Financial Analysis

NOTE 6BUSINESS COMBINATION On July 8, 2025, we acquired a home furnishings business operating under the brand names of Formations and Dennis & Leen for total consideration of $32 million, funded through available cash. The transaction was accounted for as a business combination under ASC 805 Business Combinations . We believe that this addition to the RH platform further positions us as a leader in the luxury design market as we continue to enhance the RH product assortment. During fiscal 2025, we incurred $2.3 million of acquisition-related costs associated with the transaction. These costs include fees associated with financial, legal and accounting advisors, and are included in selling, general and administrative expenses on the consolidated statements of income. The following table summarizes the purchase price allocation based on the fair value of the assets acquired and liabilities assumed as of July 8, 2025: PURCHASE PRICE ALLOCATION (in thousands) Merchandise inventories $ 5,451 Property and equipment 27,461 Operating lease right-of-use assets 4,443 Goodwill (1) 3,220 Other assets 923 Deferred revenue and customer deposits (3,471) Operating lease liabilities (4,273) Other liabilities (1,635) Total $ 32,119 (1) Goodwill of $3.2 million, included in the RH Segment, represents the expected synergies from integrating the acquired business into our operations and is expected to be deductible for tax purposes. Results of operations of the acquired company have been incl …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 18COMMITMENTS AND CONTINGENCIES Commitments We had no material off-balance sheet commitments as of January 31, 2026. Contingencies We are subject to contingencies, including in connection with lawsuits, claims, investigations and other legal proceedings incident to the ordinary course of our business. These disputes are increasing in number as we expand our business and provide new product and service offerings, such as restaurants and hospitality, and as we enter new markets and legal jurisdictions and face increased complexity related to compliance and regulatory requirements. In addition, we are subject to governmental and regulatory examinations, information requests, and investigations from time to time at the state and federal levels. We currently face certain legal proceedings that involve complex litigation, including class action cases, matters related to our employment practices, the application of state wage-and-hour laws, product liability and other causes of action. We have faced similar litigation in the past. Due to the inherent difficulty of predicting the course of complex legal actions, including class-action allegations, such as the eventual scope, duration or outcome, we may be unable to estimate the amount or range of any potential loss that could result from an unfavorable outcome arising from such matters. Our assessment of these legal proceedings, as well as other lawsuits, could change based upon the discovery of facts that are not presently know …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 17EMPLOYEE BENEFIT PLANS We have a 401(k) plan for our employees who meet certain service and age requirements. Participants may contribute up to 50% of their salaries limited to the maximum allowed by the Internal Revenue Service regulations. We, at our discretion, may contribute funds to the 401(k) plan. We made no contributions to the 401(k) plan during fiscal 2025, fiscal 2024 or fiscal 2023. …

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NOTE 11CREDIT FACILITIES AND CONVERTIBLE SENIOR NOTES The outstanding balances under our credit facilities were as follows: JANUARY 31, FEBRUARY 1, 2026 2025 UNAMORTIZED UNAMORTIZED DEBT NET DEBT NET INTEREST OUTSTANDING ISSUANCE CARRYING OUTSTANDING ISSUANCE CARRYING RATE AMOUNT COSTS AMOUNT AMOUNT COSTS AMOUNT (dollars in thousands) Asset based credit facility (1) 5.30% $ 20,000 $ $ 20,000 $ 200,000 $ $ 200,000 Term loan B (2) 6.29% 1,915,000 (8,630) 1,906,370 1,935,000 (11,856) 1,923,144 Term loan B-2 (3) 7.02% 483,750 (11,451) 472,299 488,750 (15,731) 473,019 Total credit facilities $ 2,418,750 $ (20,081) $ 2,398,669 $ 2,623,750 $ (27,587) $ 2,596,163 (1) Deferred financing fees associated with the asset based credit facility as of January 31, 2026 and February 1, 2025 were $3.4 million and $1.5 million, respectively, and are included in other non-current assets on the consolidated balance sheets. The deferred financing fees are amortized on a straight-line basis over