RH Investor Alert: RH Securities Fraud Investigation - Investors With Losses May Seek to Lead the Potential Class Action After Company Allegedly Undersold Tariff Headwinds: Levi & Korsinsky

RH guided revenue growth of 9% to 9.2% on an adjusted EBITDA margin of 17.6% to 18% — the actual figures were only 8% growth on 17.3% margins and investors who relied on the higher number lost money when the stock dropped.

NEW YORK, April 22, 2026 /PRNewswire/ -- RH shareholders more than 20% of their investment value after the company's Q4 2025 results revealed financial performance materially below what guided figures previously suggested. Those who purchased RH stock and suffered losses are encouraged to submit their information to Levi & Korsinsky . You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.

During the Q2 2025 earnings call on September 11, 2025, CEO Gary Friedman provided the following outlook: revenue growth of 9% to 11% … adjusted EBITDA margin of 19% to 20%, free cash flow of $250 to $300 million. On the Q3 earnings call on December 11, 2025, Friedman told investors RH was "on track to achieve our outlook range of $250 million to $300 million" in free cash flow for the year, but reduced projections for revenue growth to "9 to 9.2%" and for adjusted EBITDA margin to "17.6% to 18%"

Actual FY 2025 free cash flow came in at approximately $210 million -- $40 million below the low end of the range; revenue growth was only 8%, a full percentage point below the narrowed estimate; and adjusted EBITDA margins were only 17.3% of revenues, below even the low end of the reduced guidance. When the full-year results were disclosed, RH shares fell premarket to open nearly 21% below the previous day's closing price.

RH shareholders who suffered a loss are encouraged to contact Levi & Korsinsky to discuss their legal rights . You may also reach Joseph E. Levi, Esq. directly at [email protected] or by telephone at (212) 363-7500.

Levi & Korsinsky, LLP -- Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.

Frequently Asked Questions About the RH Investigation

Q: Who is eligible to join the potential RH investor lawsuit? A: Investors who purchased RH stock and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.

Q: How much did RH stock drop? A: Shares fell more than 20% premarket after the company disclosed Q4 2025 results that missed expectations. Investors who purchased shares at prices inflated by the higher adjusted figures may be entitled to compensation.

Q: Who is investigating RH for potential securities fraud? A: Levi & Korsinsky, LLP is currently investigating the company on behalf of investors who purchased RH securities and suffered financial losses. The firm is nationally recognized, ranked in the ISS Top 50 for seven consecutive years, and has recovered hundreds of millions of dollars for aggrieved investors.

Q: What do RH investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as a class member.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What if I already sold my RH shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought and sold at a loss may still participate.

Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

CONTACT:\
Levi & Korsinsky, LLP\
Joseph E. Levi, Esq.\
Ed Korsinsky, Esq.\
33 Whitehall Street, 27th Floor\
New York, NY 10004\
[email protected] \
Tel: (212) 363-7500\
Fax: (212) 363-7171

SOURCE Levi & Korsinsky, LLP