THE WHAT? The Honest Company has reported its fourth quarter and full year 2025 financial results in line with updated guidance, announced a US$25 million inaugural share repurchase program, and issued its 2026 outlook consistent with its long-term growth algorithm.

THE DETAILS For Q4 2025, revenue decreased 11.8% to US$88.0 million, while Organic Revenue rose 0.7% to US$71.3 million. The company posted a net loss of US$23.6 million, primarily due to discrete costs related to its “Powering Honest Growth” transformation, while Adjusted Net Income was US$0.4 million and Adjusted EBITDA totaled US$3.8 million.

For the full year, revenue declined 1.9% to US$371.3 million, while Organic Revenue increased 5.3% to US$294.1 million. Net loss widened to US$15.7 million, though Adjusted Net Income reached US$8.3 million and Adjusted EBITDA came in at US$21.8 million, within guidance. The company ended the year with US$89.6 million in cash and no debt, and generated US$15.1 million in operating cash flow.

The Board has approved a US$25 million share repurchase authorization, with buybacks to be funded through existing cash and operating cash flow. Looking ahead, Honest expects 2026 revenue in the range of US$306 million to US$312 million (down 16%–18% year-on-year due to category exits), Organic Revenue growth of 4%–6%, Adjusted Gross Margin in the low 40% range, and Adjusted EBITDA between US$20 million and US$23 million.

THE WHY? The results and capital allocation move reflect management’s focus on higher-margin categories under its Powering Honest Growth strategy, strengthening profitability, improving cash generation, and enhancing shareholder returns while positioning the business for sustainable long-term growth.

Source: The Honest Company