Companies /Consumer Cyclical

RH - Class A

NYSE: RH Specialty Retail
$144.80
▼ $3.77 (−2.54%) today
Markets closed · 9:55pm ET

Q3 2026 Earnings

Reported Dec 11, 2025, 4:46pm ET · SEC source
$1.71
Miss −20.90%
EPS · est. $2.16
$883.8M
Beat +0.02%
Revenue · est. $883.7M
+36.5%
Beating market
RH vs S&P since report
3 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−6%0+6%Dec 11Dec 12report 4:46pm ETearnings−1.3%+3.2%
−6%0+6%Dec 11Dec 12earnings−1.3%+3.2%
RH +3.2%S&P 500 −1.3%
−6%0+6%Dec 11Dec 12report 4:46pm ETearnings−2.4%+3.2%
−6%0+6%Dec 11Dec 12earnings−2.4%+3.2%
RH +3.2%NASDAQ −2.4%
0+6%+12%Dec 10Dec 19report 4:46pm ETearnings−1.4%+10.6%
0+6%+12%Dec 10Dec 19earnings−1.4%+10.6%
RH +10.6%S&P 500 −1.4%
−6%0+6%+12%Dec 10Dec 19report 4:46pm ETearnings−1.7%+10.6%
−6%0+6%+12%Dec 10Dec 19earnings−1.7%+10.6%
RH +10.6%NASDAQ −1.7%
+5.67%
Day of report
+1.02%
Next session
+5.54%
One week
+38.00%
30 days

S&P 500 over the same 30 days: +1.54%.

Did RH Beat Earnings? Q3 2026 Results

RH delivered a mixed third quarter for fiscal 2025, with revenue nearly in line with expectations but earnings falling well short as tariff headwinds and international expansion costs weighed on profitability. The luxury home furnishings retailer posted adjusted diluted EPS of $1.71, missing the $2.16 consensus by 20.90%, while revenue of $883.81 million edged just 0.02% above estimates and grew 8.9% year-over-year. The primary culprit was higher-than-expected tariff expenses on prior-period special order and backorder deliveries, which, combined with elevated costs tied to the new Paris gallery opening, pushed adjusted operating margin to 11.6%, below the company's own 12.5% guidance midpoint. GAAP net income rose 9% to $36.27 million, and free cash flow reached $83.03 million in the quarter. With analysts noting RH is well positioned for an eventual housing market rebound, management guided Q4 revenue growth of 7% to 8% and adjusted operating margin of 12.5% to 13.5%, while full-year fiscal 2025 targets call for revenue growth of 9.0% to 9.2% and free cash flow of $250 million to $300 million.

Key Takeaways
  • Revenue increased 9% year-over-year and 18% on a two-year basis
  • Significant market share gains ranging from 12 to 28 points on a two-year basis versus competitors
  • Free cash flow of $83 million in Q3, year-to-date $198 million
  • Inventory down 11% year-over-year and $82 million versus Q2
  • Net debt reduced by $85 million from Q2

“We continued to generate industry leading growth with revenue increasing 9% in the third quarter, and up 18% on a two-year basis demonstrating the disruptive nature of our brand despite the worst housing market in almost 50 years, and the polarizing impact of tariffs.”

RH CEO, on the earnings call

Forward Guidance & Outlook

For Q4 fiscal 2025, RH guided revenue growth of 7% to 8%, adjusted operating margin of 12.5% to 13.5%, and adjusted EBITDA margin of 18.7% to 19.6%, including approximately 200 basis points of negative operating margin from international expansion investments and 170 basis points from tariffs net of mitigations. For fiscal year 2025, the company expects revenue growth of 9.0% to 9.2%, adjusted operating margin of 11.6% to 11.9%, adjusted EBITDA margin of 17.6% to 18.0%, and free cash flow of $250M to $300M, including approximately 210 basis points of negative operating margin from international expansion and 90 basis points from tariffs.

RH YoY Financials

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$0$300.0M$600.0M$900.0M$811.7M$883.8MRevenue$361.3M$389.7MGross Profit$119.8M$105.9MOperating Income$33.2M$36.3MNet Income
$0$300.0M$600.0M$900.0MRevenueGross ProfitOperating IncomeNet Income

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