What is The Honest Company's inventory write down?

The Honest Company (HNST) reported inventory write down of $3.97M in Q4 2025.

What does inventory write down mean?

The expense recognized when the carrying value of inventory exceeds its net realizable value due to obsolescence, damage, or market price declines. High levels of write-downs indicate potential issues with inventory management, product demand forecasting, or supply chain efficiency. It directly reduces gross profit margins.

The Honest Company HNST Inventory Write Down

Inventory Write Down at other companies

Richtech Robotics Inc.RR

$41.75—

Forum Energy TechnologiesFET

$397K+1.8%

Boston BeerSAM

$3.43M-37.4%

ADMA BiologicsADMA

$2.1M—

Frequency ElectronicsFEIM

$312K+36.8%

Avanos MedicalAVNS

$3.3M+94.1%

Other financials

Income statement

See full

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

See full

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

See full

Operating cash flow$5.5M+288%

CapEx$1.7M+2,700%

Free cash flow$3.8M+226%

Valuation

See full

Market cap$391.88M-24.2%

Enterprise value$313.28M-32.5%

P/S1.1×-0.2×

Profitability

See full

Gross margin33.9%-4.7pp

Operating margin-6.1%-7.0pp

Net margin-5.4%-5.8pp

FCF margin5.8%—

Returns & leverage

See full

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:InventoryWriteDown.

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

Ask your AI about The Honest Company's inventory write down.

Connect your AI assistant and compare it to peers, right in your chat.

Connect your AI

Claude

Questions, answered.

What is The Honest Company's inventory write down?: The Honest Company (HNST) reported inventory write down of $3.97M in Q4 2025.
What does inventory write down mean?: The expense recognized when the carrying value of inventory exceeds its net realizable value due to obsolescence, damage, or market price declines. High levels of write-downs indicate potential issues with inventory management, product demand forecasting, or supply chain efficiency. It directly reduces gross profit margins.