RH Financials
This page shows RH (RH) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 15 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
RH has an operating margin of 10.1%, meaning the company retains $10 of operating profit per $100 of revenue. This results in a moderate score of 45/100, indicating healthy but not exceptional operating efficiency. This is down from 12.1% the prior year.
RH's revenue grew 5.0% year-over-year to $3.2B, a solid pace of expansion. This earns a growth score of 42/100.
RH's current ratio of 1.37 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 23/100, which could limit financial flexibility.
While RH generated $17.1M in operating cash flow, capex of $230.8M consumed most of it, leaving -$213.7M in free cash flow. This results in a low score of 8/100, reflecting heavy capital investment rather than weak cash generation.
RH earns a strong 205.9% return on equity (ROE), meaning it generates $206 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 100/100.
RH scores 1.12, below the 1.81 distress threshold. This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.
RH passes 3 of 9 financial strength tests. 2 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, RH generates $0.24 in operating cash flow ($17.1M OCF vs $72.4M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
RH earns $1.4 in operating income for every $1 of interest expense ($322.6M vs $234.5M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.
Key Financial Metrics
Earnings & Revenue
RH generated $3.2B in revenue in fiscal year 2025. This represents an increase of 5.0% from the prior year.
RH's EBITDA was $452.8M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 6.7% from the prior year.
RH reported $72.4M in net income in fiscal year 2025. This represents a decrease of 43.2% from the prior year.
RH earned $3.62 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 38.7% from the prior year.
Cash & Balance Sheet
RH generated -$213.7M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 218.3% from the prior year.
RH held $46.1M in cash against $35.0M in long-term debt as of fiscal year 2025.
RH had 19M shares outstanding in fiscal year 2025. This represents an increase of 2.3% from the prior year.
Margins & Returns
RH's gross margin was 44.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 1.4 percentage points from the prior year.
RH's operating margin was 10.1% in fiscal year 2025, reflecting core business profitability. This is down 1.9 percentage points from the prior year.
RH's net profit margin was 2.3% in fiscal year 2025, showing the share of revenue converted to profit. This is down 1.9 percentage points from the prior year.
RH's ROE was 205.9% in fiscal year 2025, measuring profit generated per dollar of shareholder equity.
Capital Allocation
RH spent $12.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 99.0% from the prior year.
RH invested $230.8M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 14.3% from the prior year.
RH Income Statement
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $883.8M-1.7% | $899.2M+10.5% | $814.0M+12.2% | $725.4M-10.6% | $811.7M-2.2% | $829.7M+14.1% | $727.0M-3.1% | $750.5M |
| Cost of Revenue | $494.1M+0.9% | $489.9M+6.8% | $458.6M+14.1% | $401.9M-10.8% | $450.4M-1.0% | $454.9M+10.7% | $410.9M+3.2% | $398.0M |
| Gross Profit | $389.7M-4.8% | $409.3M+15.2% | $355.3M+9.8% | $323.5M-10.5% | $361.3M-3.6% | $374.8M+18.6% | $316.0M-10.3% | $352.5M |
