The Honest Company, Inc.·Consumer Cyclical

Backed by new survey data, Honest aims to normalize real conversations amongst women around body realities and self-care.

Honest (HNST) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.

The Honest Company remains rated 'Hold' with a new $2.21/share price target, reflecting improved fundamentals but insufficient risk-adjusted upside. HNST has transitioned from digital to retail channels, exited low-margin categories, and achieved significant gross margin expansion to 43.5%. The company is now debt-free, generating positive free cash flow and adjusted EBITDA, with organic growth expected to normalize at 4-6%.

The Honest Company, Inc. (HNST) Q1 2026 Earnings Call Transcript

Honest (HNST) came out with quarterly earnings of $0.01 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.03 per share a year ago.

Delivers Accelerated Revenue Growth, Led by Wipes & Personal Care Achieves Record Gross Margins, Fueled by Powering Honest Growth Reaffirms Full Year 2026 Financial Outlook LOS ANGELES, May 06, 2026 (GLOBE NEWSWIRE) -- The Honest Company (NASDAQ: HNST), a personal care company dedicated to creating cleanly-formulated and sustainably-designed products for everyone from babies to adults, today reported financial results for the three months ended March 31, 2026. First Quarter 2026 Financial Highlights Compared to Prior Year Period: Revenue of $78.1 million decreased 19.7%; Organic Revenue (excluding Powering Honest Growth exits)(1) increased 3.9% Gross margin of 42.6% increased 390 basis points; Adjusted Gross Margin(1) of 43.5% increased 480 basis points Net loss of less than $0.1 million; Adjusted Net Income(1) was $1.3 million Adjusted EBITDA(1) of $4.0 million decreased $3.0 million Cash and cash equivalents of $90.4 million increased $17.5 million “We are pleased with our first quarter results, demonstrating that Powering Honest Growth is successfully transforming Honest into an enterprise that is more strategically focused, growth-driven, and structurally profitable,” said Chief Executive Officer, Carla Vernón.
The Honest Company, Inc. manufactures and sells diapers and wipes, skin and personal care, and household and wellness products. The company also offers baby clothing and nursery bedding products. It sells its products through digital and retail sales channels, such as its website and third-party ecommerce sites, as well as brick and mortar retailers. The company was incorporated in 2012 and is headquartered in Los Angeles, California.
Consumer Cyclical
Specialty Retail
164
2021-05-04
2.15