Arhaus, Inc.

Previous wording

The following discussion contains references to the three months ended June 30, 2026 and June 30, 2025, which represents the condensed consolidated financial results of Arhaus, Inc. and subsidiaries for the three months ended June 30, 2026 and June 30, 2025, respectively.

Current wording

The following discussion contains references to thenine and three months ended September 30, 2026 and September 30, 2025, which represents the condensed consolidated financial results of Arhaus, Inc. and subsidiaries for thenine and three months ended September 30, 2026 and September 30, 2025, respectively.

Previous wording

For the six months ended June 30, 2026, we generated $699.2 million of net revenue, $286.5 million of gross margin and $41.9 million of net and comprehensive income. For the three months ended June 30, 2026, we generated $384.9 million of net revenue, $172.1 million of gross margin, and $39.6 million of net and comprehensive income.

Current wording

For the nine months ended September 30, 2026, we generated $1,067.3 million of net revenue, $430.9 million of gross margin and $49.7 million of net and comprehensive income. For the three months ended September 30, 2026, we generated $368.1 million of net revenue, $144.4 million of gross margin, and $7.8 million of net and comprehensive income.

Previous wording

Net Revenue and Written Sales (Formerly “Demand”). Net revenue is recognized when a client obtains control of the merchandise. We also track written sales in our business which is a key performance indicator linked to the level of client orders placed. Written sales is an operating metric that we use to measure the dollar value of orders (based on purchase price) at the time the order is placed, net of the dollar value of cancellations and returns (based on unpaid purchase price and amount credited to client). These orders are recognized as net revenue when a client obtains control of the merchandise. Because written sales is measured net of cancellations, all written sales will eventually become net revenue, with appropriate reserves, when delivered to the client.

Current wording

Net Revenue and Written Sales. Net revenue is recognized when a client obtains control of the merchandise. We also track written sales in our business which is a key performance indicator linked to the level of client orders placed. Written sales is an operating metric that we use to measure the dollar value of orders (based on purchase price) at the time the order is placed, net of the dollar value of cancellations and returns (based on unpaid purchase price and amount credited to client). These orders are recognized as net revenue when a client obtains control of the merchandise. Because written sales is measured net of cancellations, all written sales will eventually become net revenue, with appropriate reserves, when delivered to the client.

Previous wording

Comparable Delivered Sales (Formerly “Comparable Growth”). Comparable Delivered Sales is the year-over-year percentage change of the dollar value of orders delivered (based on purchase price), net of the dollar value of returns (based on amount credited to client), from comparable Showrooms and eCommerce, including through our catalogs and other mailings. This metric is a key performance indicator used by management to evaluate Showroom performance for locations that have been opened for at least 15 consecutive months, which enables management to view the performance of those Showrooms without the dollar value of orders delivered for new Showrooms being included. Comparable Showrooms are defined as permanent Showrooms open for at least 15 consecutive months, including relocations in the same market. Showrooms record written sales immediately upon opening, while orders delivered take additional time because product must be delivered to the client. The dollar value of orders delivered for Loft comparable locations is included.

Current wording

Comparable Delivered Sales. Comparable Delivered Sales is the year-over-year percentage change of the dollar value of orders delivered (based on purchase price), net of the dollar value of returns (based on amount credited to client), from comparable Showrooms and eCommerce, including through our catalogs and other mailings. This metric is a key performance indicator used by management to evaluate Showroom performance for locations that have been opened for at least 15 consecutive months, which enables management to view the performance of those Showrooms without the dollar value of orders delivered for new Showrooms being included. Comparable Showrooms are defined as permanent Showrooms open for at least 15 consecutive months, including relocations in the same market. Showrooms record written sales immediately upon opening, while orders delivered take additional time because product must be delivered to the client. The dollar value of orders delivered for Loft comparable locations is included.

Previous wording

Comparable Written Sales (Formerly “Demand Comparable Growth”). Comparable Written Sales is the year-over-year percentage change in written sales from our comparable Showrooms and eCommerce, including through our catalogs and other mailings. This metric is a key performance indicator used by management to evaluate Showroom performance for locations that have been opened for at least 13 consecutive months, which enables management to view the performance of those Showrooms without new Showroom written sales. For Comparable Written Sales, comparable Showrooms are defined as permanent Showrooms open for at least 13 consecutive months, including relocations in the same market. The dollar value of orders written for Loft comparable locations is included.

