Logo: The logo is from the following website: https://www.honest.com/ https://www.honest.com/, Non-free logo, via Wikipedia4
Consumer goods company founded 2011
The Honest Company, Inc. is an American digital-first consumer goods company, based in Los Angeles and founded by actress Jessica Alba (listed in company records by her married name, Jessica Warren), Christopher Gavigan, and Brian Lee. The company had $319 million in 2021 sales, and was valued at roughly $550 million as of February 2022. Carla Vernón, Chief Executive Officer, is one of the first Afro-Latina CEOs of a U.S. publicly traded company.3 Its shares trade on Nasdaq under the symbol HNST.1Wikipedia text CC BY-SA 4.0
The Honest Company, Inc. is an American digital-first consumer goods company, based in Los Angeles and founded by actress Jessica Alba (listed in company records by her married name, Jessica Warren), Christopher Gavigan, and Brian Lee. The company had $319 million in 2021 sales, and was valued at roughly $550 million as of February 2022. Carla Vernón, Chief Executive Officer, is one of the first Afro-Latina CEOs of a U.S. publicly traded company. The Honest Company has raised multiple rounds of venture capital, and went public via an initial public offering in May 2021, generating over $100 million in capital. Honest serves the United States, China, Canada, and Europe.3
Financials
From the company’s reports to the SEC. Every number links to the filing it came from.
Revenue8910117$371.3M in 2025+58% since 2019Gross profit8910117$123.8M in 2025+63% since 2019Operating income8910117-$18.5M in 2025−41% since 2019Net income8910117-$15.7M in 2025−50% since 2019
Revenue1213$83.3M in Q2 FY2026+7% since Q1 FY2026Gross profit1213$40.4M in Q2 FY2026+21% since Q1 FY2026Operating income1213$9.6M in Q2 FY2026Net income1213$10.7M in Q2 FY2026
Every line of the income statement as filed: the last 3 fiscal years, latest first.7
Period ending
2025-12-31
2024-12-31
2023-12-31
Revenue
$371.3M
$378.3M
$344.4M
Cost of revenue
$247.6M
$233.7M
$243.8M
Gross profit
$123.8M
$144.7M
$100.5M
Selling, general and administrative
$79.5M
$99.0M
$94.6M
Marketing
$51.2M
$45.1M
$36.4M
Restructuring
$4.2M
$0
$2.2M
Research and development
$7.3M
$6.9M
$6.2M
Total operating expenses
$142.2M
$151.0M
$139.4M
Operating loss
-$18.5M
-$6.3M
-$38.9M
Interest and other income (expense), net
$3.0M
$282.0K
-$254.0K
Loss before provision for income taxes
-$15.5M
-$6.0M
-$39.2M
Effective tax rate
$204.0K
$75.0K
$75.0K
Net loss
-$15.7M
-$6.1M
-$39.2M
Basic (in USD per share)
-$0.14
-$0.06
-$0.42
Diluted (in USD per share)
-$0.14
-$0.06
-$0.42
Basic (in shares)
111.2M shares
100.2M shares
94.5M shares
Diluted (in shares)
111.2M shares
100.2M shares
94.5M shares
Unrealized gain on short-term investments, net of taxes
$0
$0
$32.0K
Comprehensive loss
-$15.7M
-$6.1M
-$39.2M
No quarter-by-quarter statement was filed.
