THE WHAT The Honest Company has reported its results for the third quarter of the current financial year. The clean beauty and household products brand delivered record revenue of US$99 million, up 15 percent on the prior-year quarter. 

THE DETAILS Gross margin increased 710 basis points to 38.7 percent whole net income rose US$8 million to US$165,000.

Honest is now predicting revenue growth in the high single digits for FY2024, and adjusted EBITDA in the US$20 million to US$22 million range. 

THE WHY Chief Executive Officer, Carla Vernón, comments, “Our strong third quarter results are a clear reflection of the power of the Honest brand and the strength of the Honest team that has executed our strategy and transformation initiative with discipline and excellence.

“Our ability to grow profitably is evidenced in our results — with double digit revenue growth reaching an all-time high, significant expansion in gross margin, and positive net income for the period. We are confident that our long-term growth strategy will continue to allow us to scale across our categories, meeting the growing consumer demand for cleanly-formulated and sustainably-designed products across our portfolio.

“With our recent performance, continued positive momentum, and overall strength of the Honest brand going into the final quarter of the year, we are again raising our full year financial outlook.”