The Honest Company reports USD 4M net income in Q2 FY25
This marks the second consecutive quarter of profitability for the company.
USA – The Honest Company, an American personal care company, has reported a net income of USD 4 million in the second quarter of 2025, marking a strong turnaround from a USD 4.08 million loss in the same quarter last year.
According to the company, this positive shift was driven by a 40.4% gross margin, an increase of 210 basis points and a USD 5 million reduction in operating expenses despite rising tariff costs.
Revenue grew slightly by 0.4% to USD 93.46 million, supported by a 6% growth in tracked channel consumption, with digital sales notably increasing by 26%.
Honest Company saw operating expenses decline by nearly USD 5 million, driven by reduced selling, general, and administrative (SG&A) costs.
The savings supported the firm’s second consecutive quarter of profitability. Adjusted EBITDA held steady at USD 7.6 million, marking the seventh quarter in a row of positive performance on this metric.
The company closed the quarter with USD 72 million in cash and no outstanding debt. It also reaffirmed its full-year 2025 outlook, projecting 4–6% revenue growth and up to USD 30 million in adjusted EBITDA.
CEO Carla Vernon highlighted the impact of new product launches and reaffirmed the company’s full-year revenue guidance of 4-6% growth alongside adjusted EBITDA targets between USD 27 million and USD 30 million.
This marks the second consecutive quarter of profitability for The Honest Company, underlining disciplined cost management and strategic execution that helped it navigate challenges in the broader market.
Despite short-term stock volatility following the earnings release, historical post-earnings trends have shown strong returns for shareholders, reflecting confidence in the company’s growth trajectory and financial resilience.
Meanwhile, The Honest Company recently named Curtiss Bruce as the new Chief Financial Officer of the company, effective June 2, 2025.
Bruce will report directly to Carla Vernón, CEO of The Honest Company, where he will collaborate closely with the executive leadership team.
He will take over the role from Dave Loretta, who played a pivotal role in Honest’s financial strategy in recent years.
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