The Honest Company demonstrated solid financial performance with consecutive positive net income quarters, a record-high gross margin, and strong growth in digital retail channels. However, the company faces challenges with its diaper business decline and tariff impacts. Despite these challenges, the positive developments in revenue growth, gross margin improvement, and loyalty metrics contribute to a generally positive outlook.

Company Guidance -

Q3 2025

During The Honest Company's second quarter 2025 earnings call, key financial metrics were highlighted, including a revenue of $93 million and an impressive gross margin of 40%, up 210 basis points. The company reported a positive net income of $4 million, marking an $8 million year-over-year improvement, and achieved an adjusted EBITDA margin of 8%. Year-to-date, revenue grew by 6% with net income increasing by $13 million compared to the previous year. Consumption growth was reported at 6% for the quarter, with unit growth at 8% and velocities up 21%. The Honest brand's strong digital presence was emphasized with a 26% consumption growth at the largest digital retailer. Additionally, the company saw significant growth in their fragrance-free baby personal care items, up 65%. The Honest Company reaffirmed its full-year 2025 financial outlook, projecting net revenue growth of 4% to 6% year-over-year and an adjusted EBITDA range of $27 million to $30 million.

Positive Net Income

The Honest Company delivered a positive net income of $4 million for the second consecutive quarter, an increase of $8 million year-over-year.

Record Gross Margin

The company reported its highest gross margin as a public company at 40.4%, up 210 basis points from the previous year.

Revenue and Consumption Growth

The Honest Company achieved a quarterly revenue of $93 million and a year-to-date revenue growth of 6%. Consumption grew 6% for the quarter, driven by unit growth of 8% and increased velocities up 21%.

Expansion in Digital Retailer

Consumption growth of 26% was observed at the company's largest digital retailer, indicating strong online performance.

Loyalty Metrics Improvement

The buy rate increased by 600 basis points, the repeat rate by 94 basis points, and household penetration by 77 basis points year-over-year.

Flushable Wipes Success

Flushable wipes have shown strong performance, contributing to an overall distribution growth of 11% in the quarter.

Honest Company (HNST) Earnings, Revenues Date & History

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HNST Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 05, 2025	2025 (Q3)	>-0.01 / -	0	―	―	―
Aug 06, 2025	2025 (Q2)	0.01 / 0.03	-0.04	175.00% (+0.07)
May 07, 2025	2025 (Q1)	<0.01 / 0.03	-0.01	400.00% (+0.04)
Feb 26, 2025	2024 (Q4)	-0.01 / -0.01	0.01	-200.00% (-0.02)	―
Nov 12, 2024	2024 (Q3)	-0.03 / 0.00	-0.09	―
Aug 08, 2024	2024 (Q2)	-0.04 / -0.04	-0.14	71.43% (+0.10)	―
May 08, 2024	2024 (Q1)	-0.07 / -0.01	-0.2	95.00% (+0.19)	―
Mar 06, 2024	2023 (Q4)	-0.08 / 0.01	-0.14	107.14% (+0.15)	―
Nov 08, 2023	2023 (Q3)	-0.11 / -0.09	-0.13	30.77% (+0.04)	―
Aug 08, 2023	2023 (Q2)	-0.13 / -0.14	-0.11	-27.27% (-0.03)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

HNST Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Aug 06, 2025	$4.52	$3.74	-17.26%
May 07, 2025	$4.80	$4.38	-8.75%
Feb 26, 2025	$5.68	$5.00	-11.97%
Nov 12, 2024	$4.80	$6.01	+25.21%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.