The Honest pany(US:HNST)2025-11-05 21:06Revenue Performance - Third quarter 2025 revenue was $93 million, a decrease of 6.7% compared to $99 million in the same period last year[5][6]. - Organic revenue for the third quarter was $73 million, down 4.7% from $76 million year-over-year[8][6]. - Revenue for the three months ended September 30, 2025, was $92,571 thousand, a decrease of 6.7% compared to $99,237 thousand for the same period in 2024[27]. - For Q3 2025, total revenue was $92,571,000, a decrease of 6% from $99,237,000 in Q3 2024[39]. - For the nine months ended September 30, 2025, total revenue reached $283,280,000, a slight increase from $278,503,000 in the same period of 2024[39]. - For the full year 2025, revenue is projected to be between $367 million (down 3%) and $378 million (no change) compared to the previous year[41]. Profitability Metrics - Gross margin decreased to 37.3%, down 140 basis points from 38.7% in the prior year[10][6]. - Net income for the quarter was approximately $1 million, an increase of 3.6% compared to $0.2 million in the previous year[12][6]. - Adjusted EBITDA was $4 million, a decrease of $4 million from $7 million, marking the eighth consecutive quarter of positive Adjusted EBITDA[12][6]. - Gross profit for the nine months ended September 30, 2025, increased to $109,911 thousand, up from $105,890 thousand in 2024, reflecting a growth of 2.0%[27]. - Net income for the nine months ended September 30, 2025, was $7,883 thousand, compared to a net loss of $5,314 thousand for the same period in 2024[27]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $18,068 thousand, compared to $17,317 thousand in 2024, representing an increase of 4.3%[38]. - The company reported a net income margin of 2.8% for the nine months ended September 30, 2025, compared to a net loss margin of 1.9% in 2024[38]. Cash and Assets - Cash and cash equivalents increased by $18 million to $71 million as of September 30, 2025, with no debt on the balance sheet[13][6]. - Total current assets as of September 30, 2025, were $216,158 thousand, an increase of 24.7% from $173,302 thousand in 2024[29]. - Cash and cash equivalents at the end of the period were $71,453 thousand, compared to $53,441 thousand at the end of September 30, 2024, reflecting a growth of 33.7%[31]. - Total liabilities decreased to $51,354 thousand as of September 30, 2025, down from $75,335 thousand in 2024, a reduction of 31.9%[29]. - Total stockholders' equity increased to $190,185 thousand as of September 30, 2025, up from $133,868 thousand in 2024, marking a growth of 42.0%[29]. Strategic Initiatives - The company announced the launch of Transformation 2.0, focusing on strategic growth areas and exiting lower margin categories, which accounted for 22% of revenue in Q3 2025[3][4]. - The updated full year 2025 revenue outlook is now projected to be in the range of -3% to flat, down from a prior outlook of 4% to 6%[14][6]. - The company expects full year 2025 Organic Revenue growth of 4-6%, excluding revenue from exited categories[14][6]. - The organic revenue outlook for 2025 is estimated to be between $292 million (up 4%) and $298 million (up 6%) from the previous year[41]. - Adjustments from category and channel exits for the full year 2025 are expected to be between $(75) million and $(80) million[41].