The Honest Company Q4 2025 Earnings Call Insights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy HNST?
Source: seekingalpha
- Successful Strategic Transformation: The Honest Company has successfully exited Honest.com, the apparel category, and the Canadian business in 2025, with CEO Carla Vernon stating that this transformation has allowed the company to focus on its core businesses of wipes, personal care, and diapers, thereby enhancing operational efficiency and market competitiveness.
- Strong Financial Performance: In 2025, Honest achieved organic revenue of $294 million, a 5.3% increase year-over-year, with consumption growth of 30% and 12% in wipes and personal care products, respectively, although diaper performance was soft, overall market share improved.
- Confidence Boost from Buyback Program: The company announced a $25 million share repurchase program, with CFO Curtiss Bruce noting that this reflects deep confidence in the company's strategy and is expected to deliver annual savings of $10 million to $15 million through the
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Analyst Views on HNST
Wall Street analysts forecast HNST stock price to rise
6 Analyst Rating
3 Buy
3 Hold
0 Sell
Moderate Buy
Current: 2.260
Low
3.00
Averages
3.83
High
6.00
Current: 2.260
Low
3.00
Averages
3.83
High
6.00
About HNST
The Honest Company, Inc. is a personal care company focused on creating cleanly-formulated and sustainably designed products. It offers personal care products, including diapers, wipes and adult facial care (including skin and color cosmetics). Primary components of its diapers include responsibly sourced, plant-based fluff pulp and other plant-derived materials. Its diapers have a modern and efficient design that uses less material. Its Clean Conscious wipes are compostable and plant-based, made with over 99% water and gentle on sensitive skin. It has a line of bath and body care products for babies, and adult facial care products designed for a range of skin types and concerns. Its ingredients and formulas are toxicologist-audited for potential health concerns. It offers baby clothing made with organic cotton, family flushable wipes, sanitizing wipes and hand sanitizer made with plant-based ingredients. Its distribution network includes two warehouses in Nevada and Pennsylvania.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
The Honest Company Q4 2025 Earnings Call Insights
- Successful Strategic Transformation: The Honest Company has successfully exited Honest.com, the apparel category, and the Canadian business in 2025, with CEO Carla Vernon stating that this transformation has allowed the company to focus on its core businesses of wipes, personal care, and diapers, thereby enhancing operational efficiency and market competitiveness.
- Strong Financial Performance: In 2025, Honest achieved organic revenue of $294 million, a 5.3% increase year-over-year, with consumption growth of 30% and 12% in wipes and personal care products, respectively, although diaper performance was soft, overall market share improved.
- Confidence Boost from Buyback Program: The company announced a $25 million share repurchase program, with CFO Curtiss Bruce noting that this reflects deep confidence in the company's strategy and is expected to deliver annual savings of $10 million to $15 million through the
See More
Honest (HNST) Q4 2025 Earnings Call Transcript
See More
Honest Company Reports Q4 Earnings Miss
- Earnings Miss: Honest Company reported a Q4 GAAP EPS of -$0.21, missing expectations by $0.23, indicating ongoing challenges in profitability that could undermine investor confidence.
- Revenue Decline: The company’s revenue of $88.04 million represents an 11.8% year-over-year decline, falling short of expectations by $0.53 million, reflecting weak market demand and intensified competition.
- Bleak Outlook: Honest Company forecasts revenue between $306 million and $312 million for 2025, indicating a year-over-year decline of 18% to 16%, suggesting ongoing market pressures that may impact long-term growth potential.
- Adjusted Gross Margin: The adjusted gross margin is expected to be in the low 40% range, and while there is a slight organic revenue growth expectation of 4% to 6%, overall profitability remains fragile, potentially affecting investor sentiment regarding the company's future.
See More
Earnings Reports Week for Major Companies
- Earnings Reporting Schedule: This week features earnings reports from the world's largest publicly traded companies across energy, retail, and tech sectors, with investors keenly observing performance and market reactions.
- JOBY Stock Movement: JOBY stock is experiencing volatility, and investor sentiment remains cautious ahead of upcoming earnings, particularly given the broader market context.
- Lucid Group Expectations: Lucid Group is set to report after Tuesday's close, with analysts forecasting a quarterly loss of $2.64 per share on revenue of approximately $473 million, focusing on gross margin and cash runway.
- AI Infrastructure Spending: Analysts anticipate a tech company's fourth-quarter revenue of around $65.6 billion and adjusted EPS of $1.52, with the market keenly awaiting Q1 guidance and CEO insights on AI infrastructure spending.
See More
The Honest Company Launches New Scented Sanitizing Wipes
- Scented Options Return: The Honest Company reintroduces Lavender and Grapefruit scented sanitizing wipes, catering to consumer demand for natural fragrances, which is expected to drive sales growth and enhance brand appeal.
- Safety Assurance: These wipes kill 99.99% of germs and are made with 65% plant-derived alcohol along with aloe and glycerin, ensuring safety for families and everyday use, thereby increasing consumer trust.
- Portable Design: The redesigned wipes come in travel-friendly 15-count and 50-count sizes, making them convenient for families on-the-go, which aligns with modern fast-paced lifestyles and enhances market competitiveness.
- Market Availability: Honest's sanitizing wipes are now available on Amazon and Target.com, with plans to launch on Walmart.com soon, expanding product market reach and increasing brand visibility.
