The Honest Company, Inc. · NASDAQ:HNST
The Honest — Q4 2025 Earnings Presentation
22 slides from The Honest's earnings presentation, Feb 25, 2026
Slide 1: Q4 & FY 2025 Earnings Update
Q4 & FY 2025 Earnings Update February 25, 2026
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Market data and industry information used through this presentation are based on Private Securities Litigation Reform Act of 1995, including statements regarding management's knowledge of the i
Slide 3: Our Team
Our Team Carla Vernón Chief Executive Officer Curtiss Bruce Chief Financial Officer 2
Slide 4: Cleanly-formulated, Sustainably-designed personal care
Cleanly-formulated, Sustainably-designed personal care ©Disney/Pixar
Slide 5: Key Messages
Key Messages ▪ Achieved Full Year 2025 Financial Outlook In Line with Updated Guidance ▪ 2026 Plans to Win in Baby Categories, Accelerate Growth Beyond Baby, and Strengthen Financial Profile ▪ Announcing $25 Million Inaugural Share Repurchase Authorization ▪ Provides Full Year 2026 Financial Outlook
Slide 6: 2025 Highlights
2025 Highlights Top line strength and margin momentum +5.3% +5.0% 7.6% +50bps FY Organic FY Consumption Household Adj. Gross Revenue Growth1 Growth2 Penetration3 Margin Expansion1 In Line with >2.5x vs. Category All-time High Mix from Higher LT Algorithm Average (+1.7M New Households) Margin, Higher
Slide 7: Growth Priority #1: Winning in Baby
Growth Priority #1: Winning in Baby Scaling in our position as #1 Natural Wipes & Baby Personal Care Brand1 Lead Baby Lead Baby Personal Strengthening Wipes Growth Care Growth Diaper Value +25% +12% 2025 Consumption1 2025 Consumption Growth Growth1 • Invest behind value Increasing investment and Con
Slide 8: Growth Priority #2: Accelerate Beyond Baby
Growth Priority #2: Accelerate Beyond Baby Expanding the Honest Brand and Honest Standards from kids to adults Enter Kid Personal Support Flushable Innovate in Care Category Wipes Distribution Sanitizing Wipes a ©Disney/Pixar +175% +73% • First launch in “Big Kid” aisle 2025 Consumption 2025 Consump
Slide 9: Growth Priority #3: Strengthen Financial Profile
Growth Priority #3: Strengthen Financial Profile Continue to improve margins and operational excellence Honest Adj. Gross Margin1 Improvements in 2026 Low 40%s • Mix from strategic business exits 38.2% 38.7% • Continued supply chain efficiencies 29.2% • Improved inventory management • Reductions in
Slide 10: Financials
Financials 9
Slide 11: Executing Powering Honest Growth
Executing Powering Honest Growth Transformation 2.0 creates clear line of sight toward sustainable scale Completed Actions in 2025 Remaining Actions in 2026 ✓ Exit: Honest.com direct fulfillment ❑ Action: Focus on strategic categories ✓ Exit: Apparel category ❑ Action: Optimize footprint and invento
Slide 12: Q4 2025 Financial Results
Q4 2025 Financial Results (In $Millions) Q4 2025 vs. LY Revenue $88.0 -11.8% Organic Revenue1 $71.3 +0.7% Gross Margin 15.7% -23.1 pts Adj. Gross Margin1 38.3% -0.5 pts Net Income/(Loss) ($23.6M) ($22.8) Adj. Net Income1 $0.4 $1.2 Adj. EBITDA1 $3.8 ($4.8) Adj. EBITDA Margin1 4.3% -4.3 pts Notes: 1.
Slide 13: Annual 2025 Financial Results
Annual 2025 Financial Results (In $Millions) 2025 vs. LY Revenue $371.3 -1.9% Organic Revenue1 $294.1 +5.3% Gross MarginAdj. 33.3% -4.9 pts Gross Margin1 38.7% +0.5 pts Net Income/(Loss) ($15.7) ($9.6) Adj. Net Income1 $8.3 +$14.4 Adj. EBITDA1 $21.8 ($4.0) Adj. EBITDA Margin1 5.9% -0.9 pts Notes: 1.
Slide 14: 2025 Cash Flow
2025 Cash Flow Working Capital Improvements and Disciplined Capital Allocation Strategy Cash and Cash Share Repurchase Free Cash Flow $ Millions Equivalents Program $ Millions Significant working capital $13.6 $89.6 improvements $75.4 $25M a Board authorized inaugural share repurchase program 2024 2
Slide 15: FY 2026 Financial Outlook
FY 2026 Financial Outlook 2026 Outlook Key Assumptions Revenue -18% to -16% Strategic business exits in base ($306M to $312M) through Q4 2026 Volume-led QoQ improvement Organic Revenue1 4% - 6% throughout 2026 Adjusted Continued favorable mix and 2H Low 40%s Gross Margin1 weighted supply chain effic
Slide 16: Appendix
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Slide 17: Reconciliation of Revenue to Organic Revenue
Reconciliation of Revenue to Organic Revenue For Three Months Ended For Twelve Months Ended ($Millions) December 31, 2025 December 31, 2025 2025 2024 2025 2024 Revenue $88.0 $99.8 $371.3 $378.3 Less revenue from: Apparel (9.8) (16.6) (38.5) (46.2) Honest.com (6.4) (11.6) (35.3) (48.6) Canada (0.6) (
Slide 18: Reconciliation of Revenue to Organic Revenue
Reconciliation of Revenue to Organic Revenue ($Millions) For Three Months Ended Mar 31, 2025 June 30, 2025 Sept 30, 2025 Dec 31, 2025 Revenue $97.3 $93.5 $92.6 $88.0 Less revenue from: Apparel (10.5) (7.8) (10.4) (9.8) Honest.com (10.3) (9.8) (8.8) (6.4) Canada (1.3) (0.7) (0.8) (0.6) Organic Revenu
Slide 19: Reconciliation of Gross Margin to Adjusted Gross Margin
Reconciliation of Gross Margin to Adjusted Gross Margin For Three Months Ended For Twelve Months Ended (percent of revenue) December 31, 2025 December 31, 2025 2025 2024 2025 2024 Gross Margin 15.7% 38.8% 33.3% 38.2% Restructuring-related 22.6% --% 5.4% --% costs Adjusted Gross Margin 38.3% 38.8% 38
Slide 20: Reconciliation of Net Loss to Adjusted Net Income
Reconciliation of Net Loss to Adjusted Net Income For Three Months Ended For Twelve Months Ended (percent of revenue) December 31, 2025 December 31, 2025 2025 2024 2025 2024 Net Loss ($23.6) ($0.8) ($15.7) ($6.1) Restructuring-related 24.0 -- 24.0 -- costs Adjusted Net Income $0.4 ($0.8) $8.3 ($6.1)
Slide 21: Reconciliation of Net Income/Loss to Adjusted EBITDA
Reconciliation of Net Income/Loss to Adjusted EBITDA Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY ($ Millions) 2023 2023 2023 2023 2023 2024 2024 2024 2024 2024 2025 2025 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 ($23.6) ($15
Slide 22: Thank You
Thank You 21