Honest Company, Inc. (HNST)
NASDAQ:HNST
Want to see HNST full AI Analyst Report?
Earnings Data
Report Date
Aug 07, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
<0.01Last Year’s EPS
0.03Same Quarter Last Year
Moderate Buy
Based on 4 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a constructive strategic and financial narrative: despite a significant reported revenue decline driven by deliberate category and channel exits, the company demonstrated strong underlying health—organic revenue growth, record adjusted gross margins (+480 bps), robust consumption and household penetration gains, positive free cash flow, and a clean balance sheet. Operational cost reductions, targeted marketing investments behind high-growth categories (wipes and personal care), and a $10M–$15M run-rate savings program support a path to profitable, sustainable growth. Key risks include continued diaper category pressure, the near-term reported revenue volatility from the portfolio optimization, tariffs and macroeconomic uncertainties, and the need to convert new-product trials into durable velocity. On balance, the positive operational and margin improvements and cash strength outweigh the near-term top-line drag and category headwinds.Company Guidance
Organic Revenue Growth
Organic revenue grew 3.9% in Q1 to $78.1 million (reported revenue was $78.1M vs $97.3M prior year reflecting strategic category/channel exits). Management reaffirmed full-year organic revenue guidance of 4%–6%.
Record Adjusted Gross Margin
Adjusted gross margin reached a company record of 43.5%, a year-over-year expansion of approximately 480 basis points, driven by favorable mix toward higher-margin wipes and personal care and lower freight costs (partially offset by tariffs).
Strong Consumption and Unit Growth
Total consumption rose 8.3% (vs. category growth of 2.6%), with unit consumption up 20%, indicating volume-led momentum and improved consumer trial/penetration trends.
Household Penetration Gains
Total household penetration reached an all-time high of 8.1%, up 50 basis points from year-end, with 1.6 million new households added over the past year.
Wipes Portfolio Outperformance
Total wipes consumption grew nearly 25% in Q1. All-purpose baby wipes increased ~14%; flushable wipes grew over 200% (now #4 in the category, up from #5); hand sanitizing wipes consumption rose more than 60% and remain the #2 brand in that category.
Personal Care Momentum
Personal Care consumption grew 16% in Q1 and is growing ~7x faster than the category. Honest is now the #2 brand across total baby personal care (up from #4 last year), aided by new launches (e.g., Pixar Toy Story collection) and expanded distribution (added Amazon).
Improved Cash & Liquidity
Quarter-end cash and cash equivalents were $90.4 million with zero debt. Q1 free cash flow was $3.8 million versus negative $3.0 million in the prior year period, reflecting working capital improvements.
Operational Cost Improvements and Capital Allocation
Total operating expenses decreased $1.2 million year-over-year (adjusted operating expenses declined $1.8M excluding a restructuring charge). Executed $3M of a $25M share repurchase program in-quarter (additional $8.3M post-quarter), average repurchase price $3.26. Powering Honest Growth is expected to deliver $10M–$15M of annualized savings.
HNST Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
HNST Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 06, 2026 | $3.39 | $3.73 | +10.03% |
Feb 25, 2026 | $2.31 | $2.79 | +20.78% |
Nov 05, 2025 | $3.30 | $2.33 | -29.39% |
Aug 06, 2025 | $4.52 | $3.74 | -17.26% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Honest Company, Inc. (HNST) report earnings?
Honest Company, Inc. (HNST) is schdueled to report earning on Aug 07, 2026, After Close (Confirmed).
What is Honest Company, Inc. (HNST) earnings time?
Honest Company, Inc. (HNST) earnings time is at Aug 07, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is HNST EPS forecast?
HNST EPS forecast for the fiscal quarter 2026 (Q2) is <0.01.
