Honest Company, Inc. ( (HNST) ) has released its Q1 earnings. Here is a breakdown of the information Honest Company, Inc. presented to its investors.
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The Honest Company, Inc. is a personal care company known for its cleanly-formulated and sustainably-designed products, spanning categories such as diapers, wipes, baby personal care, beauty, apparel, household care, and wellness. Founded in 2012, it aims to challenge industry standards through the Honest brand and its commitment to sustainability.
In its first quarter of 2025, The Honest Company reported a revenue of $97 million, marking a 13% increase compared to the same period last year. The company also achieved a net income of $3 million, a significant improvement from the previous year’s net loss of $1 million, and expanded its gross margin by 170 basis points to 39%.
Key financial highlights include a 13% revenue growth driven by strong performance in wipes and baby personal care products, a 28% increase in product consumption at its largest digital customer, and a 7.1% adjusted EBITDA margin. Operating expenses rose by $2 million, primarily due to increased marketing costs, while maintaining expense discipline in other areas.
The Honest Company ended the quarter with $73 million in cash and cash equivalents, and no debt on its balance sheet. The company reaffirmed its full-year 2025 outlook, expecting revenue growth between 4% to 6% and positive adjusted EBITDA in the range of $27 million to $30 million.
Looking forward, The Honest Company remains confident in its long-term growth strategy, focusing on brand maximization, margin enhancement, and operating discipline. Despite potential economic headwinds and trade uncertainties, the company is well-positioned to scale across its categories and grow the Honest brand.