HNST

The Honest Company: Strategic Exits Are Starting To Work

The Honest Company faces stagnating improvements, with shares down 25% over the past year and operating profits still elusive. Despite organic growth, Honest's top-line sales are declining due to divestitures, and adjusted EBITDA margins have contracted year-over-year. Guidance for 2026 anticipates further sales declines but expects organic growth and flat adjusted EBITDA, with continued net cash strength.

The Honest Company, Inc. (HNST) Q2 2026 Earnings Call Transcript

Top-Line Momentum Continues Behind Higher-Margin Growth Platforms Record Profitability & Durable Foundation Enable Accelerated Reinvestment for Sustainable Growth Raising Full Year 2026 Financial Outlook LOS ANGELES, Aug. 05, 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 its second quarter ended June 30, 2026. Second Quarter 2026 Financial Highlights Compared to Prior Year Period: Revenue of $83.3 million decreased 10.9%; Organic Revenue(1) increased 6.7% Gross margin of 48.4% increased 800 bps; Underlying Adjusted Gross Margin(1) of 43.8% increased 340 bps Net income of $10.7 million increased $6.8 million; Underlying Adjusted Net Income(1) was $5.1 million Underlying Adjusted EBITDA(1) was $7.8 million; Underlying Adjusted EBITDA Margin(1) of 9.8% increased 160 bps Cash and cash equivalents of $105.9 million increased $33.8 million “For the second quarter we delivered accelerated Organic Revenue growth of 7% and record underlying margins,” said Chief Executive Officer, Carla Vernón.

LOS ANGELES, July 21, 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 announced that it will report second quarter 2026 financial results after the market closes on Wednesday, August 5, 2026. The Company will host a conference call and webcast at 1:45pm PT/4:45pm ET on the same day.

LOS ANGELES, July 21, 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 announced two updates to its finance and investor relations leadership team, including the promotion of Monica Baik to Senior Vice President of FP&A and Investor Relations, and the appointment of Chris Mandeville as Vice President of Investor Relations.  These appointments build on the Company's strong finance organization and investor relations capabilities, reinforcing Honest's ability to execute its long-term growth strategy and deliver sustained shareholder value.

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