RH reported its financial results for the second quarter of 2025, noting an 8.4% increase in GAAP net revenues, reaching $899.2 million. The company also saw a significant rise in GAAP net income, which increased by 79% to $51.7 million. The GAAP operating margin was reported at 14.3%, while the adjusted operating margin was slightly higher at 15.1%. The EBITDA margin stood at 18.1%, with an adjusted EBITDA margin of 20.6%. Additionally, RH generated a free cash flow of $80.7 million during the quarter. The company experienced a demand increase of 13.7%, despite facing challenges related to tariff uncertainty and a difficult housing market. On a two-year basis, RH's revenues increased by 12% with a 21% rise in demand, indicating notable share gains. As part of its strategic plans, RH expects a 5.4-point variance between demand and revenues due to tariff disruptions to be realized as revenues over the second half of 2025. The company's adjusted operating margin and adjusted EBITDA margin each increased by 340 basis points compared to the previous year, including a 170 basis point impact from investments aimed at supporting long-term European expansion.