The earnings call highlights The Honest Company's record-breaking financial performance in 2024, with significant revenue and margin growth, along with a successful execution of strategic initiatives. However, there are challenges in the diaper category and increased legal costs impacting operating expenses. The company plans to shift away from its direct-to-consumer channel due to cost inefficiencies.

Company Guidance

During The Honest Company's Q4 2024 earnings call, guidance for 2025 was introduced, projecting revenue growth between 4% and 6% and adjusted EBITDA margin expansion. The company achieved record-high revenue of $378 million for 2024, marking a 10% year-over-year increase, and expanded gross margins by 900 basis points to 38%. Key achievements included a 32% increase in repeat purchase rates and a 20% rise in household penetration since going public in 2021. Notable growth drivers included the Clean Conscious Wipes, which saw a 17% increase in Q4 velocities, and the Sensitive Skin collection, which nearly doubled in consumption. The company's strategic focus on Brand Maximization, Margin Enhancement, and Operating Discipline played a crucial role in these outcomes. Looking ahead, The Honest Company plans to continue leveraging its transformation pillars to drive long-term value creation and intends to gradually pivot away from its own DTC channel in favor of more scalable distribution models.

Record Revenue and Gross Margin Expansion

The Honest Company achieved a record annual revenue of $378 million, up 10% year-over-year, and expanded gross margins by 900 basis points to 38%, marking their highest annual revenue and gross margin ever.

Positive Adjusted EBITDA

The company delivered its first full year of positive adjusted EBITDA as a public company, with a full-year positive adjusted EBITDA of $26 million, exceeding their original outlook.

Significant Growth in Key Product Segments

Wipes portfolio velocities were up 17% in Q4 and repeat purchases increased by 26% for the year. The sensitive skin collection nearly doubled in consumption with year-over-year growth of 96%.

Strong Performance in Digital Channels

At Amazon, the largest digital customer, consumption was up 35% in the quarter, driven by baby personal care, wipes, and baby apparel.

Successful Execution of Transformation Pillars

The company made significant advancements in Brand Maximization, Margin Enhancement, and Operating Discipline, driving profitable growth and long-term value creation.

---

Honest Company (HNST) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

HNST Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 08, 2025	2025 (Q1)	<0.01 / -	-0.01	―	―	―
Feb 26, 2025	2024 (Q4)	-0.01 / -0.01	0.01	-200.00% (-0.02)	―
Nov 12, 2024	2024 (Q3)	-0.03 / 0.00	-0.09	―
Aug 08, 2024	2024 (Q2)	-0.04 / -0.04	-0.14	71.43% (+0.10)	―
May 08, 2024	2024 (Q1)	-0.07 / -0.01	-0.2	95.00% (+0.19)	―
Mar 06, 2024	2023 (Q4)	-0.08 / 0.01	-0.14	107.14% (+0.15)	―
Nov 08, 2023	2023 (Q3)	-0.11 / -0.09	-0.13	30.77% (+0.04)	―
Aug 08, 2023	2023 (Q2)	-0.13 / -0.14	-0.11	-27.27% (-0.03)	―
May 09, 2023	2023 (Q1)	-0.13 / -0.20	-0.16	-25.00% (-0.04)	―
Mar 16, 2023	2022 (Q4)	-0.05 / -0.14	-0.1	-40.00% (-0.04)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

---

HNST Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 26, 2025	$5.68	$5.00	-11.97%
Nov 12, 2024	$4.80	$6.01	+25.21%
Aug 08, 2024	$3.24	$3.68	+13.58%
May 08, 2024	$2.95	$3.13	+6.10%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

---