The Honest Co Inc 2025年度报告

The Honest Company2025 Annual Report Dear Honest Shareholders, As I complete my third year as Chief Executive Officer, I find myself reflecting not just on where we have been, but onthe clarity we have about exactly where we are going. In 2025, The Honest Company made deliberate choices thatpoise us to become substantially stronger over the long term. That would not have been possible without extraordi-nary people, and I want to begin by thanking our Honest Butterflies, the teams in Los Angeles, Las Vegas, andMinneapolis whose professionalism, resilience, and unwavering commitment to the Honest brand made everythingwe accomplished this year possible. 2025 was a year defined by strategic clarity. Through our Powering Honest Growth initiative, we exited ourdirect-to-consumer fulfillment on Honest.com, our apparel category, and the Canadian market. These were not easydecisions. Each represented real revenue, real relationships, and the work of talented team members. But they werethe right decisions, because they freed us to concentrate our full power on the products and channels where theHonest brand has a genuine right to win. The Honest Company enters 2026 as a more focused organization with a stronger financial foundation, a simplifiedcost structure, and a clearer path to the margin profile needed to reinvest, innovate, and deliver market share growth. 2025 & Recent Financial Highlights1 •Revenue of $371 million, down 1.9%; Organic Revenue of $294 million, up 5.3% year-over-year, in line with ourlong-term algorithm and driven by double-digit unit sales growth in wipes and personal care•Gross margin of 33.3%, down 51 basis points year-over-year; Adjusted Gross Margin of 38.7%, up 50 basispoints year-over-year•Net loss of $16 million; Adjusted EBITDA of $22 million, in line with our updated guidance•Closed 2025 with $90 million in cash and zero debt; our Board of Directors authorized an inaugural $25 millionshare repurchase program in February 2026 Carla VernónChief Executive Officer These results demonstrate real momentum for our underlying business. While Honest began as a brand centered largely on households with babies, our strength and scale inwipes and personal care has now expanded to include households with babies, big kids and even no kids at all. This broad strength has allowed our wipes and personal carebusinesses to materially outpace category benchmarks and reflects the fact that the Honest Brand is for everyone. As we scale across household types and categories, theresulting financial strength is the direct result of the operating discipline we have built over three years and the deliberate portfolio choices we made in 2025 to focus on wherewe win. The confidence reflected in our share repurchase program is the same confidence I feel every day in the foundation we have built: a debt-free balance sheet, improving cashgeneration, and a consumer base that is growing. These are the building blocks of long-term value, and they position us well to deliver on what we have committedto shareholders. 2025 Business Highlights2 •Portfolio Momentum: Overall Honest consumption grew 5% and household penetration reached an all-time high of 7.6%, with our higher-margin, higher-growth wipes andpersonal care portfolios delivering consumption growth of 25% and 12% respectively. •Growing with Baby and Little Kid Households: We ended 2025 as the leading natural wipes and baby personal care brand in the U.S. While our leadership and growth isnow anchored by our baby wipes and personal care products, diapers remain a crucial way we introduce our brand to new families. We are strengthening our valueequation through thoughtful pricing investments and improved price-pack architecture, while continuing to deliver uncompromised quality, fit, and style.•Growing Beyond Baby: With 54% of Honest buyers coming from households without children, we believe Honest has a very balanced household penetration acrosshouseholds with kids and households without. With a fast growing flushable wipes business, which grew 175% in 2025, adults are discovering Honest’s high standard ofclean for their own uses. And, our partnership with Disney and Pixar provided the perfect launch pad for Honest into the Big Kid aisle with our new Toy Story collection ofsix personal care products, making Honest a brand for families across every stage of life, from babies to kids at heart.•Powering Honest Growth — a Force Multiplier for Our Strategy: The program accelerated all three of our strategic pillars, Brand Maximization, Margin Enhancement,and Operating Discipline, by sharpening our focus, improving profitability, streamlining our operations, and concentrating our resources on the categories and channelswhere Honest has a genuine right to win.•Strengthened Leadership: With the addition of Curtiss Bruce as Chief Financial Officer and Etienne Von Kunssberg as Senior Vice President of Supply Chain, we haveadded seasoned consumer products leaders