Loading...
•
Nov 01, 2025
RH Q3 2025 Earnings Report
RH reported higher revenue and profit in Q3 2025, achieving strong cash flow despite challenges in the housing market and tariff expenses.
Key Takeaways
RH delivered solid Q3 2025 results with 9% revenue and net income growth, $83M in free cash flow, and continued market share gains while navigating industry headwinds.
Revenue grew 9% year-over-year to $883,810,000
Net income increased 9% to $36,265,000
Generated $83,034,000 in free cash flow for the quarter
Adjusted EBITDA margin was 17.6%, reflecting strong profitability
Revenue by Geographic Location
Forward Guidance
RH expects continued revenue growth and strong margins in Q4 2025 and is on track to meet full-year cash flow goals, despite ongoing cost pressures.
Positive Outlook
- Q4 revenue expected to grow 7% to 8%
- Adjusted operating margin forecasted at 12.5% to 13.5%
- Adjusted EBITDA margin guided at 18.7% to 19.6%
- Full-year revenue growth expected at 9.0% to 9.2%
- Company reaffirms free cash flow target of $250M to $300M
Challenges Ahead
- 200 basis point margin impact from international expansion investments
- 170 basis point margin hit from tariffs in Q4
- Challenging housing market expected to persist
- Higher-than-expected expenses for RH Paris launch
- Inventory reduction remains a focus area with ~$300M still identified as excess
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...