The Honest Company, Inc. (HNST) stock plummeted 13.2% in pre-market trading on Thursday, defying the company's robust financial performance in the fourth quarter and full year 2024.
For Q4, Honest Company reported record quarterly revenue of $100 million, an 11% increase from the prior year. Gross margin expanded significantly by 530 basis points to 39%, driven by cost savings and higher sales volume. The company achieved positive adjusted EBITDA of $9 million, improving by $4 million year-over-year.
For the full year 2024, Honest Company's revenue grew 10% to $378 million, surpassing its outlook range. Gross margin expanded by a remarkable 900 basis points to 38.2%, reflecting cost savings, price increases, and efficient trade spend. The company reported its first full year of positive adjusted EBITDA as a public company at $26 million, compared to negative $11 million in 2023.
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