Honest Company, Inc. Financials
Honest Company, Inc. (HNST) reported $371.3M in revenue for fiscal year 2025, down 1.9% from the prior fiscal year. This page shows its 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).
The business now looks cash-generative despite accounting losses, because working capital and lean reinvestment are carrying the model.
Between FY2022 and FY2025, free cash flow flipped from-$77.9M to$13.6M even though net income stayed negative at-$15.7M ; that gap says the improvement is coming less from reported earnings than from cash conversion. The clearest clue is inventory falling from$85.3M in FY2024 to$72.5M in FY2025 while capital spending remained just$1.5M , so the business is releasing cash from the balance sheet rather than consuming it through heavy reinvestment.
FY2024’s gross margin step-up to
The balance sheet is unusually patient for a company still posting losses: cash climbed to
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Honest Company, Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Honest Company, Inc. has an operating margin of -5.0%, meaning the company loses $5 on every $100 of revenue. This results in a profitability score of 34/100. 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 45/100.
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 67/100, 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 86/100.
Honest Company, Inc. has a free cash flow margin of 3.7%, earning a moderate score of 40/100. The company generates positive cash flow after capital investments, but with room for improvement.
Honest Company, Inc. posts a -9.3% return on equity (ROE), meaning it loses $9 for every $100 of shareholders' equity. This results in a returns score of 29/100. This is down from -3.5% the prior year.
Honest Company, Inc. scores 4.91, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($541.8M) relative to total liabilities ($55.7M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Honest Company, Inc. passes 4 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 2 of 4 profitability signals pass, 1 of 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
Honest Company, Inc. reported a net loss of $15.7M while generating $15.1M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal.
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 as of fiscal year 2025; long-term debt is not reported for that period.
Not reported for fiscal year 2025.
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.
Not reported for fiscal year 2025.
HNST Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $342.0M | $371.3M-1.9% | $378.3M+9.9% | $344.4M+9.8% | $313.7M-1.6% | $318.6M+6.0% | $300.5M+27.6% | $235.6M |
| Cost of Revenue | $220.0M | $247.6M+5.9% | $233.7M-4.2% | $243.8M+10.2% | $221.3M+5.7% | $209.5M+8.7% | $192.6M+20.6% | $159.7M |
| Gross Profit | $122.0M | $123.8M-14.4% | $144.7M+43.9% | $100.5M+8.9% | $92.3M-15.4% | $109.2M+1.2% | $107.9M+42.2% | $75.9M |
| R&D Expenses | $7.1M | $7.3M+7.2% | $6.9M+10.3% | $6.2M-11.2% | $7.0M-8.9% | $7.7M+34.6% | $5.7M+11.1% | $5.1M |
| SG&A Expenses | $70.6M | $79.5M-19.7% | $99.0M+4.7% | $94.6M+8.3% | $87.3M+3.9% | $84.1M+18.0% | $71.3M+1.3% | $70.3M |
| Operating Income | -$14.9M | -$18.5M-191.6% | -$6.3M+83.7% | -$38.9M+21.8% | -$49.8M-35.2% | -$36.8M-172.0% | -$13.5M+57.0% | -$31.5M |
| Income Tax | $231K | $204K+172.0% | $75K0.0% | $75K-31.8% | $110K+42.9% | $77K-13.5% | $89K+61.8% | $55K |
| Net Income | -$12.2M | -$15.7M-156.1% | -$6.1M+84.4% | -$39.2M+20.0% | -$49.0M-26.7% | -$38.7M-167.4% | -$14.5M+53.5% | -$31.1M |
| EPS (Diluted) | — | -$0.14-133.3% | -$0.06+85.7% | -$0.42+20.8% | -$0.53-23.3% | -$0.43 | -$0.43+53.3% | -$0.92 |
Not reported in any period shown, so not listed: Interest Expense.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
HNST Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 |
|---|---|---|---|---|---|---|---|
| Total Assets | $225.4M-8.9% | $247.4M+22.7% | $201.6M-16.2% | $240.6M-11.7% | $272.6M+13.2% | $240.7M | N/A |
| Current Assets | $202.4M-5.4% | $213.9M+35.6% | $157.8M-16.6% | $189.1M-11.5% | $213.8M+23.2% | $173.6M | N/A |
| Cash & Equivalents | $89.6M+18.8% | $75.4M+129.8% | $32.8M+244.9% | $9.5M-81.3% | $50.8M+73.6% | $29.3M+116.0% | $13.5M |
| Inventory | $72.5M-15.0% | $85.3M+16.0% | $73.5M-36.5% | $115.7M+52.9% | $75.7M-1.3% | $76.7M | N/A |
| Goodwill | $2.3M+1.7% | $2.2M0.0% | $2.2M0.0% | $2.2M0.0% | $2.2M0.0% | $2.2M | N/A |
| Total Liabilities | $55.7M-23.7% | $73.1M-6.9% | $78.5M-16.7% | $94.2M+0.8% | $93.5M-80.4% | $477.6M | N/A |
| Current Liabilities | $50.8M-15.1% | $59.9M+5.6% | $56.7M-10.8% | $63.6M+31.2% | $48.5M-10.3% | $54.1M | N/A |
| Total Equity | $169.7M-2.7% | $174.3M+41.6% | $123.1M-15.9% | $146.4M-18.3% | $179.1M+175.6% | -$236.8M-2.8% | -$230.3M |
| Retained Earnings | -$500.9M-3.2% | -$485.2M-1.3% | -$479.1M-8.9% | -$439.8M-12.3% | -$391.7M-11.0% | -$353.0M | N/A |
Not reported in any period shown, so not listed: Accounts Receivable, Long-Term Debt.
