The Honest pany(HNST) - 2025 Q1 - Quarterly Results

Financial Performance - Revenue for Q1 2025 reached $97 million, a 13% increase from $86 million in Q1 2024[4] - Net income for Q1 2025 was $3 million, a significant improvement from a net loss of $1 million in Q1 2024[8] - Adjusted EBITDA increased to $7 million, up from $3 million, marking the sixth consecutive quarter of positive adjusted EBITDA[8] - Operating income for Q1 2025 was $2.5 million, compared to a loss of $1.3 million in the prior year[23] - Net income for the three months ended March 31, 2025, was $3,254 million, compared to a net loss of $1,403 million for the same period in 2024, indicating a significant turnaround[27] - Adjusted EBITDA for Q1 2025 was $6,929 million, up from $2,642 million in Q1 2024, reflecting a year-over-year increase of 162.5%[34] - Revenue for the three months ended March 31, 2025, was $97,250 million, compared to $86,217 million in Q1 2024, marking an increase of 12.4%[34] - Adjusted EBITDA margin improved to 7.1% in Q1 2025, compared to 3.1% in Q1 2024, indicating enhanced operational efficiency[34] Expenses and Liabilities - Operating expenses rose by $2 million to $35 million, but as a percentage of revenue, they decreased by 230 basis points[6] - Total current liabilities rose to $73,957 million as of March 31, 2025, up from $59,889 million at December 31, 2024, an increase of 23.5%[25] Cash and Assets - The company ended Q1 2025 with $73 million in cash and cash equivalents, an increase of $39 million year-over-year[9] - The company had no debt on its balance sheet as of March 31, 2025[9] - Total assets increased to $265,304 million as of March 31, 2025, up from $247,393 million at December 31, 2024, representing a growth of 7.7%[25] - Cash and cash equivalents decreased to $72,818 million at the end of Q1 2025 from $75,435 million at the beginning of the period, a decline of 4.3%[27] - Accounts receivable decreased to $42,759 million as of March 31, 2025, from $43,476 million at December 31, 2024, a reduction of 1.6%[25] - Inventories increased to $90,262 million as of March 31, 2025, compared to $85,266 million at December 31, 2024, reflecting a rise of 5.9%[25] - Stockholders' equity increased to $180,357 million as of March 31, 2025, up from $174,307 million at December 31, 2024, an increase of 3.0%[25] Outlook - The company reaffirmed its full-year 2025 outlook, expecting revenue growth of 4% to 6% and positive adjusted EBITDA in the range of $27 million to $30 million[11] - Consumption of the company's products at its largest digital customer increased by 28%[4]