NASDAQ$HNST
Honest Co Inc/The · Q4 2024 earnings
Q4 2024 earnings · · After market close · Investor relations
Briefing
The Honest Company reported record quarterly revenue and expanded gross margin in Q4 2024.
The Honest Company achieved record quarterly revenue of $100 million, an 11% increase from the prior year, and expanded its gross margin by 530 basis points to 39%. The company reported a net loss of less than $1 million, an improvement compared to net income of $1 million in the prior year, and positive adjusted EBITDA of $9 million.
- Record quarterly revenue of $100 million, an 11% increase year-over-year.
- Gross margin expanded by 530 basis points to 38.8% due to cost savings and sales volume growth.
- Adjusted EBITDA was positive $9 million, marking the fifth consecutive quarter of positive adjusted EBITDA.
- Net loss improved to less than $1 million compared to net income of $1 million in the prior year period.
Headline financials
Revenue & EPS history
Honest Co · Revenue · Quarterly
$99.8M
Forward guidance
For fiscal year 2025, The Honest Company expects revenue growth in-line with its long-term financial algorithm of 4% to 6% and Adjusted EBITDA between $27 million to $30 million.
Tailwinds
- Expected revenue growth of 4% to 6% annually, in line with long-term financial algorithm.
- Anticipated continued Adjusted EBITDA margin expansion.
- Projected Adjusted EBITDA of $27 million to $30 million for fiscal year 2025.
- Commitment to providing cleanly-formulated and sustainably-designed products.
- Focus on disciplined execution of Transformation Pillars: Brand Maximization, Margin Enhancement, and Operating Discipline.
Headwinds
- Financial outlook includes potential impacts from tariffs related to product sourcing in China and Mexico.
- Guidance for GAAP net income (loss) is not provided due to the unavailability of reliable estimates for certain components.
- Adjusted EBITDA and adjusted EBITDA margin have limitations as analytical tools and should not be considered in isolation.
- Forward-looking statements are subject to substantial risks and uncertainties.
- Future events or circumstances could differ materially from those described in forward-looking statements.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q4 2024
+1.1%
Avg return
Earnings day
+2.5%
Avg return
5 days after
-0.6%
Avg return
30 days after
52%
13 / 25 earnings
Positive
+34.4%
Q1 2023
Best reaction
-37.6%
Q4 2022
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -1.7% | -4.9% | -6.1% | |
| Q4 2025 | +21.2% | +22.9% | +24.7% | |
| Q3 2025 | -29.5% | -23.6% | -17.9% | |
| Q1 2025 | -8.8% | +6.9% | +7.5% | |
| Q4 2024 | -11.8% | -9.2% | -16.5% | |
| Q3 2024 | +23.7% | +42.2% | +43.0% | |
| Q2 2024 | +17.9% | +28.2% | +28.8% | |
| Q1 2024 | +12.6% | +14.0% | -7.2% | |
| Q4 2023 | +31.4% | +56.2% | +26.8% | |
| Q3 2023 | +20.3% | +13.4% | +101.2% | |
| Q2 2023 | +0.0% | +1.4% | +9.4% | |
| Q1 2023 | +34.4% | +28.7% | -0.6% | |
| Q4 2022 | -37.6% | -36.9% | -35.8% | |
| Q3 2022 | +7.0% | +10.2% | -13.7% | |
| Q2 2022 | +14.3% | +11.5% | +9.9% | |
| Q1 2022 | +17.1% | +8.2% | -1.7% | |
| Q4 2019 | +12.6% | +5.6% | -13.0% | |
| Q4 2021 | -21.5% | -11.6% | -29.9% | |
| Q3 2021 | +9.7% | +6.6% | -11.0% | |
| Q3 2020 | +9.7% | +6.6% | -11.0% | |
| Q2 2021 | -30.6% | -33.2% | -27.0% | |
| Q2 2020 | -30.6% | -33.2% | -27.0% | |
| Q4 2020 | -11.3% | -15.6% | -15.1% | |
| Q1 2020 | -11.3% | -15.6% | -15.1% | |
| Q1 2021 | -10.6% | -16.5% | -18.0% |
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