The Honest Company Reports Fourth Quarter and Full Year 2024 Financial Results

Core Insights - The Honest Company achieved record quarterly revenue of $100 million, an increase of 11% from the prior year [1][4] - The company expanded its quarterly gross margin by 530 basis points to 39% compared to the prior year [1][4] - The CEO highlighted the successful execution of their Transformation Pillars, resulting in a positive adjusted EBITDA for the first full year as a public company [2][13] Financial Highlights for Q4 2024 - Revenue for Q4 2024 was $100 million, up 11% from $90 million in Q4 2023, driven by strong performance in baby apparel and wipes [4][9] - Gross margin for Q4 2024 was 39%, an increase of 530 basis points from 33.5% in Q4 2023 [4][6] - The net loss for Q4 2024 was less than $1 million, compared to a net income of $1 million in Q4 2023 [4][7] - Adjusted EBITDA for Q4 2024 was $9 million, improving by $4 million from the previous year [4][8] Full Year Financial Performance - For the full year 2024, revenue reached $378 million, a 10% increase from $344 million in 2023 [2][9] - Gross margin for the full year was 38.2%, expanding by 900 basis points from 29.2% in 2023 [2][11] - The net loss for the full year improved to $6 million from a loss of $39 million in 2023 [12][13] - Adjusted EBITDA for the full year was $26 million, compared to a negative $11 million in 2023, marking the first full year of positive adjusted EBITDA as a public company [13][12] Cash Position and Debt - The company ended Q4 2024 with a cash balance of $75 million, an increase of $43 million from the previous year, and had no debt outstanding [14][15] 2025 Financial Outlook - The Honest Company expects revenue growth of 4% to 6% for the fiscal year 2025, in line with its long-term financial algorithm [16][17] - Adjusted EBITDA for 2025 is projected to be in the range of $27 million to $30 million [17]