HNST Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type.
| Metric | TTM | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $56.6M | $15.1M+881.2% | $1.5M-92.0% | $19.4M+125.4% | -$76.3M-99.9% | -$38.2M-216.2% | -$12.1M+39.6% | -$20.0M |
| Capital Expenditures | $3.9M | $1.5M+184.9% | $530K-71.2% | $1.8M+13.7% | $1.6M+635.0% | $220K+10.0% | $200K-69.7% | $661K |
| Free Cash Flow | $52.7M | $13.6M+1246.3% | $1.0M-94.2% | $17.5M+122.5% | -$77.9M-103.0% | -$38.4M-212.8% | -$12.3M+40.6% | -$20.7M |
| Investing Cash Flow | -$3.9M | -$1.5M-184.9% | -$530K-113.8% | $3.8M-89.0% | $35.0M+505.5% | -$8.6M-123.5% | $36.7M+233.4% | $11.0M |
| Financing Cash Flow | -$18.9M | $535K-98.7% | $41.6M+33995.9% | $122K+221.1% | $38K-99.9% | $60.4M+6304.3% | -$973K-219.0% | -$305K |
| Dividends Paid | N/A | N/A | N/A | $0 | $0-100.0% | $35.0M | $0 | $0 |
Not reported in any period shown, so not listed: Share Buybacks.
TTM is the trailing twelve months, Q3 FY2025 through Q2 FY2026, summed from the four most recent quarterly filings. A row marked — cannot be summed at all, because a quarter in the window reports no per-share figure; a row marked N/A could be summed, but a quarter in the window does not report that metric.
HNST Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples.
| Metric | FY25 | FY24 | FY23 | FY22 | FY21 | FY20 | FY19 |
|---|---|---|---|---|---|---|---|
| Gross Margin | 33.3%-4.9pp | 38.2%+9.0pp | 29.2%-0.2pp | 29.4%-4.8pp | 34.3%-1.6pp | 35.9%+3.7pp | 32.2% |
| Operating Margin | -5.0%-3.3pp | -1.7%+9.6pp | -11.3%+4.6pp | -15.9%-4.3pp | -11.6%-7.0pp | -4.5%+8.8pp | -13.4% |
| Net Margin | -4.2%-2.6pp | -1.6%+9.8pp | -11.4%+4.2pp | -15.6%-3.5pp | -12.1%-7.3pp | -4.8%+8.4pp | -13.2% |
| Return on Equity | -9.3%-5.7pp | -3.5%+28.3pp | -31.9%+1.6pp | -33.5%-11.9pp | -21.6% | N/A | N/A |
| Return on Assets | -7.0%-4.5pp | -2.5%+17.0pp | -19.5%+0.9pp | -20.4%-6.2pp | -14.2%-8.2pp | -6.0% | N/A |
| Current Ratio | 3.98+0.4x | 3.57+0.8x | 2.78-0.2x | 2.97-1.4x | 4.41+1.2x | 3.21 | N/A |
| Debt-to-Equity | 0.33-0.1x | 0.42-0.2x | 0.640.0x | 0.64+0.1x | 0.52 | N/A | N/A |
| FCF Margin | 3.7%+3.4pp | 0.3%-4.8pp | 5.1%+29.9pp | -24.8%-12.8pp | -12.0%-8.0pp | -4.1%+4.7pp | -8.8% |
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Where Honest Company, Inc. Ranks
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 Altman Z-Score?
Honest Company, Inc. (HNST) has an Altman Z-Score of 4.91, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Honest Company, Inc.'s Piotroski F-Score?
Honest Company, Inc. (HNST) has a Piotroski F-Score of 4 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. 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 to 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) reported a net loss of $15.7M while generating $15.1M in operating cash flow. Operations generated cash despite the loss, but with no positive earnings behind it, the ratio between the two carries no quality signal. 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 50 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.