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RH Financials

RH
Source SEC Filings (10-K/10-Q) Updated Jan 31, 2026 Currency USD FYE January

This page shows RH (RH) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 16 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).

Rhea AI RH FY2026

RH’s recovery is mainly a cash-flow rebound, while a lower-margin, interest-heavy structure still restrains earnings.

Net income was only $124.8M, but operating cash flow reached $452.2M, showing much stronger cash conversion than earnings alone imply. And the striking ROE of 205.9% is mostly a math effect of equity being just $60.6M, so equity-based return metrics now exaggerate the business’s apparent earning power.

The business recovered sales over the last two years, but gross margin stayed well below its earlier peak at 44.1% versus 50.5%; the rebound did not rebuild the old economics of each sale. Because operating profitability also remains thinner, the company’s recent growth is not dropping through at the same rate as before, pointing to a changed margin structure rather than a simple temporary dip.

With operating income of $387.3M against interest expense of $228.2M, much of operating profit is already committed before taxes. That helps explain why a real recovery in cash generation still produced only $124.8M of net income, and why improved operations are currently rebuilding financial flexibility more than expanding the earnings cushion.

[ NOT FINANCIAL ADVICE ]

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 40 / 100
Financial Profile 40/100

Based on FY2026 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →

Health score ≠ stock price. This rates the quality of RH's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.

Profitability
47

RH has an operating margin of 11.3%, meaning the company retains $11 of operating profit per $100 of revenue. This results in a moderate score of 47/100, indicating healthy but not exceptional operating efficiency. This is up from 10.1% the prior year.

Growth
44

RH's revenue grew 8.1% year-over-year to $3.4B, a solid pace of expansion. This earns a growth score of 44/100.

Leverage
0

RH has elevated debt relative to equity (D/E of 78.80), meaning the company relies heavily on borrowed funds. This high leverage results in a low score of 0/100, reflecting increased financial risk.

Liquidity
19

RH's current ratio of 1.19 is below the typical benchmark, resulting in a score of 19/100. This tight liquidity could limit financial flexibility if cash inflows slow.

Cash Flow
28

RH's free cash flow margin of 7.3% results in a low score of 28/100. Capital expenditures of $199.8M absorb a large share of operating cash flow.

Returns
100

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.

Altman Z-Score Distress
1.21

RH scores 1.21, below the 1.81 distress threshold. This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.

Piotroski F-Score Neutral
5/9

RH passes 5 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.

Earnings Quality Cash-Backed
3.62x

For every $1 of reported earnings, RH generates $3.62 in operating cash flow ($452.2M OCF vs $124.8M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage At Risk
1.7x

RH earns $1.7 in operating income for every $1 of interest expense ($387.3M vs $228.2M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.

Key Financial Metrics

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Earnings & Revenue

Revenue
$3.4B
YoY+8.1%
5Y CAGR+3.8%
10Y CAGR+5.0%

RH generated $3.4B in revenue in fiscal year 2026. This represents an increase of 8.1% from the prior year.

EBITDA
$535.8M
YoY+18.3%
5Y CAGR-1.1%
10Y CAGR+8.8%

RH's EBITDA was $535.8M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 18.3% from the prior year.

Net Income
$124.8M
YoY+72.4%
5Y CAGR-14.4%
10Y CAGR+3.2%

RH reported $124.8M in net income in fiscal year 2026. This represents an increase of 72.4% from the prior year.

EPS (Diluted)
$6.31
YoY+74.3%
5Y CAGR-8.7%
10Y CAGR+11.3%

RH earned $6.31 per diluted share (EPS) in fiscal year 2026. This represents an increase of 74.3% from the prior year.

Cash & Balance Sheet

Free Cash Flow
$252.4M
YoY+218.1%
5Y CAGR-8.3%
10Y CAGR+42.6%

RH generated $252.4M in free cash flow in fiscal year 2026, representing cash available after capex. This represents an increase of 218.1% from the prior year.

Cash & Debt
$41.2M
YoY-10.6%
5Y CAGR-29.1%
10Y CAGR-16.0%

RH held $41.2M in cash against $0 in long-term debt as of fiscal year 2026.

Dividends Per Share
N/A
Shares Outstanding
19M
YoY+0.6%
5Y CAGR-2.2%
10Y CAGR-7.4%

RH had 19M shares outstanding in fiscal year 2026. This represents an increase of 0.6% from the prior year.

Margins & Returns

Gross Margin
44.1%
YoY-0.4pp
5Y CAGR-2.5pp
10Y CAGR+8.4pp

RH's gross margin was 44.1% in fiscal year 2026, indicating the percentage of revenue retained after direct costs. This is down 0.4 percentage points from the prior year.

Operating Margin
11.3%
YoY+1.1pp
5Y CAGR-5.1pp
10Y CAGR+2.5pp

RH's operating margin was 11.3% in fiscal year 2026, reflecting core business profitability. This is up 1.1 percentage points from the prior year.

Net Margin
3.6%
YoY+1.3pp
5Y CAGR-5.9pp
10Y CAGR-0.7pp

RH's net profit margin was 3.6% in fiscal year 2026, showing the share of revenue converted to profit. This is up 1.3 percentage points from the prior year.

Return on Equity
205.9%
5Y CAGR+160.2pp
10Y CAGR+195.6pp

RH's ROE was 205.9% in fiscal year 2026, measuring profit generated per dollar of shareholder equity.

Capital Allocation

R&D Spending
N/A
Share Buybacks
N/A
Capital Expenditures
$199.8M
YoY-13.4%
5Y CAGR+12.5%
10Y CAGR+5.3%

RH invested $199.8M in capex in fiscal year 2026, funding long-term assets and infrastructure. This represents a decrease of 13.4% from the prior year.

RH Income Statement

Metric Q4'26 Q3'26 Q2'26 Q1'26 Q4'25 Q3'25 Q2'25 Q1'25
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+258.7% $2.2M-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 Q4'26 Q3'26 Q2'26 Q1'26 Q4'25 Q3'25 Q2'25 Q1'25
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 Q4'26 Q3'26 Q2'26 Q1'26 Q4'25 Q3'25 Q2'25 Q1'25
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 Q4'26 Q3'26 Q2'26 Q1'26 Q4'25 Q3'25 Q2'25 Q1'25
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%

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Frequently Asked Questions

RH (RH) reported $3.4B in total revenue for fiscal year 2026. This represents a 8.1% 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.

RH (RH) revenue grew by 8.1% year-over-year, from $3.2B to $3.4B in fiscal year 2026.

Yes, RH (RH) reported a net income of $124.8M in fiscal year 2026, with a net profit margin of 3.6%.

RH (RH) reported diluted earnings per share of $6.31 for fiscal year 2026. This represents a 74.3% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

RH (RH) had EBITDA of $535.8M in fiscal year 2026, measuring earnings before interest, taxes, depreciation, and amortization.

RH (RH) had a gross margin of 44.1% in fiscal year 2026, indicating the percentage of revenue retained after direct costs of goods sold.

RH (RH) had an operating margin of 11.3% in fiscal year 2026, reflecting the profitability of core business operations before interest and taxes.

RH (RH) had a net profit margin of 3.6% in fiscal year 2026, representing the share of revenue converted into profit after all expenses.

RH (RH) has a return on equity of 205.9% for fiscal year 2026, measuring how efficiently the company generates profit from shareholder equity.

RH (RH) generated $252.4M in free cash flow during fiscal year 2026. This represents a 218.1% 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.

RH (RH) generated $452.2M in operating cash flow during fiscal year 2026, representing cash generated from core business activities.

RH (RH) had $4.8B in total assets as of fiscal year 2026, including both current and long-term assets.

RH (RH) invested $199.8M in capital expenditures during fiscal year 2026, funding long-term assets and infrastructure.

RH (RH) had 19M shares outstanding as of fiscal year 2026.

RH (RH) had a current ratio of 1.19 as of fiscal year 2026, which is considered adequate.

RH (RH) had a debt-to-equity ratio of 78.80 as of fiscal year 2026, measuring the company's financial leverage by comparing total debt to shareholder equity.

RH (RH) had a return on assets of 2.6% for fiscal year 2026, measuring how efficiently the company uses its assets to generate profit.

RH (RH) has an Altman Z-Score of 1.21, 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.

RH (RH) has a Piotroski F-Score of 5 out of 9, indicating neutral 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 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

RH (RH) has an earnings quality ratio of 3.62x, considered cash-backed (high quality). 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.

RH (RH) has an interest coverage ratio of 1.7x, 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.

RH (RH) scores 40 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.

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