| R&D Expenses | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A Expenses | $283.8M+1.2% | $280.4M-6.4% | $299.4M+17.7% | $254.4M-2.1% | $259.9M-6.7% | $278.6M+6.6% | $261.4M+7.3% | $243.6M |
| Operating Income | $105.9M-17.8% | $128.9M+130.5% | $55.9M-19.1% | $69.1M-31.9% | $101.5M+5.6% | $96.1M+75.9% | $54.7M-49.8% | $108.8M |
| Interest Expense | N/A | N/A | N/A | N/A | $57.6M-2.8% | $59.3M+4.4% | $56.8M-30.8% | $82.1M |
| Income Tax | $11.6M-38.9% | $19.0M+508.6% | $3.1M+127.7% | -$11.3M-222.1% | $9.3M+149.0% | $3.7M+277.8% | -$2.1M-117.0% | $12.3M |
| Net Income | $36.3M-29.9% | $51.7M+543.2% | $8.0M+256.8% | $2.3M-93.2% | $33.2M+14.6% | $29.0M+898.7% | -$3.6M-106.4% | $56.9M |
| EPS (Diluted) | $1.83-30.2% | $2.62+555.0% | $0.40 | N/A | $1.66+14.5% | $1.45+825.0% | $-0.20 | N/A |
RH Balance Sheet
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $4.8B+2.1% | $4.7B+1.0% | $4.7B+2.1% | $4.6B+2.0% | $4.5B+2.0% | $4.4B+4.5% | $4.2B+1.0% | $4.1B |
| Current Assets | $1.1B-6.4% | $1.2B-6.1% | $1.3B-0.9% | $1.3B+1.1% | $1.3B+4.8% | $1.2B+9.3% | $1.1B+1.3% | $1.1B |
| Cash & Equivalents | $43.1M+24.7% | $34.6M-25.0% | $46.1M+51.5% | $30.4M-65.0% | $87.0M+11.1% | $78.3M-23.0% | $101.8M-17.7% | $123.7M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $63.1M+3.1% | $61.2M-4.0% | $63.8M+0.5% | $63.5M+0.8% | $63.0M-5.5% | $66.6M+6.1% | $62.8M+14.1% | $55.1M |
| Goodwill | $143.8M0.0% | $143.8M+2.0% | $141.0M0.0% | $140.9M0.0% | $141.0M0.0% | $141.0M0.0% | $141.0M0.0% | $141.0M |
| Total Liabilities | $4.8B+1.1% | $4.7B-0.5% | $4.8B+0.9% | $4.7B+1.5% | $4.6B+0.8% | $4.6B+3.0% | $4.5B+0.8% | $4.4B |
| Current Liabilities | $946.2M-0.8% | $953.9M+2.1% | $934.1M+3.2% | $905.1M+1.0% | $896.3M-11.3% | $1.0B+7.9% | $936.5M+7.3% | $872.9M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $3.3M+108.2% | -$40.9M+63.1% | -$110.8M+32.3% | -$163.6M+10.6% | -$183.0M+22.0% | -$234.7M+19.0% | -$289.9M+2.5% | -$297.4M |
| Retained Earnings | -$414.8M+8.0% | -$451.1M+10.3% | -$502.8M+1.6% | -$510.9M+2.7% | -$524.8M+5.9% | -$557.9M+4.9% | -$586.9M-0.6% | -$583.3M |
RH Cash Flow Statement
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $131.9M-4.2% | $137.7M+58.9% | $86.6M+561.5% | -$18.8M+40.3% | -$31.4M-381.3% | $11.2M-80.1% | $56.1M+149.3% | -$114.0M |
| Capital Expenditures | $48.8M-14.3% | $57.0M+8.4% | $52.6M+3.3% | $50.9M-21.2% | $64.6M+31.5% | $49.1M-25.9% | $66.3M-51.8% | $137.5M |
| Free Cash Flow | $83.0M+2.9% | $80.7M+136.8% | $34.1M+148.9% | -$69.7M+27.4% | -$96.0M-153.3% | -$37.9M-274.1% | -$10.1M+96.0% | -$251.5M |
| Investing Cash Flow | -$47.9M+46.2% | -$89.1M-97.8% | -$45.0M+11.5% | -$50.9M+21.4% | -$64.8M-16.0% | -$55.8M+19.0% | -$68.9M+51.2% | -$141.3M |
| Financing Cash Flow | -$75.4M-25.2% | -$60.2M-123.1% | -$27.0M-295.3% | $13.8M-86.8% | $104.9M+404.8% | $20.8M+333.0% | -$8.9M-91.9% | -$4.6M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | $0 | N/A | N/A | N/A | $0 |
RH Financial Ratios
| Metric | Q3'26 | Q2'26 | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 44.1%-1.4pp | 45.5%+1.9pp | 43.7%-0.9pp | 44.6%+0.1pp | 44.5%-0.7pp | 45.2%+1.7pp | 43.5%-3.5pp | 47.0% |
| Operating Margin | 12.0%-2.3pp | 14.3%+7.5pp | 6.9%-2.7pp | 9.5%-3.0pp | 12.5%+0.9pp | 11.6%+4.1pp | 7.5%-7.0pp | 14.5% |
| Net Margin | 4.1%-1.7pp | 5.8%+4.8pp | 1.0%+0.7pp | 0.3%-3.8pp | 4.1%+0.6pp | 3.5%+4.0pp | -0.5%-8.1pp | 7.6% |
