olivLaw · US equity research
The Honest Company, Inc. HNST
Retail-Catalog & Mail-Order Houses · SIC 5961 · Vertical: Retail-Catalog & Mail-Order Houses (SIC 5961)
The Honest Company sells cleanly formulated personal care products from babies to adults across wipes, personal care, diapers and beauty. In 2026 it is restructuring under Powering Honest Growth, concentrating on higher-margin categories, and early results show organic revenue growth alongside a rising gross margin. Reported revenue fell 10.9% in the second quarter of 2026 because of strategic exits, and the 2026 revenue outlook was raised to between 319 and 325 million dollars.
At the close of 04 Nov 2026, The Honest Company, Inc. (HNST) stock was 4.44 USD (+2.07% on the day), with market capitalisation 476.3 m USD, dividend yield 9.46%, beta 1.51, 52-week range 2.10–5.95 USD. Latest reported quarter (Q2 2026): revenue of 83.3 m USD (−10.9% YoY), net income of 10.7 m USD (+176.1% YoY), diluted EPS 0.09 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 36.3
- weak (30–45)
- Bollinger (20, 2)
- 4.20 – 5.40
- in the lower half of the band · %B 0.20 · band width 24.9%
- SMA 50 / 200
- 5.17 / 3.80
- mixed trend
- MACD (12, 26, 9)
- -0.21 / -0.16
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −13.8% | −1.1% | −12.7 pp | — |
| 3 months | +15.3% | −0.5% | +15.8 pp | — |
| 6 months | +31.0% | +4.4% | +26.6 pp | — |
| Year to date | +72.1% | +12.3% | +59.8 pp | — |
| 1 year | +32.1% | +13.5% | +18.6 pp | −2.6% |
| 3 years | +258.1% | +76.4% | +181.7 pp | +12.3% |
| 5 years | −50.9% | +63.7% | −114.6 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 99.2 m | 99.8 m | 97.3 m | 93.5 m | 92.6 m | 88.0 m | 78.1 m | 83.3 m |
| Cost of revenue | 60.8 m | 61.1 m | 59.6 m | 55.7 m | 58.1 m | 74.2 m | 44.8 m | 42.9 m |
| Gross profit | 38.4 m | 38.8 m | 37.7 m | 37.8 m | 34.5 m | 13.8 m | 33.3 m | 40.4 m |
| Research & development | 1.7 m | 1.7 m | 1.9 m | 2.0 m | 1.7 m | 1.8 m | 1.9 m | 1.7 m |
| SG&A | 23.4 m | 26.8 m | 21.0 m | 20.4 m | 17.7 m | 20.4 m | 17.5 m | 15.0 m |
| Operating income | 57.0 k | -1.0 m | 2.5 m | 2.9 m | 313.0 k | -24.2 m | -659.0 k | 9.6 m |
| Depreciation & amortisation | 706.0 k ≈ | 711.0 k | 717.0 k | 741.0 k ≈ | 722.0 k ≈ | 721.0 k | 646.0 k | 698.0 k ≈ |
| Pre-tax income | 184.0 k | -791.0 k | 3.3 m | 3.9 m | 868.0 k | -23.6 m | 4.0 k | 10.8 m |
| Income tax | 19.0 k | 19.0 k | 40.0 k | 44.0 k | 110.0 k | 9.0 k | 46.0 k | 65.0 k |
| Net income | 165.0 k | -810.0 k | 3.3 m | 3.9 m | 758.0 k | -23.6 m | -42.0 k | 10.7 m |
| Diluted EPS | 0.00 | -0.01 ≈ | 0.03 | 0.03 | 0.01 | -0.23 ≈ | 0.00 | 0.09 |
| Operating cash flow | 15.1 m ≈ | -16.8 m | -2.9 m | -745.0 k ≈ | -504.0 k ≈ | 19.3 m | 5.5 m | 32.2 m ≈ |
| Capex | 93.0 k ≈ | 346.0 k | 62.0 k | 81.0 k ≈ | 120.0 k ≈ | 1.2 m | 1.7 m | 762.0 k ≈ |
| Share repurchases | — | — | 0 | 0 ≈ | — | — | 3.0 m | 16.1 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|
| Revenue | 235.6 m | 300.5 m | 318.6 m | 313.7 m | 344.4 m | 378.3 m | 371.3 m |
| Revenue YoY | unavailable | +27.6% | +6.0% | −1.6% | +9.8% | +9.9% | −1.9% |
| Net income | -31.1 m | -14.5 m | -38.7 m | -49.0 m | -39.2 m | -6.1 m | -15.7 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS | -0.92 | -0.43 | -0.43 | -0.53 | -0.42 | -0.06 | -0.14 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| net % | -13.2% | -4.8% | -12.1% | -15.6% | -11.4% | -1.6% | -4.2% |
| Free cash flow | -20.7 m | -12.3 m | -38.4 m | -77.9 m | 17.5 m | 1.0 m | 13.6 m |
Reported results vs expectations
Loading…
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 89.6 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 169.7 m USD
- Total assets
- 225.4 m USD
- Debt / equity
- unavailable
- Current ratio
- 3.98x
- ROE
- -9.1%