Current wording

Comparable Written Sales. Comparable Written Sales is the year-over-year percentage change in written sales from our comparable Showrooms and eCommerce, including through our catalogs and other mailings. This metric is a key performance indicator used by management to evaluate Showroom performance for locations that have been opened for at least 13 consecutive months, which enables management to view the performance of those Showrooms without new Showroom written sales. For Comparable Written Sales, comparable Showrooms are defined as permanent Showrooms open for at least 13 consecutive months, including relocations in the same market. The dollar value of orders written for Loft comparable locations is included.

Previous wording

(1)Other expenses represent costs and investments not indicative of ongoing business performance, such as loss on disposal of assets.

Current wording

(1)Other expenses (income) represent costs and investments not indicative of ongoing business performance, such as loss (gain) on disposal of assets.

Previous wording

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

Current wording

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

Previous wording

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 within the condensed consolidated statements of comprehensive income.

Current wording

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 statements of comprehensive income. As of September 30, 2026, the Company recorded $1.5 million related to the reduction in inventory costs in merchandise inventory, net within the condensed consolidated balance sheets.

Previous wording

Net revenue increased $29.4 million, or 4.4%, to $699.2 million in the six months ended June 30, 2026 compared to $669.8 million in thesix months ended June 30, 2025. The increase was driven primarily by $20.2 million of revenue growth related to new Showrooms opened in 2026 and 2025, with the remainder due to increased demand for our products.

Current wording

Net revenue increased $52.9 million, or 5.2%, to $1,067.3 million in the nine months ended September 30, 2026 compared to $1,014.4 million in the nine months ended September 30, 2025. The increase was driven primarily by $33.8 million of revenue growth related to new Showrooms opened in 2026 and 2025, with the remainder due to increased demand for our products.

Previous wording

Gross margin increased $22.7 million, or 8.6%, to $286.5 million in the six months ended June 30, 2026 compared to $263.8 million in the six months ended June 30, 2025. The increase was primarily driven by higher net revenue and the benefit related to recoveries of IEEPA tariffs of $23.8 million, partially offset by increased product costs of $20.5 million, higher Showroom occupancy costs of $5.3 million, higher fuel costs of $3.9 million, and higher credit card fees of $1.6 million.

Current wording

Gross margin increased $33.7 million, or 8.5%, to $430.9 million in the nine months ended September 30, 2026 compared to $397.2 million in the nine months ended September 30, 2025. The increase was primarily driven by higher net revenue and the benefit related to recoveries of IEEPA tariffs of $8.8 million for inventory sold prior to January 1, 2026, partially offset by higher Showroom occupancy costs of $11.7 million, increased product costs of $9.2 million, higher fuel costs of $6.2 million, and higher credit card fees of $2.1 million.

Previous wording

As a percentage of net revenue, gross margin increased 160 basis points to 41.0%of net revenue in thesix months ended June 30, 2026 compared to 39.4% of net revenue in thesix months ended June 30, 2025. The gross margin increase was primarily driven by the benefit related to recoveries of IEEPA tariffs, which contributed 340 basis points, partially offset by higher product costs, which increased by 140 basis points, higher fuel costs, which increased by 50 basis points, Showroom occupancy costs, which increased by 40 basis points, and credit card fees, which increased by 10 basis points.

Current wording

As a percentage of net revenue, gross margin increased 120 basis points to 40.4% of net revenue in the nine months ended September 30, 2026 compared to 39.2% of net revenue in the nine months ended September 30, 2025. The gross margin increase as a percentage of net revenue was primarily driven by favorable products costs, which contributed 90 basis points, favorable delivery costs, which contributed 90 basis points, the benefit related to the recoveries of IEEPA tariffs, which contributed 80 basis points, partially offset by higher fuel costs, which increased by 60 basis points, Showroom occupancy costs, which increased by 60 basis points, and credit card fees, which increased by 10 basis points.

Previous wording

SG&A expenses increased $18.5 million, or 8.7%, to $230.0 million in the six months ended June 30, 2026 compared to $211.5 million in the six months ended June 30, 2025. The increase was primarily due to a $10.3 million increase in general and administrative costs related to strategic investments to support and drive the growth of the business, including technology improvements, and other corporate expenses and a $8.2 million increase in selling expenses primarily related to new Showrooms and increased demand for our products.

