Filing Flows › Honest Company (HNST) › Q1 2025
Honest Company (HNST) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 7, 2025
Honest Company (HNST) reported revenue of $97.2M for the first quarter 2025 (Q1 2025), +13% from a year earlier and -3% from the quarter before. Operating margin was 2.6%, net earnings $3.3M (3.3% of revenue).
Honest Company, Q1 2025: revenue $97.2M (+13% year over year), operating margin 2.6%, net earnings $3.3M, operating cash flow −$2.9M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $97.2M | -3% | +13% |
| Gross profit | $37.7M | -3% | +18% |
| Operating profit | $2.5M | — | — |
| Net earnings | $3.3M | — | — |
| Operating cash flow | −$2.9M | — | — |
What changed
Revenue was $97.2M in Q1 2025, up 13% year over year and down 3% from the previous quarter.
Gross margin was 38.7%, up 1.8 points from a year earlier. Operating profit was $2.5M, a 2.6% margin (up 4.1 points year over year). Operating expenses grew 6% against revenue growth of 13%. The fastest-growing cost line was Other operating costs (+35%). Net earnings were $3.3M. The effective tax rate was 1.2%. Non-operating items added $787K, 24% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was −$2.9M. Non-cash charges added back $717K of depreciation and amortization and $2.4M of share-based compensation. Working capital and other items used $9.3M. Capital expenditures of $62K exceeded it, leaving free cash flow of −$3.0M.
Questions
What was Honest Company's revenue in the first quarter 2025?
Honest Company (HNST) reported revenue of $97.2M for the first quarter 2025 (Q1 2025), +13% from a year earlier and -3% from the quarter before.
Was Honest Company profitable in the first quarter 2025?
Operating profit was $2.5M (2.6% of revenue) and net earnings $3.3M.
Source: Honest Company 10-Q on SEC EDGAR.