Green Thumb Industries Reports Second Quarter 2025 Results
Highlights for the second quarter ended June 30, 2025:
Revenue of $293.3 million, an increase of 4.7% over the prior year.
Cash at quarter end totaled $177 million.
GAAP net loss of $0.65 million or $0.01 per basic and diluted share. Excluding the one-time loss of $11.7 million on a sale of assets, GAAP net income would have been $11.0 million or $0.05 per basic and diluted share.
Adjusted EBITDA of $82.7 million or 28.2% of revenue.
Cash flow from operations of $56 million.
Repurchased approximately 5.6 million of the Company's Subordinate Voting Shares for $24 million.
See definitions and reconciliation of non-GAAP measures elsewhere in this release.
Management Commentary
'The Green Thumb team continues to deliver topline growth despite persistent pricing pressure in many of our key markets. Second quarter 2025 revenue was $293 million, a 5% gain over the comparable period last year. Adjusted EBITDA was $83 million or 28% of revenue and our second quarter cash flow from operations was $56 million. In addition, we bought back 5.6 million shares at an average price of $4.28 per share throughout the quarter,' said Green Thumb Founder, Chairman and Chief Executive Officer Ben Kovler. 'While our stock price continues to serve as a barometer for federal action, we believe Green Thumb has created value not currently reflected by the market due to several factors, including structural issues in the industry. Despite these challenges, we will continue to work to realize that value and continue to build brands Americans love. We are deeply committed to creating long-term value for all our stakeholders; this has always been the Green Thumb story.'
Green Thumb President Anthony Georgiadis added, 'The second quarter was very productive for us. We experienced strong market share gains in key states including Illinois, Pennsylvania, New Jersey, Florida, and others. In addition, our team continued preparation for Minnesota's imminent adult-use launch. As we look ahead, we are confident in our team, our strategy, and our financial strength to help us navigate the current market environment.'
Second Quarter 2025 Financial Overview
Total revenue for the second quarter 2025 was $293.3 million, up 4.7% from the prior year period. Revenue growth in the second quarter was driven primarily by sales from the Company's Consumer Packaged Goods segment, reflecting continued expansion in the adult-use markets in New York and Ohio.
Overall retail revenue increased 0.3% versus the second quarter of 2024. Second quarter 2025 comparable sales (stores open at least 12 months) decreased 4.1% versus the prior year on a base of 91 stores. Consumer Packaged Goods gross revenue increased 8.4% versus the second quarter of 2024.
Gross profit for the second quarter 2025 was $146.3 million or 49.9% of revenue, down from $150.5 million or 53.7% of revenue over the prior year period. The decline in gross margin percentage was primarily driven by price compression.
Total selling, general and administrative expenses for the second quarter 2025 were $106.8 million or 36.4% of revenue, compared to $96.5 million or 34.4% of revenue for the second quarter 2024. The increase in total expenses was primarily attributable to increased costs associated with the opening and operation of new retail stores.
Total other expense for the second quarter was $17.1 million versus $1.2 million for the comparable period, primarily due to the loss on the sale of Green Thumb's incredibles intellectual property and hemp business to Agrify.
Net loss attributable to the Company for the second quarter was $0.65 million or $0.01 per basic and diluted share, compared to net income of $20.7 million, or $0.09 per basic and diluted share in the prior year period. Excluding the one-time charge of $11.7 million, GAAP net income would have been $11.0 million or $0.05 per basic and diluted share.
In the second quarter 2025, EBITDA was $69.1 million or 23.6% of revenue, versus $82.0 million or 29.3% of revenue for the comparable prior year period. Adjusted EBITDA, which excluded non-cash stock-based compensation of $12.0 million and other non-operating adjustments of $1.7 million, was $82.7 million or 28.2% of revenue, down from $93.8 million or 33.5% of revenue for the second quarter 2024.
For additional information on the non-GAAP financial measures discussed above, see under 'Non-GAAP Financial Information' below.
Balance Sheet and Liquidity
As of June 30, 2025, current assets were $405.4 million, including cash and cash equivalents of $176.9 million. Total debt outstanding was $250.0 million.
Total basic and diluted weighted average shares outstanding for the three months ended June 30, 2025, were 235.8 million shares.
Capital Allocation
During the second quarter, the Company repurchased approximately 5.6 million Subordinate Voting Shares for $24 million, at an average price of $4.28 per share. To date, the Company has purchased a total of approximately 13.5 million Subordinate Voting Shares for $108 million, with an average purchase price of $7.96 per share. The Company's remaining authority to repurchase Shares is $15.6 million through September 22, 2025.
Non-GAAP Financial Information
This press release includes certain non-GAAP financial measures as defined by the U.S. Securities and Exchange Commission. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with GAAP are included in the financial schedules attached to this press release. This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP.
Definitions
EBITDA: Earnings before interest, taxes, other income or expense and depreciation and amortization.
Adjusted EBITDA: Earnings before interest, taxes, depreciation, and amortization, adjusted for other income, non-cash stock-based compensation, one-time transaction related expenses, or other non-operating costs.
Conference Call and Webcast
Green Thumb will host a conference call on Wednesday, August 6, 2025, at 5:00 pm Eastern Time to discuss its results for the quarter ended June 30, 2025. The earnings call may be accessed by dialing 844-883-3895 (toll-free) or 412-317-5797 (international). A live audio webcast of the call will also be available on the Investor Relations section of Green Thumb's website at https://investors.gtigrows.com and will be archived for replay.
About Green Thumb Industries
Green Thumb Industries Inc. ('Green Thumb') is a leading national cannabis consumer packaged goods company and retailer headquartered in Chicago, Illinois. The company manufactures and distributes a portfolio of branded cannabis products, some of which are licensed, including RYTHM, Dogwalkers, incredibles, Beboe, &Shine, Doctor Solomon's and Good Green. Green Thumb also owns and operates RISE Dispensaries, a rapidly growing national retail chain. Green Thumb serves millions of patients and customers each year with a mission to promote well-being through the power of cannabis while giving back to the communities it serves. Established in 2014, Green Thumb has 20 manufacturing facilities and 108 retail stores across 14 U.S. markets, employing approximately 4,800 people. More information is available at www.gtigrows.com.
