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of Business Founded in 2012, The Honest Company (the Company, or Honest, or which may also be referred to as we, us or our ) is a personal care company dedicated to creating cleanly-formulated and sustainably-designed products for everyone from babies to adults. By combining thoughtful design with science-based innovation, we deliver personal care products for everyone from babies to adults, sp…
The business is unprofitable at the operating level (-4.97% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 1.9% YoY. Margins deteriorated 3.3pp alongside, both lines moving the wrong way.
ROIC dropped from -2.87% to -7.68%, capital efficiency is deteriorating. Operating margin contracted 3.3pp YoY, cost discipline may be slipping.
Profitability & Returns
Revenue (TTM)
$352M
▼ -1.9% YoY
Net Income (TTM)
-$19M
▼ -156.1% YoY
Op. Margin
-6.14%
▼ -3.3pp YoY
ROIC
-8.82%
▼ -4.8pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$20M
▲ +1246.3% YoY
Op. Cash Flow (TTM)
$24M
▲ +881.2% YoY
Net Debt
-$79M
Net Cash Position
Cash & Equiv.
$90M
5Y CAGR: +4.3%
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