Honest Streamlines Business, Sees Organic Growth in Q4

The consumer goods company exits several business lines to focus on core categories like wipes, personal care, and diapers.

Published on Feb. 26, 2026

Got story updates? Submit your updates here. ›

The Honest Company reported its Q4 and full-year 2025 earnings, highlighting strategic exits of its direct-to-consumer website, apparel category, and Canadian business as part of its 'Powering Honest Growth' transformation. This streamlining has produced a leaner operating model, with organic revenue growth of 5.3% in 2025 despite an overall 1.9% decline in reported revenue. The company saw strong performance in wipes and personal care, though diapers remained challenged. Looking ahead, Honest aims to continue growing in baby products while also expanding into households beyond those with young children.

Why it matters

Honest's strategic portfolio and channel exits reflect a broader industry trend of consumer goods companies narrowing their focus to core competencies and 'right to win' categories. The company's ability to drive organic growth in its streamlined business model, while also investing in innovation and household expansion, will be key to its long-term success in the competitive personal care and baby products space.

The details

Honest reported Q4 2025 revenue of $88 million, down 11.8% year-over-year, primarily due to the strategic exits. However, organic revenue rose 0.7% to $71.3 million, as strength in wipes and personal care offset continued declines in diapers. For the full year, reported revenue was $371.3 million, down 1.9%, while organic revenue grew 5.3% to $294 million. Management cited strong consumption trends in wipes, up over 30%, and personal care, up 12%, as offsetting double-digit declines in diapers. The company is working to strengthen the value equation for its diaper business through pricing and packaging changes.

  • Honest exited its direct-to-consumer website, apparel category, and Canadian business as part of its 'Powering Honest Growth' transformation in 2025.
  • In Q4 2025, Honest's organic revenue returned to growth after lapping retailer-specific activations that impacted Q3 2024.

The players

Carla Vernón

Chief Executive Officer of Honest.

Curtiss Bruce

Chief Financial Officer of Honest.

The Honest Company

An American consumer goods firm specializing in eco-friendly and responsibly formulated products for babies, personal care, beauty and home cleaning.

Got photos? Submit your photos here. ›

What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.