Honest Company Q4 Revenue Drops 11.8% to $88M, Guides EBITDA to $21.5M
The Honest Company’s Q4 revenue fell 11.8% year-on-year to $88.04 million, matching estimates, while GAAP loss per share was $0.21 versus a $0.02 gain expected. Free cash flow turned positive at $18.06 million and the company guided FY26 EBITDA of $21.5 million, above analysts’ view.
1. Q4 CY2025 Earnings Results
The Honest Company reported Q4 revenue of $88.04 million, an 11.8% decline from the prior year, in line with Wall Street forecasts, while GAAP loss per share totaled $0.21 against estimates of a $0.02 EPS gain. Adjusted EBITDA was $3.75 million, slightly below the consensus of $3.91 million.
2. Cash Flow Turnaround and Guidance
Cash flow performance strengthened as free cash flow reached $18.06 million, reversing a negative $17.17 million in the year-ago quarter and yielding a 20.5% cash flow margin. Management set FY26 EBITDA guidance at $21.5 million at the midpoint, topping analyst projections of $20.87 million.
3. Market Reaction and Outlook
Shares declined about 5% following the release amid concerns over the revenue slump and EPS miss. The positive cash flow swing and EBITDA guidance beat may provide some investor support, but ongoing sales declines and a negative operating margin underscore growth and profitability challenges.