Total assets8910117$225.4M in 2025−6% since 2020Total liabilities8910117$55.7M in 2025−45% since 2020Shareholders’ equity910117$169.7M in 2025Cash8910117$89.6M in 2025+561% since 2019
Total assets1213$220.1M in Q2 FY2026−2% since Q1 FY2025Total liabilities1213$53.1M in Q2 FY2026−5% since Q1 FY2025Shareholders’ equity1213$167.0M in Q2 FY2026−2% since Q1 FY2025Cash1213$105.9M in Q2 FY2026+18% since Q1 FY2025
Every line of the balance sheet as filed: the last 4 fiscal years (annual) or 4 quarters (quarterly), latest first.7
Period ending
2025-12-31
2024-12-31
2023-12-31
2022-12-31
Cash and cash equivalents
$89.6M
$75.4M
Accounts receivable, net
$33.8M
$43.5M
Inventories
$72.5M
$85.3M
Prepaid expenses and other current assets
$6.6M
$9.7M
Total current assets
$202.4M
$213.9M
Operating lease right-of-use asset
$11.4M
$17.2M
Property and equipment, net
$7.5M
$11.4M
Goodwill
$2.3M
$2.2M
Intangible assets, net
$162.0K
$235.0K
Other assets
$1.7M
$2.4M
Total assets
$225.4M
$247.4M
Accounts payable
$15.1M
$22.8M
Accrued expenses
$35.7M
$35.9M
Deferred revenue
$0
$1.2M
Total current liabilities
$50.8M
$59.9M
Operating lease liabilities, net of current portion
$4.9M
$13.2M
Total liabilities
$55.7M
$73.1M
Preferred stock, $0.0001 par value, 20,000,000 shares authorized at December 31, 2025 and 2024, none issued or outstanding as of December 31, 2025 and 2024
$0
$0
Common stock, $0.0001 par value, 1,000,000,000 shares authorized at December 31, 2025 and 2024; 112,809,637 and 109,159,697 shares issued and outstanding as of December 31, 2025 and 2024, respectively
$11.0K
$11.0K
Additional paid-in capital
$670.5M
$659.5M
Accumulated deficit
-$500.9M
-$485.2M
Total stockholders equity
$169.7M
$174.3M
$123.1M
$146.4M
Total liabilities and stockholders equity
$225.4M
$247.4M
Preferred stock, par value (in USD per share)
$0.00
$0.00
Preferred stock authorized (in shares)
20.0M shares
20.0M shares
Preferred stock, shares issued (in shares)
0 shares
0 shares
Preferred stock, shares outstanding (in shares)
0 shares
0 shares
Common stock, par value (in USD per share)
$0.00
$0.00
Common stock authorized (in shares)
1.0B shares
1.0B shares
Common stock issued (in shares)
112.8M shares
109.2M shares
Common stock outstanding (in shares)
112.8M shares
109.2M shares
Period ending
2025-12-31
2024-12-31
2023-12-31
2022-12-31
Cash and cash equivalents
$89.6M
$75.4M
Accounts receivable, net
$33.8M
$43.5M
Inventories
$72.5M
$85.3M
Prepaid expenses and other current assets
$6.6M
$9.7M
Total current assets
$202.4M
$213.9M
Operating lease right-of-use asset
$11.4M
$17.2M
Property and equipment, net
$7.5M
$11.4M
Goodwill
$2.3M
$2.2M
Intangible assets, net
$162.0K
$235.0K
Other assets
$1.7M
$2.4M
Total assets
$225.4M
$247.4M
Accounts payable
$15.1M
$22.8M
Accrued expenses
$35.7M
$35.9M
Deferred revenue
$0
$1.2M
Total current liabilities
$50.8M
$59.9M
Operating lease liabilities, net of current portion
$4.9M
$13.2M
Total liabilities
$55.7M
$73.1M
Preferred stock, $0.0001 par value, 20,000,000 shares authorized at December 31, 2025 and 2024, none issued or outstanding as of December 31, 2025 and 2024
$0
$0
Common stock, $0.0001 par value, 1,000,000,000 shares authorized at December 31, 2025 and 2024; 112,809,637 and 109,159,697 shares issued and outstanding as of December 31, 2025 and 2024, respectively
$11.0K
$11.0K
Additional paid-in capital
$670.5M
$659.5M
Accumulated deficit
-$500.9M
-$485.2M
Total stockholders equity
$169.7M
$174.3M
$123.1M
$146.4M
Total liabilities and stockholders equity
$225.4M
$247.4M
Preferred stock, par value (in USD per share)
$0.00
$0.00
Preferred stock authorized (in shares)
20.0M shares
20.0M shares
Preferred stock, shares issued (in shares)
0 shares
0 shares
Preferred stock, shares outstanding (in shares)
0 shares
0 shares
Common stock, par value (in USD per share)
$0.00
$0.00
Common stock authorized (in shares)
1.0B shares
1.0B shares
Common stock issued (in shares)
112.8M shares
109.2M shares
Common stock outstanding (in shares)
112.8M shares
109.2M shares
Cash from operations8910117$15.1M in 2025Capital spending8910117$1.5M in 2025+128% since 2019Free cash flow8910117$13.6M in 2025Dividends paid8910$0 in 2023
Cash flow is reported year to date, not quarter by quarter, so there are no separate quarterly figures.
