Q1 26 EPS
$0.13
BEAT +290.62%
Est. $-0.07
Q1 26 Revenue
$814.0M
MISS 0.56%
Est. $818.6M
vs S&P Since Q1 26
-49.2%
TRAILING MARKET
RH -26.4% vs S&P +22.8%
Market Reaction
Did RH Beat Earnings? Q1 2026 Results
RH posted a stronger-than-expected first-quarter profit despite falling just short on revenue, as the luxury home furnishings retailer demonstrated resilience against what management described as a deeply challenged housing backdrop. Adjusted diluted… Read more RH posted a stronger-than-expected first-quarter profit despite falling just short on revenue, as the luxury home furnishings retailer demonstrated resilience against what management described as a deeply challenged housing backdrop. Adjusted diluted EPS came in at $0.13, well ahead of the consensus estimate of negative $0.07, while revenue of $813.95 million grew 12% year over year but trailed the $818.57 million analyst target by 0.56%. The earnings recovery was driven in part by meaningful margin expansion, with adjusted operating margin widening to 7.0% from 6.5% and free cash flow turning positive at $34.08 million versus negative $10.13 million a year ago. European momentum added a compelling growth dimension, with comparable Gallery demand rising 60% in Munich and Dusseldorf and RH England's Gallery demand climbing 47%. Looking ahead, the company maintained full-year fiscal 2025 guidance for revenue growth of 10% to 13% and free cash flow of $250 million to $350 million, though Liberation Day tariffs are expected to weigh on second-quarter revenues by roughly 6 points before a second-half recovery takes hold.
Key Takeaways
- • 12% revenue growth in Q1 despite worst housing market in nearly 50 years
- • European demand growth of 60% across comparable Galleries in Munich and Dusseldorf
- • RH England Gallery demand up 47% and online demand up 44% in Q1
- • Positive free cash flow of $34 million in the quarter
- • Adjusted operating margin of 7.0% and adjusted EBITDA margin of 13.1% at the high end of expectations
- • Increased RH Membership discount from 25% to 30% to capture market share
RH YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
“Our industry leading growth continued into fiscal 2025 as revenue increased 12% in the first quarter despite the polarizing impact of tariff uncertainty and the worst housing market in almost 50 years. Both adjusted operating margin of 7.0% and adjusted EBITDA margin of 13.1% were at the high end of our expectations, and we achieved positive free cash flow of $34 million in the quarter.”
— Gary Friedman, Q1 2026 Earnings Press Release
RH Earnings Trends
RH vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
RH EPS Trend
Earnings per share: estimate vs actual
RH Revenue Trend
Quarterly revenue: estimate vs actual
RH Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 27 | — | $-1.97 | — | $800.3M | — |
| Q4 26 MISS FY | $2.20 | $1.53 | -30.58% | $842.6M | -3.51% |
| FY Full Year | — | $6.29 | — | $3.44B | — |
| Q3 26 MISS | $2.16 | $1.71 | -20.90% | $883.8M | +0.02% |
| Q2 26 MISS | $3.22 | $2.93 | -8.91% | $899.2M | -0.69% |
| Q1 26 BEAT | $-0.07 | $0.13 | +290.62% | $814.0M | -0.56% |
| Q4 25 MISS FY | $1.91 | $1.58 | -17.17% | $812.4M | -2.06% |
| FY Full Year | — | $5.39 | — | $3.18B | — |