The Honest Company (HNST) Income Statement

An income statement shows a company's revenues, expenses, and net income over a specific period. It reveals profitability by starting with revenue and subtracting costs to arrive at net income — the "bottom line" that shows how much the company earned.

Review The Honest Company's quarterly and annual revenue figures in the income statement table above to identify growth trends, seasonal patterns, and year-over-year changes.

Gross margin is revenue minus cost of goods sold, expressed as a percentage. It shows how efficiently a company produces its goods or services. Higher gross margins indicate stronger pricing power and lower production costs.

Operating income (EBIT) is revenue minus operating expenses, excluding interest and taxes. It measures a company's core business profitability before financing costs and tax effects, making it useful for comparing companies with different capital structures.

EPS divides net income by outstanding shares, showing the profit attributable to each share. Diluted EPS includes potential shares from stock options and convertible securities, providing a more conservative measure of per-share earnings.