Q3 2025 Earnings Investor Update
November 2025
Our Team
Wednesday, November 5, 2025
Chief Executive Officer
Curtiss BruceChief Financial Officer
Elizabeth BouquardHead of Investor Relations
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Cleanly-formulated
Sustainably-designed personal care
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Q3 2025 Key Messages
Q3 Earnings Results Mixed
Apparel and diaper revenue short of expectations Positive net income and adjusted EBITDA
Launches Transformation 2.0 Powering Honest Growth
1) Focus on core categories and exiting certain lower margin, non-strategic categories and channels 2) Optimize cost structure
Updates FY 2025 Revenue and Adjusted EBITDA Outlook
Reflects strategic exits and dynamic macroeconomic environment
Healthy Balance Sheet
Q3 ending cash $71MM. No debt
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Transformation 2.0 Powering Honest Growth
Focus on Most Strategic and More Profitable Categories
Exit low margin, non-strategic categories and channels
Honest.com
End DTC fulfillment Highlight product education
Shift sales to eComm retailers
Canada
End direct sales to retailers
Apparel
Exit partnership as fully-owned product category
Optimize cost structure
Supply Chain
Optimize footprint and inventory
Technology & Operations
Improve systems
SG&A
Right size
Align with strategic focus
Drive higher margin, right to win categories
Wipes • Personal Care • Diapers
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Core Product Categories
Streamlined Focus: Wipes, Personal Care, Diapers
Wipes & Personal Care
Q3 2025 Revenue Distribution
(% of Total)
Diapers
+50%
Q3 2025
Revenue:
$93M~30%
> 20%
All Other
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Source: Internal company data
Wipes: Expanded Distribution
Launch of Adult Flushable Wipes in high-traffic brick-and-mortar aisles
Sanitizing Wipes expanded distribution to Walmart+160%
YTD Honest Consumption Growth vs. +2% Category Growth1
Notes: 1. According to Circana, Inc. MULO+ tracked channel consumption data for 2025 YTD ending October 5, 2025. 2. Internal Company Data
+700Points of Distribution2
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Personal Care: Disney Collaboration
Disney is a leading revenue global licensor
Disney characters rank as most recognizable for families & children 2-5
Collaboration across Baby Personal Care
collection
Honest's first use of licensed characters in Personal Care
Available in scented & fragrance free
Source: Internal Company Analysis and The Walt Disney Company
©Disney
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Diapers: New Innovation
Introduced significantly improved diaper with superior design in Q2 '25
Enhanced Comfort Dry technology for up to 100% leak protection
Softer layers
Better fit with comfort stretch across the waist tabs and legs
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Q3 2025 Financial Highlights
Q3 2025 | vs. LY | |
Revenue | $93M | -7% |
Organic Revenue1 | $73M | -5% |
Gross Margin | 37.3% | -140 bps |
Net Income | $1M | +$1M |
Adj. EBITDA | $4M | -$4M |
Debt | $0 | Flat |
Notes: 1. Represents revenue excluding (1) product revenue from our baby apparel line; (2) revenue from our Honest.com
(3) revenue from sales to Canadian retailers or channels. Source: Q3 2025 Company Financials & 10-Q
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website as a fulfillment center; and
Year-to-Date 2025 Financial Highlights
YTD 2025 | vs. LY | |
Revenue | $283M | +2% |
Organic Revenue1 | $224M | +6% |
Gross Margin | 38.8% | +80 bps |
Net Income | $8M | +$13M |
Adj. EBITDA | $18M | +$1M |
Debt | $0 | Flat |
Notes: 1. Represents revenue excluding (1) product revenue from our baby apparel line; (2) revenue from our Honest.com website as a fulfillment center; and
(3) revenue from sales to Canadian retailers or channels. 11
Source: Q3 2025 Company Financials & 10-Q
Financial Impact: Transformation 2.0 Powering Honest Growth
Exit low margin, non-strategic categories Optimize cost structureAnnua l recurring cost savings
$8-15MUp-front costs
$25-35M12
Source: Internal company data and Q3 2025 Company Financials & 10-Q
2025 Updated Financial Outlook
Updated Outlook
Prior Outlook
$27M - $30M
N/A
4% - 6%
$21M - $23M
4% - 6%
-3% to Flat
Revenue
Organic Revenue 1
Ad jus ted EBITDA2
Revenue: Potential risks to revenue related to the wind down of strategic exits, declines in diaper revenue during the year and anticipated in the fourth quarter, and uncertainty in a dynamic macroeconomic environment
Adj. EBITDA: Lower revenue and volume deleverage
Notes: 1. Represents the current outlook excluding (1) product revenue from our baby apparel line; (2) revenue from our Honest.com website as a fulfillment center; and (3) revenue from sales to Canadian retailers or channels.
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2. We do not provide guidance for the most directly comparable GAAP measure, net income (loss), and similarly cannot provide a reconciliation between our Adjusted EBITDA outlook and net income (loss) without unreasonable effort due to the unavailability of reliable estimates for certain components of net income (loss), including interest and other (income) expense, net, and the respective reconciliations. These items are not within our control and may vary greatly between periods and could significantly impact our financial results calculated in accordance with GAAP.
Source: Q3 2025 Company Financials & 10-Q
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Appendix
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Appendix
Reconciliation of Revenue to Organic Revenue
($M)
For Three Months Ended Sept. 30
For Nine Months Ended Sept. 30
2025 2024 2025 2024
Revenue $92.6 $99.2 $283.3 $278.5 Less revenue from:
Apparel ($10.4) ($11.3) ($28.7) ($29.6)
Honest.com ($8.8) ($11.5) ($29.0) ($37.0)
Canada ($0.8) ($0.3) ($1.9) ($1.3) Organic Revenue $72.6 $76.1 $223.8 $210.6 Organic Rev Growth -5% +6%
Source: Internal company data and Q3 2025 Company Financials & 10-Q .
Appendix
Reconciliation of Revenue to Organic Revenue Outlook
Full Year 2025
($M)
Low End of Outlook Range
High End of Outlook Range
Revenue $367 | (3)% | $378 | 0% |
Adjustments from: Category (75) & Channel exits | 7% | (80) | 6% |
Organic $292 | 4% | $298 | 6% |
Revenue 1
Source: Internal company data and Q3 2025 Company Financials & 10-Q .
Appendix
Reconciliation of GAAP and Non-GAAP Financial Measures
Adjusted EBITDA ($ millions)
Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | FY 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | FY 2024 | Q1 2025 | Q2 2025 | Q3 2025 | |
Net income (loss) | ($18.9) | ($13.4) | ($8.1) | $1.1 | ($39.2) | ($1.4) | ($4.1) | $0.2 | ($0.8) | ($6.1) | 3.3 | 3.9 | $0.8 |
Interest and other (income) expense, net | 0.2 | 0.0 | 0.1 | (0.0) | 0.3 | 0.0 | 0.0 | (0.1) | (0.2) | (0.3) | (0.8) | (1.0) | (0.6) |
Income tax provision | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 | 0.0 | 0.1 |
Depreciation and amortization | 0.7 | 0.7 | 0.7 | 0.7 | 2.7 | 0.7 | 0.7 | 0.7 | 0.7 | 2.8 | 0.7 | 0.7 | 0.7 |
Stock-based compensation | 3.8 | 6.4 | 3.7 | 1.9 | 15.8 | 2.5 | 8.9 | 2.2 | 2.1 | 15.7 | 2.4 | 2.7 | 2.4 |
Securities litigation expense | 1.2 | 1.8 | 1.4 | 0.4 | 4.7 | 0.4 | 1.3 | 4.1 | 6.7 | 12.4 | 1.0 | 0.1 | 0.0 |
Executive officer transition expense | 1.3 | 0.0 | 0.8 | 0.0 | 2.1 | 0.2 | 0.7 | 0.0 | 0.0 | 0.9 | 0.0 | 1.1 | 0.0 |
Restructuring costs | 1.4 | 0.4 | 0.4 | 0.1 | 2.2 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Payroll tax expense related to stock-based compensation | 0.1 | 0.0 | 0.0 | 0.0 | 0.1 | 0.2 | 0.1 | 0.1 | 0.1 | 0.4 | 0.3 | 0.1 | 0.1 |
Adj. EBITDA | ($10.3) | ($4.1) | ($1.1) | $4.3 | ($11.2) | $2.6 | $7.6 | $7.1 | $8.5 | $25.9 | $6.9 | $7.6 | $3.5 |
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Source: Company Financials: 10-Q and 10-K
Steady Improvement Since Transformation Initiative
Quarterly Gross Margin
(% of Revenue)
37.0%
38.3%
38.7%
38.8%
38.7%
40.4%
37.3%
31.6%
33.5%
24.2%
27.1%
Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025
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Source: Company Financials: 10-Q and 10-K
Steady Improvement Since Transformation Initiative
Quarterly Adjusted EBITDA
($ in M)
$7.6
$8.5
$7.1
$6.9
$7.6
$4.3
$3.5
$2.6
-$1.1
-$4.1
-$10.3
Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025
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Source: Company Financials: 10-Q and 10-K
Steady Improvement Since Transformation Initiative
Quarterly Cash Balance
($ in M)
$75
$73
$72
$71
$53
$33
$34
$37
$18
$23
$9
Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025
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Source: Company Financials: 10-Q and 10-K
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The Honest Company Inc. published this content on November 05, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on November 05, 2025 at 21:48 UTC.
