Honest Company, Inc. Financials
This page shows Honest Company, Inc. (HNST) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 7 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Financial Health Signals
Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores
Honest Company, Inc. has an operating margin of -5.0%, meaning the company retains $-5 of operating profit per $100 of revenue. This below-average margin results in a low score of 11/100, suggesting thin profitability after operating expenses. This is down from -1.7% the prior year.
Honest Company, Inc.'s revenue declined 1.9% year-over-year, from $378.3M to $371.3M. This contraction results in a growth score of 30/100.
Honest Company, Inc. carries a low D/E ratio of 0.33, meaning only $0.33 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 95/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 3.98, Honest Company, Inc. holds $3.98 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 78/100.
Honest Company, Inc. has a free cash flow margin of 3.7%, earning a moderate score of 34/100. The company generates positive cash flow after capital investments, but with room for improvement.
Honest Company, Inc. generates a -9.3% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100. This is down from -3.5% the prior year.
Honest Company, Inc. passes 4 of 9 financial strength tests. 2 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Honest Company, Inc. generates $-0.96 in operating cash flow ($15.1M OCF vs -$15.7M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Key Financial Metrics
Earnings & Revenue
Honest Company, Inc. generated $371.3M in revenue in fiscal year 2025. This represents a decrease of 1.9% from the prior year.
Honest Company, Inc.'s EBITDA was -$15.6M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 346.1% from the prior year.
Honest Company, Inc. reported -$15.7M in net income in fiscal year 2025. This represents a decrease of 156.1% from the prior year.
Honest Company, Inc. earned $-0.14 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 133.3% from the prior year.
Cash & Balance Sheet
Honest Company, Inc. generated $13.6M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 1246.3% from the prior year.
Honest Company, Inc. held $89.6M in cash against $0 in long-term debt as of fiscal year 2025.
Honest Company, Inc. had 113M shares outstanding in fiscal year 2025. This represents an increase of 3.3% from the prior year.
Margins & Returns
Honest Company, Inc.'s gross margin was 33.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 4.9 percentage points from the prior year.
Honest Company, Inc.'s operating margin was -5.0% in fiscal year 2025, reflecting core business profitability. This is down 3.3 percentage points from the prior year.
Honest Company, Inc.'s net profit margin was -4.2% in fiscal year 2025, showing the share of revenue converted to profit. This is down 2.6 percentage points from the prior year.
Honest Company, Inc.'s ROE was -9.3% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 5.7 percentage points from the prior year.
Capital Allocation
Honest Company, Inc. invested $7.3M in research and development in fiscal year 2025. This represents an increase of 7.2% from the prior year.
Honest Company, Inc. invested $1.5M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 184.9% from the prior year.
HNST Income Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $88.0M-4.9% | $92.6M-1.0% | $93.5M-3.9% | $97.3M-2.6% | $99.8M+0.6% | $99.2M+6.7% | $93.0M+7.9% | $86.2M |
