RH earnings analysis
What we found in RH's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
RH's Q1 2026 results show revenues of $800 million, slightly below the $814 million from Q1 2025, representing a decline. However, the company reported a smaller loss per share of $1.97 compared to a loss of $2.04 estimated by analysts. The preliminary outlook indicates ongoing challenges although there is some growth in hospitality revenue.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Decline
- Total revenue decreased by $14 million, or 1.7%, to $800 million compared to $814 million in Q1 2025.
- Net Loss Improvement
- Diluted EPS recorded a loss of $1.97, an improvement from the estimated $2.04 loss.
- Cash Flow Positive
- Net cash provided by operating activities was $52.5 million compared to $86.6 million in Q1 2025.
- Adjusted Capital Expenditures
- Adjusted capital expenditures increased to $77.8 million from $70.4 million in Q1 2025.
- Segment Performance in Hospitality
- Hospitality revenue increased due to new Gallery openings, partially offsetting the decline in core business revenue.
- Legal Settlement Benefit
- A $32 million favorable legal settlement affecting selling, general and administrative expenses helped mitigate loss.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Decreased Revenue in Core Segment
- RH Segment net revenues fell by $13 million, or 1.7%, signaling ongoing challenges in the core business.
- Margins Under Pressure
- Gross margin decreased to 41.4%, down 230 basis points from Q1 2025.
- High Debt Levels
- Total debt increased to $2.42 billion, raising concerns regarding financial leverage and interest payment obligations.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-1.97
- Gross margin
- 41.4%
- Operating margin
- 4.3%
- Segment
- RH Segment: $752 million
- Segment
- Waterworks Segment: $48 million
What they said about what is next.
Management noted ongoing headwinds from macroeconomic factors without providing specific numerical guidance.
The filing reads about the same as the one before it.
What came before.
- 10-K · April 1, 2026
- RH reported significant financial growth for fiscal year 2025, with net revenues of $3.44 billion, an 8.1% increase from fiscal 2024. However, it faced challenges with a decline in margins due to increased costs and…
- 10-Q · December 11, 2025
- RH reported a revenue increase of 8.9% to $883.8 million in Q3 2025, though it experienced an EPS decline to $1.71 from $1.66 in the prior quarter. Segment performance reflected growth in both the RH core business and…
- 10-Q · September 11, 2025
- RH reported Q2 2025 revenue of $899 million, a significant increase from $830 million in Q2 2024, reflecting a 8.4% growth year-over-year. However, EPS came in lower than expectations at $2.93 compared to $3.21…
- 10-Q · June 12, 2025
- RH reported significant improvement in its Q1 2025 performance with revenues of $814M, a 12.0% increase from the prior year, though slightly below the analyst consensus. The company returned to profitability with an EPS…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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