Cautionary Note Regarding Forward-Looking Information
This press release contains statements that we believe are, or may be considered to be, 'forward-looking statements.' All statements other than statements of historical fact included in this document regarding the prospects of our industry or our prospects, plans, financial position or business strategy may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking words such as 'may,' 'will,' 'expect,' 'intend,' 'estimate,' 'foresee,' 'opportunity,' 'project,' 'potential,' 'risk,' 'anticipate,' 'believe,' 'plan,' 'forecast,' 'continue,' 'suggests' or 'could' or the negative of these terms or variations of them or similar terms or expressions of similar meaning. Furthermore, forward-looking statements may be included in various filings that we make with the Securities and Exchange Commission (the 'SEC'), or oral statements made by or with the approval of one of our authorized executive officers. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot assure you that these expectations will prove to be correct. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These known and unknown risks include, without limitation: cannabis remains illegal under U.S. federal law, and enforcement of cannabis laws could change; state regulation of cannabis is uncertain; the Company may not be able to obtain or maintain necessary permits and authorizations; the Company may face limitations on ownership of cannabis licenses; the Company may become subject to U.S. Food and Drug Administration or the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives regulation; as a cannabis business, the Company is subject to applicable anti-money laundering laws and regulations and have restricted access to banking and other financial services; the Company may face difficulties acquiring additional financing; the Company operates in a highly regulated sector and may not always succeed in complying fully with applicable regulatory requirements in all jurisdictions where it conducts business; the Company faces intense competition; the Company faces competition from the illicit market as well as hemp products that are actually or purportedly compliant with the Agricultural Improvement Act of 2018 (the Farm Bill); the Company is dependent upon the popularity and consumer acceptance of its brand portfolio; the Company has limited trademark protections; as a cannabis business, the Company is subject to unfavorable tax treatment and may incur significant tax liability; as a cannabis business, the Company may be subject to civil asset forfeiture; the Company is subject to proceeds of crime statutes; the Company faces exposure to fraudulent or illegal activity; the Company faces risks due to industry immaturity or limited comparable, competitive or established industry best practices; the Company faces risks related to its products; the Company's business is subject to the risks inherent in agricultural operations; the Company faces an inherent risk of product liability and similar claims; the Company's products may be subject to product recalls; the Company may face unfavorable publicity or consumer perception; the Company may be adversely impacted by rising or volatile energy costs and availability; the Company faces risks related to its information technology systems and potential cyber-attacks and security breaches; the Company relies on third-party software providers for numerous capabilities we depend upon to operate, and a disruption of one or more of these systems could adversely affect our business; the Company relies on the expertise of its management team and other employees experienced in the cannabis industry, and the loss of key personnel could negatively affect its business; the Company's voting control is concentrated; the Company's capital structure and voting control may cause unpredictability; and sales of substantial amounts Subordinate Voting Shares by the Company's shareholders in the public market may have an adverse effect on the market price of the Company's Subordinate Voting Shares. Further information on these and other potential factors that could affect the Company's business and financial condition and the results of operations are included in the 'Risk Factors' section of the Company's most recent Annual Report on Form 10-K and elsewhere in the Company's filings with the SEC, which are available on the SEC's website or at https://investors.gtigrows.com. Readers are cautioned not to place undue reliance on any forward-looking statements contained in this document, which reflect management's opinions only as of the date hereof. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to any forward-looking statements. You are advised, however, to consult any additional disclosures we make in our reports to the SEC. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained in this document.
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.
Investor Contacts:
Mathew FaulknerChief Financial OfficerInvestorRelations@gtigrows.com310-622-8257
Andy GrossmanEVP, Capital Markets & Investor RelationsInvestorRelations@gtigrows.com 310-622-8257
Media Contact:GTI Communicationsmedia@gtigrows.comSource: Green Thumb Industries Inc.
Highlights from Unaudited Interim Condensed Consolidated Statements of OperationsFor the Three Months Ended June 30, 2025, March 31, 2025 and June 30, 2024
Three Months Ended
June 30, 2025
March 31, 2025
June 30, 2024
(Unaudited)
(Unaudited)
(Unaudited)
Revenues, Net of Discounts
$
293,257
$
279,540
$
280,147
Cost of Goods Sold
(147,001
)
(136,265
)
(129,627
)
Gross Profit
146,256
143,275
150,520
Expenses:
Total Expenses
106,823
100,793
96,500
Income From Operations
39,433
42,482
54,020
Other Income (Expense):
Other Income (Expense), Net
(13,989
)
(24
)
2,464
Interest Income
1,910
2,123
2,314
Interest Expense, Net
(5,046
)
(4,865
)
(5,981
)
Total Other Expense
(17,125
)
(2,766
)
(1,203
)
Income Before Provision for Income Taxes And Non-Controlling Interest
22,308
39,716
52,817
Provision For Income Taxes
21,576
31,315
31,899
Net Income Before Non-Controlling Interest
732
8,401
20,918
Net Income Attributable To Non-Controlling Interest
1,377
95
206
Net (Loss) Income Attributable To Green Thumb Industries Inc.
$
(645
)
$
8,306
$
20,712
Net (Loss) Income Per Share - Basic
$
(0.01
)
$
0.04
$
0.09
Net (Loss) Income Per Share - Diluted
$
(0.01
)
$
0.04
$
0.09
Weighted Average Number of Shares Outstanding - Basic
235,842,313
236,120,511
237,416,373
Weighted Average Number of Shares Outstanding - Diluted
235,842,313
236,822,468
240,137,922
Green Thumb Industries Inc.Highlights from the Unaudited Interim Condensed Consolidated Balance Sheet(Amounts Expressed in Thousands of United States Dollars)
June 30,
2025
(Unaudited)
Cash and Cash Equivalents
$
176,923
Other Current Assets
228,514
Property and Equipment, Net
722,991
Right of Use Assets, Net
240,886
Intangible Assets, Net
462,407
Goodwill
595,619
Other Long-term Assets
120,882
Total Assets
$
2,548,222
Total Current Liabilities
$
179,326
Notes Payable, Net of Current Portion and Debt Discount
234,069
Lease Liabilities, Net of Current Portion
256,807
Other Long-Term Liabilities
78,621
Total Equity
1,799,399
Total Liabilities and Equity
$
2,548,222
Green Thumb Industries Inc. Supplemental Information (Unaudited) Regarding Non-GAAP Financial MeasuresFor the For the Three Months Ended June 30, 2025, March 31, 2025 and June 30, 2024(Amounts Expressed in Thousands of United States Dollars)
EBITDA, and Adjusted EBITDA are non-GAAP measures and do not have standardized definitions under GAAP. We define each term as follows:
(1) EBITDA is defined as earnings before interest, taxes, other income or expense and depreciation and amortization.(2) Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, and amortization, adjusted for other income, non-cash share-based compensation, one-time transaction related expenses, or other non-operating (income) or costs.