| Cost of Revenue | $74.2M+27.7% | $58.1M+4.3% | $55.7M-6.5% | $59.6M-2.4% | $61.1M+0.4% | $60.8M+5.9% | $57.4M+5.7% | $54.3M |
| Gross Profit | $13.8M-59.9% | $34.5M-8.6% | $37.8M+0.2% | $37.7M-2.8% | $38.8M+1.0% | $38.4M+7.8% | $35.6M+11.7% | $31.9M |
| R&D Expenses | $1.8M+7.8% | $1.7M-13.2% | $2.0M+5.8% | $1.9M+8.1% | $1.7M-1.6% | $1.7M+1.6% | $1.7M+2.0% | $1.7M |
| SG&A Expenses | $20.4M+15.6% | $17.7M-13.1% | $20.4M-3.3% | $21.0M-21.4% | $26.8M+14.3% | $23.4M-11.4% | $26.4M+17.9% | $22.4M |
| Operating Income | -$24.2M-7821.7% | $313K-89.2% | $2.9M+15.2% | $2.5M+343.9% | -$1.0M-1903.5% | $57K+101.4% | -$4.0M-207.6% | -$1.3M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $10K-90.9% | $110K+150.0% | $44K+10.0% | $40K+122.2% | $18K-5.3% | $19K+46.2% | $13K-48.0% | $25K |
| Net Income | -$23.6M-3209.2% | $758K-80.4% | $3.9M+18.9% | $3.3M+502.2% | -$809K-590.3% | $165K+104.0% | -$4.1M-190.6% | -$1.4M |
| EPS (Diluted) | N/A | $0.01-66.7% | $0.030.0% | $0.03 | N/A | $0.00+100.0% | $-0.04-300.0% | $-0.01 |
HNST Balance Sheet
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $225.4M-6.7% | $241.5M-3.0% | $249.0M-6.1% | $265.3M+7.2% | $247.4M+18.3% | $209.2M+4.5% | $200.2M+1.1% | $198.1M |
| Current Assets | $202.4M-6.3% | $216.2M-2.2% | $220.9M-5.8% | $234.6M+9.7% | $213.9M+23.4% | $173.3M+6.8% | $162.2M+3.7% | $156.4M |
| Cash & Equivalents | $89.6M+25.4% | $71.5M-0.9% | $72.1M-1.0% | $72.8M-3.5% | $75.4M+41.2% | $53.4M+46.0% | $36.6M+9.0% | $33.6M |
| Inventory | $72.5M-22.8% | $93.9M-1.2% | $95.0M+5.3% | $90.3M+5.9% | $85.3M+14.1% | $74.7M+1.4% | $73.7M-1.1% | $74.5M |
| Accounts Receivable | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Goodwill | $2.3M+1.7% | $2.2M0.0% | $2.2M0.0% | $2.2M0.0% | $2.2M0.0% | $2.2M0.0% | $2.2M0.0% | $2.2M |
| Total Liabilities | $55.7M+8.5% | $51.4M-17.2% | $62.0M-27.0% | $84.9M+16.2% | $73.1M-3.0% | $75.3M+6.9% | $70.5M-3.9% | $73.3M |
| Current Liabilities | $50.8M+13.3% | $44.9M-15.7% | $53.3M-28.0% | $74.0M+23.5% | $59.9M-0.1% | $60.0M+13.3% | $52.9M-1.4% | $53.7M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $169.7M-10.8% | $190.2M+1.7% | $187.0M+3.7% | $180.4M+3.5% | $174.3M+30.2% | $133.9M+3.2% | $129.7M+3.9% | $124.8M |
| Retained Earnings | -$500.9M-4.9% | -$477.3M+0.2% | -$478.1M+0.8% | -$481.9M+0.7% | -$485.2M-0.2% | -$484.4M0.0% | -$484.5M-0.8% | -$480.5M |
HNST Cash Flow Statement
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $19.3M+3931.0% | -$504K+32.3% | -$745K+74.6% | -$2.9M+82.5% | -$16.8M-211.5% | $15.1M+412.2% | $2.9M+776.5% | $336K |
| Capital Expenditures | $1.2M+939.2% | $120K+48.1% | $81K+30.6% | $62K-82.1% | $346K+272.0% | $93K+520.0% | $15K-80.3% | $76K |
| Free Cash Flow | $18.1M+2994.4% | -$624K+24.5% | -$826K+72.5% | -$3.0M+82.5% | -$17.2M-214.5% | $15.0M+411.7% | $2.9M+1026.9% | $260K |
| Investing Cash Flow | -$1.2M-939.2% | -$120K-48.1% | -$81K-30.6% | -$62K+82.1% | -$346K-272.0% | -$93K-520.0% | -$15K+80.3% | -$76K |
| Financing Cash Flow | $67K | $0-100.0% | $85K-77.8% | $383K-99.0% | $39.2M+2010.2% | $1.9M+2279.5% | $78K-84.3% | $498K |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
HNST Financial Ratios
| Metric | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 | Q1'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 15.7%-21.5pp | 37.3%-3.1pp | 40.4%+1.6pp | 38.7%-0.1pp | 38.8%+0.1pp | 38.7%+0.4pp | 38.3%+1.3pp | 37.0% |
| Operating Margin | -27.5%-27.8pp | 0.3%-2.8pp | 3.1%+0.5pp | 2.6%+3.6pp | -1.0%-1.1pp | 0.1%+4.4pp | -4.3%-2.8pp | -1.5% |
| Net Margin | -26.8%-27.6pp | 0.8%-3.3pp | 4.1%+0.8pp | 3.4%+4.2pp | -0.8%-1.0pp | 0.2%+4.5pp | -4.4%-2.8pp | -1.6% |
