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Honest Company, Inc. Financials

HNST
Source SEC Filings (10-K/10-Q) Updated Mar 31, 2026 Currency USD FYE December

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).

Rhea AI HNST FY2025

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 38.2% did not hold in FY2025, easing to 33.3%, but SG&A fell by about $19.5M; that mix implies the move toward breakeven is relying more on cost discipline than on a permanently richer margin structure.

The balance sheet is unusually patient for a company still posting losses: cash climbed to $89.6M, total liabilities fell to $55.7M, and the current ratio stayed near 4.0x. With no long-term debt reported, liquidity appears to be supported by cash and inventory management rather than by borrowed time.

[ NOT FINANCIAL ADVICE ]

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 43 / 100
Financial Profile 43/100

Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). 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.

Profitability
11

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.

Growth
40

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 40/100.

Leverage
95

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.

Liquidity
78

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.

Cash Flow
32

Honest Company, Inc. has a free cash flow margin of 3.7%, earning a moderate score of 32/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns
0

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.

Piotroski F-Score Neutral
4/9

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.

Earnings Quality Mixed
-0.96x

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

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Earnings & Revenue

Revenue
$371.3M
YoY-1.9%
5Y CAGR+4.3%

Honest Company, Inc. generated $371.3M in revenue in fiscal year 2025. This represents a decrease of 1.9% from the prior year.

EBITDA
-$15.6M
YoY-346.1%

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.

Net Income
-$15.7M
YoY-156.1%

Honest Company, Inc. reported -$15.7M in net income in fiscal year 2025. This represents a decrease of 156.1% from the prior year.

EPS (Diluted)
$-0.14
YoY-133.3%

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

Free Cash Flow
$13.6M
YoY+1246.3%

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.

Cash & Debt
$89.6M
YoY+18.8%
5Y CAGR+25.1%

Honest Company, Inc. held $89.6M in cash against $0 in long-term debt as of fiscal year 2025.

Dividends Per Share
N/A
Shares Outstanding
113M
YoY+3.3%
5Y CAGR+27.0%

Honest Company, Inc. had 113M shares outstanding in fiscal year 2025. This represents an increase of 3.3% from the prior year.

Margins & Returns

Gross Margin
33.3%
YoY-4.9pp
5Y CAGR-2.6pp

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.

Operating Margin
-5.0%
YoY-3.3pp
5Y CAGR-0.5pp

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.

Net Margin
-4.2%
YoY-2.6pp
5Y CAGR+0.6pp

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.

Return on Equity
-9.3%
YoY-5.7pp

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

R&D Spending
$7.3M
YoY+7.2%
5Y CAGR+5.2%

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.

Share Buybacks
N/A
Capital Expenditures
$1.5M
YoY+184.9%
5Y CAGR+49.8%

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 Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Revenue $78.1M-11.3% $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
Cost of Revenue $44.8M-39.6% $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
Gross Profit $33.3M+140.3% $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
R&D Expenses $1.9M+1.5% $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
SG&A Expenses $17.5M-14.5% $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
Operating Income -$659K+97.3% -$24.2M-7821.7% $313K-89.2% $2.9M+15.2% $2.5M+343.9% -$1.0M-1903.5% $57K+101.4% -$4.0M
Interest Expense N/A N/A N/A N/A N/A N/A N/A N/A
Income Tax $46K+360.0% $10K-90.9% $110K+150.0% $44K+10.0% $40K+122.2% $18K-5.3% $19K+46.2% $13K
Net Income -$42K+99.8% -$23.6M-3209.2% $758K-80.4% $3.9M+18.9% $3.3M+502.2% -$809K-590.3% $165K+104.0% -$4.1M
EPS (Diluted) $0.00 N/A $0.01-66.7% $0.030.0% $0.03 N/A $0.00+100.0% $-0.04

HNST Balance Sheet

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Total Assets $214.9M-4.7% $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
Current Assets $192.8M-4.8% $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
Cash & Equivalents $90.4M+0.9% $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
Inventory $61.2M-15.6% $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
Accounts Receivable N/A N/A N/A N/A N/A N/A N/A N/A
Goodwill $2.3M0.0% $2.3M+1.7% $2.2M0.0% $2.2M0.0% $2.2M0.0% $2.2M0.0% $2.2M0.0% $2.2M
Total Liabilities $45.8M-17.8% $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
Current Liabilities $42.8M-15.9% $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
Long-Term Debt N/A N/A N/A N/A N/A N/A N/A N/A
Total Equity $169.1M-0.3% $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
Retained Earnings -$500.9M0.0% -$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

HNST Cash Flow Statement

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Operating Cash Flow $5.5M-71.4% $19.3M+3931.0% -$504K+32.3% -$745K+74.6% -$2.9M+82.5% -$16.8M-211.5% $15.1M+412.2% $2.9M
Capital Expenditures $1.7M+39.2% $1.2M+939.2% $120K+48.1% $81K+30.6% $62K-82.1% $346K+272.0% $93K+520.0% $15K
Free Cash Flow $3.8M-79.0% $18.1M+2994.4% -$624K+24.5% -$826K+72.5% -$3.0M+82.5% -$17.2M-214.5% $15.0M+411.7% $2.9M
Investing Cash Flow -$1.7M-39.2% -$1.2M-939.2% -$120K-48.1% -$81K-30.6% -$62K+82.1% -$346K-272.0% -$93K-520.0% -$15K
Financing Cash Flow -$3.0M-4577.6% $67K $0-100.0% $85K-77.8% $383K-99.0% $39.2M+2010.2% $1.9M+2279.5% $78K
Dividends Paid N/A N/A N/A N/A N/A N/A N/A N/A
Share Buybacks $3.0M N/A N/A N/A $0 N/A N/A N/A

HNST Financial Ratios

Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24
Gross Margin 42.6%+26.9pp 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%
Operating Margin -0.8%+26.6pp -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%
Net Margin -0.1%+26.7pp -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%
Return on Equity -0.0%+13.9pp -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%
Return on Assets -0.0%+10.4pp -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%
Current Ratio 4.51+0.5 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
Debt-to-Equity 0.27-0.1 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
FCF Margin 4.9%-15.7pp 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%

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Frequently Asked Questions

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.

Honest Company, Inc. (HNST) revenue declined by 1.9% year-over-year, from $378.3M to $371.3M in fiscal year 2025.

No, Honest Company, Inc. (HNST) reported a net income of -$15.7M in fiscal year 2025, with a net profit margin of -4.2%.

Honest Company, Inc. (HNST) reported diluted earnings per share of $-0.14 for fiscal year 2025. This represents a -133.3% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Honest Company, Inc. (HNST) had EBITDA of -$15.6M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

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.

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.

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.

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.

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.

Honest Company, Inc. (HNST) generated $15.1M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Honest Company, Inc. (HNST) had $225.4M in total assets as of fiscal year 2025, including both current and long-term assets.

Honest Company, Inc. (HNST) invested $1.5M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Honest Company, Inc. (HNST) invested $7.3M in research and development during fiscal year 2025.

Honest Company, Inc. (HNST) had 113M shares outstanding as of fiscal year 2025.

Honest Company, Inc. (HNST) had a current ratio of 3.98 as of fiscal year 2025, which is generally considered healthy.

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.

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.

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 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

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.

Honest Company, Inc. (HNST) scores 43 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.

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