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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.
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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