Every line of the cash flow as filed: the last 3 fiscal years, latest first.7
Period ending
2025-12-31
2024-12-31
2023-12-31
Net loss
-$15.7M
-$6.1M
-$39.2M
Depreciation and amortization
$2.9M
$2.8M
$2.7M
Stock-based compensation
$10.5M
$15.7M
$15.8M
Fixed asset impairment
$2.9M
$0
$0
Amortization of operating ROU assets
$6.6M
$6.4M
$6.3M
Apparel inventory write-down
$15.9M
$0
$0
Other
$6.2M
$746.0K
-$1.4M
Accounts receivable, net
$10.2M
-$378.0K
-$682.0K
Inventories
-$7.5M
-$10.9M
$43.5M
Prepaid expenses and other assets
$3.6M
-$1.4M
$8.0M
Accounts payable, accrued expenses and other long-term liabilities
-$11.2M
$3.8M
-$9.3M
Deferred revenue
-$375.0K
-$998.0K
$1.4M
Operating lease liabilities
-$8.9M
-$8.1M
-$7.7M
Net cash provided by operating activities
$15.1M
$1.5M
$19.4M
Proceeds from maturities of short-term investments
$0
$0
$5.7M
Purchases of property and equipment
-$1.5M
-$530.0K
-$1.8M
Purchases of intangible assets
$0
$0
-$10.0K
Net cash provided (used in) provided by investing activities
-$1.5M
-$530.0K
$3.8M
Proceeds from exercise of stock options
$384.0K
$41.5M
$4.0K
Proceeds from 2021 ESPP
$152.0K
$163.0K
$176.0K
Payments on finance lease liabilities
-$1.0K
-$19.0K
-$58.0K
Net cash provided by financing activities
$535.0K
$41.6M
$122.0K
Net increase in cash and cash equivalents
$14.1M
$42.6M
$23.3M
Interest
$0
$0
$1.0K
Income Taxes
$110.0K
$89.0K
$116.0K
Capital expenditures included in accounts payable and accrued expenses
The Honest Company sits at the top of its group. 1 entity, 1 country on record. Switch between the flow chart and the network, and select any entity to see its details.
Major holders of The Honest Company
VANGUARD GROUP INCFiled SCHEDULE 13G/A on The Honest Company, latest Mar 27, 2026 (6 filings since Feb 10, 2022)
Jessica WarrenFiled SCHEDULE 13G/A on The Honest Company, latest Feb 17, 2026 (2 filings since Feb 14, 2024)
THC Shared Abacus, LPFiled SC 13G/A on The Honest Company, latest Nov 14, 2024 (2 filings since Feb 15, 2022)
BlackRockFiled SC 13G on The Honest Company, latest Nov 8, 2024 (2 filings since Oct 24, 2024)
The Honest CompanyLos Angeles
Built from major holders from Schedules 13D and 13G. Each entity in the chart links to its source.
What it owns
What The Honest Company reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.
