What does inventory, firm purchase commitment, loss mean?

Losses recognized when the market value of inventory under firm purchase commitments falls below the contracted purchase price. This metric highlights supply chain risks and potential inefficiencies in inventory procurement planning.

The Honest Company HNST Inventory, Firm Purchase Commitment, Loss

Inventory, Firm Purchase Commitment, Loss at other companies

The Honest CompanyHNST

$275K—

ProFrac Holding Corp.ACDC

$2.4M—

Pacific Biosciences of CaliforniaPACB

$0-100%

Mirum Pharmaceuticals, Inc.MIRM

$0+100%

Lucid Group, Inc.LCID

$228.32M+54.4%

Agilent TechnologiesA

$10M0.0%

Other financials

Income statement

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Revenue$78.1M-19.7%

Gross profit$33.3M-11.7%

Operating income-$659.0K-126%

Net income-$42.0K-101%

EPS (diluted)$0.00-100%

Balance sheet

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Cash & equivalents$90.4M+24.1%

Total debt$11.8M-40.1%

Total equity$169.1M-6.2%

Total assets$214.9M-19.0%

Cash flow

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Operating cash flow$5.5M+288%

CapEx$1.7M+2,700%

Free cash flow$3.8M+226%

Valuation

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Market cap$391.88M-24.2%

Enterprise value$313.28M-32.5%

P/S1.1×-0.2×

Profitability

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Gross margin33.9%-4.7pp

Operating margin-6.1%-7.0pp

Net margin-5.4%-5.8pp

FCF margin5.8%—

Returns & leverage

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Return on equity-10.9%-12.0pp

Debt / equity0.1×0.0×

Current ratio4.5×+1.3×

Where this comes from

Reported directly by The Honest Company in its filing.

Tagged under the XBRL concept us-gaap:InventoryFirmPurchaseCommitmentLoss.

The official record: The Honest Company’s 10-K, filed February 25, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is The Honest Company's inventory, firm purchase commitment, loss?: The Honest Company (HNST) reported inventory, firm purchase commitment, loss of $275K in Q4 2025.
What does inventory, firm purchase commitment, loss mean?: Losses recognized when the market value of inventory under firm purchase commitments falls below the contracted purchase price. This metric highlights supply chain risks and potential inefficiencies in inventory procurement planning.