The following information provides reconciliations of the supplemental non-GAAP financial measures, presented herein to the most directly comparable financial measures calculated and presented in accordance with GAAP. The Company has provided the non-GAAP financial measures, which are not calculated or presented in accordance with GAAP, as supplemental information and in addition to the financial measures that are calculated and presented in accordance with GAAP. These supplemental non-GAAP financial measures are presented because management has evaluated the financial results both including and excluding the adjusted items and believes that the supplemental non-GAAP financial measures presented provide additional perspective and insights when analyzing the core operating performance of the business. These supplemental non-GAAP financial measures should not be considered superior to, as a substitute for or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented.
Three Months Ended
Adjusted EBITDA
June 30, 2025
March 31, 2025
June 30, 2024
(Unaudited)
(Unaudited)
(Unaudited)
Net Income Before Noncontrolling Interest (GAAP)
$
732
$
8,401
$
20,918
Interest Income
(1,910
)
(2,123
)
(2,314
)
Interest Expense, Net
5,046
4,865
5,981
Provision For Income Taxes
21,576
31,315
31,899
Other Expense (Income), Net
13,989
24
(2,464
)
Depreciation and Amortization
29,671
29,411
27,985
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (non-GAAP measure)
$
69,104
$
71,893
$
82,005
Share-based Compensation, Non-Cash
11,966
10,309
8,866
Acquisition, Transaction, and Other Non-Operating (Income) Costs
1,670
3,045
2,925
Adjusted EBITDA (non-GAAP measure)
$
82,740
$
85,247
$
93,796
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From market open on Friday, October 10, 2025, the post-split (ex-dividend) Class A Shares will commence trading on the Toronto Stock Exchange and the New York Stock Exchange. Based on the manner in which the stock split will be implemented, no Canadian or U.S. federal income tax is expected to be payable by shareholders, except in the case of cash received in lieu of fractional shares. Brookfield Wealth Solutions announced a concurrent three-for-two split of its class A exchangeable shares in order to maintain their economic equivalence to Brookfield Corporation's Class A Shares. Regular Dividend Declaration The Board declared a quarterly dividend for Brookfield Corporation of $0.09 per share, payable on September 29, 2025 to shareholders of record as at the close of business on September 12, 2025. The first dividend payable post-split will occur on December 31, 2025, subject to Board approval. The Board also declared the regular monthly and quarterly dividends on our preferred shares. CONSOLIDATED BALANCE SHEETS Unaudited(US$ millions) June 302025 December 312024 Assets Cash and cash equivalents $ 13,703 $ 15,051 Other financial assets 29,968 25,887 Accounts receivable and other 51,645 40,509 Inventory 9,259 8,458 Equity accounted investments 72,179 68,310 Investment properties 90,910 103,665 Property, plant and equipment 155,640 153,019 Intangible assets 39,946 36,072 Goodwill 38,664 35,730 Deferred income tax assets 4,154 3,723 Total Assets $ 506,068 $ 490,424 Liabilities and Equity Corporate borrowings $ 14,973 $ 14,232 Accounts payable and other 65,932 60,223 Non-recourse borrowings of managed entities 235,661 220,560 Subsidiary equity obligations 3,395 4,759 Deferred income tax liabilities 24,462 25,267 Equity Non-controlling interests $ 115,049 $ 119,406 Preferred equity 4,103 4,103 Common equity 42,493 161,645 41,874 165,383 Total Equity 161,645 165,383 Total Liabilities and Equity $ 506,068 $ 490,424 CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited Three Months Ended Six Months Ended For the periods ended June 30(US$ millions, except per share amounts) 2025 2024 2025 2024 Revenues $ 18,083 $ 23,050 $ 36,027 $ 45,957 Direct costs1 (11,381 ) (16,717 ) (22,376 ) (33,288 ) Other income and gains 30 244 618 484 Equity accounted income 467 825 986 1,511 Interest expense – Corporate borrowings (188 ) (181 ) (367 ) (354 ) – Non-recourse borrowings Same-store (4,092 ) (3,995 ) (8,005 ) (7,950 ) Dispositions, net of acquisitions2 296 — 483 — Upfinancings2 (269 ) — (525 ) — Corporate costs (20 ) (19 ) (38 ) (36 ) Fair value changes 797 (753 ) (27 ) (595 ) Depreciation and amortization (2,534 ) (2,435 ) (4,989 ) (4,910 ) Income tax (134 ) (304 ) (517 ) (585 ) Net income (loss) 1,055 (285 ) 1,270 234 Net (income) loss attributable to non-controlling interests (783 ) 328 (925 ) (89 ) Net income attributable to Brookfield shareholders $ 272 $ 43 $ 345 $ 145 Net income per share Diluted $ 0.15 $ — $ 0.17 $ 0.04 Basic 0.15 — 0.18 0.04 Direct costs disclosed above exclude depreciation and amortization expense. Interest expense from dispositions, net of acquisitions, and upfinancings completed over the twelve months ended June 30, 2025. SUMMARIZED FINANCIAL RESULTS DISTRIBUTABLE EARNINGS UnauditedFor the periods ended June 30 Three Months Ended Last Twelve Months Ended (US$ millions) 2025 2024 2025 2024 Asset management $ 650 $ 636 $ 2,722 $ 2,540 Wealth solutions 391 292 1,606 1,000 BEP 113 107 440 421 BIP 89 84 346 327 BBU 6 9 29 36 BPG 140 172 872 735 Other 2 (1 ) 7 (45 ) Operating businesses 350 371 1,694 1,474 Corporate costs and other (138 ) (186 ) (711 ) (635 ) Distributable earnings before realizations1 1,253 1,113 5,311 4,379 Realized carried interest, net 129 51 487 428 Disposition gains from principal investments 3 963 67 998 Distributable earnings1 $ 1,385 $ 2,127 $ 5,865 $ 5,805 1. Non-IFRS measure – see Non-IFRS and Performance Measures section on page OF NET INCOME TO DISTRIBUTABLE EARNINGS UnauditedFor the periods ended June 30 Three Months Ended Last Twelve Months Ended (US$ millions) 2025 2024 2025 2024 Net income (loss) $ 1,055 $ (285 ) $ 2,889 $ 3,403 Financial statement components not included in DE: Equity accounted fair value changes and other items 1,321 444 3,879 2,468 Fair value changes and other (652 ) 797 2,081 2,840 Depreciation and amortization 2,534 2,435 9,816 9,583 Disposition gains in net income (203 ) (110 ) (1,694 ) (4,736 ) Deferred income taxes (262 ) (55 ) (663 ) (753 ) Non-controlling interests in the above items1 (2,577 ) (2,233 ) (11,028 ) (8,610 ) Less: realized carried interest, net (129 ) (51 ) (487 ) (428 ) Working capital, net 166 171 518 612 Distributable earnings before realizations2 1,253 1,113 5,311 4,379 Realized carried interest, net3 129 51 487 428 Disposition gains from principal investments 3 963 67 998 Distributable earnings2 $ 1,385 $ 2,127 $ 5,865 $ 5,805 DE is a non-IFRS measure proportionate to the interests of shareholders and therefore excludes items in income attributable to non-controlling interests in non-wholly owned subsidiaries. Non-IFRS measure – see Non-IFRS and Performance Measures section on page 9. Includes our share of Oaktree's distributable earnings attributable to realized carried interest. EARNINGS PER SHARE Unaudited Three Months Ended Last Twelve Months Ended For the periods ended June 30(millions, except per share amounts) 2025 2024 2025 2024 Net income (loss) $ 1,055 $ (285 ) $ 2,889 $ 3,403 Non-controlling interests (783 ) 328 (2,048 ) (2,329 ) Net income attributable to shareholders 272 43 841 1,074 Preferred share dividends1 (42 ) (42 ) (166 ) (168 ) Net income available to common shareholders 230 1 675 906 Dilutive impact of exchangeable shares of affiliate 3 — 12 9 Net income available to common shareholders including dilutive impact of exchangeable