Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Restoration Hardware reported second quarter fiscal 2026 GAAP net revenues of $922.2 million, exceeding the high end of guidance and demonstrating a 2.6% increase from the previous year, with accelerating momentum compared to the first quarter.</li><li>The normalized adjusted EBITDA margin reached 13.4%, surpassing expectations, while cash generation included $72.3 million, encompassing free cash flow and a $42 million joint venture distribution (excluding tariff refunds).</li><li>Notably, the quarter reflected a $55.1 million tariff benefit, with an additional $13.9 million expected in the second half of fiscal 2026.</li></ul>

Restoration Hardware reported second quarter fiscal 2026 GAAP net revenues of $922.2 million, exceeding the high end of guidance and demonstrating a 2.6% increase from the previous year, with accelerating momentum compared to the first quarter.The normalized adjusted EBITDA margin reached 13.4%, surpassing expectations, while cash generation included $72.3 million, encompassing free cash flow and a $42 million joint venture distribution (excluding tariff refunds).Notably, the quarter reflected a $55.1 million tariff benefit, with an additional $13.9 million expected in the second half of fiscal 2026.

RH - Restoration Hardware’s $400 Million Cash Generation Target — Can Growth Outrun Expansion Costs?

Quality-first, Business-perspective, Long-term, Urbem (HK) Limited

Urbem Capital

Quality-first, Business-perspective, Long-term

Quality-first, Business-perspective Strategy

Urbem (HK) Limited

<ul>
<li>Our 2023 thesis correctly identified RH as a highly differentiated luxury brand, but we overestimated how reliably that differentiation would translate into durable compounding.</li>
<li>We underweighted industry crowding and low purchase frequency, but most importantly the reinforcing effect of cyclicality, fixed costs, and financial leverage.</li>
<li>The lesson is to test repeatability, customer alternatives, downside economics, and balance-sheet resilience before translating uniqueness and TAM into a moat.</li>
</ul>


Our 2023 thesis correctly identified RH as a highly differentiated luxury brand, but we overestimated how reliably that differentiation would translate into durable compounding.
We underweighted industry crowding and low purchase frequency, but most importantly the reinforcing effect of cyclicality, fixed costs, and financial leverage.
The lesson is to test repeatability, customer alternatives, downside economics, and balance-sheet resilience before translating uniqueness and TAM into a moat.


RH: A One-Of-A-Kind Business, but Not a One-Of-A-Kind Investment

Independent in-depth research from Finimize, Finimize

Finimize Research

Independent in-depth research from Finimize

Finimize

Finimize is the #1 information platform for modern investors. We empower people to become smarter investors with bitesize insights from world-class analysts. 1 million+ strong community, 250 partners.

Thematic (Sector/Industry)

<ul>
<li>The US economy’s resilience hasn’t come from the many – it’s come from the top 10% as the “wealth effect” from rising asset prices has boosted spending.</li>
<li>But it works in reverse too.  Since the richest make up nearly half of America’s consumer spending, that could lead to a serious economic fallout.</li>
<li>It’s worth considering protecting your portfolio. I’ve pulled together one list of companies that should do well and another that could suffer from the change in climate.</li>
</ul>


The US economy’s resilience hasn’t come from the many – it’s come from the top 10% as the “wealth effect” from rising asset prices has boosted spending.
But it works in reverse too.  Since the richest make up nearly half of America’s consumer spending, that could lead to a serious economic fallout.
It’s worth considering protecting your portfolio. I’ve pulled together one list of companies that should do well and another that could suffer from the change in climate.


A Defensive Portfolio Prepared For The Wealth Effect’s Reversal

<ul><li>Restoration Hardware, a luxury home furnishings company, reported first-quarter fiscal 2026 revenues of $800.3 million and an adjusted EBITDA margin of 7.1%, both surpassing the upper end of their expectations despite elevated backorder and special order balances largely due to tariff-related resourcing challenges.</li><li>The company raised its full-year 2026 guidance, projecting revenue growth of 4.5% to 8%, adjusted EBITDA margins between 14.2% and 16%, and adjusted free cash flow ranging from $300 million to $400 million.</li><li>These figures factor in expected negative impacts from international expansion, including preopening and startup costs estimated to reduce adjusted EBITDA margins by approximately 270 basis points for the full year and 380 basis points in the second quarter.</li></ul>

Restoration Hardware, a luxury home furnishings company, reported first-quarter fiscal 2026 revenues of $800.3 million and an adjusted EBITDA margin of 7.1%, both surpassing the upper end of their expectations despite elevated backorder and special order balances largely due to tariff-related resourcing challenges.The company raised its full-year 2026 guidance, projecting revenue growth of 4.5% to 8%, adjusted EBITDA margins between 14.2% and 16%, and adjusted free cash flow ranging from $300 million to $400 million.These figures factor in expected negative impacts from international expansion, including preopening and startup costs estimated to reduce adjusted EBITDA margins by approximately 270 basis points for the full year and 380 basis points in the second quarter.

RH Estates Sparks Buzz: Can Restoration Hardware Crack 60% Of The Luxury Market?

<ul><li>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.</li><li>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.</li><li>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.</li></ul>

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.

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

United States

RH distributes home furnishing products. The Company offers products such as furniture, lighting, textiles, bathware, decor, outdoor, and garden, as well as baby and child products. RH distributes its products through retail stores, catalogs, and websites.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

RH (RH US)

RH - Restoration Hardware’s $400 Million Cash Generation Target — Can Growth Outrun Expansion Costs?

Restoration Hardware reported second quarter fiscal 2026 GAAP net revenues of $922.2 million, exceeding the high end of guidance and demonstrating...

Baptista Research

RH: A One-Of-A-Kind Business, but Not a One-Of-A-Kind Investment

Three years after calling RH a one-of-a-kind business, we revisit what worked, what we underweighted, what went wrong, and the lessons worth...

Urbem Capital

A Defensive Portfolio Prepared For The Wealth Effect’s Reversal

The top 10% account for around 50% of consumer spending in the US. This insight looks at the sectors and companies that could win and lose from the...

Finimize Research

RH Estates Sparks Buzz: Can Restoration Hardware Crack 60% Of The Luxury Market?

Restoration Hardware, a luxury home furnishings company, reported first-quarter fiscal 2026 revenues of $800.3 million and an adjusted EBITDA...

Baptista Research

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,...

Baptista Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)