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HNST

The Honest Company, Inc.

HNST

The Honest Company, Inc. • NASDAQ
$2.69 ▲ 0.00% (+0.00)
Market Cap $300.72 M
52w High $8.87
52w Low $2.31
Dividend Yield 0%
P/E 44.83
Volume 916.94K
Outstanding Shares 111.79M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $92.571M ▼ $34.176M ▼ $758K ▼ 0.819% ▼ $0.01 ▼ $3.254M ▼
Q2-2025 $93.459M ▼ $34.864M ▼ $3.87M ▲ 4.141% ▲ $0.035 ▲ $5.282M ▲
Q1-2025 $97.25M ▼ $35.163M ▼ $3.254M ▲ 3.346% ▲ $0.03 ▲ $4.864M ▼
Q4-2024 $99.837M ▲ $39.796M ▲ $-810K ▼ -0.811% ▼ $-0.008 ▼ $6.126M ▲
Q3-2024 $99.237M $38.339M $165K 0.166% $0.002 $57K

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $71.453M ▼ $241.539M ▼ $51.354M ▼ $190.185M ▲
Q2-2025 $72.077M ▼ $249.028M ▼ $62M ▼ $187.028M ▲
Q1-2025 $72.818M ▼ $265.304M ▲ $84.947M ▲ $180.357M ▲
Q4-2024 $75.435M ▲ $247.393M ▲ $73.086M ▼ $174.307M ▲
Q3-2024 $53.441M $209.203M $75.335M $133.868M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $760K ▼ $-504K ▲ $-120K ▼ $0 ▼ $-624K ▲ $-624K ▲
Q2-2025 $3.869M ▲ $-745K ▲ $-81K ▼ $85K ▼ $-741K ▲ $-826K ▲
Q1-2025 $3.254M ▲ $-2.938M ▲ $-62K ▲ $383K ▼ $-2.617M ▼ $-3M ▲
Q4-2024 $-810K ▼ $-16.825M ▼ $-346K ▼ $39.165M ▲ $21.994M ▲ $-17.171M ▼
Q3-2024 $165K $15.085M $-93K $1.856M $16.848M $14.992M

Revenue by Products

Product Q1-2023Q2-2023Q3-2023Q4-2023
Diapers and Wipes
Diapers and Wipes
 $50.00M ▲$60.00M ▲$50.00M ▼$60.00M ▲
Household and Wellness
Household and Wellness
 $10.00M ▲$10.00M ▲$10.00M ▲$10.00M ▲
Skin and Personal Care
Skin and Personal Care
 $20.00M ▲$20.00M ▲$20.00M ▲$20.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has been trending up over the past few years, showing that demand for Honest’s products is gradually increasing. Profitability, however, is still a key challenge. The company continues to post losses at the operating and net income level, though those losses have narrowed meaningfully more recently. Gross margins have improved, suggesting better pricing, product mix, and cost control, but not yet enough to fully cover operating expenses. Overall, the income statement tells a story of a brand gaining scale and improving efficiency, but still in transition from loss-making toward potential break‑even.

Balance Sheet

Balance Sheet The balance sheet looks relatively lean and conservative. The company holds a solid cash position compared with prior years, giving it more breathing room than it had before. Debt levels are modest, which reduces financial risk and interest burden. Shareholders’ equity has moved from a stressed position several years ago to a clearly positive level, indicating gradual repair of the capital base. Overall, the balance sheet appears healthier than in the past, with better liquidity and limited leverage, though not yet backed by consistently profitable operations.

Cash Flow

Cash Flow Cash flow has improved markedly. After several years of cash burn from operations, the business has recently reached roughly cash‑neutral to modestly cash‑generative territory. Free cash flow mirrors this pattern because capital spending is very light, reflecting an asset‑light model. This shift toward stable or positive cash generation is an encouraging sign, as it means the company is relying less on external funding to sustain its operations. The key question is whether this improvement is durable and can be maintained through different economic and retail cycles.

Competitive Edge

Competitive Edge Honest competes in a crowded consumer products space against large established brands and a flood of smaller “clean” and natural labels. Its main edge is a highly recognizable brand built around safety, transparency, and sustainability, backed by strict ingredient standards and clear messaging. This positioning supports premium pricing and strong loyalty among a specific consumer segment. The omnichannel approach—selling both online and through major retailers—broadens reach and reduces reliance on any single channel. The risk is that bigger players can imitate “clean” claims and use their scale to compete on price and shelf space, so Honest must keep reinforcing its brand trust and distinctiveness to stand out.

Innovation and R&D

Innovation and R&D Innovation at Honest is less about proprietary technology and more about product design, ingredient standards, and speed to market. The company’s “NO List” and “Honest Standard” function as internal R&D guardrails, guiding development of new baby, beauty, and home products that fit its clean‑label promise. Management highlights a relatively fast development cycle, which can help it respond quickly to trends. Recent leadership hires in supply chain and R&D point to a push for better execution, improved margins, and faster innovation. The company is also experimenting with sustainable packaging, collaborations, and expansion into adjacent categories like wellness. The main limitation is that most of this is brand‑ and process‑driven rather than protected by patents, so continued innovation and marketing are needed to keep the edge.

Summary

The Honest Company has evolved from a fast‑growing, loss‑making brand into a more disciplined, still‑developing consumer business. Revenue is growing steadily, gross margins are improving, and losses are shrinking, but the company has not yet demonstrated consistent profitability. The balance sheet and cash flow profile are notably stronger than a few years ago, with more cash, limited debt, and signs of cash‑flow stabilization. Competitively, Honest’s strength lies in its trusted “clean and transparent” brand, loyal niche customer base, and broad distribution, offset by intense competition and easy imitation of many product concepts. Its innovation engine is anchored in ingredient standards, rapid product refreshes, and sustainability initiatives rather than hard technology. Overall, Honest appears to be in the middle of a transformation: financially healthier than before, with a meaningful brand and clearer focus on profitable growth, but still needing to prove it can turn that foundation into durable, steady earnings over time.

NEWS

October 22, 2025 · 4:11 PM UTC

Halper Sadeh LLC Encourages The Honest Company, Inc. Shareholders to Contact the Firm to Discuss Their Rights

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September 9, 2025 · 4:05 PM UTC

The Honest Company to Participate in Wells Fargo 8th Annual Consumer Conference – September 17, 2025

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