| Return on Equity | 1083.8% | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Return on Assets | 0.8%-0.3pp | 1.1%+0.9pp | 0.2%+0.1pp | 0.1%-0.7pp | 0.7%+0.1pp | 0.7%+0.8pp | -0.1%-1.5pp | 1.4% |
| Current Ratio | 1.19-0.1 | 1.26-0.1 | 1.37-0.1 | 1.430.0 | 1.43+0.2 | 1.21+0.0 | 1.19-0.1 | 1.26 |
| Debt-to-Equity | 1431.68+1547.5 | -115.84-72.9 | -42.98-14.1 | -28.84-3.4 | -25.39-5.7 | -19.65-4.2 | -15.44-0.5 | -14.93 |
| FCF Margin | 9.4%+0.4pp | 9.0%+4.8pp | 4.2%+13.8pp | -9.6%+2.2pp | -11.8%-7.3pp | -4.6%-3.2pp | -1.4%+32.1pp | -33.5% |
Note: Shareholder equity is negative (-$110.8M), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.
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Frequently Asked Questions
What is RH's annual revenue?
RH (RH) reported $3.2B in total revenue for fiscal year 2025. This represents a 5.0% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is RH's revenue growing?
RH (RH) revenue grew by 5% year-over-year, from $3.0B to $3.2B in fiscal year 2025.
Is RH profitable?
Yes, RH (RH) reported a net income of $72.4M in fiscal year 2025, with a net profit margin of 2.3%.
What is RH's EBITDA?
RH (RH) had EBITDA of $452.8M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does RH have?
As of fiscal year 2025, RH (RH) had $46.1M in cash and equivalents against $35.0M in long-term debt.
What is RH's gross margin?
RH (RH) had a gross margin of 44.5% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is RH's operating margin?
RH (RH) had an operating margin of 10.1% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is RH's net profit margin?
RH (RH) had a net profit margin of 2.3% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is RH's return on equity (ROE)?
RH (RH) has a return on equity of 205.9% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is RH's free cash flow?
RH (RH) generated -$213.7M in free cash flow during fiscal year 2025. This represents a -218.3% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is RH's operating cash flow?
RH (RH) generated $17.1M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are RH's total assets?
RH (RH) had $4.7B in total assets as of fiscal year 2025, including both current and long-term assets.
What are RH's capital expenditures?
RH (RH) invested $230.8M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
What is RH's current ratio?
RH (RH) had a current ratio of 1.37 as of fiscal year 2025, which is considered adequate.
What is RH's debt-to-equity ratio?
RH (RH) had a debt-to-equity ratio of -42.98 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is RH's return on assets (ROA)?
RH (RH) had a return on assets of 1.6% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
Why is RH's debt-to-equity ratio negative or unusual?
RH (RH) has negative shareholder equity of -$110.8M as of fiscal year 2025, which causes the debt-to-equity ratio to appear negative or not meaningful. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.
What is RH's Altman Z-Score?
RH (RH) has an Altman Z-Score of 1.12, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is RH's Piotroski F-Score?
RH (RH) has a Piotroski F-Score of 3 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are RH's earnings high quality?
RH (RH) has an earnings quality ratio of 0.24x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can RH cover its interest payments?
RH (RH) has an interest coverage ratio of 1.4x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is RH?
RH (RH) scores 43 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.