---
schema_version: "secwatch.filing_event.v1"
accession: "0001875444-24-000013"
form_type: "8-K"
ticker: "ARHS"
cik: "0001875444"
company_name: "Arhaus, Inc."
filed_at: "2024-03-06T23:59:59+00:00"
generated_at: "2026-06-05T03:00:51.305474+00:00"
event_type: "other_material"
sentiment: "negative"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

# Arhaus restates Q3 2023 financials on leasehold classification error; non-reliance issued

## Summary
- Audit Committee concluded Q3 2023 10-Q should no longer be relied upon due to misclassification of leasehold improvements.
- Prepaid assets overstated by $26.4M; property, furniture & equipment understated by same amount.
- Operating cash flow increased by $14.5M and investing cash flow decreased by $14.5M in the restatement.
- Errors stem from previously disclosed material weaknesses in internal control over financial reporting.
- Company will amend Q3 2023 10-Q and revise 2023, 2022, and 2021 annual financials.

## SEC filing metadata
- accession: 0001875444-24-000013
- form_type: 8-K
- ticker: ARHS
- cik: 0001875444
- company_name: Arhaus, Inc.
- filed_at: 2024-03-06T23:59:59+00:00
- event_type: other_material
- sentiment: negative
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 4.02
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1875444/000187544424000013/0001875444-24-000013-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1875444/000187544424000013/arhs-20240229.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001875444-24-000013
- JSON: https://secwatch.observer/filing/0001875444-24-000013.json
- Plain text: https://secwatch.observer/filing/0001875444-24-000013.txt

## Key facts
- Auditor Changes
  Arhaus, Inc. reported that prior financial statements should not be relied upon.
  - Action: non reliance
  source text: On February 29, 2024, the Audit Committee (the "Audit Committee") of the Board of Directors of Arhaus, Inc. (the “Company”), after discussion with management, concluded that the Company's previously issued unaudited condensed consolidated financial statements included in the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2023 (the “Q3 Form 10-Q” and such period, the “Affected Period”), filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 2, 2023, should no longer be relied upon due to the errors described below and should be restated.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1875444/000187544424000013/0001875444-24-000013-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.