We lease our corporate headquarters located at 12130 Millennium Drive #500, Los Angeles, California, in a LEED certified building where we occupy approximately 46,518 square feet of office space pursuant to a lease that expires in February 2027. This lease provides us with an option to extend it for up to two consecutive periods of five years each. We also lease a corporate office located at 3033 Excelsior Boulevard #575, Minneapolis, Minnesota, where we occupy approximately 4,500 square feet of office space pursuant to a lease that expires in April 2031. This lease provides us with an option to extend it for an additional five years. We also lease a warehouse and distribution facility located in Las Vegas, Nevada where we occupy approximately 570,000 square feet pursuant to a lease that expires in December 2027, with an option to extend this lease for up to two consecutive periods of five years each. We have a second warehouse and distribution facility in Breinigsville, Pennsylvania where we occupy approximately 335,000 square feet pursuant to a servicing agreement with GEODIS Logistics LLC (“GEODIS”). From time to time we also utilize outside storage on a short-term basis. We have two distribution partners that operate our facilities on our behalf: National Distribution Centers, LLC (“NFI”) and GEODIS. Our Las Vegas, Nevada facility is operated by NFI and our Breinigsville, Pennsylvania facility is operated by GEODIS. In total, we have approximately 930,000 square feet of facility space that we leverage to fulfill retail order and, until December 31, 2025, leveraged to fulfill DTC orders. As part of Powering Honest Growth, in December 2025, we notified GEODIS, pursuant to the terms of the contract, that we are terminating the agreement with them for the Pennsylvania warehouse use and services effective June 30, 2026. Following June 30, 2026, we will only be operating with the Nevada warehouse. We believe that our current facilities are suitable and adequate to meet our current needs.
Company co-founder Jessica Alba was inspired by the 2008 birth of her first child and her own history of childhood illnesses to create a company that provided an alternative to baby products with ingredients such as petrochemicals and synthetic fragrances. The company was launched in 2012 with 17 products.
In 2013, The Honest Company's sales reached $50 million. Honest raised $70 million from venture capitalists in the summer of 2014 in preparation for an initial public offering. The financing put a value on the company of $1 billion. Prior to the 2014 round of financing led by Wellington Management Company, the company had raised $52 million in financing from ICONIQ Capital, General Catalyst Partners, Institutional Venture Partners and Lightspeed Venture Partners.
In 2016, The Honest Company moved its headquarters from Santa Monica to the Playa Vista neighborhood of Los Angeles. The following month, it announced a new round of funding that generated an additional $100 million of venture capital, implying a valuation of $1.7 billion. In late 2015, the company acquired Alt12 Apps, the makers of popular apps such as Baby Bump, Pink Pad, and Kidfolio.
In March 2017, The Honest Company announced that Nick Vlahos would replace Brian Lee as chief executive officer. Vlahos worked on several Clorox brands, including Burt's Bees, Brita and Green Works. Brian Lee would remain on the board in an advisory role.
In October 2017, The Honest Company closed a series E round of funding. After settling two lawsuits in the summer of 2017, the valuation was set at $19.60 per share down from the Series D shares sold in 2015 at $45.75, and market value of less than $1 billion.
In April 2021, The Honest Company officially filed for an initial public offering. The company began trading on the NASDAQ exchange with ticker symbol HNST on May 5, 2021. The IPO raised $412.8 million.
In April 2024, Alba stepped down from her role as Chief Creative Officer, a leadership change that led to the removal of her name and likeness from certain packaging and a short-term market reaction in the company’s shares.
The Honest Company offers a wide range of consumer products focused on baby care products, personal care, home cleaning, and beauty. Product lines include diapers and wipes made with sustainably harvested materials, gentle skin and body wash, lotions, shampoos, conditioners, and fragrances, many of which are free from parabens, phthalates, synthetic fragrances, and other ingredients the company excludes via its “No List”. The beauty line features skincare and color cosmetics formulated with naturally-derived ingredients, and in 2021 the company redesigned over 100 SKUs to use post-consumer recycled or "tree-free" packaging.
The Honest Company markets its products as safe and eco-friendly. The company does not use "health-compromising chemicals or compounds", including the "No List" of ingredients that it promises to never allow in its products. Whole Foods and Costco were The Honest Company's initial retail distributors. The company began selling in Target Corporation on June 15, 2014. Other stores that carried the company's products by mid 2014 included Buy Buy Baby and Nordstrom. By the end of the third quarter of 2014, the company carried 90 products. Its leading seller was diapers.
