The Honest Company, Inc.
HNST Consumer Defensive Household & Personal Products
The Honest Company, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $371.3 million, down 1.86% from fiscal 2024. In the quarter to June 2026, revenue fell 10.9%, EPS grew 233.3% and free cash flow grew 3,911.7%, each against the same quarter a year earlier.
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The Honest Company, Inc. (HNST) Beneish M-score
The Honest Company, Inc.'s Beneish M-score for fiscal 2025 is −3.33; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2025 | −3.33 | (0.46) |
| FY2024 | −2.87 | 0.96 |
| FY2023 | −3.83 | (4.74) |
| FY2022 | 0.91 | 3.19 |
| FY2021 | −2.28 | (0.15) |
| FY2020 | −2.13 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 0.79 | — | 0.73 | |
| Gross margin index | 1.15 | — | 0.61 | |
| Asset quality index | 0.77 | — | 0.31 | |
| Sales growth index | 0.98 | — | 0.88 | |
| Depreciation index | 0.80 | — | 0.09 | |
| SG&A index | 0.92 | — | −0.16 | |
| Total accruals to total assets | (0.14) | — | −0.64 | |
| Leverage index | 0.93 | — | −0.30 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −3.33 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| HELE Helen of Troy Limited compare | −5.2× |
| HNST The Honest Company, Inc. | −3.3× |
| MAGN Magnera Corporation compare | −3.3× |
| SPB Spectrum Brands Holdings Inc. compare | −2.7× |
| ACU Acme United Corporation. compare | −2.6× |
| EPC Edgewell Personal Care Company compare | −2.4× |
| NUS Nu Skin Enterprises, Inc. compare | −2.3× |
| YSG Yatsen Holding Limited Sponsored ADR compare | −2.3× |
| ODD ODDITY Tech Ltd. compare | −2.1× |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI