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Honest Co Q1 2025 Earnings Report
The Honest Company reported strong first quarter 2025 results with double-digit revenue growth, expanded gross margin, and positive net income.
Key Takeaways
The Honest Company achieved a solid start to 2025, with revenue increasing by 13% to $97 million, gross margin expanding to 39%, and net income reaching $3 million, reflecting continued strength in strategy and execution.
Revenue increased 13% to $97 million from the prior year quarter.
Gross margin expanded 170 basis points to 38.7%.
Net income was $3 million, a significant improvement from a net loss of $1 million in the prior year.
Adjusted EBITDA improved by $4 million to $7 million.
Honest Co
Honest Co
Honest Co Revenue by Geographic Location
Revenue by Geographic Location
Tracked Channel Revenue
CapyFin.comDigital Revenue
CapyFin.com Forward Guidance
The Honest Company is reaffirming its financial outlook for the full fiscal year 2025, expecting revenue growth of 4% to 6% and positive Adjusted EBITDA in the range of $27 million to $30 million.
Positive Outlook
- Continued confidence in long-term growth strategy.
- Healthy balance sheet.
- Growing consumer demand for cleanly-formulated and sustainably-designed products.
- Ability to scale across categories and grow the Honest Brand.
- Continued positive momentum in the business.
Challenges Ahead
- Uncertainty regarding the extent to which trade policy, tariff rates, and other changes affecting international trade might have an adverse effect.
- Evolving market conditions.
- Impact of economic headwinds.
- Potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.
- Inability to provide a reconciliation between adjusted EBITDA outlook and net income (loss) without unreasonable effort due to unavailability of reliable estimates for certain components.
Revenue & Expenses
Visualization of income flow from segment revenue to net income