shares $ 233 $ 1 $ 687 $ 915 Weighted average shares 1,496.2 1,509.6 1,504.0 1,532.6 Dilutive effect of conversion of options and escrowed shares using treasury stock method2 and exchangeable shares of affiliate3 76.5 26.4 77.8 49.9 Shares and share equivalents 1,572.7 1,536.0 1,581.8 1,582.5 Diluted earnings per share $ 0.15 $ — $ 0.43 $ 0.58 Excludes dividends paid on perpetual subordinated notes of $2 million (2024 – $2 million) and $10 million (2024 – $10 million) for the three and twelve months ended June 30, 2025, which are recognized within net income attributable to non-controlling interests. Includes management share option plan and escrowed stock plan. Due to its anti-dilutive effect on EPS for the three months ended June 30, 2024, the exchange of BWS Class A shares has been excluded from the diluted EPS calculation. Additional Information The Letter to Shareholders and the company's Supplemental Information for the three and twelve months ended June 30, 2025, contain further information on the company's strategy, operations and financial results. Shareholders are encouraged to read these documents, which are available on the company's website. The statements contained herein are based primarily on information that has been extracted from our financial statements for the periods ended June 30, 2025, which have been prepared using IFRS Accounting Standards, as issued by the International Accounting Standards Board ('IASB'). The amounts have not been audited by Brookfield Corporation's external auditor. Brookfield Corporation's Board of Directors has reviewed and approved this document, including the summarized unaudited consolidated financial statements prior to its release. Information on our dividends can be found on our website under Stock & Distributions/Distribution History. Quarterly Earnings Call DetailsInvestors, analysts and other interested parties can access Brookfield Corporation's 2025 Second Quarter Results as well as the Shareholders' Letter and Supplemental Information on Brookfield Corporation's website under the Reports & Filings section at To participate in the Conference Call today at 10:00 a.m. ET, please pre-register at Upon registering, you will be emailed a dial-in number, and unique PIN. The Conference Call will also be webcast live at p/fm67q8c9. For those unable to participate in the Conference Call, the telephone replay will be archived and available until August 7, 2026. To access this rebroadcast, please visit: fm67q8c9. About Brookfield CorporationBrookfield Corporation is a leading global investment firm focused on building long-term wealth for institutions and individuals around the world. We have three core businesses: Alternative Asset Management, Wealth Solutions, and our Operating Businesses which are in renewable power, infrastructure, business and industrial services, and real estate. We have a track record of delivering 15%+ annualized returns to shareholders for over 30 years, supported by our unrivaled investment and operational experience. Our conservatively managed balance sheet, extensive operational experience, and global sourcing networks allow us to consistently access unique opportunities. At the center of our success is the Brookfield Ecosystem, which is based on the fundamental principle that each group within Brookfield benefits from being part of the broader organization. Brookfield Corporation is publicly traded in New York and Toronto (NYSE: BN, TSX: BN). Please note that Brookfield Corporation's previous audited annual and unaudited quarterly reports have been filed on EDGAR and SEDAR+ and can also be found in the investor section of its website at Hard copies of the annual and quarterly reports can be obtained free of charge upon request. For more information, please visit our website at or contact: Media:Kerrie McHughTel: (212) 618-3469Email: Investor Relations:Katie BattagliaTel: (416) 359-8544Email: Non-IFRS and Performance MeasuresThis news release and accompanying financial information are based on IFRS Accounting Standards, as issued by the IASB, unless otherwise noted. We make reference to Distributable Earnings ('DE'). We define DE as the sum of distributable earnings from our asset management business, distributable operating earnings from our wealth solutions business, distributions received from our ownership of investments, realized carried interest and disposition gains from principal investments, net of earnings from our Corporate Activities, preferred share dividends and equity-based compensation costs. We also make reference to DE before realizations, which refers to DE before realized carried interest and realized disposition gains from principal investments. We believe these measures provide insight into earnings received by the company that are available for distribution to common shareholders or to be reinvested into the business. Realized carried interest and realized disposition gains are further described below: Realized Carried Interest represents our contractual share of investment gains generated within a private fund after achieving our clients' minimum return requirements. Realized carried interest is determined on third-party capital that is no longer subject to future investment performance. Realized Disposition Gains from Principal Investments are included in DE because we consider the purchase and sale of assets from our directly held investments to be a normal part of the company's business. Realized disposition gains include gains and losses recorded in net income and equity in the current period, and are adjusted to include fair value changes and revaluation surplus balances recorded in prior periods which were not included in prior period DE. We use DE to assess our operating results and the value of Brookfield Corporation's business and believe that many shareholders and analysts also find this measure of value to them. We may make reference to Operating Funds from Operations ('Operating FFO'). We define Operating FFO as the company's share of revenues less direct costs and interest expenses; excludes realized carried interest and disposition gains, fair value changes, depreciation and amortization and deferred income taxes; and includes our proportionate share of FFO from operating activities recorded by equity accounted investments on a fully diluted basis. We may make reference to Net Operating Income ('NOI'), which refers to our share of the revenues from our operations less direct expenses before the impact of depreciation and amortization within our real estate business. We present this measure as we believe it is a key indicator of our ability to impact the operating performance of our properties. As NOI excludes non-recurring items and depreciation and amortization of real estate assets, it provides a performance measure that, when compared to prior periods, reflects the impact of operations from trends in occupancy rates and rental rates. We disclose a number of financial measures in this news release that are calculated and presented using methodologies other than in accordance with IFRS. These financial measures, which include DE, should not be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, similar financial measures calculated in accordance with IFRS. We caution readers that these non-IFRS financial measures or other financial metrics are not standardized under IFRS and may differ from the financial measures or other financial metrics disclosed by other businesses and, as a result, may not be comparable to similar measures presented