The Honest Company, Inc. · NASDAQ:HNST
The Honest — Q3 2025 Earnings Presentation
21 slides from The Honest's earnings presentation, Nov 5, 2025
Slide 1: Q3 2025 Earnings Investor Update
Q3 2025 Earnings Investor Update November 2025
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain forward-looking statements within the meaning Market data and industry information used through this presentation are based on of the federal securities laws, including statements about the outlook of our management's knowledge of the ind
Slide 3: Our Team
Our Team Wednesday, November 5, 2025 Carla Vernón Chief Executive Officer Curtiss Bruce Chief Financial Officer Elizabeth Bouquard Head of Investor Relations 2 2
Slide 4: Cleanly-formulated, Sustainably-designed personal care
Cleanly-formulated Sustainably-designed personal care 3
Slide 5: Q3 2025 Key Messages
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 c
Slide 6: Transformation 2.0 Powering Honest Growth
Transformation 2.0 Powering Honest Growth Focus on Most Strategic and More Profitable Categories Exit low margin, non-strategic Drive higher margin, right to Optimize cost structure categories and channels win categories Honest.com Wipes • Personal Care • Diapers End DTC fulfillment Supply Chain Hig
Slide 7: Core Product Categories
Core Product Categories Streamlined Focus: Wipes, Personal Care, Diapers Wipes & Personal Care Q3 2025 Revenue Distribution (% of Total) Diapers Q3 2025 Revenue: ~30% +50% $93M < 20% All Other 6 Source: Internal company data
Slide 8: Wipes: Expanded Distribution
Wipes: Expanded Distribution Launch of Adult Flushable Wipes in Sanitizing Wipes expanded high-traffic brick-and-mortar aisles distribution to Walmart +160% +700 YTD Honest Consumption Growth Points of Distribution2 vs. +2% Category Growth1 7 Notes: 1. According to Circana, Inc. MULO+ tracked channe
Slide 9: Personal Care: Disney Collaboration
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 o Honest’s first use of licensed characters in Personal Care o Available in scented & fragr
Slide 10: Diapers: New Innovation
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 9
Slide 11: Q3 2025 Financial Highlights
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 website as a
Slide 12: Year-to-Date 2025 Financial Highlights
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.co
Slide 13: Financial Impact: Transformation 2.0 Powering Honest Growth
Financial Impact: Transformation 2.0 Powering Honest Growth Exit low margin, non- Optimize cost strategic categories structure Annual recurring cos t s avings Up-front cos ts $8-15M $25-35M 12 Source: Internal company data and Q3 2025 Company Financials & 10-Q
Slide 14: 2025 Updated Financial Outlook
2025 Updated Financial Outlook Updated Outlook Prior Outlook Revenue -3% to Flat 4% - 6% Organic 4% - 6% N/A Revenue 1 Adjus ted $21M - $23M $27M - $30M EBITDA2 Revenue: Potential risks to revenue related to the wind down of strategic exits, declines in diaper revenue during the year and anticipated
Slide 15: Appendix
Appendix @@ HONEST
Slide 16: Reconciliation of Revenue to Organic Revenue
Appendix Reconciliation of Revenue to Organic Revenue For Three Months Ended Sept. 30 For Nine Months Ended Sept. 30 ($M) 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) ($0.3) ($
Slide 17: Reconciliation of Revenue to Organic Revenue Outlook
Appendix Reconciliation of Revenue to Organic Revenue Outlook Full Year 2025 ($M) Low End of High End of Outlook Range Outlook Range Revenue $367 (3)% $378 0% Adjustments from: Category (75) 7% (80) 6% & Channel exits Organic $292 4% $298 6% Revenue 1 Notes: 1. Represents a reconciliation of revenue
Slide 18: Reconciliation of GAAP and Non-GAAP Financial Measures
Appendix Reconciliation of GAAP and Non-GAAP Financial Measures Adjusted EBITDA ($ millions) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 2023 2023 2023 2023 2023 2024 2024 2024 2024 2024 2025 2025 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 Int
Slide 19: Quarterly Gross Margin
Steady Improvement Since Transformation Initiative Quarterly Gross Margin (% of Revenue) 40.4% 38.3% 38.7% 38.8% 38.7% 37.0% 37.3% 33.5% 31.6% 27.1% 24.2% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 18 Source: Company Financials: 10-Q and 10-K
Slide 20: Quarterly Adjusted EBITDA
Steady Improvement Since Transformation Initiative Quarterly Adjusted EBITDA $8.5 ($ in M) $7.6 $7.1 $7.6 $6.9 $4.3 $3.5 $2.6 -$1.1 -$4.1 -$10.3 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 19 Source: Company Financials: 10-Q and 10-K
Slide 21: Quarterly Cash Balance
Steady Improvement Since Transformation Initiative Quarterly Cash Balance ($ in M) $75 $73 $72 $71 $53 $37 $33 $34 $23 $18 $9 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 20 Source: Company Financials: 10-Q and 10-K