RH announced its financial results for the third quarter and nine months ended November 1, 2025, reporting continued revenue growth, improved profitability, and strong cash flow generation.
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For the third quarter, RH achieved net revenues of $883.8 million, a 9% increase compared with $811.7 million in the same period last year. Gross profit remained strong at $389.7 million, representing 44.1% of net revenues, while operating income rose to $105.9 million, or 12% of revenues, slightly higher than the $101.5 million recorded in the prior-year period. Net income increased to $36.3 million, up from $33.2 million, resulting in basic and diluted earnings per share of $1.93 and $1.79, respectively. The company generated $131.9 million in cash from operations during the quarter, which, after capital expenditures of $48.8 million, translated into free cash flow of $83.0 million.
Year-to-date results for the nine months ended November 1, 2025, continued the positive trend, with net revenues of $2.60 billion, up 10% from $2.37 billion in the same period in 2024. Gross profit reached $1.15 billion, representing 44.5% of revenues, while operating income totaled $290.7 million, or 11.2% of revenues. Net income grew significantly to $96.0 million compared with $58.5 million in the prior-year period. Free cash flow for the nine months was $197.8 million, reflecting $356.2 million in cash from operations less $158.4 million in capital expenditures. Adjusted capital expenditures, including landlord construction net of tenant allowances, were $67.0 million for the quarter and $223.1 million for the nine-month period.
On the balance sheet, RH held $43.1 million in cash and cash equivalents at the end of the third quarter, up from $30.4 million at the beginning of the period, with total assets of $4.79 billion and total liabilities of $4.79 billion. Stockholders' equity stood at $3.3 million, reflecting ongoing leverage management. The company continues to focus on disciplined capital allocation, operational efficiency, and sustainable growth, while adjusted financial measures such as adjusted net income and adjusted capital expenditures provide insight into underlying performance.
RH remains committed to delivering value to shareholders and maintaining strong liquidity as it navigates a dynamic market environment.
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