- ROA
- -6.6%
- FCF margin
- 3.7%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 300.5 m | 318.6 m | 313.7 m | 344.4 m | 378.3 m | 371.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Cost of revenue | 192.6 m | 209.5 m | 221.3 m | 243.8 m | 233.7 m | 247.6 m | SEC (XBRL)· 25 Feb 2026verified |
| Gross profit | 107.9 m | 109.2 m | 92.3 m | 100.5 m | 144.7 m | 123.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Research & development | 5.7 m | 7.7 m | 7.0 m | 6.2 m | 6.9 m | 7.3 m | SEC (XBRL)· 25 Feb 2026verified |
| SG&A | 71.3 m | 84.1 m | 87.3 m | 94.6 m | 99.0 m | 79.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Operating income | -13.5 m | -36.8 m | -49.8 m | -38.9 m | -6.3 m | -18.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Depreciation & amortisation | 4.9 m | 4.1 m | 2.8 m | 2.7 m | 2.8 m | 2.9 m | SEC (XBRL)· 25 Feb 2026verified |
| EBITDA | -8.7 m ≈ | -32.7 m ≈ | -47.0 m ≈ | -36.2 m ≈ | -3.5 m ≈ | -15.6 m ≈ | SEC (XBRL)· 25 Feb 2026derived |
| Pre-tax income | -14.4 m | -38.6 m | -48.9 m | -39.2 m | -6.0 m | -15.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Income tax | 89.0 k | 77.0 k | 110.0 k | 75.0 k | 75.0 k | 204.0 k | SEC (XBRL)· 25 Feb 2026verified |
| Net income | -14.5 m | -38.7 m | -49.0 m | -39.2 m | -6.1 m | -15.7 m | SEC (XBRL)· 25 Feb 2026verified |
| Diluted EPS | -0.43 | -0.43 | -0.53 | -0.42 | -0.06 | -0.14 | SEC (XBRL)· 25 Feb 2026verified |
| Weighted average diluted shares | 34.1 m | 71.1 m | 92.2 m | 94.5 m | 100.2 m | 111.2 m | SEC (XBRL)· 25 Feb 2026verified |
| Dividend per share | — | 0.42 | 0.42 | — | — | — | SEC (XBRL)· 16 Mar 2023verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 29.3 m | 50.8 m | 9.5 m | 32.8 m | 75.4 m | 89.6 m | SEC (XBRL)· 25 Feb 2026verified |
| Inventories | 76.7 m | 75.7 m | 115.7 m | 73.5 m | 85.3 m | 72.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Current assets | 173.6 m | 213.8 m | 189.1 m | 157.8 m | 213.9 m | 202.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Property, plant & equipment, net | 56.7 m | 53.0 m | — | — | — | — | SEC (XBRL)· 28 Mar 2022verified |
| Goodwill | 2.2 m | 2.2 m | 2.2 m | 2.2 m | 2.2 m | 2.3 m | SEC (XBRL)· 25 Feb 2026verified |
| Intangibles (excl. goodwill) | 511.0 k | 440.0 k | 370.0 k | 309.0 k | 235.0 k | 162.0 k | SEC (XBRL)· 25 Feb 2026verified |
| Total assets | 240.7 m | 272.6 m | 240.6 m | 201.6 m | 247.4 m | 225.4 m | SEC (XBRL)· 25 Feb 2026verified |
| Accounts payable | 31.1 m | 28.7 m | 24.8 m | 22.3 m | 22.8 m | 15.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Current liabilities | 54.1 m | 48.5 m | 63.6 m | 56.7 m | 59.9 m | 50.8 m | SEC (XBRL)· 25 Feb 2026verified |
| Total liabilities | 101.2 m | 93.5 m | 94.2 m | 78.5 m | 73.1 m | 55.7 m | SEC (XBRL)· 25 Feb 2026verified |
| Equity | -236.8 m † | 179.1 m † | 146.4 m † | 123.1 m † | 174.3 m † | 169.7 m † | SEC (XBRL)· 25 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -12.1 m | -38.2 m | -76.3 m | 19.4 m | 1.5 m | 15.1 m | SEC (XBRL)· 25 Feb 2026verified |
| Capex | 200.0 k | 220.0 k | 1.6 m | 1.8 m | 530.0 k | 1.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Free cash flow | -12.3 m ≈ | -38.4 m ≈ | -77.9 m ≈ | 17.5 m ≈ | 1.0 m ≈ | 13.6 m ≈ | SEC (XBRL)· 25 Feb 2026derived |
| Investing cash flow | 36.7 m | -8.6 m | 35.0 m | 3.8 m | -530.0 k | -1.5 m | SEC (XBRL)· 25 Feb 2026verified |
| Financing cash flow | -973.0 k | 60.4 m | 38.0 k | 122.0 k | 41.6 m | 535.0 k | SEC (XBRL)· 25 Feb 2026verified |
| Dividends paid | 0 | 35.0 m | 0 | 0 | — | — | SEC (XBRL)· 08 Mar 2024verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 4 of at least 6
- score weight coverage: 27.1% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 476.3 m USD
Key indicators
Coverage and freshness