| Return on Equity | -13.9%-14.3pp | 0.4%-1.7pp | 2.1%+0.3pp | 1.8%+2.3pp | -0.5%-0.6pp | 0.1%+3.3pp | -3.1%-2.0pp | -1.1% |
| Return on Assets | -10.5%-10.8pp | 0.3%-1.2pp | 1.6%+0.3pp | 1.2%+1.6pp | -0.3%-0.4pp | 0.1%+2.1pp | -2.0%-1.3pp | -0.7% |
| Current Ratio | 3.98-0.8 | 4.82+0.7 | 4.15+1.0 | 3.17-0.4 | 3.57+0.7 | 2.89-0.2 | 3.06+0.2 | 2.91 |
| Debt-to-Equity | 0.33+0.1 | 0.27-0.1 | 0.33-0.1 | 0.47+0.1 | 0.42-0.1 | 0.56+0.0 | 0.54-0.0 | 0.59 |
| FCF Margin | 20.5%+21.2pp | -0.7%+0.2pp | -0.9%+2.2pp | -3.1%+14.1pp | -17.2%-32.3pp | 15.1%+12.0pp | 3.1%+2.9pp | 0.3% |
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Frequently Asked Questions
What is Honest Company, Inc.'s annual revenue?
Honest Company, Inc. (HNST) reported $371.3M in total revenue for fiscal year 2025. This represents a -1.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Honest Company, Inc.'s revenue growing?
Honest Company, Inc. (HNST) revenue declined by 1.9% year-over-year, from $378.3M to $371.3M in fiscal year 2025.
Is Honest Company, Inc. profitable?
No, Honest Company, Inc. (HNST) reported a net income of -$15.7M in fiscal year 2025, with a net profit margin of -4.2%.
What is Honest Company, Inc.'s EBITDA?
Honest Company, Inc. (HNST) had EBITDA of -$15.6M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Honest Company, Inc.'s gross margin?
Honest Company, Inc. (HNST) had a gross margin of 33.3% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Honest Company, Inc.'s operating margin?
Honest Company, Inc. (HNST) had an operating margin of -5.0% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Honest Company, Inc.'s net profit margin?
Honest Company, Inc. (HNST) had a net profit margin of -4.2% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Honest Company, Inc.'s return on equity (ROE)?
Honest Company, Inc. (HNST) has a return on equity of -9.3% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Honest Company, Inc.'s free cash flow?
Honest Company, Inc. (HNST) generated $13.6M in free cash flow during fiscal year 2025. This represents a 1246.3% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Honest Company, Inc.'s operating cash flow?
Honest Company, Inc. (HNST) generated $15.1M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Honest Company, Inc.'s total assets?
Honest Company, Inc. (HNST) had $225.4M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Honest Company, Inc.'s capital expenditures?
Honest Company, Inc. (HNST) invested $1.5M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Honest Company, Inc. spend on research and development?
Honest Company, Inc. (HNST) invested $7.3M in research and development during fiscal year 2025.
What is Honest Company, Inc.'s current ratio?
Honest Company, Inc. (HNST) had a current ratio of 3.98 as of fiscal year 2025, which is generally considered healthy.
What is Honest Company, Inc.'s debt-to-equity ratio?
Honest Company, Inc. (HNST) had a debt-to-equity ratio of 0.33 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Honest Company, Inc.'s return on assets (ROA)?
Honest Company, Inc. (HNST) had a return on assets of -7.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Honest Company, Inc.'s Piotroski F-Score?
Honest Company, Inc. (HNST) has a Piotroski F-Score of 4 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Honest Company, Inc.'s earnings high quality?
Honest Company, Inc. (HNST) has an earnings quality ratio of -0.96x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Honest Company, Inc.?
Honest Company, Inc. (HNST) scores 42 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.