Companies /Consumer Cyclical
RH - Class A
NYSE: RH Specialty Retail
$116.99
▲ $3.32 (+2.92%) today
Markets closed · 11:00pm ET

RH (RH) Q4 2025 Earnings

Reported Mar 31, 2026, 4:20pm ET · SEC source
$1.53
Miss −30.58%
EPS · est. $2.20 Adjusted
$842.6M
Miss −3.51%
Revenue · est. $873.2M
−17.9%
Trailing market
RH vs S&P since report
2 quarters
Consecutive EPS beats

How Did RH Stock React to Q4 2025 Earnings?

% change · around the report
−9%0+9%+18%Mar 31Apr 1report 4:20pm ETearnings+0.6%−7.1%
−9%0+9%+18%Mar 31Apr 1earnings+0.6%−7.1%
RH −7.1%S&P 500 +0.6%
−9%0+9%+18%Mar 31Apr 1report 4:20pm ETearnings+1.1%−7.1%
−9%0+9%+18%Mar 31Apr 1earnings+1.1%−7.1%
RH −7.1%NASDAQ +1.1%
0+9%+18%Mar 31Apr 8report 4:20pm ETearnings+3.9%+4.8%
0+9%+18%Mar 31Apr 8earnings+3.9%+4.8%
RH +4.8%S&P 500 +3.9%
0+9%+18%Mar 31Apr 8report 4:20pm ETearnings+4.9%+4.8%
0+9%+18%Mar 31Apr 8earnings+4.9%+4.8%
RH +4.8%NASDAQ +4.9%
+5.91%
Day of report
−19.29%
Next session
−14.18%
One week
−7.04%
30 days

S&P 500 over the same 30 days: +10.81%.

Did RH Beat Earnings? Q4 2025 Results

No. RH reported Q4 2025 earnings of $1.53 a share on Mar 31, 2026, missing the $2.20 consensus estimate by 30.6%. Revenue was $842.6M against a $873.2M estimate.

RH delivered a disappointing fourth quarter of fiscal 2025, missing Wall Street expectations on both the top and bottom lines as a combination of tariff-related supply disruptions and harsh weather weighed on results. Adjusted diluted EPS came in at $1.53, falling roughly 30.58% short of the $2.20 consensus estimate, while revenue of $842.62 million, up 3.7% year over year, trailed the $873.25 million analysts had projected by 3.51%. Management pointed to approximately $30 million in lost revenue tied to higher-than-expected backorder and special order balances stemming from tariff-related resourcing, plus an additional $10 million hit from adverse weather late in the quarter, as the clearest explanations for the shortfall. The results triggered a sharp stock selloff and drew the attention of securities law firms probing whether investors were adequately informed of the risks. Looking ahead, RH guided fiscal 2026 revenue growth of 4% to 8% and adjusted EBITDA margin of 14% to 16%, though aggressive international expansion, including gallery openings across Europe, is expected to compress near-term margins by roughly 270 basis points.

Key Takeaways
  • SG&A expense leverage improved to 31.4% of revenues from 36.0% year over year in Q4
  • 2-year revenue growth of 15% outpaced industry peers (Arhaus 7%, Wayfair 4%, La-Z-Boy 4%)
  • Free cash flow improved to $252M for the full year from negative $214M in the prior year
  • Operating cash flow surged to $452M from $17M in the prior fiscal year

What Was RH's Outlook in Q4 2025?

For fiscal year 2026, RH guided revenue growth of 4% to 8%, adjusted EBITDA margin of 14% to 16%, and adjusted free cash flow of $300M to $400M, noting an approximately 270 basis point negative adjusted EBITDA margin impact from pre-opening and startup costs to support international expansion. For Q1 FY2026, the company expects revenue decline of 2% to 4% and adjusted EBITDA margin of 5.5% to 6.5%, including an approximately 420 basis point negative EBITDA margin impact from international pre-opening and startup costs.

RH YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$300.0M$600.0M$900.0M$812.4M$842.6MRevenue$362.8M$361.4MGross Profit$90.1M$96.6MOperating Income$13.9M$28.8MNet Income
$0$300.0M$600.0M$900.0MRevenueGross ProfitOperating IncomeNet Income
RH income statement, Q4 2025 versus Q4 2024
Metric Q4 2025 Q4 2024 Year over year
Revenue $842.6M $812.4M +3.7%
Gross Profit $361.4M $362.8M −0.4%
Operating Income $96.6M $90.1M +7.1%
Net Income $28.8M $13.9M +106.8%

Figures from SEC filings and company reports. Not investment advice.