Loading...
•
Dec 31, 2024
Honest Co Q4 2024 Earnings Report
The Honest Company reported record quarterly revenue and expanded gross margin in Q4 2024.
Key Takeaways
The Honest Company achieved record quarterly revenue of $100 million, an 11% increase from the prior year, and expanded its gross margin by 530 basis points to 39%. The company reported a net loss of less than $1 million, an improvement compared to net income of $1 million in the prior year, and positive adjusted EBITDA of $9 million.
Record quarterly revenue of $100 million, an 11% increase year-over-year.
Gross margin expanded by 530 basis points to 38.8% due to cost savings and sales volume growth.
Adjusted EBITDA was positive $9 million, marking the fifth consecutive quarter of positive adjusted EBITDA.
Net loss improved to less than $1 million compared to net income of $1 million in the prior year period.
Revenue by Geographic Location
Forward Guidance
For fiscal year 2025, The Honest Company expects revenue growth in-line with its long-term financial algorithm of 4% to 6% and Adjusted EBITDA between $27 million to $30 million.
Positive Outlook
- Expected revenue growth of 4% to 6% annually, in line with long-term financial algorithm.
- Anticipated continued Adjusted EBITDA margin expansion.
- Projected Adjusted EBITDA of $27 million to $30 million for fiscal year 2025.
- Commitment to providing cleanly-formulated and sustainably-designed products.
- Focus on disciplined execution of Transformation Pillars: Brand Maximization, Margin Enhancement, and Operating Discipline.
Challenges Ahead
- Financial outlook includes potential impacts from tariffs related to product sourcing in China and Mexico.
- Guidance for GAAP net income (loss) is not provided due to the unavailability of reliable estimates for certain components.
- Adjusted EBITDA and adjusted EBITDA margin have limitations as analytical tools and should not be considered in isolation.
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
Loading earnings performance data...
Loading earnings reaction data...