The earnings call highlighted strong performance in the wipes and personal care categories and a strategic focus on core areas through Transformation 2.0. However, challenges in the diaper category, revenue decline, and reduced full-year guidance contributed to a mixed sentiment.
Company Guidance
During the Honest Company's third quarter 2025 earnings call, the company provided several key metrics reflecting its financial performance and strategic direction. Revenue for the quarter was reported at $93 million, marking a 7% decline largely attributed to the underperformance in the diapers and apparel categories, and a strategic shift away from lower-margin channels like honest.com, which saw a 23% decrease from the previous year. Despite these challenges, the company maintained a positive net income for the third consecutive quarter, with adjusted EBITDA reaching $4 million. Notably, the company experienced strong growth in its wipes segment, with consumption growth up 24% compared to a category growth of 3%, and its baby personal care category, which saw a 10% increase. Household penetration increased by 80 basis points to 7.4%, and the repeat purchase rate rose by 30 basis points to 32%. The Honest Company also announced its Transformation 2.0 strategy to focus on high-performing categories such as wipes and personal care while exiting less profitable segments, with anticipated cost savings between $8 million to $15 million annually following one-time costs of $25 million to $35 million.
Positive Net Income and Adjusted EBITDA
Honest Company delivered positive net income for the third consecutive quarter and adjusted EBITDA ahead of expectations.
Strong Performance in Wipes and Personal Care Categories
Consumption growth across the total wipes portfolio was up 24% versus category growth of 3%. Baby Personal Care collection also saw consumption growth up 10% in the quarter.
Amazon Growth
Honest consumption growth at Amazon is up 16% year-over-year, and Amazon is now the company's largest customer.
Launch of Transformation 2.0
Transformation 2.0 aims to focus on core categories of wipes, personal care, and diapers while exiting lower-margin categories.
Honest Company (HNST) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
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
Nov 05, 2025
$3.30
$2.33
-29.39%
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%
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.
FAQ
When does Honest Company, Inc. (HNST) report earnings?
Honest Company, Inc. (HNST) is schdueled to report earning on Mar 03, 2026, After Close (Confirmed).
What is Honest Company, Inc. (HNST) earnings time?
Honest Company, Inc. (HNST) earnings time is at Mar 03, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
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