by other issuers and entities. We provide additional information on key terms and non-IFRS measures in our filings available at End Notes________________________________________ Consolidated basis – includes amounts attributable to non-controlling interests. Excludes amounts attributable to non-controlling interests. See Reconciliation of Net Income to Distributable Earnings on page 6 and Non-IFRS and Performance Measures section on page 9. Total group capital of approximately $16 billion includes capital within insurance subsidiaries of $13.4 billion calculated on an aggregate basis, one quarter in arrears, and in accordance with applicable insurance regulations. It also includes $2.5 billion of capital in group holding companies. Brookfield Corporation is not making any offer or invitation of any kind by communication of this news release and under no circumstance is it to be construed as a prospectus or an advertisement. This news release contains 'forward-looking information' within the meaning of Canadian provincial securities laws and 'forward-looking statements' within the meaning of the U.S. Securities Act of 1933, the U.S. Securities Exchange Act of 1934, 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations (collectively, 'forward-looking statements'). Forward- looking statements include statements that are predictive in nature, depend upon or refer to future results, events or conditions, and include, but are not limited to, statements which reflect management's current estimates, beliefs and assumptions regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies, capital management and outlook of Brookfield Corporation and its subsidiaries, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, and which in turn are based on our experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. The estimates, beliefs and assumptions of Brookfield Corporation are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. Forward-looking statements are typically identified by words such as 'expect,' 'anticipate,' 'believe,' 'foresee,' 'could,' 'estimate,' 'goal,' 'intend,' 'plan,' 'seek,' 'strive,' 'will,' 'may' and 'should' and similar expressions. In particular, the forward-looking statements contained in this news release include statements referring to the impact of current market or economic conditions on our business, the future state of the economy or the securities market, the anticipated allocation and deployment of our capital, our fundraising targets, our target growth objectives and the impact of acquisitions and dispositions on our business. Although Brookfield Corporation believes that such forward-looking statements are based upon reasonable estimates, beliefs and assumptions, actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: (i) returns that are lower than target; (ii) the impact or unanticipated impact of general economic, political and market factors in the countries in which we do business; (iii) the behavior of financial markets, including fluctuations in interest and foreign exchange rates and heightened inflationary pressures; (iv) global equity and capital markets and the availability of equity and debt financing and refinancing within these markets; (v) strategic actions including acquisitions and dispositions; the ability to complete and effectively integrate acquisitions into existing operations and the ability to attain expected benefits; (vi) changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); (vii) the ability to appropriately manage human capital; (viii) the effect of applying future accounting changes; (ix) business competition; (x) operational and reputational risks; (xi) technological change; (xii) changes in government regulation and legislation within the countries in which we operate; (xiii) governmental investigations and sanctions; (xiv) litigation; (xv) changes in tax laws; (xvi) ability to collect amounts owed; (xvii) catastrophic events, such as earthquakes, hurricanes and epidemics/pandemics; (xviii) the possible impact of international conflicts and other developments including terrorist acts and cyberterrorism; (xix) the introduction, withdrawal, success and timing of business initiatives and strategies; (xx) the failure of effective disclosure controls and procedures and internal controls over financial reporting and other risks; (xxi) health, safety and environmental risks; (xxii) the maintenance of adequate insurance coverage; (xxiii) the existence of information barriers between certain businesses within our asset management operations; (xxiv) risks specific to our business segments including asset management, wealth solutions, renewable power and transition, infrastructure, private equity, real estate and corporate activities; and (xxv) factors detailed from time to time in our documents filed with the securities regulators in Canada and the United States. We caution that the foregoing list of important factors that may affect future results is not exhaustive and other factors could also adversely affect future results. Readers are urged to consider these risks, as well as other uncertainties, factors and assumptions carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements, which are based only on information available to us as of the date of this news release or such other date specified herein. Except as required by law, Brookfield Corporation undertakes no obligation to publicly update or revise any forward- looking statements, whether written or oral, that may be as a result of new information, future events or otherwise. Past performance is not indicative nor a guarantee of future results. There can be no assurance that comparable results will be achieved in the future, that future investments will be similar to historic investments discussed herein, that targeted returns, growth objectives, diversification or asset allocations will be met or that an investment strategy or investment objectives will be achieved (because of economic conditions, the availability of appropriate opportunities or otherwise). Target returns and growth objectives set forth in this news release are for illustrative and informational purposes only and have been presented based on various assumptions made by Brookfield Corporation in relation to the investment strategies being pursued, any of which may prove to be incorrect. There can be no assurance that targeted returns or growth objectives will be achieved. Due to various risks, uncertainties and changes (including changes in economic, operational, political or other circumstances) beyond Brookfield Corporation's control, the actual performance of the business could differ materially from the target returns and growth objectives set forth herein. In addition, industry experts may disagree with the assumptions used in presenting the target returns and growth objectives. No assurance, representation or warranty is made by any person that the target returns or growth objectives will be achieved, and undue reliance should not be put on them. No statements contained herein with respect to tax consequences are intended to be, or should be construed to be, legal or tax advice, and no representation is made with respect to tax consequences. Shareholders are urged to consult their legal and tax advisors with respect to their circumstances. When we speak about our wealth solutions business or Brookfield Wealth Solutions, we are referring to Brookfield's investments in this business that supported the acquisitions of its underlying operating subsidiaries.