Current wording

SG&A expenses increased $35.8 million, or 10.9%, to $364.3 million in the nine months ended September 30, 2026 compared to $328.5 million in the nine months ended September 30, 2025. The increase was primarily due to a $20.8 million increase in general and administrative costs related to strategic investments to support and drive the growth of the business, including technology improvements, marketing initiatives and other corporate expenses, and a $15.0 million increase in selling expenses primarily related to increased demand for our products and new Showrooms.

Previous wording

As a percentage of net revenue, SG&A expenses increased 130 basis points to 32.9% ofnet revenue in thesix months ended June 30, 2026 compared to 31.6% of net revenue in thesix months ended June 30, 2025.

Current wording

As a percentage of net revenue, SG&A expenses increased 170 basis points to 34.1% ofnet revenue in thenine months ended September 30, 2026 compared to 32.4% of net revenue in thenine months ended September 30, 2025.

Previous wording

Interest income, net increased to $1.5 million, of which $1.0 million related to interest earned on IEEPA refunds, in the six months ended June 30, 2026 compared to $1.3 million in the six months ended June 30, 2025.

Current wording

Interest income, net increased to $2.5 million in the nine months ended September 30, 2026 compared to $2.1 million in the nine months ended September 30, 2025.

Previous wording

Income tax expense was $16.9 million in the six months ended June 30, 2026 compared to $13.8 million in the six months ended June 30, 2025. Our effective tax rate was 28.8% and 25.7% for the six months ended June 30, 2026 and June 30, 2025, respectively. The increase in the effective tax rate was primarily driven by the section 162(m) limitation on the deductibility of certain employee compensation that has a disproportionate impact on the quarterly tax rate.

Current wording

Income tax expense was $20.8 million in the nine months ended September 30, 2026 compared to $18.9 million in the nine months ended September 30, 2025. Our effective tax rate was 29.5% and 26.6% for the nine months ended September 30, 2026 and September 30, 2025, respectively. The increase in the effective tax rate was primarily driven by the section 162(m) limitation on the deductibility of certain employee compensation.

Previous wording

Net and comprehensive income increased $2.0 million to $41.9 million in the six months ended June 30, 2026 compared to $39.9 million in the six months ended June 30, 2025. The increase was driven by the factors described above.

Current wording

Net and comprehensive income decreased $2.5 million to $49.7 million in the nine months ended September 30, 2026 compared to $52.2 million in the nine months ended September 30, 2025. The decrease was driven by the factors described above.

Previous wording

Net revenue increased $26.5 million, or 7.4%, to $384.9 million in the three months ended June 30, 2026 compared to $358.4 million in the three months ended June 30, 2025. The increase was driven primarily by increased demand for our products and $10.7 million of revenue growth related to new Showrooms opened in 2026 and 2025.

Current wording

Net revenue increased $23.5 million, or 6.8%, to $368.1 million in the three months ended September 30, 2026 compared to $344.6 million in the three months ended September 30, 2025. The increase was driven primarily by $13.2 million of revenue growth related to new Showrooms opened in 2026 and 2025, with the remainder due to increased demand for our products.

Previous wording

Gross margin increased $23.9 million, or 16.1%, to $172.1 million in the three months ended June 30, 2026 compared to $148.2 million in the three months ended June 30, 2025. The increase was primarily due to higher net revenue, the benefit related to recoveries of IEEPA tariffs of $23.8 million, partially offset by increased product costs of $16.4 million, higher Showroom occupancy costs of $3.8 million, and higher fuel costs of $2.8 million.

Current wording

Gross margin increased $11.0 million, or 8.2%, to $144.4 million in the three months ended September 30, 2026 compared to $133.4 million in the three months ended September 30, 2025. The increase was primarily due to higher net revenue, partially offset by higher Showroom occupancy costs of $6.4 million, increased product costs of $3.7 million, and higher fuel costs of $2.3 million.