Score by group
27% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 5.52 – 7.42 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)5.52 – 7.42 (Mid 6.33)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 4 of at least 6; score weight coverage: 27.1% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | -3.6% | 32 (vs peers) | 23% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 5.8% | 48 (on a fixed band) | 31% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 3.9x | 100 (on a fixed band) | 15% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 11.1% | 100 (on a fixed band) | 31% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/3 factors with a value
- Growth· partial48/100 · 1/2 factors with a value
- Quality· partial32/100 · 1/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partial100/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
The Honest Company, Inc. (HNST). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 371.3 m USD in 2025; YoY growth -1.9%; net margin -3.6%; ROE -6.9%.
The estimated value range is 5.52–7.42 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 6.33 USD, the price of 4.44 USD leaves a potential of 42.6% (value / price − 1) and a margin of safety of 29.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (indicators available: 4 of at least 6; score weight coverage: 27.1% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 3.9x
- FCF yield: 11.1%
- The price is below the estimated value range
What contradicts it
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, P/E (TTM), EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Retail-Catalog & Mail-Order Houses (SIC 5961) · same industry (4-digit SIC) · compared with 28 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AMZNAmazon.com, Inc. | 2,876.6 bn | 21.5 | 27.4% | 16.9% | +12.4% | +14% / +82% |
| CDWCdw Corp | 21.1 bn | 19.7 | 42.5% | 4.5% | +6.8% | +17% / −20% |
| NSITInsight Enterprises, Inc. | 5.2 bn | 25.7 | 13.1% | 2.5% | −5.2% | +103% / +16% |
| JMIAJumia Technologies AG | 1.3 bn | — | -108.9% | -32.6% | +12.8% | −57% / +60% |
| BZUNBaozun Inc. | 597.0 m | — | -6.6% | -2.4% | +10.2% | +21% / +16% |
| LITBLightInTheBox Holding Co., Ltd. | 590.4 m | 68.0 | — | 3.7% | −12.1% | +42% / −63% |
| GCTGigacloud Technology Inc | 539.8 m | 13.7 | 32.3% | 10.6% | +11.1% | +56% / +495% |
| HNSTThe Honest Company, Inc. | 476.3 m | — | -6.9% | -3.6% | −1.9% | +32% / +258% |
| TDUPThredUp Inc. | 290.9 m | — | -39.2% | -6.9% | +19.5% | −71% / +12% |
| DIBS1stdibs.com, Inc. | 186.9 m | — | -9.2% | -8.5% | +1.5% | −3% / +30% |
| NXHNeighborhood Intelligence, Inc. | 163.0 m | — | -47.0% | -7.1% | −25.1% | −72% / −91% |
| AKAa.k.a. Brands Holding Corp. | 116.0 m | — | -29.5% | -4.8% | +4.4% | −26% / +9% |
| SFIXStitch Fix, Inc. | 79.5 m | — | -6.3% | -0.9% | +6.4% | −31% / −21% |
| HOURHour Loop, Inc. | 53.9 m | 37.0 | 21.8% | 1.1% | +3.0% | −28% / +3% |
| GROVGrove Collaborative Holdings, Inc. | 47.4 m | — | — | -4.1% | −14.6% | −19% / −44% |
| LVLULulu’s Fashion Lounge Holdings, Inc. | 31.0 m | — | -602.9% | -3.2% | −10.6% | +107% / −74% |
| UZXLinkage Global Inc | 21.7 m | — | -63.1% | -144.5% | −50.5% | −98% / unavailable |
| GIFTGiftify, Inc. | 21.1 m | — | -36.2% | -8.8% | −6.5% | −47% / −85% |
| CHWYChewy, Inc. | 2.3 k | 35.3 | 72.0% | 2.1% | +6.2% | −33% / +34% |
| QVCGQVC Group, Inc. | 8 | — | -6.3% | -0.2% | −7.8% | unavailable / unavailable |
| HEPSD-MARKET Electronic Services & Trading | — | — | -39.7% | -2.8% | +11.1% | +19% / +100% |
| VIPSVipshop Holdings Limited | — | 1.4 | 18.3% | 6.8% | +2.0% | −30% / −14% |
| RVLVRevolve Group, Inc. | — | 21.8 | 12.6% | 4.8% | +8.5% | −17% / +50% |
| PTRNPattern Group Inc. | — | — | 6.6% | 0.9% | +39.3% | +22% / unavailable |