Under Vlahos's leadership as CEO, Honest Company expanded its internal laboratories and R&D team and opened a fulfillment center. In 2022, Honest expanded its retail partnerships to include Walmart, Ulta Beauty, and GNC (company). As part of the Ulta partnership, Honest released its first acne line. In the fall of 2022, the company partnered with SuperOrdinary to launch on the e-commerce platform, Tmall Global in China.
The Honest Standard
The Honest Standard is a product-safety and development protocol that governs ingredient selection, testing, manufacturing, packaging and labelling for product portfolio. Key elements include a publicly documented NO List (more than 3,500 chemicals and materials the company excludes), an ingredient-assessment process, and third-party testing and validation of formulations. Manufacturing partners are required to follow relevant Good Manufacturing Practices. The policy requires clear on-label ingredient disclosure (avoiding generic terms such as “fragrance”) and sets packaging sustainability criteria.
Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar
Filings
600 filings to the SEC since October 2021: 5 annual reports, 15 quarterly reports, 38 major events, 340 insider forms, 27 large holders, 175 other. The latest 20:
203 open-market trades by officers, directors and large owners since October 2021: 4 buys and 199 sales. Grants, option exercises and gifts are left out.
BlackRockSC 13G, 2 filings Oct 24, 2024 to Nov 8, 202468
Executive pay
What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.
The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.
Members report amounts as ranges, not exact figures. Returns are price-only (no dividends).
SEC filer profile
How The Honest Company is registered with the Securities and Exchange Commission, from its EDGAR record and the cover page of its latest annual report.
From the cover page of the 10-K filed Feb 25, 2026 (Section 12(b) of the Exchange Act).14
Risk factors and legal proceedings
The risks The Honest Company names in Item 1A of its 10-K filed Feb 25, 2026: 71 risks under these headings, as written.14
Risks Related to Our Business, Our Brand, Our Products and Our Industry
Our past growth may not be indicative of our future growth and we may not be able to effectively manage our future growth or evaluate our future prospects. If we fail to effectively manage our future growth or evaluate our future prospects, our business could be adversely affected.
Our quarterly operating results may fluctuate, which could cause our stock price to decline.
Our future success depends, in part, on our ability to achieve our long-term strategy.
Our strategic initiatives, including as part of the Transformation Initiative and Powering Honest Growth, to reduce our costs could have short and long-term adverse effects on our business, financial condition, results of operations and prospects, could result in total costs and expenses that are greater than expected, and we may not realize the operational or financial benefits from such actions.
Consolidation of retail customers, the loss of a significant retail or third-party ecommerce customer or a significant change in such customer's historical purchasing patterns has in the past and could in the future negatively impact our sales and ability to achieve or maintain profitability.
We may be unable to accurately forecast revenue, gross margin or operating expenses and appropriately plan our expenses in the future.
We may not be able to compete successfully in our highly competitive market.
If we fail to cost-effectively acquire new consumers or retain our existing consumers, our business could be adversely affected. Our sales and profit are dependent upon our ability to expand our existing consumer relationships and acquire new consumers.
Overall macroeconomic trends, including due to geopolitical uncertainty, have had and may continue to have an adverse effect on our business, financial condition, results of operations and prospects.
If we fail to manage our inventory effectively, our business, financial condition, results of operations and liquidity may be materially and adversely affected.
Our inability to secure, maintain and increase our presence with retailers could adversely impact our revenue, and in turn our business, financial condition, results of operations and prospects could be adversely affected.
The other 60 risks
Failure to introduce new products may adversely affect our ability to continue to grow.
We must expend resources to maintain consumer awareness of our brand, build brand loyalty and generate interest in our products. Our marketing strategies and channels will evolve and shifts in our marketing strategies and efforts may or may not be successful.
Failure to leverage our brand value propositions to compete against private label products, especially during an economic downturn, may adversely affect our ability to achieve or maintain profitability.
If we fail to develop and maintain our brand, our business could suffer.
Our brand and reputation may be diminished due to real or perceived quality, safety, efficacy or environmental impact issues with our products, which could have an adverse effect on our business, financial condition, results of operations and prospects.
Economic downturns or a change in consumer preferences, perception and spending habits in the clean products categories, in particular, could limit consumer demand for our products and negatively affect our business.
If we cannot maintain our Company culture or focus on our purpose as we grow, our success and our business and competitive position may be harmed.
Our ability to maintain our competitive position is largely dependent on the services of our senior management and other key personnel.
Use of social media and influencers may adversely affect our reputation or subject us to fines or other penalties.
Employee litigation and unfavorable publicity could negatively affect our future business.
We have a history of net losses and we may not be able to achieve or maintain profitability in the future.
We have a limited operating history at our current scale, which may make it difficult to evaluate our business and future prospects.
Certain of the data that we track is subject to inherent challenges in measurement, and any inaccuracies in such data may negatively affect our business.
We rely on independent certification for a number of our products.
Our results of operations may fluctuate as a result of price concessions, promotional activities, credits and other factors.
Significant product returns or refunds could harm our business.
Our business may be adversely affected if we are unable to respond and adapt to rapid changes in technology.
Severe weather, including hurricanes, earthquakes and natural disasters, could disrupt normal business operations, which could result in increased costs and have an adverse effect on our business, financial condition, results of operations and prospects.
A disruption in our operations could have an adverse effect on our business.
We may incur significant losses from fraud.
Our ability to raise capital in the future may be limited and our failure to raise capital may limit our ability to invest in strategic priorities and grow our business.
The agreements governing our indebtedness require us to meet certain operating and financial covenants and place restrictions on our operating and financial flexibility. If we raise capital through additional debt financing, the terms of any new debt could further restrict our ability to operate our business.
We could be required to collect additional sales taxes or be subject to other tax liabilities that may increase the costs our consumers would have to pay for our products and adversely affect our operating results.
We may seek to grow our business through acquisitions of, or investments in, new or complementary businesses, facilities, technologies or products, or through strategic alliances, and the failure to successfully manage or execute these acquisitions, investments or alliances, or to integrate them with our existing business, could have an adverse effect on us.
Our ability to utilize our net operating loss carryforwards and certain other tax attributes may be limited.
Risks Related to Our Dependence on Third Parties
Our business, including our costs and supply chain, is subject to risks associated with sourcing, manufacturing, warehousing, distribution and logistics, and the loss of any of our key suppliers or logistical service providers could negatively impact our business.
We rely on third-party suppliers, manufacturers, retail and ecommerce customers and other vendors, and they may not continue to produce products or provide services that are consistent with our standards or applicable regulatory requirements, which could adversely affect our business, harm our brand, cause consumer dissatisfaction, and require us to find alternative suppliers of our products or services.
If our third-party suppliers and manufacturers do not comply with ethical business practices or with applicable laws and regulations, our reputation, business, financial condition, results of operations and prospects could be harmed.
If we or our distribution partners do not successfully optimize, operate and manage the expansion of the capacity of our warehouse fulfillment centers, our business, financial condition, results of operations and prospects could be adversely affected.
Shipping is a critical part of our business and any changes in our shipping arrangements or any interruptions in shipping could adversely affect our operating results.
Risks Related to Legal and Governmental Regulation
Health and safety incidents or advertising inaccuracies or product mislabeling may have an adverse effect on our business by exposing us to lawsuits, product recalls or regulatory enforcement actions, increasing our operating costs and reducing demand for our product offerings.
We are subject to extensive governmental regulation and we may incur material liabilities under, or costs in order to comply with, existing or future laws and regulation, and our failure to comply may result in enforcements, recalls, and other adverse actions.
Changes in existing laws or regulations or related official guidance, or the adoption of new laws or regulations or guidance, may increase our costs and otherwise adversely affect our business, financial condition, results of operations and prospects.
Failure by our network of retail and ecommerce partners, suppliers or manufacturers to comply with product safety, environmental or other laws and regulations, or with the specifications and requirements of our products, may disrupt our supply of products and adversely affect our business.
