The earnings call highlighted strong financial performance with record gross margins and positive net income, supported by successful new product launches and digital retail growth. However, challenges such as the decline in the diaper business and tariff impacts were noted. Overall, the positive aspects outweigh the challenges.

Company Guidance -

Q3 2025

During The Honest Company's second-quarter 2025 earnings call, the company reported several key financial metrics and reiterated its full-year guidance. Honest achieved a revenue of $93 million, with a gross margin increase of 210 basis points to 40.4%, marking the highest gross margin since becoming a public company. The company also reported a positive net income of $4 million, an $8 million year-over-year improvement, and a 6% year-to-date revenue growth. Adjusted EBITDA was $8 million, marking the seventh consecutive quarter of positive adjusted EBITDA. Despite challenges such as tariff impacts and a diaper distribution decline at its largest brick-and-mortar retailer, Honest reaffirmed its full-year financial outlook, projecting net revenue growth of 4% to 6% and adjusted EBITDA between $27 million and $30 million. The company highlighted strong performance in its wipes and baby personal care segments, with consumption growth of 35% and 10%, respectively. Additionally, Honest's largest digital retailer saw a 26% increase in consumption, underscoring the brand's digital-first and omnichannel strategy.

Record Gross Margin

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

Positive Net Income

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

Strong Revenue Growth

Revenue grew 6% year-to-date, with a reported revenue of $93 million for the quarter.

Digital Retailer Success

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

Improved Product Lines

The company launched a new line of clean conscious diapers with enhanced features, supported by a comprehensive marketing campaign.

Expansion in New Channels

The company's flushable wipes expanded into new brick-and-mortar retailers, contributing to an 11% growth in overall distribution.

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.