Forensic Analysis · Retail / Consumer Discretionary · as of Nov 9, 2026
Rh (RH)
A forensic read on Rh built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Clean
Earnings quality
2
Forensic signals
8.1%
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 (auditor quality, say on pay, board independence, going concern). 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.
Rh earns a C (Mixed — selective) forensic quality grade. 2 forensic signals were flagged in its latest SEC filings, led by shareholder returns.
What the filings flag
FCF ($214M)
FY2025
Shareholder returns.Returned $12M to shareholders (buybacks + dividends) in FY2025, but free cash flow was ($214M) after capex — there was no free cash flow to fund the payout from at all, though operating cash flow alone was $17M — 70% of that. Capex and the payout together ran $226M past operating cash flow — a harder case than returns merely running ahead of free cash flow, since here there was none to run ahead of. The balance sheet covered it: cash fell $93M and total debt rose $183M over FY2025.
7.4%
FY2026
Return on invested capital.Return on invested capital is 7.4% in the latest fiscal year and slipping across FY2024–FY2026 from 9.5%. After-tax operating profit was $300M in FY2024 and $278M in FY2026, with operating income at 12.1% of revenue in FY2024, 10.1% in FY2025 and 11.3% in FY2026. The capital base behind it grew +19% across FY2024–FY2026, from $3.1B to $3.7B, while the return fell 2.1 points, so the dollars added over that window earned less than the 9.5% the older base was already earning. FY2025's operating profit carried a $38M asset write-down and a $4M restructuring charge that alone took about 1.1 points off that year's return; FY2025 sits between the two ends of FY2024–FY2026, so the charge shapes the path between them without moving the change across it. A non-cash write-down lowers the reported return in the year it lands.
Key fundamentals
Latest Revenue$3.44B
Revenue Growth YoY+8.1%
Revenue CAGR (2yr)+6.6%
Net Margin3.6%
Free Cash Flow$252.4M
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