What’s Causing Overnight Movement in Honest Company (HNST) Shares?
Stock Performance: The Honest Company Inc. (HNST) shares fell 15.46% to $2.79 after reporting a 6.7% decline in Q3 revenue, with a year-to-date drop of 51.4%.
Financial Results: The company reported $93 million in revenue for Q3, with organic revenue down 4.7% and a gross margin decrease to 37.3%. Net income rose to $758,000, while adjusted EBITDA was positive at $3.52 million.
Transformation Plan: The Honest Company announced its "Transformation 2.0" plan, which includes closing non-strategic categories and channels to focus on core products and improve profitability.
Market Outlook: CEO Carla Vernón acknowledged the softer revenue but highlighted profitability improvements, emphasizing the need to reduce complexity and sharpen focus on key product categories.
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JPMorgan Downgrades CENTA and HNST Ratings, Mixed Outlook Ahead of Earnings
- Rating Downgrade: JPMorgan downgraded Central Garden & Pet (CENTA) from Neutral to Underweight due to subdued demand in the pet category, projecting low single-digit sales and EPS growth, which reflects the company's reliance on the U.S. consumer and market uncertainties.
- Increased Competitive Pressure: The firm issued a double downgrade for The Honest Company (HNST) from Overweight to Underweight, primarily due to heightened competition in the diaper market, which is expected to necessitate increased price promotions to maintain market share, impacting profitability.
- Market Reaction: Following the downgrades, CENTA shares fell 3.3% in early Friday afternoon trading, while HNST shares dropped 3.1%, indicating heightened investor concerns about future performance and reflecting a cautious sentiment towards household personal care stocks.
- Strategic Adjustments: The Honest Company is implementing a new productivity program that involves exiting lower-margin, non-strategic categories and channels, which, while aimed at improving efficiency, also necessitates finding new revenue sources to offset potential income losses, increasing future growth uncertainties.

The Honest Company Executives to Attend Northland Growth Conference 2025
- Executive Participation: The Honest Company's CEO Carla Vernón, CFO Curtiss Bruce, and Head of Investor Relations Elizabeth Bouquard will attend the Northland Growth Conference on December 16, 2025, aiming to communicate the company's sustainable development strategies to investors.
- Brand Mission Reinforcement: Since its founding in 2012, The Honest Company has been dedicated to challenging industry ideals through the Honest brand and Honest Standard, promoting clean formulations and sustainable designs in personal care products, thereby strengthening its market position.
- Product Diversification: The Honest Company's product range spans diapers, wipes, baby care, beauty, apparel, household care, and wellness, showcasing its extensive influence and market penetration in the personal care sector.
- Investor Relations Enhancement: This conference provides the company with a direct communication platform with investors, aiming to enhance transparency and trust, which could potentially attract more investor attention and support for the company's long-term growth.









