The Honest pany(US:HNST)2025-11-05 21:45Q3 2025 Performance - The company's Q3 2025 revenue was $93 million, a decrease of 7% compared to the previous year[30] - Organic revenue for Q3 2025 was $73 million, a decrease of 5% compared to the previous year[30] - The company reported a net income of $1 million in Q3 2025, a $1 million increase compared to the previous year[30] - Adjusted EBITDA for Q3 2025 was $4 million, a decrease of $4 million compared to the previous year[30] Transformation 2.0 Strategy - The company is focusing on core categories (Wipes, Personal Care, Diapers) and exiting lower margin, non-strategic categories and channels[9, 12, 15] - The company expects annual recurring cost savings of $8-15 million from Transformation 2.0, with up-front costs of $25-35 million[37] Category Performance & Initiatives - Diapers, wipes and personal care accounted for approximately 30%, over 50% of Q3 2025 revenue respectively, with all other categories accounting for less than 20%[16] - Wipes experienced a 160% year-to-date Honest consumption growth, compared to a 2% category growth[22] - The company expanded sanitizing wipes distribution to Walmart and launched Adult Flushable Wipes in high-traffic brick-and-mortar aisles, adding over 700 points of distribution[17, 19, 21] Updated Financial Outlook - The company updated its full year 2025 revenue outlook to -3% to flat, and organic revenue growth of 4% to 6%[38] - The company updated its adjusted EBITDA outlook to $21-23 million[38]