Loading...
•
Sep 30, 2025
Honest Co Q3 2025 Earnings Report
Honest Co Q3 2025 Earnings Report
Key Takeaways
The Honest Company reported third-quarter 2025 revenue of $93 million, a 6.7% decrease year-over-year, but achieved positive net income of $0.8 million, marking its third consecutive quarter of profitability. The company also announced 'Transformation 2.0: Powering Honest Growth' to streamline its business by exiting lower-margin categories and channels.
Revenue for Q3 2025 was $93 million, a 6.7% decrease compared to the prior year period.
Net income for Q3 2025 was $0.8 million, an increase of $0.6 million from the prior year, marking the third consecutive quarter of positive net income.
Adjusted EBITDA for Q3 2025 was $4 million, a decrease of $4 million from the prior year, but represents the eighth consecutive quarter of positive Adjusted EBITDA.
The company launched 'Transformation 2.0: Powering Honest Growth' to focus on strategic growth areas and exit certain lower-margin, non-strategic categories and channels, which accounted for 22% of Q3 2025 revenue.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Honest Company updated its full-year 2025 financial outlook, anticipating revenue in the range of -3% to flat and Adjusted EBITDA between $21 million and $23 million. The company also provided an outlook for full-year 2025 Organic Revenue growth of 4-6%.
Positive Outlook
- Organic Revenue is projected to grow by 4-6% for the full year 2025, indicating growth in core strategic areas.
- The 'Transformation 2.0: Powering Honest Growth' program is expected to drive greater focus on strategic and profitable categories, reduce complexity, and strengthen profitability.
- The company aims to optimize its cost structure by rightsizing selling, general and administrative expenses and implementing supply chain efficiencies.
- Continued strong execution by the team and the enduring strength of the Honest brand are expected to deliver beloved consumer products and create long-term shareholder value.
- The company ended Q3 2025 with $71 million in cash and cash equivalents and no debt, providing financial flexibility.
Challenges Ahead
- Full-year 2025 revenue outlook was updated to a range of -3% to flat, a decrease from the prior outlook of 4% to 6%.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...