Class action litigation, other legal claims and regulatory enforcement actions could subject us to liability for damages, civil and criminal penalties and other monetary and non-monetary liability and could otherwise adversely affect our reputation, business, financial condition, results of operations and prospects.
Litigation or legal proceedings could expose us to significant liabilities and have a negative impact on our reputation or business.
Scrutiny and evolving expectations from stakeholders with respect to our ESG practices, performance, commitments and disclosures may impact our reputation, increase our costs and impact our access to capital.
Government regulation of the Internet and ecommerce is evolving, and unfavorable changes or failure by us to comply with these regulations could have an adverse effect on our business, financial condition, results of operations and prospects.
Developments in labor and employment law and any unionizing efforts by employees could have an adverse effect on our business, financial condition, results of operations and prospects.
Risks Related to Our Intellectual Property and Information Technology
We may be unable to adequately obtain, maintain, protect and enforce our intellectual property rights.
The loss of any registered trademark or other intellectual property could enable other companies to compete more effectively with us.
If we fail to comply with our obligations under our existing license agreements or cannot license rights to use technologies on reasonable terms or at all, we may be unable to license rights that are critical to our business.
We may be subject to claims or other allegations that we infringe, misappropriate or otherwise violate the intellectual property rights of third parties, which could result in substantial damages and diversion of management’s efforts and attention.
Our reliance on software-as-a-service, or SaaS, technologies from third parties may adversely affect our business and results of operations.
We must successfully maintain, scale and upgrade our information technology systems, and our failure to do so could have an adverse effect on our business, financial condition, results of operations and prospects.
Risks Related to Conducting Business Internationally
International trade disputes and the U.S. government’s trade policy, including recently enacted tariffs and potential new tariffs, have in the past and may in the future adversely affect our business, financial condition, results of operations and prospects.
Our business activities may be subject to the U.S. Foreign Corrupt Practices Act and similar anti-bribery and anti-corruption laws of other countries in which we operate, as well as U.S. and certain foreign export controls, trade sanctions, and import laws and regulations. Compliance with these legal requirements could limit our ability to compete in foreign markets and subject us to liability if we violate them.
Fluctuations in currency exchange rates may negatively affect our financial condition and results of operations.
We are subject to international business uncertainties.
Risks Related to Ownership of Our Common Stock
Our stock price has been volatile, and the value of our common stock has declined.
Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of our Company more difficult, limit attempts by our stockholders to replace or remove our current management and limit the market price of our common stock.
Our amended and restated certificate of incorporation provides that the Court of Chancery of the State of Delaware and the federal district courts of the United States will be the exclusive forums for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees.
We do not intend to pay dividends for the foreseeable future and, as a result, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock.
An active public trading market may not be sustained.
Future sales of our common stock in the public market could cause the market price of our common stock to decline.
Our issuance of additional capital stock in connection with financings, acquisitions, investments, our equity incentive plans or otherwise will dilute all other stockholders.
If securities or industry analysts do not publish research or publish unfavorable or inaccurate research about our business, the market price and trading volume of our common stock could decline.
We are an “emerging growth company,” and we cannot be certain if the reduced reporting and disclosure requirements applicable to emerging growth companies will make our common stock less attractive to investors.
We face increased costs as a result of operating as a public company, and our management is required to devote substantial time to compliance with our public company responsibilities and corporate governance practices.
We cannot guarantee that our share repurchase program will be fully consummated or that it will enhance long-term stockholder value. Share repurchases could also increase the volatility of the trading price of our stock and will reduce our cash reserves.
Legal proceedings
We are subject to various legal proceedings and claims that arise in the ordinary course of our business. Although the outcome of these and other claims cannot be predicted with certainty, we do not believe the ultimate resolution of the current matters will have a material adverse effect on our business, financial condition, results of operations or cash flows. See Note 10, “Commitments and Contingencies,” to the financial statements contained in this report for a discussion of legal proceedings that are incorporated by reference into this Item 3.
