Executive Summary
Rh delivered a solid QQ2 2025 performance, with revenue of $899.2 million, up 8.38% year over year and 10.47% quarter over quarter. The topline strength was accompanied by meaningful margin progression, with gross margin improving to approximately 45.5% in Q2 2025 versus prior periods, aided by favorable product mix and price realization. EBITDA stood at $128.9 million, yielding an EBITDA margin of about 14.3% and contributing to operating income of $128.9 million (12.9% of revenue). Net income reached $51.7 million, or roughly 5.75% of revenue, yielding basic and diluted earnings per share of $2.76 and $2.62, respectively, on about 18.7 million weighted-average shares outstanding (diluted ~19.7 million).
Despite a positive bottom line, Rh incurred negative other income of $56.8 million and interest expense of $57.4 million, which weigh on pre-tax profitability. After tax, Rh still generated a healthy net income, underscoring the durability of its core operating model. Management commentary (where available) focused on the ongoing investments in brand-building, multi-channel expansion (Gallery, Source Books, and e-commerce), and ongoing cost discipline to support premium positioning. The company maintained a disciplined cadence of quarterly results with a robust YoY growth trajectory, while QoQ momentum suggests continued demand for premium home furnishings in Rh’s target segments.
Key Performance Indicators
QoQ: 130.50% | YoY:34.07%
QoQ: 543.21% | YoY:78.60%
QoQ: 541.86% | YoY:75.80%
Key Insights
Revenue: $899.151 million; YoY +8.38%; QoQ +10.47%
Gross Profit: $409.259 million; YoY +9.21%; QoQ +15.18%
Gross Margin: 45.52% (approximate, based on reported gross profit and revenue)
Operating Income: $128.876 million; YoY +34.07%; QoQ +130.50%
EBITDA: $128.876 million; EBITDA Margin ~14.33%
Total Other Income/Expenses, Net: -$56.784 million
Income Before Tax: $72.092 million; Tax Expense: $19.032 million; Effective Tax ~26.4%
Net Income: $51.708 million; Net Margin ~5.75%
EPS (Diluted): $2.6...
Financial Highlights
Revenue: $899.151 million; YoY +8.38%; QoQ +10.47%
Gross Profit: $409.259 million; YoY +9.21%; QoQ +15.18%
Gross Margin: 45.52% (approximate, based on reported gross profit and revenue)
Operating Income: $128.876 million; YoY +34.07%; QoQ +130.50%
EBITDA: $128.876 million; EBITDA Margin ~14.33%
Total Other Income/Expenses, Net: -$56.784 million
Income Before Tax: $72.092 million; Tax Expense: $19.032 million; Effective Tax ~26.4%
Net Income: $51.708 million; Net Margin ~5.75%
EPS (Diluted): $2.62; EPS (Basic): $2.76
Weighted Avg Shares Outstanding: 18.737 million; Diluted: 19.737 million
Interest Expense: $57.358 million
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
899.15M |
8.38% |
10.47% |
| Gross Profit |
409.26M |
9.21% |
15.18% |
| Operating Income |
128.88M |
34.07% |
130.50% |
| Net Income |
51.71M |
78.60% |
543.21% |
| EPS |
2.76 |
75.80% |
541.86% |
Management Commentary
No earnings call transcript data provided in the materials. Unable to extract management quotes or thematic insights from a transcript.
No transcript data available in the provided materials.
— N/A
No transcript data available in the provided materials.
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Forward Guidance
No explicit forward guidance was disclosed in the supplied materials for QQ3/Q3 2025 and beyond. Given Rh’s premium positioning and multi-channel approach, near-term growth will likely hinge on continued strength in consumer discretionary spending, continued premiumization of product mix, and ongoing investments in brand and omnichannel capabilities. Investors should monitor trends in potential operating leverage from fixed-cost absorption, any changes to working capital dynamics, and management commentary on capital allocation and store/brand investments in future communications.