Core Viewpoint - The Honest Company will report its second quarter 2025 financial results on August 6, 2025, after market close [1] Group 1: Financial Reporting - The company will host an investor conference call and webcast to discuss the financial results at 1:45 PM PT/4:45 PM ET on the same day [2] - A live webcast of the conference call will be available on the company's investor website [2] - Participants are encouraged to join the call fifteen minutes early to avoid delays [2] Group 2: Company Overview - The Honest Company is dedicated to creating cleanly-formulated and sustainably-designed personal care products across various categories including diapers, wipes, beauty, and household care [3] - Founded in 2012, the company aims to challenge industry standards through its Honest brand and mission [3]

Financial Data and Key Metrics Changes - The company reported revenue of $97 million for Q1 2025, representing a 13% year-over-year growth [10][28] - Gross margin increased by 170 basis points to 39% [11][30] - Positive net income of $3 million was achieved, marking an increase of $5 million from the previous year [32] - Adjusted EBITDA margin improved to 7%, up from 3% in the prior year [33] Business Line Data and Key Metrics Changes - The wipes portfolio and baby personal care collection were highlighted as strong performers, with wipes consumption growth exceeding 40% [14][18] - The sensitive skin portfolio grew by 35% year-over-year, driven by new product launches [14] - Diaper performance faced headwinds due to distribution changes at a key retailer, impacting overall growth [19][58] Market Data and Key Metrics Changes - The Honest brand's household penetration increased to 7.3%, a growth of 55 basis points year-over-year [12] - Competitive categories experienced a decline of 1% in the same period, indicating Honest's outperformance [12][61] - The diaper category remains under pressure, with modest declines observed [58][92] Company Strategy and Development Direction - The company is focused on three transformation pillars: brand maximization, margin enhancement, and operating discipline [10][25] - A comprehensive approach to managing tariffs has been established, including inventory management and cost savings initiatives [22][36] - The company aims to continue investing in marketing and innovation to support brand growth [50][51] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious confidence in navigating the evolving economic landscape while reaffirming the 2025 financial outlook [26][35] - The company anticipates a first half growth rate within the range of its annual revenue outlook, despite expected headwinds in the diaper business [29][35] - Management acknowledged the importance of consumer sentiment and potential changes in shopping behavior [37][61] Other Important Information - Curtis Bruce has been appointed as the new Chief Financial Officer, succeeding David Loretta [6][9] - The company ended the quarter with $73 million in cash and no debt outstanding, providing financial flexibility [34] Q&A Session Summary Question: Can you quantify the shipping impact in Q1 and its reversal in Q2? - Management noted that the pull forward of shipments in Q1 was approximately five percentage points, which will reverse in Q2 [46] Question: What are the marketing plans for 2025? - The company plans to continue strong investments in marketing, particularly for the new diaper launch and expanding wipes into new retailers [50][51] Question: What factors contributed to the deceleration in consumption? - The deceleration was primarily isolated to the Target channel, particularly in the diaper category, while other markets showed strong growth [58][92] Question: How is the company managing tariff impacts? - The company has a three-pronged strategy to mitigate tariff impacts, focusing on agile planning, inventory management, and supplier partnerships [36][78] Question: What are the long-term margin opportunities? - Management believes there are still opportunities to expand margins, particularly through supply chain efficiencies [92]

Financial Data and Key Metrics Changes - The company reported revenue of $97 million for Q1 2025, reflecting a 13% year-over-year growth [10][28] - Gross margin increased by 170 basis points to 39% [11][30] - Positive net income of $3 million was achieved, marking a $5 million increase from the previous year [32] - Adjusted EBITDA margin improved to 7%, up from 3% in the prior year [33] Business Line Data and Key Metrics Changes - The wipes portfolio and baby personal care collection were highlighted as strong performers, with wipes consumption growth exceeding 40% [14][18] - The sensitive skin portfolio grew by 35% year-over-year, driven by new product launches [14] - Diaper performance faced headwinds due to distribution changes at a key retailer, impacting overall growth [19][56] Market Data and Key Metrics Changes - The Honest brand's consumption growth of 8% outpaced the competitive categories, which declined by 1% [12][60] - Household penetration increased to 7.3%, a growth of 55 basis points year-over-year [12] - The diaper category remains under pressure, with a modest decline observed [56][90] Company Strategy and Development Direction - The company is focused on three transformation pillars: brand maximization, margin enhancement, and operating discipline [10][25] - A comprehensive approach to managing tariffs has been established, including inventory management and cost savings initiatives [22][36] - The company aims to continue investing in marketing and innovation to support brand growth [50][51] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious confidence in navigating the evolving economic landscape while reaffirming the 2025 financial outlook [26][37] - The company anticipates a first half growth rate within the range of its annual revenue outlook, despite expected headwinds in the diaper business [29][35] - Management emphasized the importance of consumer trust in their products, particularly for sensitive skin needs [13][61] Other Important Information - Curtis Bruce has been appointed as the new Chief Financial Officer, succeeding David Loretta [6][9] - The company ended the quarter with $73 million in cash and no debt outstanding, providing financial flexibility [34] Q&A Session Questions and Answers Question: Can you quantify the shipping impact in Q1 and how it affects Q2? - Management noted that the pull forward of shipments in Q1 was approximately five percentage points, which will reverse in Q2 [46] Question: What are the marketing plans for 2025? - The company plans to continue strong investments in marketing, particularly for the new diaper launch and expanding wipes into new retailers [50][51] Question: What factors contributed to the deceleration in Q2? - The deceleration was primarily isolated to the Target channel, particularly in the diaper category, while other markets showed strong growth [56][90] Question: How is the company managing tariff impacts? - The company has a three-pronged strategy to mitigate tariff impacts, focusing on agile planning, inventory management, and supplier partnerships [36][79] Question: Are there margin opportunities despite current challenges? - Management believes there are still opportunities to expand margins, particularly through supply chain efficiencies [90]