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Arhaus Reports Second Quarter 2025 Financial Results
BOSTON HEIGHTS, Ohio, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Arhaus, Inc. ('Arhaus' or the 'Company') (NASDAQ: ARHS), a growing lifestyle brand and omni-channel retailer of premium artisan-crafted home furnishings, reported second quarter 2025 results for the period ended June 30, 2025. Second Quarter 2025 Highlights Net revenue increased 15.7% to $358 million, compared to the second quarter of 2024 Gross margin increased 19.1% to $148 million, compared to the second quarter of 2024 Selling, general and administrative expenses increased 6.8% to $101 million, compared to the second quarter of 2024 Net and comprehensive income increased 57.7% to $35 million, compared to the second quarter of 2024 Adjusted EBITDA increased 51.2% to $60 million, compared to the second quarter of 2024 Comparable growth(1) of 10.5% Total Showroom Projects(2) of 3 locations, inclusive of 2 relocations and 1 renovation John Reed, Co-Founder and Chief Executive Officer, said: 'We achieved the highest quarterly net revenue in Arhaus' history, exceeding $358 million, reflecting an increase of 15.7%. This record reflects the strength of our brand, the loyalty of our clients, and the exceptional execution of teams across the business. During the quarter, we successfully brought operations of our Dallas Distribution Center in-house which ramped ahead of schedule. This transition enabled us to convert strong first quarter demand into net revenue more efficiently, and at a higher volume, than expected. As a result, Comparable growth(1) was 10.5%. While second-quarter Demand comparable growth(3) was (3.6)%, due to macro headwinds, July rebounded sharply, with Demand comparable growth(3) up an impressive 15.7%, highlighting strong client engagement and the enduring appeal of our products. Year-to-date, including July, Demand comparable growth(3) was up 2.2%. Additionally, I'm proud to announce the launch of our Arhaus Bath Collection. This thoughtful expansion into a deeply personal space in the home reflects our commitment to timeless design, artisan craftsmanship, and functional beauty. With a resilient high-end client base, debt-free balance sheet, and a clear strategic plan, we are navigating the current environment from a position of strength, focused on what we can control: disciplined execution, intentional growth, and continued investment in the systems, products, and talent that will drive our next phase. Thank you to our teams, your creativity, care, and commitment make moments like this possible. Your passion is what brings Arhaus to life.' Business Highlights Arhaus delivered strong second-quarter results, with net revenue exceeding $358 million, up 15.7% and setting a new record for the highest quarterly net revenue in Company history. In the second quarter, Comparable growth(1) was 10.5%, driven by the successful conversion of strong first-quarter demand, while Demand comparable growth(3) was (3.6)%, reflecting macroeconomic volatility and external headwinds. Looking ahead, Demand comparable growth(3) in July was up 15.7%, reflecting strong client engagement and the strength of the Arhaus product assortment. Year-to-date, including July, Demand comparable growth(3) was 2.2%. Showroom Highlights At the end of the second quarter of 2025, Arhaus operated 103 Showrooms across 30 states and all four geographic regions. During the quarter, the Company completed 3 Total Showroom Projects(2), including 2 relocations and 1 renovation. Notable updates include: Wexford, Pennsylvania – A relocated showroom opened in Wexford Plaza, a premium open-air retail destination. The expansive, newly designed space features a dedicated design room and extensive fabric library, serving a key affluent suburb of Pittsburgh and reinforcing Arhaus' luxury positioning. Scottsdale, Arizona – A fully renovated showroom at Kierland Commons. Originally opened in 2015, this renovated space more closely reflects the Arhaus aesthetic, blending international design elements with American craftsmanship to create an eclectic, elevated experience. Year-to-date through the second quarter, Arhaus has completed 8 showroom projects, including 1 new opening, 6 relocations, and 1 renovation. The Company continues to expect the completion of approximately 12 to 15 Total Showroom Projects(2) in 2025, consisting of 4 to 6 new openings and 8 to 9 relocations, renovations, or expansions. Balance Sheet and Liquidity As of June 30, 2025, the Company reported the following: No long-term debt. Cash and cash equivalents totaled $235 million. Net merchandise inventory of $311 million, a 4.7% increase from December 31, 2024 to June 30, 2025. Client deposits of $233 million, a 5.5% increase from December 31, 2024 to June 30, 2025. Net cash provided by operating activities totaled $81 million for the six months ended June 30, 2025. Net cash used in investing activities was approximately $42 million for the six months ended June 30, 2025. Company-funded capital expenditures(4) were approximately $31 million and landlord contributions were approximately $11 million. Outlook The table below reaffirms Arhaus' previously provided expectations for selected full-year 2025 financial and operating metrics. This outlook reflects currently implemented tariff actions as of the date of this release. The Company has also modestly reduced its full-year capital expenditures outlook by $10 million to reflect updated timing on select investments. In addition, Arhaus is introducing third-quarter 2025 guidance for select financial metrics, as detailed below. Full-Year 2025 Q3 2025 Net revenue $1.29 billion to $1.38 billion $320 million to $350 million Net revenue growth 1.5% to 8.6% 0.3% to 9.7% Comparable growth(1) (5)% to 1.5% (4)% to 5% Net income(5) $48 million to $68 million $7 million to $17 million Adjusted EBITDA(6) $123 million to $145 million $23 million to $33 million Company-funded capital expenditures(4) $80 million to $100 million Depreciation & amortization $47 million to $52 million Fully diluted shares ~ 141 million Effective tax rate ~ 26% Showroom openings 4 to 6 new showrooms Total Showroom Projects(2) 12 to 15 showroom projects (1) Comparable growth is a key performance indicator and is defined as the year-over-year percentage change of the dollar value of orders delivered (based on purchase price), net of the dollar value of returns (based on amount credited to client), from our comparable Showrooms and eCommerce, including through our catalogs and other mailings.