See More
Oversold Stocks in Consumer Staples Present Buying Opportunities
- Oversold Stocks Overview: According to Benzinga Pro, major players in the consumer staples sector, including NU Skin Enterprises Inc, Coty Inc, and Honest Company Inc, have relative strength indices (RSI) near or below 30, indicating they are significantly oversold and may present undervalued buying opportunities for investors.
- RSI Indicator Analysis: The relative strength index (RSI) serves as a momentum indicator that compares a stock's strength on up days versus down days, helping traders better assess short-term stock performance and make more informed investment decisions amid market fluctuations.
- Market Opportunity Identification: The identification of oversold stocks in the current market environment offers potential appreciation opportunities for investors, particularly in the consumer staples sector, where investors can capitalize on the rebound potential of these undervalued stocks.
- Investment Strategy Recommendations: While Benzinga does not provide investment advice, the phenomenon of oversold stocks typically attracts value-seeking traders, suggesting a focus on the subsequent performance of these stocks to evaluate their rebound potential.
See More
The Honest Company Q4 2025 Earnings Call Insights
- Successful Strategic Transformation: The Honest Company has successfully exited Honest.com, the apparel category, and the Canadian business in 2025, with CEO Carla Vernon stating that this transformation has allowed the company to focus on its core businesses of wipes, personal care, and diapers, thereby enhancing operational efficiency and market competitiveness.
- Strong Financial Performance: In 2025, Honest achieved organic revenue of $294 million, a 5.3% increase year-over-year, with consumption growth of 30% and 12% in wipes and personal care products, respectively, although diaper performance was soft, overall market share improved.
- Confidence Boost from Buyback Program: The company announced a $25 million share repurchase program, with CFO Curtiss Bruce noting that this reflects deep confidence in the company's strategy and is expected to deliver annual savings of $10 million to $15 million through the
See More
Honest (HNST) Q4 2025 Earnings Call Transcript
See More
Honest Company Reports Q4 Earnings Miss
- Earnings Miss: Honest Company reported a Q4 GAAP EPS of -$0.21, missing expectations by $0.23, indicating ongoing challenges in profitability that could undermine investor confidence.
- Revenue Decline: The company’s revenue of $88.04 million represents an 11.8% year-over-year decline, falling short of expectations by $0.53 million, reflecting weak market demand and intensified competition.
- Bleak Outlook: Honest Company forecasts revenue between $306 million and $312 million for 2025, indicating a year-over-year decline of 18% to 16%, suggesting ongoing market pressures that may impact long-term growth potential.
- Adjusted Gross Margin: The adjusted gross margin is expected to be in the low 40% range, and while there is a slight organic revenue growth expectation of 4% to 6%, overall profitability remains fragile, potentially affecting investor sentiment regarding the company's future.
See More
Earnings Reports Week for Major Companies
- Earnings Reporting Schedule: This week features earnings reports from the world's largest publicly traded companies across energy, retail, and tech sectors, with investors keenly observing performance and market reactions.
- JOBY Stock Movement: JOBY stock is experiencing volatility, and investor sentiment remains cautious ahead of upcoming earnings, particularly given the broader market context.
- Lucid Group Expectations: Lucid Group is set to report after Tuesday's close, with analysts forecasting a quarterly loss of $2.64 per share on revenue of approximately $473 million, focusing on gross margin and cash runway.
- AI Infrastructure Spending: Analysts anticipate a tech company's fourth-quarter revenue of around $65.6 billion and adjusted EPS of $1.52, with the market keenly awaiting Q1 guidance and CEO insights on AI infrastructure spending.
See More
The Honest Company Launches New Scented Sanitizing Wipes
- Scented Options Return: The Honest Company reintroduces Lavender and Grapefruit scented sanitizing wipes, catering to consumer demand for natural fragrances, which is expected to drive sales growth and enhance brand appeal.
- Safety Assurance: These wipes kill 99.99% of germs and are made with 65% plant-derived alcohol along with aloe and glycerin, ensuring safety for families and everyday use, thereby increasing consumer trust.
- Portable Design: The redesigned wipes come in travel-friendly 15-count and 50-count sizes, making them convenient for families on-the-go, which aligns with modern fast-paced lifestyles and enhances market competitiveness.
- Market Availability: Honest's sanitizing wipes are now available on Amazon and Target.com, with plans to launch on Walmart.com soon, expanding product market reach and increasing brand visibility.
See More
Oversold Stocks in Consumer Staples Present Buying Opportunities
- Oversold Stocks Overview: According to Benzinga Pro, major players in the consumer staples sector, including NU Skin Enterprises Inc, Coty Inc, and Honest Company Inc, have relative strength indices (RSI) near or below 30, indicating they are significantly oversold and may present undervalued buying opportunities for investors.
- RSI Indicator Analysis: The relative strength index (RSI) serves as a momentum indicator that compares a stock's strength on up days versus down days, helping traders better assess short-term stock performance and make more informed investment decisions amid market fluctuations.
- Market Opportunity Identification: The identification of oversold stocks in the current market environment offers potential appreciation opportunities for investors, particularly in the consumer staples sector, where investors can capitalize on the rebound potential of these undervalued stocks.
- Investment Strategy Recommendations: While Benzinga does not provide investment advice, the phenomenon of oversold stocks typically attracts value-seeking traders, suggesting a focus on the subsequent performance of these stocks to evaluate their rebound potential.
See More