Previous wording

As a percentage of net revenue, gross margin increased 330 basis points to 44.7% of net revenue in the three months ended June 30, 2026 compared to 41.4% of net revenue in the three months ended June 30, 2025. The gross margin increase as a percentage of net revenue was primarily driven by the benefit related to recoveries of IEEPA tariffs, which contributed 620 basis points, partially offset by higher product costs, which increased 190 basis points, higher fuel costs, which increased by 70 basis points, and Showroom occupancy costs, which increased 40 basis points.

Current wording

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 favorable product costs, which contributed 130 basis points, favorable delivery costs, which contributed 80 basis points, partially offset by Showroom occupancy costs, which increased 110 basis points and higher fuel costs, which increased by 60 basis points.

Previous wording

SG&A expenses increased $16.3 million, or 16.1%, to $117.8 million in the three months ended June 30, 2026 compared to $101.5 million in the three months ended June 30, 2025. The increase was primarily due to an $8.4 million increase in general and administrative costs, primarily related to strategic investments to support and drive the growth of the business, including technology improvements, and other corporate expenses, and a $7.9 million increase in selling expenses primarily related to new Showrooms and increased demand for our products.

Current wording

SG&A expenses increased $17.3 million, or 14.8%, to $134.3 million in the three months ended September 30, 2026 compared to $117.0 million in the three months ended September 30, 2025. The increase was primarily due to a $10.5 million increase in general and administrative costs, primarily related to strategic investments to support and drive the growth of the business, including marketing initiatives, technology improvements and other corporate expenses, and a $6.8 million increase in selling expenses primarily related to increased demand for our products and new Showrooms.

Previous wording

As a percentage of net revenue, SG&A expenses increased 230 basis points to 30.6% of net revenue in the three months ended June 30, 2026 compared to 28.3% of net revenue in the three months ended June 30, 2025.

Current wording

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.

Previous wording

Interest income, net increased to $1.1 million, of which $1.0 million related to interest earned on IEEPA refunds, in the three months ended June 30, 2026 compared to $0.7 million in the three months ended June 30, 2025.

Current wording

Interest income, net increased to $1.0 million in the three months ended September 30, 2026 compared to $0.8 million in the three months ended September 30, 2025.

Previous wording

Income taxes were $15.7 million in the three months ended June 30, 2026 compared to $12.6 million in the three months ended June 30, 2025. Our effective tax rate was 28.4% and 26.4% for the three months ended June 30, 2026 and June 30, 2025, respectively.

Current wording

Income taxes were $3.9 million in the three months ended September 30, 2026 compared to $5.2 million in the three months ended September 30, 2025. Our effective tax rate was 33.2% and 29.7% for the three months ended September 30,

Previous wording

Net and comprehensive income increased $4.5 million to $39.6 million in the three months ended June 30, 2026 compared to $35.1 million in the three months ended June 30, 2025. The increase was driven by the factors described above.

Current wording

Net and comprehensive income decreased $4.4 million to $7.8 million in the three months ended September 30, 2026 compared to $12.2 million in the three months ended September 30, 2025. The decrease was driven by the factors described above.

Previous wording

Our primary cash needs have historically been for merchandise inventories, payroll, marketing, Showroom rent, capital expenditures associated with opening new Showrooms and renovating existing Showrooms, as well as the development of our infrastructure and information technology. We seek out and evaluate opportunities for effectively managing and deploying capital in ways that improve working capital and support and enhance our business initiatives and strategies. As of June 30, 2026, we had cash and cash equivalentsof $226.4 million.

Current wording

Our primary cash needs have historically been for merchandise inventories, payroll, marketing, Showroom rent, capital expenditures associated with opening new Showrooms and renovating existing Showrooms, as well as the development of our infrastructure and information technology. We seek out and evaluate opportunities for effectively managing and deploying capital in ways that improve working capital and support and enhance our business initiatives and strategies. As of September 30, 2026, we had cash and cash equivalentsof $318.0 million.

Previous wording

On February 29, 2024, the Board of Directors of the Company declared a special cash dividend on the Company’s Class A and Class B common stock of $0.50 per share, payable April 4, 2024, to shareholders of record at the close of business on March 21, 2024. The Company paid $0.1 million and $0.3 million of the aforementioned special cash dividend on its Class A common stock related to dividend equivalents on equity awards that vested during the six months ended June 30, 2026 and June 30, 2025, respectively.

