Honest Company, Inc. (HNST)

In Q1 2025, The Honest Co. reported a 13% increase in revenue to $97 million, driven by strong performance in its wipes and baby personal care portfolio, marking its sixth consecutive quarter of positive adjusted EBITDA and a positive net income of $3 million. In Q2 2025, revenue growth moderated to 0.4% year-over-year, reaching $93.5 million, but the company achieved its second consecutive quarter of positive net income at $3.9 million and its seventh consecutive quarter of positive adjusted EBITDA with gross margin expanded to 40.4%. Management reiterated its full-year 2025 financial outlook, projecting 4% to 6% net revenue growth and adjusted EBITDA between $27 million and $30 million, despite anticipating an $8 million impact from tariffs. The stock price has experienced fluctuations, trading around $5.40 per share in May 2025 and approximately $4 in August 2025, and as of October 22, 2025, the stock price was $3.55. Morgan Stanley adjusted its price target for HNST to $4.25 from $5.50 in August 2025. The company is scheduled to report its Q3 2025 financial results on November 5, 2025.

The Honest Co. acknowledges that its quarterly operating results may fluctuate due to various factors, including consumer and customer demand, the seasonality of market transactions, and fluctuations in sales. Some product offerings, such as "Jams for the Fam" with "matching holiday prints," suggest potential seasonal marketing around holidays for certain items.

The Honest Co., Inc. is a digital-first consumer goods company focused on clean-formulated and sustainably designed products, founded in 2012 by Jessica Alba, Christopher Gavigan, and Brian Lee. The company operates in the consumer goods sector, specifically in the retail, wellness, and personal care industries, with major product categories including Diapers and Wipes, Skin and Personal Care, and Household and Wellness. The Diapers and Wipes segment has historically been the largest revenue contributor, featuring products made with sustainably harvested, plant-based materials. The Skin and Personal Care category includes face and body care, hand sanitizers, toothpaste, and the Honest Beauty line. The Household and Wellness segment offers cleaning products, laundry detergents, vitamins, supplements, baby clothing, and nursery bedding. The company adheres to a "No List" of over 3,500 chemicals and materials it excludes from its products, exceeding US and EU clean standards.

The Honest Co., Inc. serves customers in the United States, China, Canada, and Europe. The Honest Beauty line debuted in Western Europe (Germany, France, Spain, Italy, Poland, the Netherlands, and Austria) in 2019. The company has warehouses in Nevada and Pennsylvania.

The Honest Co. maintains a strong brand reputation for its commitment to clean, natural, and sustainably designed products. The company highlights its "No List" of over 3,500 chemicals it avoids, and many of its products are certified USDA Organic and Leaping Bunny (cruelty-free). It is also a B Corp certified company, reflecting its dedication to balancing profit with positive social and environmental impact. Consumers have shown a willingness to pay for products that meet high-quality standards and address specific needs, such as sensitive skincare.

The ownership structure of The Honest Co., Inc. includes institutional, retail, and individual investors. Major institutional owners include BlackRock, Inc., Portolan Capital Management, LLC, Vanguard Group Inc, Victory Capital Management Inc, Citadel Advisors Llc, and Renaissance Technologies Llc. Jessica Warren (Jessica Alba), a co-founder, is also a significant individual owner and a Member of the Board of Directors.