the life of the revolving line of credit. In July 2025, Restoration Hardware, Inc. entered into an amendment to the ABL Credit Agreement (defined below), which extended the maturity date of the revolving line of credit from July 29, 2026 to the earlier of (a) July 31, 2030 and (b) the date which is 91 days prior to the final stated maturity of the Term Loan Credit Agreement and any refinancing thereof. (2) Represents the Term Loan Credit Agreement (defined below), of which outstanding amounts of $1,895 milli …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 16STOCK-BASED COMPENSATION The Restoration Hardware 2012 Stock Incentive Plan (the Stock Incentive Plan) was adopted on November 1, 2012. The Stock Incentive Plan provided for the grant of incentive stock options to our employees and the grant of non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, cash-based awards and any combination thereof to our employees, directors and consultants and our parent and subsidiary corporations employees, directors and consultants. The Restoration Hardware 2012 Stock Option Plan (the Option Plan) was adopted on November 1, 2012. On November 1, 2022, both the Stock Incentive Plan and Option Plan expired. The RH 2023 Stock Incentive Plan (the 2023 Stock Incentive Plan, together with the Stock Incentive Plan and Option Plan, the Plans) was approved by stockholders on April 4, 2023. The 2023 Stock Incentive Plan provides for the grant of incentive stock options to our employees and the grant of non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights and any combination thereof to our employees, directors and consultants and our parent and subsidiary corporations employees, directors and consultants. The maximum number of shares that may be issued pursuant to all awards under the 2023 Stock Incentive Plan is (i) 3,000,000, plus (ii) any shares of our common stock covered by any outstanding award (or po …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

NOTE 12FAIR VALUE MEASUREMENTS The accounting guidance for fair value measurements establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. In determining the fair value, we utilize market data or assumptions that we believe market participants would use in pricing the asset or liability, which would maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, including assumptions about risk and the risks inherent in the inputs of the valuation technique. Our recurring and non-recurring fair values measurements of financial and non-financial assets and liabilities are classified and disclosed in one of the following categories in accordance with ASC 820 Fair Value Measurements : Level 1Quoted prices are available in active markets for identical investments as of the reporting date. Level 2Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Level 3Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for th …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE 7GOODWILL, TRADENAMES, TRADEMARKS AND OTHER INTANGIBLE ASSETS Goodwill, tradenames, trademarks and other intangible assets for the RH Segment and Waterworks consisted of the following: RH SEGMENT WATERWORKS TRADENAMES, TRADENAMES, TRADEMARKS AND TRADEMARKS AND OTHER INTANGIBLE OTHER INTANGIBLE GOODWILL ASSETS GOODWILL (1) ASSETS (2) (in thousands) February 3, 2024 $ 141,033 $ 58,927 $ $ 17,000 Additions 877 Other (3) (686) Foreign currency translation (90) February 1, 2025 $ 140,943 $ 59,118 $ $ 17,000 Additions 3,220 3,978 Other (3) (319) Foreign currency translation 76 January 31, 2026 $ 144,239 $ 62,777 $ $ 17,000 (1) Waterworks reporting unit goodwill of $51 million recognized upon acquisition in fiscal 2016 was fully impaired as of fiscal 2018. (2) Presented net of an impairment charge of $35 million recognized in prior fiscal years. (3) Represents disposals and amortization. There are no goodwill, tradenames, trademarks and other intangible assets for the Real Estate segment. …