(2) Total Showroom Projects is defined as the number of showroom projects completed during the period, including new showroom openings, strategic relocations, remodels, and expansions. The Company considers all showroom projects integral to its long-term growth strategy, with each evaluated based on strategic relevance and expected return on investment.(3) Demand comparable growth is a key performance indicator and is defined as the year-over-year percentage change of demand from our comparable Showrooms and eCommerce, including through our catalogs and other mailings.(4) Company-funded capital expenditures is defined as total net cash used in investing activities less landlord contributions.(5) U.S. GAAP net income (loss).(6) We have not reconciled guidance for Adjusted EBITDA to the corresponding GAAP financial measure because we do not provide guidance for the various reconciling items. These items include, but are not limited to, future share-based compensation expense, income taxes, interest income, and transaction costs. We are unable to provide guidance for these reconciling items because we cannot determine their probable significance, as certain items are outside of our control and cannot be reasonably predicted due to the fact that these items could vary significantly from period to period. Accordingly, reconciliations to the corresponding GAAP financial measure is not available without unreasonable effort. Conference Call You are invited to listen to Arhaus' conference call to discuss the second quarter 2025 financial results scheduled for today, August 7, 2025, at 8:30 a.m. Eastern Time. The call will be available over the Internet on our website ( or by dialing (877) 407-3982 within the U.S., or 1 (201) 493-6780, outside the U.S. The conference ID number is 13748992. A recorded replay of the conference call will be available within approximately three hours of the conclusion of the call and can be accessed online at for approximately twelve months. About Arhaus Founded in 1986, Arhaus is a growing lifestyle brand and omni-channel retailer of premium home furnishings. Through a differentiated proprietary model that directly designs and sources products from leading manufacturers and artisans around the world, Arhaus offers an exclusive assortment of heirloom quality products that are sustainably sourced, lovingly made, and built to last. With more than 100 showroom and design studio locations across the United States, a team of interior designers providing complimentary in-home design services, and robust online and eCommerce capabilities, Arhaus is known for innovative design, responsible sourcing, and client-first service. For more information, please visit Investor Contact: Tara Louise AtwoodVice President, Investor Relations(440) 439-7700 invest@ Non-GAAP Financial Measures In addition to the results provided in accordance with U.S. GAAP, this press release and related tables include adjusted EBITDA and adjusted EBITDA as a percentage of net revenue, which present operating results on an adjusted basis. We use non-GAAP measures to help assess the performance of our business, identify trends affecting our business, formulate business plans and make strategic decisions. In addition to our results determined in accordance with U.S. GAAP, we believe that providing these non-GAAP financial measures is useful to our investors as they present an informative supplemental view of our results from period to period by removing the effect of non-recurring items. However, our inclusion of these adjusted measures should not be construed as an indication that our future results will be unaffected by unusual or infrequent items or that the items for which we have made adjustments are unusual or infrequent or will not recur. These non-U.S. GAAP measures are not a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. These measures should only be read together with the corresponding U.S. GAAP measures. Please refer to the reconciliations of adjusted EBITDA to the most directly comparable financial measures prepared in accordance with U.S. GAAP below. Forward-Looking Statements Certain statements contained herein, including statements under the heading 'Outlook' are not based on historical fact and are 'forward-looking statements' within the meaning of applicable securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology, including, but not limited to, 'may,' 'could,' 'seek,' 'guidance,' 'predict,' 'potential,' 'likely,' 'believe,' 'will,' 'expect,' 'anticipate,' 'estimate,' 'plan,' 'intend,' 'forecast,' or variations of these terms and similar expressions, or the negative of these terms or similar expressions. Past performance is not a guarantee of future results or returns and no representation or warranty is made regarding future performance. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond our control that could cause our actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: our ability to manage and maintain the growth rate of our business; our ability to obtain quality merchandise in sufficient quantities; disruption in our receiving and distribution system, including delays in the integration of our distribution centers and the possibility that we may not realize the anticipated benefits of multiple distribution centers; effects of new or proposed tariffs and changes to international trade policies and agreements; the possibility of cyberattacks and our ability to maintain adequate cybersecurity systems and procedures; loss, corruption and misappropriation of data and information relating to clients and employees; changes in and compliance with applicable data privacy rules and regulations; risks as a result of constraints in our supply chain or disruptions due to geopolitical events such as acts of war and/or terrorism or other hostilities; a failure of our vendors to meet our quality standards; declines in general economic conditions that affect consumer confidence and consumer spending that could adversely affect our revenue; our ability to anticipate changes in consumer preferences; risks related to maintaining and increasing Showroom traffic and sales; our ability to compete in our market; our ability to adequately protect our intellectual property; compliance with applicable governmental regulations; effectively managing our eCommerce sales channel and digital marketing efforts; our reliance on third-party transportation carriers and risks associated with freight and transportation costs; and compliance with SEC rules and regulations as a public reporting company. These factors should not be construed as exhaustive. Further information on potential factors that could affect the financial results of the Company and its forward-looking statements is included in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement. Arhaus, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited, amounts in thousands, except share and per share data) June 30,2025 December 31,2024 Assets Current assets Cash and cash equivalents $ 234,797 $ 197,511 Restricted cash 3,622 3,418 Accounts receivable, net 970 1,252 Merchandise inventory, net 311,117 297,010 Prepaid and other current assets 27,063 31,852 Total current assets 577,569 531,043 Operating right-of-use assets 367,524 322,302 Financing right-of-use assets 34,208 36,105 Property, furniture and equipment, net 303,425 282,520 Deferred tax assets 22,620 21,091 Goodwill 10,961 10,961 Other noncurrent assets 2,069 2,294 Total assets $ 1,318,376 $ 1,206,316 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 70,542 $ 68,621 Accrued taxes 15,602 10,480 Accrued wages 16,413 11,538 Accrued other expenses 43,353 47,668 Client deposits 233,070 220,873 Current portion of operating lease liabilities 55,096 42,247 Current portion of financing lease liabilities 647 1,024 Total current liabilities 434,723 402,451 Operating lease liabilities, long-term 441,945 402,916 Financing lease liabilities, long-term 52,590 53,312 Other long-term liabilities 3,505 3,892 Total liabilities $ 932,763 $ 862,571 Commitments and contingencies Stockholders' equity Class A shares, par value $0.001 per share (600,000,000 shares authorized, 54,400,128 shares issued and 53,859,215 outstanding as of June 30, 2025; 53,788,036 shares issued and 53,514,062 outstanding as of December 31, 2024) 54 53 Class B shares, par value $0.001 per share (100,000,000 shares authorized, 87,115,600 shares issued and outstanding as of June 30, 2025; 87,115,600 shares issued and outstanding as of December 31, 2024) 87 87 Retained earnings 183,047 142,898 Additional paid-in capital 202,425 200,707 Total stockholders' equity 385,613 343,745 Total liabilities and stockholders' equity $ 1,318,376 $ 1,206,316Arhaus, Inc. and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (Unaudited, amounts in thousands, except share and per share data) Six months ended Three months ended June 30, June 30, 2025 2024 2025 2024 Net revenue $ 669,807 $ 604,963 $ 358,435 $ 309,801 Cost of goods sold 405,993 365,537 210,208 185,429 Gross margin 263,814 239,426 148,227 124,372 Selling, general and administrative expenses 211,520 191,684 101,462 94,991 Loss on disposal of assets 108 — — — Income from operations $ 52,186 $ 47,742 $ 46,765 $ 29,381 Interest income, net (1,317 ) (2,038 ) (744 ) (606 ) Other income (236 ) (197 ) (150 ) (75 ) Income before taxes 53,739 49,977 47,659 30,062 Income tax expense 13,791 12,644 12,593 7,828 Net and comprehensive income $ 39,948 $ 37,333 $ 35,066 $ 22,234 Net and comprehensive income per share, basic Weighted-average number of common shares outstanding, basic 140,536,663 139,901,319 140,709,814 139,985,846 Net and comprehensive income per share, basic $ 0.28 $ 0.27 $ 0.25 $ 0.16 Net and comprehensive income per share, diluted Weighted-average number of common shares outstanding, diluted 141,126,879 140,736,096 141,162,310 140,916,161 Net and comprehensive income per share, diluted $ 0.28 $ 0.27 $ 0.25 $ 0.16 Arhaus, Inc. and SubsidiariesCondensed Consolidated Statements of Cash Flows (Unaudited, amounts in thousands) Six months ended June 30, 2025 2024 Cash flows from operating activities Net income $ 39,948 $ 37,333 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 22,959 17,709 Amortization of operating lease right-of-use asset 20,335 17,942 Amortization of deferred financing fees, interest on finance lease in excess of principal paid and interest on operating leases 14,156 13,008 Equity based compensation 3,390 3,351 Deferred tax assets (1,529 ) 4,870 Amortization of cloud computing arrangements 853 762 Loss on disposal of property, furniture and equipment 108 — Amortization and write-off of lease incentives — (80 ) Changes in operating assets and liabilities Accounts receivable 282 850 Merchandise inventory (14,107 ) (19,265 ) Prepaid and other assets 4,398 (11,545 ) Other noncurrent liabilities (172 ) 332 Accounts payable 1,816 4,571 Accrued expenses 4,746 (11,254 ) Operating lease liabilities (27,952 ) (10,740 ) Client deposits 12,197 36,460 Net cash provided by operating activities 81,428 84,304 Cash flows from investing activities Purchases of property, furniture and equipment (41,622 ) (62,158 ) Net cash used in investing activities (41,622 ) (62,158 ) Cash flows from financing activities Principal payments under finance leases (365 ) (448 ) Repurchase of shares for payment of withholding taxes for equity based compensation (1,675 ) (548 ) Cash dividend payments (276 ) (70,056 ) Net cash used in financing activities (2,316 ) (71,052 ) Net increase (decrease) in cash, cash equivalents and restricted cash 37,490 (48,906 ) Cash, cash equivalents and restricted cash Beginning of period 200,929 226,305 End of period $ 238,419 $ 177,399 Supplemental disclosure of cash flow information Interest paid in cash $ 2,513 $ 2,143 Interest received in cash 4,040 5,155 Income taxes paid in cash 13,030 15,815 Noncash investing activities: Purchase of property, furniture and equipment in current liabilities 7,190 12,672 Arhaus, Inc. and SubsidiariesReconciliation of Net Income to Adjusted EBITDA (Unaudited, amounts in thousands) Six months ended Three months ended June 30, June 30, 2025 2024 2025 2024 Net and comprehensive income $ 39,948 $ 37,333 $ 35,066 $ 22,234 Interest income, net (1,317 ) (2,038 ) (744 ) (606 ) Income tax expense 13,791 12,644 12,593 7,828 Depreciation and amortization 22,959 17,709 11,597 9,106 EBITDA 75,381 65,648 58,512 38,562 Equity based compensation 3,390 3,351 1,795 1,327 Other expenses (1) 108 — — — Adjusted EBITDA $ 78,879 $ 68,999 $ 60,307 $ 39,889 Net revenue $ 669,807 $ 604,963 $ 358,435 $ 309,801 Net and comprehensive income as a % of net revenue 6.0 % 6.2 % 9.8 % 7.2 % Adjusted EBITDA as a % of net revenue 11.8 % 11.4 % 16.8 % 12.9 % ___________________________________________________________(1)Other expenses represent costs and investments not indicative of ongoing business performance, such as loss on disposal of in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