Current wording

On February 29, 2024, the Board of Directors of the Company declared a special cash dividend on the Company’s Class A and Class B common stock of $0.50 per share, payable April 4, 2024, to shareholders of record at the close of business on March 21, 2024. The Company paid $0.1 million and $0.3 million of the aforementioned special cash dividend on its Class A common stock related to dividend equivalents on equity awards that vested during the nine months ended September 30, 2026 and September 30, 2025, respectively.

Previous wording

On February 17, 2026, the Board of Directors of the Company declared a special cash dividend on the Company’s Class A and Class B common stock of $0.35 per share, payable March 31, 2026, to shareholders of record at the close of business on March 18, 2026. The Company paid $49.5 million of the aforementioned dividend on its Class A and Class B common stock to shareholders as of the Record Date during the six months ended June 30, 2026.

Current wording

On February 17, 2026, the Board of Directors of the Company declared a special cash dividend on the Company’s Class A and Class B common stock of $0.35 per share, payable March 31, 2026, to shareholders of record at the close of business on March 18, 2026. The Company paid $49.5 million of the aforementioned dividend on its Class A and Class B common stock to shareholders as of the Record Date during the nine months ended September 30, 2026.

Previous wording

We have begun a multi-year transformation that will replace certain of our existing systems with a modern and integrated platform encompassing a new enterprise resource planning system (“ERP”), an order management system, a transportation management system and a point of sale system. The total incremental investment in connection with these technology upgrades is expected to be approximately $50 million, including implementation and project staffing costs as well as licensing fees through 2030. Cash outflows were approximately $5 million during the six months ended June 30, 2026, and we anticipate approximately $20 million in 2026 and $12 million in 2027, with cash outflows tapering in early 2028 as we transition to annual licensing and maintenance costs of approximately $6 million per year through 2030.

Current wording

We have begun a multi-year transformation that will replace certain of our existing systems with a modern and integrated platform encompassing a new enterprise resource planning system (“ERP”), an order management system, a transportation management system and a point of sale system. The total incremental investment in connection with these technology upgrades is expected to be approximately $50 million, including implementation and project staffing costs as well as licensing fees through 2030. Cash outflows were approximately $10 million during the nine months ended September 30, 2026, and we anticipate approximately $20 million in 2026 and $12 million in 2027, with cash outflows tapering in early 2028 as we transition to annual licensing and maintenance costs of approximately $6 million per year through 2030.

Previous wording

In October 2025, the Company entered into the Third Amendment to Credit Agreement and Amendment to Security and Pledge Agreement (the “Amendment”). The Amendment further amends the 2021 Credit Facility to, among other things, (1) extend the maturity date of the revolving credit facility from November 8, 2026 to October 17, 2030, and (2) increase the letter of credit commitment to an amount equal to the lesser of (a) $15 million, and (b) the amount of the revolving credit facility as of such date. After giving effect to the Amendment, the aggregate amount of revolving credit commitments under the Credit Agreement remains $75 million. The Company has the option to increase the revolving credit commitment thereunder by an additional $25 million. In connection with the Amendment, the Company has incurred approximately $0.2 million in debt issuance costs. The 2021 Credit Facility bears variable interest rates at the prevailing Term Secured Overnight Financing Rate plus the applicable margin (1.75% at June 30, 2026). At June 30, 2026 and December 31, 2025, we had no borrowings on the 2021 Credit Facility and the available borrowing capacity was $69.9 million and $69.9 million, respectively.

Current wording

In October 2025, the Company entered into the Third Amendment to Credit Agreement and Amendment to Security and Pledge Agreement (the “Amendment”). The Amendment further amends the 2021 Credit Facility to, among other things, (1) extend the maturity date of the revolving credit facility from November 8, 2026 to October 17, 2030, and (2) increase the letter of credit commitment to an amount equal to the lesser of (a) $15 million, and (b) the amount of the revolving credit facility as of such date. After giving effect to the Amendment, the aggregate amount of revolving credit commitments under the Credit Agreement remains $75 million. The Company has the option to increase the revolving credit commitment thereunder by an additional $25 million.