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NOTE 13INCOME TAXES Our income before taxes and equity method investments was as follows: YEAR ENDED JANUARY 31, FEBRUARY 1, FEBRUARY 3, 2026 2025 2024 (in thousands) Domestic $ 140,666 $ 71,111 $ 154,384 Foreign 26,272 17,480 12,313 Total $ 166,938 $ 88,591 $ 166,697 Our income tax expense consisted of the following: YEAR ENDED JANUARY 31, FEBRUARY 1, FEBRUARY 3, 2026 2025 2024 (in thousands) Current Federal $ 11,651 $ 1,015 $ (3,249) State 7,971 2,274 6,032 Foreign 1,965 2,943 179 Total current tax expense 21,587 6,232 2,962 Deferred Federal 19,007 715 22,236 State 71 (2,761) (1,339) Foreign 6,494 613 4,402 Total deferred tax expense (benefit) 25,572 (1,433) 25,299 Total income tax expense $ 47,159 $ 4,799 $ 28,261 A reconciliation of taxes at the federal statutory tax rate to our provision for income taxes for fiscal 2025, in accordance with our adoption of ASU 2023-09, was as follows: YEAR ENDED JANUARY 31, 2026 (dollars in thousands) Income taxes at U.S. federal statutory tax rate $ 35,057 21.0 % State and local income taxesnet of federal tax effect (1) 5,996 3.6 Foreign tax effects 2,991 1.8 Effect of cross-border tax laws 273 0.1 Nontaxable or nondeductible items Executive compensation under U.S. Internal Revenue Code Section 162(m) 3,466 2.1 Other (480) (0.3) Other adjustments (144) (0.1) Income tax expense and effective tax rate $ 47,159 28.2 % (1) California and New York comprise the majority, or greater than 50% , of such tax. A reconciliation of taxes at the feder …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Standards New Accounting Standards or Updates Adopted Joint Venture Formations: Recognition and Initial Measurement In August 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-05Business CombinationsJoint Venture Formations (Subtopic 805-60) : Recognition and Initial Measurement (ASU 2023-05). ASU 2023-05 applies to the formation of a joint venture or a corporate joint venture and requires a joint venture to initially measure all contributions received upon its formation at fair value. The guidance does not impact accounting by the venturers. We adopted this new guidance in the first quarter of fiscal 2025 on a prospective basis. While ASU 2023-05 is not currently applicable to us because our existing arrangements in variable interest entities do not meet the definition of joint ventures in the updated standard, we will apply this guidance to any future arrangements we enter into that meet the definition of a joint venture. Income Taxes: Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09Improvements to Income Tax Disclosures . This new guidance is designed to enhance the transparency and decision usefulness of income tax disclosures. The amendments of this update are related to the rate reconciliation and income taxes paid, requiring consistent categories and greater disaggregation of information in the rate reconciliation as well as income taxes paid disaggregated b …

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NOTE 19SEGMENT REPORTING We define reportable and operating segments on the same basis that we use to evaluate our performance internally by the chief operating decision maker (CODM), which we have determined is our Chief Executive Officer. We have three operating segments: RH Segment, Waterworks and Real Estate. The RH Segment and Waterworks operating segments (the retail operating segments) include all sales channels accessed by our customers, including sales through retail locations and outlets, including hospitality, websites, Sourcebooks, and the Trade and Contract channels. The Real Estate segment represents operations associated with certain of our equity method investments and consolidated VIEs that have operations not directly related to the activities of the retail operating segments. The retail operating segments are strategic business units that offer products for the home furnishings customer. While RH Segment and Waterworks have a shared senior leadership team and customer base, we have determined that their results cannot be aggregated as they do not share similar economic characteristics, as well as due to other quantitative factors. Segment Information The CODM uses segment adjusted operating income to evaluate segment profitability for the retail operating segments and to allocate resources and analyze variances of actual performance to our forecasts when making decisions. Operating income is defined as net income before interest expensenet, other (income) e …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 3SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States (GAAP). The consolidated financial statements include our accounts and those of our wholly owned subsidiaries, as well as the financial information of variable interest entities (VIEs) where we represent the primary beneficiary and have the power to direct the activities that most significantly impact the entitys performance (refer to Note 8 Variable Interest Entities ). Accordingly, all intercompany balances and transactions have been eliminated through the consolidation process. Fiscal Years Our fiscal year ends on the Saturday closest to January 31. As a result, our fiscal year may include 53 weeks. Our fiscal years ended January 31, 2026 (fiscal 2025) and February 1, 2025 (fiscal 2024) consisted of 52 weeks. Our fiscal year ended February 3, 2024 (fiscal 2023) consisted of 53 weeks. Use of Accounting Estimates The preparation of our consolidated financial statements, in conformity with GAAP, requires our senior leadership team to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and such differences could be mater …

