ARHS — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-11-05

• The Company has received $37.8 million in tariff refunds and $1.3 million in interest as of September 30, 2026.

• During the nine and three months ended September 30, 2026, the Company recognized a benefit of $36.3 million and $12.5 million, respectively, for the recovery of IEEPA tariffs paid, primarily related to other merchandise inventory costs in cost of goods sold within the condensed consolidated stateme…

• New Showrooms contribute incremental expense, new Showroom opening expense and net revenue to the Company. Our recent Showroom growth from January 1, 2025 to September 30, 2026 is summarized in the following table:

• As a percentage of net revenue, gross margin increased 50 basis points to 39.2% of net revenue in the three months ended September 30, 2026 compared to 38.7% of net revenue in the three months ended September 30, 2025. The gross margin increase as a percentage of net revenue was primarily driven by …

• As a percentage of net revenue, SG&A expenses increased 250 basis points to 36.5% of net revenue in the three months ended September 30, 2026 compared to 34.0% of net revenue in the three months ended September 30, 2025.

Text removed vs the prior filing · source: 10-Q · 2026-08-06

• The Company has requested refunds of $37.8 million for IEEPA tariffs previously paid and believes recovery is probable. As of June 30, 2026, the Company recognized a receivable of $32.7 million, which is included in prepaid and other current assets within the condensed consolidated balance sheets. A…

• During the six and three months ended June 30, 2026, the Company recognized a benefit of $23.8 million for the recovery of IEEPA tariffs paid, of which $15.5 million related to inventory sold prior to April 2026 and $8.3 million related to inventory sold during the quarter, in cost of goods sold wit…

• As of June 30, 2026, the Company recorded $14.0 million primarily related to the reductions in inventory costs in merchandise inventory, net within the condensed consolidated balance sheets.

• As of August 6, 2026, the Company has received $37.8 million in tariff refunds and $1.3 million in interest.

• New Showrooms contribute incremental expense, new Showroom opening expense and net revenue to the Company. Our recent Showroom growth from January 1, 2025 to June 30, 2026 is summarized in the following table:

Text removed vs the prior filing · source: 10-Q · 2026-08-06

• ability to successfully recover any impact of inflation through price increases in the future. We currently do not use derivative instruments to manage this risk.

Text added vs the prior filing · source: 10-Q · 2026-11-05

• With the oversight of senior management and our Audit Committee, we continue to assess, implement and redesign our ICFR. Although the material weaknesses existing as of September 30, 2026 cannot be considered remediated until the

• related controls have operated effectively for a sufficient period of time and have been tested, we have made meaningful progress and continue to execute our remediation plan, including:

Text removed vs the prior filing · source: 10-Q · 2026-08-06

• monitored and data backups are authorized and monitored; and (iv) testing and approval controls for program development to ensure that new software development is aligned with business and IT requirements.

• As of June 30, 2026, the previously disclosed material weakness related to not designing and maintaining effective controls to address the identification of and accounting for certain non-routine or complex transactions, including the proper application of U.S. GAAP of such transactions was remediat…

• •Hired and retained personnel with the knowledge and experience to identify and account for non-routine or complex transactions, including the proper application of U.S. GAAP to such transactions.

• •Enhanced company policies related to review of significant contracts prior to execution for critical accounting terms.

• •Enhanced controls over non-routine or complex transactions to ensure a complete and accurate population of transactions to validate proper application of U.S. GAAP for such transactions.

Text added vs the prior filing · source: 10-Q · 2026-11-05

• On August 25, 2026, John Reed, director and Chief Executive Officer, adopted a Rule 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for the sale of up to 1,000,000 shares of the Company’s Class A common stock beginning December 1, 2026. The arrangemen…

• On August 25, 2026, certain Reed family trusts, of which director Albert Adams and former director William Beargie are trustees, also adopted a 10b5-1 trading arrangement that is intended to satisfy the affirmative defense of Rule 10b5-1(c) for

• the sale of up to 1,000,000 additional shares of the Company’s Class A common stock beginning December 1, 2026. The arrangement’s expiration date is also August 3, 2027.