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Restoration Hardware (RH): The Market Is Missing Real Estate Monetization Potential Of $500 Million

Restoration Hardware, a leading luxury home furnishings brand in North America, reported revenue growth of 8% in 2025 and 15% over two years, outperforming furniture industry peers by 8 to 30 percentage points. Adjusted EBITDA reached $597 million, representing 17.3% of revenues, up from 16.9% in 2024, while free cash flow turned positive at $252 million compared to a negative $214 million the previous year. These results came despite 2025 being a peak investment year, with $289 million of adjusted capital expenditures directed toward global expansion and $37 million allocated to acquisitions supporting the launch of RH Estates, a new brand extension targeting the traditional luxury furniture market. RH is focusing on positioning itself as the “arbiter of taste” in luxury home furnishings, targeting high and ultra-high net worth consumers who own multiple homes and spend significantly on home products.