| LUXELuxExperience B.V. | — | — | 63.3% | 45.2% | +50.1% | +7% / +224% |
1- and 3-year price returns: for HNST from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
The Honest Company sells cleanly formulated personal care products from babies to adults across wipes, personal care, diapers and beauty. In 2026 it is restructuring under Powering Honest Growth, concentrating on higher-margin categories, and early results show organic revenue growth alongside a rising gross margin. Reported revenue fell 10.9% in the second quarter of 2026 because of strategic exits, 3 and the 2026 revenue outlook was raised to between 319 and 325 million dollars. 3
SWOT
Strengths
- The brand is clearly positioned on clean formulas and sustainability, backed by internal standards and independent certifications. 1
- The balance sheet carries no debt, and operating cash flow turned positive in the first half of 2026. 3
- Partnerships with large retailers give national reach and marketing scale. 1
Weaknesses
- Diaper sales have declined, and the loss of distribution with two of the largest customers continues to weigh on revenue. 1
- The company remains under-represented in distribution relative to main competitors, which limits product visibility. 1
- Reported revenue fell in the second quarter of 2026, and part of the margin gain came from non-recurring items such as tariff refunds. 3
Opportunities
- If growth in higher-margin categories holds, the company could deepen household penetration and improve profitability. 3
- Savings from Powering Honest Growth could be reinvested in marketing and innovation. 2 3
- Growing preference for clean products could bring new consumers and room to extend into related categories. 1
Threats
Risks
- Dependence on a few retailershigh
Loss or reduction of orders from a major retailer could significantly affect sales and margin. 1
- Execution of the restructuringhigh
Savings promised under Powering Honest Growth could be smaller or later than expected, and costs could exceed estimates. 1 2
- Tariffs and cost inflationmedium
Changes in tariffs and input costs could affect quarterly results, especially if guidance depends on current tariff levels. 1 3
- Decline in the diaper categorymedium
If the negative trend in diapers continues, the company could need to reallocate resources and see lower total sales. 1
- Regulation and compliancelow
Cosmetic and over-the-counter drug products are subject to FDA and other regulators, and a change in rules or a recall could be costly. 1
Investment thesis
What would need to be true (bull case)
- If organic growth holds in higher-margin categories, the company could exceed current guidance and accelerate brand investment. 3
- A debt-free balance sheet and positive cash flow give room for investment and share buybacks. 3
- Demand for clean and sustainable products has a long-term tailwind, according to management. 1
What would break the thesis
- Reported revenue keeps falling, and strategic exits could reduce volume more than expected. 3
- Part of the margin improvement comes from one-off items such as tariff refunds, which makes profitability harder to predict. 3
- Competition and retailer pressure could limit the company's ability to hold prices and market share. 1
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Founded in 2012, The Honest Company develops personal care products with clean formulas and sustainable design across wipes, personal care, diapers and beauty. 1 The company runs as one operating segment, with its Chief Executive Officer managing resources and measuring performance on that basis. 1 Products are distributed through partnerships with major retailers such as Target, Amazon and Walmart, which sell both in stores and on their own websites. 1