Financial Data and Key Metrics Changes - The company reported revenue of $97 million, representing a 13% year-over-year growth [9][27] - Gross margin increased by 170 basis points to 39% [10][29] - Positive net income of $3 million was achieved, marking a $5 million increase from the previous year [31] - Adjusted EBITDA margin improved to 7%, up from 3% in the prior year [31][32] - The company ended the quarter with $73 million in cash and no debt outstanding [32] Business Line Data and Key Metrics Changes - The wipes portfolio and baby personal care collection were highlighted as strong performers, with wipes consumption growth exceeding 40% [13][14] - The sensitive skin portfolio grew by 35% year-over-year, driven by new product launches [13] - Diaper performance faced headwinds due to distribution changes at a key retailer, impacting overall growth [17][19] Market Data and Key Metrics Changes - The Honest brand's consumption growth of 8% outpaced the competitive categories, which declined by 1% [11][60] - Household penetration increased to 7.3%, a growth of 55 basis points year-over-year [11] - The diaper category remains under pressure, with a modest decline observed [58][90] Company Strategy and Development Direction - The company is focused on three transformation pillars: brand maximization, margin enhancement, and operating discipline [8][24] - A comprehensive approach to managing tariffs is in place, with a three-pronged strategy to mitigate impacts [21][34] - Continued investment in marketing and innovation is planned to support brand growth and product launches [49][92] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious confidence in navigating the evolving economic landscape while reaffirming the 2025 financial outlook [25][33] - The company anticipates a reversal of retailer inventory builds in the second quarter, impacting growth rates [28] - Management acknowledged the need for ongoing innovation in the diaper category to address consumer feedback [18][19] Other Important Information - The company announced the retirement of CFO Dave Loretta and the appointment of Curtis Bruce as the new CFO [5][6] - The Honest brand is now the leading natural wipes brand nationally, surpassing previous category leaders [16] Q&A Session Summary Question: Impact of shipping on sales and guidance for 2Q - Management noted that pull-forward shipments in 1Q were primarily due to Amazon, which will reverse in 2Q, impacting growth rates [41][43][45] Question: Marketing plans for 2025 - The company plans to continue strong investments in marketing, particularly for the new diaper launch and expanding wipes into new retailers [46][49] Question: Deceleration trends and category performance - Deceleration was primarily isolated to the Target channel, with strong performance in other markets [56][58][90] Question: Distribution and product portfolio growth - The company is focusing on a hero distribution strategy, increasing distribution in grocery and drug channels while managing overall points of distribution [68][70] Question: Tariff impact and mitigation strategies - Management discussed the ongoing tariff impacts, particularly from China, and emphasized their proactive strategies to manage costs [77][79][84]

Investor Strategic Update 2025 As of May 7, 2025 Forward Looking Statements This presentation contains certain forward-looking statements within the meaning of the federal securities laws, including statements about the outlook of our business and industry and other matters referenced in our earnings release and SEC filings. All statements other than statements of historical fact contained in this presentation, including statements on our business strategy, plans, objectives, financial results, operating re ...

LOS ANGELES, May 07, 2025 (GLOBE NEWSWIRE) -- The Honest Company (NASDAQ: HNST), a personal care company dedicated to creating cleanly-formulated and sustainably-designed products, today announced the appointment of Curtiss Bruce, seasoned finance executive, as the Company's new Chief Financial Officer, effective June 2, 2025. Curtiss brings over 30 years of experience, including 10 years in executive-level finance roles, in the consumer products sector. He currently serves as Senior Vice President, Corpora ...

LOS ANGELES, April 23, 2025 (GLOBE NEWSWIRE) -- The Honest Company (NASDAQ: HNST), a personal care company dedicated to creating cleanly-formulated and sustainably-designed products, today announced that it will report first quarter 2025 financial results after the market closes on Wednesday, May 7, 2025. The Company will host an investor conference call and webcast to review first quarter 2025 financial results at 1:45pm PT/4:45pm ET on the same day. The live webcast can be accessed at https://investors.ho ...