HNST
The Honest Company, Inc.2.8600
+0.0500+1.78%
Dec 16, 4:00:01 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Diaper color reassures; Q1 growth confirmed.
Q&A clarified diaper resilience, with consumption up 2% ex-Target versus the category's 1% drop, despite macro-driven trade-downs to cheaper options and a 20-30% price premium—yet declines persist and are baked into guidance. Management confirmed Q1 organic growth and sequential acceleration, plus DTC sales transfer to retailers exceeding expectations. Growth stays balanced across innovation, core velocity, and distribution in wipes/personal care. Buybacks? Opportunistic over 2-3 years. Diapers grew ex-Target. Investors watch H2 supply chain savings and non-baby household traction.
Key Stats
Market Cap
319.72MP/E (TTM)
47.67Basic EPS (TTM)
0.06Dividend Yield
0%Recent Filings
8-K
Q4 results, $25M buyback announced
Honest Company reported Q4 revenue down 11.8% to $88.0M from Powering Honest Growth exits, yet organic revenue rose 0.7% to $71.3M on wipes and baby care strength. Full-year Adjusted EBITDA hit $21.8M; board greenlit $25M buyback. Cash climbed to $89.6M. 2026 guides $306M-$312M revenue, low-40s Adjusted Gross Margin. Buyback signals confidence.
10-K
FY2025 results
Honest's FY2025 revenue dipped 1.9% to $371M amid Powering Honest Growth exits—DTC down $13M, apparel $8M, Canada $1M—yet organic sales excluding those rose 5.3% to $294M, fueled by wipes up 27.6M and baby care up 6.7M, offsetting diaper declines from distribution losses. Gross margin contracted to 33% from tariff hikes, $16M apparel write-downs, and $24M total program costs, while operating loss widened to $18M; Q4 bore heavy restructuring hits like warehouse closures. Cash swelled to $90M with $15M operating inflow. Expects 4-6% revenue growth and Adjusted EBITDA gains in 2026. Quarterly results fluctuate with retail consolidations.
8-K
Q3 profit amid restructuring launch
The Honest Company reported Q3 revenue down 6.7% to $93 million yet swung to $1 million net income, its third straight positive quarter. It launched Transformation 2.0 on October 30, exiting apparel, Honest.com fulfillment, and Canada stores—22% of recent revenue—for $25-35 million costs through Q1 2027 but $8-15 million annual savings starting 2026. Restructuring wraps by end-2026. Cash jumped to $71 million.
10-Q
Q3 FY2025 results
Honest swung to Q3 operating income of $0.3M from $57K (derived), while YTD revenue grew 1.7% y/y to $283.3M on wipes gains offsetting diaper distribution losses; gross margin held at 37.3% despite tariffs, but dipped q/q. SG&A plunged 24.5% y/y to $17.7M on lower legal fees and stock comp, driving diluted EPS of $0.01 (reconciles to 113.7M shares). Cash dipped to $71.5M with $31.5M revolver availability (no debt); operating cash used $4.2M YTD. Powering Honest Growth eyes exits from apparel, DTC, Canada by 2026. Tariffs hit wipes costs hard.
8-K
Q2 Profitability Milestone
The Honest Company reported Q2 2025 revenue of $93.5 million, up 0.4% year-over-year, with gross margin expanding 210 basis points to 40.4% on inventory reserve changes, despite tariff pressures. Net income hit $4 million, flipping from a $4 million loss, while operating expenses dropped $5 million through disciplined cuts. Transformation pillars fueled this profitability push. Cash stands at $72 million, debt-free. Full-year outlook holds: 4-6% revenue growth, $27-30 million adjusted EBITDA. Tariffs loom as a wildcard.
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