Brief: Honest Company Q2 Revenue USD 93.459 Million Vs. IBES Estimate USD 92.2 Million

Honest

06/08/2025 21:05

Overview

Honest Q2 revenue rises 0.4% to $93.5 mln, beating analyst expectations

Net income for Q2 reaches $3.87 mln, a significant improvement from last year

Adjusted EBITDA of $7.62 mln beats estimates, reflecting strong operational performance

Outlook

Honest Company reaffirms 2025 revenue growth of 4% to 6%

Company expects 2025 adjusted EBITDA between $27 mln and $30 mln

Honest Company assumes current tariff levels for 2025 outlook

Result Drivers

RETAIL REVENUE - Increase in retail revenue drove overall revenue growth, despite decline in Honest.com revenue

GROSS MARGIN EXPANSION - Gross margin improved by 210 basis points, primarily due to changes in inventory reserves, offset by tariff costs

OPERATING EXPENSES - Decrease in operating expenses driven by reduced selling, general & administrative costs, partially offset by higher marketing expenses

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$93.46 mln
$92.20 mln (6 Analysts)
Q2 Net Income
$3.87 mln
Q2 Adjusted EBITDA
Beat
$7.62 mln
$6.66 mln (6 Analysts)
Q2 Gross Margin
40.4%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

Wall Street's median 12-month price target for Honest Company Inc is $7.25, about 36.6% above its August 5 closing price of $4.60

The stock recently traded at 47 times the next 12-month earnings vs. a P/E of 78 three months ago

Press Release: ID:nGNXb0BsZH

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)