10-Q · May 6, 2026
The Honest Company reported Q1 2026 results with revenue of $78.1 million, down 19.7% year-over-year, and gross margins improved to 42.6%. Operating margin was negative at -0.8%, reflecting operational challenges as the…
HNST earnings analysis
10-Q · Filed November 5, 2026 · Our reading of the company's report
The latest report
The Honest Company delivered $84.6 million of third-quarter revenue and $0.81 diluted EPS, with revenue modestly above the prior quarter but below the prior year and EPS benefiting from a significant one-time tax item.…
Read full summary
The Honest Company delivered $84.6 million of third-quarter revenue and $0.81 diluted EPS, with revenue modestly above the prior quarter but below the prior year and EPS benefiting from a significant one-time tax item. Management raised all disclosed full-year 2026 outlook ranges, including revenue of $322 million-$325 million and adjusted EBITDA of $25.0 million-$26.0 million. Liquidity was solid at $103.0 million of cash, but earnings quality, international supply-chain exposure, inflation, and the absence of remaining repurchase authorization temper the bullish assessment.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.81
What stood out
-
Sequential revenue growth
Third-quarter revenue was $84.6 million, up from $83.0 million in the prior quarter, or approximately 1.9%, but down from $93.0 million in the prior-year quarter, or approximately 9.0%.
-
EPS surged on tax benefit
Diluted EPS was $0.81, compared with $0.09 in the prior quarter and $0.01 in the prior-year quarter. The period benefited materially from a significant one-time tax benefit, reducing the quality of the earnings improvement.
-
Full-year outlook raised
Management raised full-year 2026 revenue outlook to $322 million-$325 million from $319 million-$325 million and raised adjusted EBITDA outlook to $25.0 million-$26.0 million from $23.0 million-$25.0 million.
-
Growth and margin outlook improved
Organic revenue growth outlook increased to 6%-7% from 5%-7%, while adjusted gross margin outlook increased to 45.5%-46.5% from the mid-40% range.
-
Strong liquidity position
Cash and cash equivalents were $103.0 million at September 30, 2026. The company stated that a hypothetical 10% change in interest rates would not have a material impact on its financial statements.
-
Share repurchases completed
The company repurchased 1,638,648 shares during the quarter at a weighted-average price of $3.84; the $25.0 million repurchase authorization was completed as of August 6, 2026.
What to watch
-
Earnings quality risk
The quarter's $0.81 diluted EPS included a significant one-time tax benefit, so reported earnings substantially exceeded the $0.04 consensus estimate and may not be representative of recurring profitability.
-
International supply-chain exposure
The filing identifies international suppliers and manufacturers in China and Mexico and warns that tariffs, customs duties, logistics disruptions, and military conflicts could increase costs or interrupt supply. It specifically notes that petrochemical raw materials and packaging may face higher prices.
-
Input-cost inflation
Inflationary pressure remains a risk across commodity prices, labor, inputs, and transportation. Management states that failure to offset these costs through savings, price increases, or cost reductions could harm results; cash and equivalents were $103.0 million at September 30, 2026.
-
Repurchase authorization exhausted
The company completed its $25.0 million share repurchase program after buying 1,638,648 shares during the quarter, leaving no remaining authorization as of August 6, 2026 and reducing a potential source of future capital-return flexibility.
Management's outlook
The filing does not provide numeric EPS guidance. Management's disclosed full-year 2026 outlook was raised to revenue of $322 million-$325 million from $319 million-$325 million, organic revenue growth of 6%-7% from 5%-7%, adjusted gross margin of 45.5%-46.5% from the mid-40% range, and adjusted EBITDA of $25.0 million-$26.0 million from $23.0 million-$25.0 million.
Earlier filings 4
10-K · February 25, 2026
Honest Company (HNST) is executing a strategic reset (Transformation 2.0: Powering Honest Growth) focused on exiting lower-margin channels (including Honest.com fulfillment, apparel and Canadian retail), rightsizing…
10-Q · November 5, 2025
The Honest Company reported Q3 revenue of $92,571,000, down from $99,237,000 in Q3 2024, while generating net income of $758,000 (diluted EPS $0.01). Gross profit declined to $34,489,000 but operating income improved…
10-Q · August 6, 2025
Honest Company reported a modestly positive quarter: revenue of $93,459 (thousands) was essentially flat year-over-year and gross margin expanded to 40.4% driving operating income of $2,888 (thousands) and net income of…
Smart money in HNST
Totals from the last full session. Insider and politician figures cover 90 days.
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.
See every HNST trade live.
The free pages stop at the last full session. Trader shows every trade as it prints.
Start tracking No card needed.