2023	Mar 11, 2024

2022	Mar 9, 2023

2021	Mar 30, 2022

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Arhaus, Inc. Segments Disclosure

Historical Timeline

About Segments Disclosures

Other Available Disclosures