Shares of The Honest Company, Inc. (NASDAQ: HNST) surged 16.42% in after-hours trading on Wednesday following the release of its better-than-expected first-quarter 2025 financial results and the announcement of a new Chief Financial Officer.

The company reported Q1 revenue of $97.25 million, surpassing the IBES estimate of $92.5 million. Net income for the quarter stood at $3.254 million, significantly outperforming the estimated $9,200. The Honest Company also posted an impressive gross margin of 39% and adjusted EBITDA of $7 million, beating the IBES estimate of $5.38 million.

Adding to the positive sentiment, The Honest Company announced the appointment of Curtiss Bruce as its new Chief Financial Officer, effective June 2, 2025. Bruce brings over 30 years of experience in the consumer products sector and is expected to play a crucial role in executing the company's strategic goals. Furthermore, the company reaffirmed its full-year 2025 financial outlook, projecting revenue growth of 4% to 6%. This combination of strong quarterly results, strategic leadership changes, and positive future guidance appears to have fueled investor optimism, resulting in the significant after-hours stock price increase.