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NOTE 20SUBSEQUENT EVENTS In February 2026, we entered into a settlement agreement to resolve litigation pertaining to credit card interchange fees in which we received approximately $30 million, net of legal costs, in March 2026. We expect to recognize this settlement as a gain within selling, general and administrative expenses on the consolidated statements of income in the first quarter of fiscal 2026. In February 2026, the U.S. Supreme Court invalidated certain tariffs imposed under the International Emergency Economic Powers Act (the incremental tariffs). Subsequently, new tariffs were imposed pursuant to alternative statutory authority and are scheduled to expire after 150 days absent Congressional authorization. Given the evolving trade policy environment, we continue to monitor the impact of these actions on our operations and consolidated financial statements, including our ability to recover incremental tariffs that we have paid. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

NOTE 13COMMITMENTS AND CONTINGENCIES Commitments We had no material off-balance sheet commitments as of May 2, 2026. Contingencies We are subject to contingencies, including in connection with lawsuits, claims, investigations and other legal proceedings incident to the ordinary course of our business. These disputes are increasing in number as we expand our business and provide new product and service offerings, such as restaurants and hospitality, and as we enter new markets and legal jurisdictions and face increased complexity related to compliance and regulatory requirements. In addition, we are subject to governmental and regulatory examinations, information requests, and investigations from time to time at the state and federal levels. We currently face certain legal proceedings that involve complex litigation, including class action cases, matters related to our employment practices, the application of state wage-and-hour laws, product liability and other causes of action. We have faced similar litigation in the past. Due to the inherent difficulty of predicting the course of complex legal actions, including class-action allegations, such as the eventual scope, duration or outcome, we may be unable to estimate the amount or range of any potential loss that could result from an unfavorable outcome arising from such matters. Our assessment of these legal proceedings, as well as other lawsuits, could change based upon the discovery of facts that are not presently known or …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 8CREDIT FACILITIES The outstanding balances under our credit facilities were as follows: MAY 2, JANUARY 31, 2026 2026 UNAMORTIZED UNAMORTIZED DEBT NET DEBT NET INTEREST OUTSTANDING ISSUANCE CARRYING OUTSTANDING ISSUANCE CARRYING RATE AMOUNT COSTS AMOUNT AMOUNT COSTS AMOUNT (dollars in thousands) Asset based credit facility (1) 5.26% $ 30,000 $ $ 30,000 $ 20,000 $ $ 20,000 Term loan B (2) 6.27% 1,910,000 (7,829) 1,902,171 1,915,000 (8,630) 1,906,370 Term loan B-2 (3) 7.00% 482,500 (10,388) 472,112 483,750 (11,451) 472,299 Total credit facilities $ 2,422,500 $ (18,217) $ 2,404,283 $ 2,418,750 $ (20,081) $ 2,398,669 (1) Deferred financing fees associated with the asset based credit facility as of May 2, 2026 and January 31, 2026 were $3.0 million and $3.4 million, respectively, and are included in other non-current assets on the condensed consolidated balance sheets. The deferred financing fees are amortized on a straight-line basis over the life of the revolving line of credit. In July 2025, Restoration Hardware, Inc. entered into an amendment to the ABL Credit Agreement (defined below), which extended the maturity date of the revolving line of credit from July 29, 2026 to the earlier of (a) July 31, 2030 and (b) the date which is 91 days prior to the final stated maturity of the Term Loan Credit Agreement and any refinancing thereof. (2) Represents the Term Loan Credit Agreement (defined below), of which outstanding amounts of $1,890 million and $1,895 million were includ …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 12STOCK-BASED COMPENSATION We maintain two stock incentive plans, the 2012 Stock Incentive Plan and the 2023 Stock Incentive Plan (collectively, the Plans), that provide for the grant of incentive stock options to our employees and the grant of non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights and any combination thereof to our employees, directors and consultants and our parent and subsidiary corporations employees, directors and consultants. As of May 2, 2026, there were a total of 1,415,103 shares issuable under the 2023 Stock Incentive Plan. Equity Awards Under the Plans Options outstanding, vested or expected to vest, and exercisable as of May 2, 2026 were as follows: WEIGHTED- WEIGHTED- AGGREGATE AVERAGE AVERAGE INTRINSIC EXERCISE REMAINING TERM VALUE SHARES PRICE (in years) (in thousands) Options outstanding 4,289,594 $ 200.70 5.3 $ 88,420 Options vested or expected to vest 3,845,699 201.71 4.8 88,256 Options exercisable 2,542,754 194.02 3.1 87,854 Stock-based compensation, which is included in selling, general and administrative expenses on the condensed consolidated statements of income (loss), was as follows: THREE MONTHS ENDED MAY 2, MAY 3, 2026 2025 (in thousands) Stock-based compensation $ 11,919 $ 12,374 No stock-based compensation has been capitalized in the accompanying condensed consolidated financial statements. As of May 2, 2026, the total unrecognized stock-based compensation a …

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NOTE 9FAIR VALUE MEASUREMENTS Fair Value MeasurementsRecurring Amounts reported as cash and equivalents, receivables, and accounts payable and accrued expenses approximate fair value due to the short-term nature of activity within these accounts. The estimated fair value of the asset based credit facility approximates cost as the interest rate associated with the facility is variable and resets frequently (Level 2). The estimated fair value and carrying value of the Term Loan Credit Agreement and the real estate loan were as follows: MAY 2, JANUARY 31, 2026 2026 PRINCIPAL PRINCIPAL FAIR CARRYING FAIR CARRYING VALUE VALUE (1) VALUE VALUE (1) (in thousands) Term loan B $ 1,876,575 $ 1,910,000 $ 1,881,488 $ 1,915,000 Term loan B-2 477,072 482,500 480,122 483,750 Real estate loan 15,135 15,500 15,343 15,585 (1) The principal carrying values of the Term Loan B and Term Loan B-2 represent the outstanding amount under each class and exclude discounts upon original issuance and third-party offering costs. The principal carrying value of the real estate loan represents the outstanding principal balance and excludes debt issuance costs. The fair values of the Term Loan B and Term Loan B-2 were derived from observable bid prices (Level 1). The fair value of the real estate loan was derived from discounted cash flows using risk-adjusted rates (Level 2). …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE 4GOODWILL, TRADENAMES, TRADEMARKS AND OTHER INTANGIBLE ASSETS Goodwill, tradenames, trademarks and other intangible assets for the RH Segment and Waterworks consisted of the following: RH SEGMENT WATERWORKS TRADENAMES, TRADENAMES, TRADEMARKS AND TRADEMARKS AND OTHER INTANGIBLE OTHER INTANGIBLE GOODWILL ASSETS GOODWILL (1) ASSETS (2) (in thousands) January 31, 2026 $ 144,239 $ 62,777 $ $ 17,000 Additions 225 Other (3) (30) Foreign currency translation 3 May 2, 2026 $ 144,242 $ 62,972 $ $ 17,000 (1) Waterworks reporting unit goodwill of $51 million recognized upon acquisition in fiscal 2016 was fully impaired as of fiscal 2018. (2) Presented net of an impairment charge of $35 million recognized in prior fiscal years. (3) Represents amortization of patents. There are no goodwill, tradenames, trademarks and other intangible assets for the Real Estate segment. …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 10INCOME TAXES Our income tax expense (benefit) and effective tax rates were as follows: THREE MONTHS ENDED MAY 2, MAY 3, 2026 2025 (dollars in thousands) Income tax expense (benefit) $ (5,902) $ 3,127 Effective tax rate 30.8 % 28.0 % The increase in our effective tax rate for the three months ended May 2, 2026 compared to the three months ended May 3, 2025 is primarily attributable to the net loss in the current period, as well as the discrete tax impact of the favorable legal settlement associated with credit card interchange fees and net excess tax windfalls from stock-based compensation in the three months ended May 2, 2026 as compared to net tax shortfalls in the three months ended May 3, 2025. On July 4, 2025, the United States enacted tax legislation through the H.R.1 Reconciliation Act, commonly referred to as the One Big Beautiful Bill Act (the OBBBA), which implemented several corporate tax law changes taking effect in fiscal 2025 and others through fiscal 2027. The impacts of the OBBBA are reflected in our results for the quarter ended May 2, 2026. We will continue to monitor any future changes in our business or interpretations of the new tax law that could affect our tax position in subsequent periods. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

New Accounting Standards or Updates Adopted Financial Instruments: Measurement of Credit Losses for Accounts Receivable and Contract Assets In July 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (ASU 2025-05). This new guidance provides all entities with a practical expedient to assume that current conditions as of the balance sheet date do not change for the remaining life of the assets. We adopted the ASU as of February 1, 2026 on a prospective basis and utilized the practical expedient, which did not have a material impact on our condensed consolidated financial statements. New Accounting Standards or Updates Not Yet Adopted Income Statement: Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU 2024-03Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40) . This new guidance is designed to improve financial reporting by requiring public business entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods, including amounts and qualitative descriptions of inventory purchases, employee compensation, depreciation and intangible asset amortization, among other requirements. In January 2025, the FASB issued ASU 2025-01Income StatementRepo …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 14SEGMENT REPORTING We define reportable and operating segments on the same basis that we use to evaluate our performance internally by the chief operating decision maker (CODM), which we have determined is our Chief Executive Officer. We have three operating segments: RH Segment, Waterworks and Real Estate. The RH Segment and Waterworks operating segments (the retail operating segments) include all sales channels accessed by our customers, including sales through retail locations and outlets, including hospitality, websites, Sourcebooks, and the Trade and Contract channels. The Real Estate segment represents operations associated with certain of our equity method investments and consolidated VIEs that have operations not directly related to the activities of the retail operating segments. The retail operating segments are strategic business units that offer products for the home furnishings customer. While RH Segment and Waterworks have a shared senior leadership team and customer base, we have determined that their results cannot be aggregated as they do not share similar economic characteristics, as well as due to other quantitative factors. Segment Information The CODM uses segment adjusted operating income to evaluate segment profitability for the retail operating segments and to allocate resources and analyze variances of actual performance to our forecasts when making decisions. Operating income is defined as net income (loss) before interest expensenet, other (in …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 15SUBSEQUENT EVENT In May 2026, we received a $50 million cash distribution related to our membership interests in the Aspen LLCs, which resulted from a series of transactions whereby ownership of certain real estate properties held by the Aspen LLCs were transferred to entities wholly owned by the managing member of the Aspen LLCs and one property, which we plan to open as an RH Guesthouse, was transferred to an entity wholly owned by us. Following this distribution, we repaid $32 million of outstanding debt on the wholly owned property transferred to us. Additionally, we received $10 million of deemed non-cash capital contributions in an Aspen LLC. Concurrently with these transactions, the membership interests in the seven Member LLCs that were previously held by a third-party real estate developer affiliated with the managing member of the Aspen LLCs were withdrawn, and, as a result, we wholly own such Member LLCs. We are evaluating the effect these transactions will have on our condensed consolidated financial statements. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing