Arhaus, Inc. (ARHS) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Retail / Consumer Discretionary · as of Sep 25, 2026
Arhaus, Inc. (ARHS)
A forensic read on Arhaus, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Safe
Financial health
3.1
Distress distance
Clean
Earnings quality
4
Forensic signals
16.0
P / E (ttm)
16.1%
ROE
$1.3B
Market cap
4.50%
Dividend yield
8.5%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Arhaus, Inc. earns a D (Weak — demands caution) forensic quality grade, and its balance-sheet distress test reads 3.1, placing it in the Safe zone. 4 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+12.0%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +12.0% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by inventory up +14% against +9% in cost of sales and PP&E up +12% against revenue +9%. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 45% of net operating assets, against an accruals ratio of 12.0%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
138d
FY2024→FY2025
Inventory days.Days inventory outstanding moved from 131 to 138 FY2024→FY2025 (against cost of goods sold; inventory +14% vs +9% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.
9.4%
FY2025
Return on invested capital.Return on invested capital is 9.4% in the latest fiscal year and slipping across FY2023–FY2025 from 22.6%. After-tax operating profit was $122M in FY2023 and $65M in FY2025, with operating income at 12.8% of revenue in FY2023, 6.8% in FY2024 and 6.4% in FY2025. The capital base behind it grew +28% across FY2023–FY2025, from $540M to $688M, while the return fell 13.2 points, so the dollars added over that window earned less than the 22.6% the older base was already earning.
+0.5%/yr
FY2023–FY2025
Share count.Diluted share count changed +1% over the last 2 years to FY2025 (+0.5%/yr). Roughly flat — the count is neither shrinking nor growing meaningfully. Per-share value isn't being meaningfully helped or hurt by the count.
Key fundamentals
Latest Revenue$1.38B
Revenue Growth YoY+8.5%
Revenue CAGR (2yr)+3.5%
Net Margin4.9%
Free Cash Flow$59.0M
Return on Equity16.1%
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Arhaus, Inc.'s actual 10-K/10-Q/8-K filings?