Previous wording

For thesix months ended June 30, 2025, net cash provided by operating activities was $81.4 million and consisted of net income of $39.9 million adjusted for non-cash items of $60.3 million, which were partially offset by a change in working capital and other activities of $18.8 million. The use of cash from working capital was primarily driven by a decrease in operating lease liabilities of $28.0 million primarily due to payments made under the related lease agreements and an increase in merchandise inventory of $14.1 million, which was partially offset by an increase in client deposits of $12.2 million, an increase in accrued expenses of $4.7 million, a decrease in prepaid and other assets of $4.4 million and an increase in accounts payable of $1.8 million in thesix months ended June 30, 2025.

Current wording

For the nine months ended September 30, 2026, net cash provided by operating activities was $173.0 million and consisted of net income of $49.7 million adjusted for non-cash items of $114.1 million, which includes a change in working capital and other activities of $9.2 million. The cash provided by working capital was primarily driven by an increase in client deposits of $89.0 million and an increase in accrued expenses of $9.7 million, partially offset by a decrease in operating lease liabilities of $52.6 million primarily due to payments made under the related lease agreements, an increase in merchandise inventory of $21.7 million, an increase in prepaid and other current assets of $9.2 million, and a decrease in accounts payable of $7.8 million in the nine months ended September 30, 2026.

Previous wording

For the six months ended June 30, 2026, net cash provided by operating activities was $59.8 million and consisted of net income of $41.9 million adjusted for non-cash items of $76.6 million, which were partially offset by a decrease in working capital and other activities of $58.7 million. The use of cash from working capital was primarily driven by an increase in prepaid and other current assets of $38.2 million primarily due to the IEEPA tariff receivable, a decrease in operating lease liabilities of $35.2 million primarily due to payments made under the related lease agreements, an increase in merchandise inventory of $14.7 million, and a decrease in accounts payable $8.3 million, which was partially offset by an increase in client deposits of $27.8 million and a increase in accrued expenses of $8.1 million in the six months ended June 30, 2026.

Current wording

For thenine months ended September 30, 2025, net cash provided by operating activities was $127.5 million and consisted of net income of $52.2 million adjusted for non-cash items of $106.6 million, which were partially offset by a change in working capital and other activities of $31.3 million. The use of cash from working capital was primarily driven by a decrease in operating lease liabilities of $42.4 million primarily due to payments made under the related lease agreements and an increase in merchandise inventory of $31.7 million, which was partially offset by an increase in client deposits of $33.1 million, and an increase in accrued expenses of $9.2 million in thenine months ended September 30, 2025.

Previous wording

For the six months ended June 30, 2026, net cash used in investing activities was $36.9 million primarily due to investments in Showrooms, investments in our supply chain, and information technology and systems infrastructure, which was partially offset by insurance proceeds for property, furniture, and equipment.

Current wording

For the nine months ended September 30, 2026, net cash used in investing activities was $58.1 million primarily due to investments in Showrooms, investments in our supply chain, and information technology and systems infrastructure, which was partially offset by insurance proceeds for property, furniture, and equipment.

Previous wording

For thesix months ended June 30, 2025, net cash used in investing activities was $41.6 million primarily due to investments in Showrooms, vehicles, investments in our supply chain, and information technology and systems infrastructure.

Current wording

For thenine months ended September 30, 2025, net cash used in investing activities was $59.7 million primarily due to investments in Showrooms, vehicles, investments in our supply chain, and information technology and systems infrastructure.

Previous wording

Total capital expenditures, net of landlord contributions decreased by $1.4 million in the six months ended June 30, 2026 compared to the six months ended June 30, 2025.

Current wording

Total capital expenditures, net of landlord contributions increased by $2.8 million in the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.

Previous wording

For thesix months ended June 30, 2026, net cash used in financing activities was $51.7 million primarily due to the payment of the special dividend on our Class A and Class B common stock.

Current wording

For thenine months ended September 30, 2026, net cash used in financing activities was $51.9 million primarily due to the payment of the special dividend on our Class A and Class B common stock.

Previous wording

For the six months ended June 30, 2025, net cash used in financing activities was $2.3 million primarily due to the repurchase of shares for payment of withholding taxes for equity based compensation. These shares were not repurchased in connection with any publicly announced share repurchase programs.

Current wording

For the nine months ended September 30, 2025, net cash used in financing activities was $2.9 million primarily due to the repurchase of shares for payment of withholding taxes for equity based compensation. These shares were not repurchased in connection with any publicly announced share repurchase programs.