From December 31, 2025 the company stopped fulfilling orders through Honest.com, keeping the site only as a resource for consumer education and for directing shoppers to retailers and third-party platforms. 1 Under Powering Honest Growth, Honest is exiting low-margin categories and channels, including apparel and its stores in Canada, and the related restructuring and cost of revenue charges are estimated in the range disclosed in the 2026 reporting. 2 The company gave notice to end the Pennsylvania warehouse contract, so after June 30, 2026 only the Nevada warehouse will operate. 1
The capital structure is simple: at June 30, 2026 the company had no debt, 105.9 million dollars in cash and cash equivalents, and in the first half it repurchased shares worth 18.7 million dollars. 3 For 2026, management raised its guidance for adjusted gross margin to the mid-40s percent range and for adjusted EBITDA to between 23 and 25 million dollars. 3
Segments
Trends
- Demand for clean and sensitive-skin productstailwind
The company believes consumer preference for products without conventional ingredients and for sensitive skin will keep growing in the coming years, which could let it take share from legacy brands. 1
- Tariff and cost pressureheadwind
Tariffs and rising costs for raw materials and transport have affected past results, and current guidance depends on tariff levels and mitigation measures. 1 3
- Retailer consolidationheadwind
Retailers and ecommerce platforms have consolidated, giving them more bargaining power and the ability to cut brands or favour private label products. 1
- Restructuring and operating efficiencymixed
Exiting low-margin categories and cutting selling and administrative costs could improve profitability but may temporarily reduce sales volume. 2 3
Competitive position
The company competes with established consumer packaged goods producers and with emerging direct-to-consumer brands, and the main rivals differ by category, such as wipes, skin care and diapers. 1 It believes it differentiates on clean formulation, sustainability, effectiveness and design, but acknowledges it is still under-indexed in distribution compared with competitors. 1
Beyond the rivals listed below, the company faces retailers' private label brands, and attention on established diaper and wipes makers remains high. 1 Its market position depends on winning additional shelf space and protecting margin against price pressure from retailers. 1
- Kimberly-Clark CorporationKMB
Rival in diapers, wipes and skin care, named in the filing.
- Procter & Gamble CompanyPG
Competitor in diapers and paper products through established baby brands.
- Edgewell Personal Care CompanyEPC
Wipes producer targeting the same consumers.
- The Clorox CompanyCLX
Parent of Burt's Bees, active in natural personal care products.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- Russian business rejects colonial practices, honest with Africa — PutinTASS (RU, EN) · 29 Oct 2026 · EN
- Trump says he’ll respect US midterm results if elections are ‘honest’Al Jazeera English · 27 Oct 2026 · EN
- ‘If they’re honest’: Trump casts latest suspicion on US midterm electionsAl Jazeera English · 27 Oct 2026 · EN
- Trump says will respect US midterm results 'if they're honest'CNA (Channel NewsAsia) · 27 Oct 2026 · EN
- Trump says he will respect midterm results ‘if they’re honest elections’The Hill · 27 Oct 2026 · EN
- Andy Burnham says he wants ‘honest discussion’ about freedom of movement with EUThe Guardian World · 24 Oct 2026 · EN
- Burnham : Time for honest discussion about freedom of movement with EUSurge — GDELT DOC · 24 Oct 2026 · RO
- Burnham : Time for honest discussion about freedom of movement with EU | Richmond and Twickenham TimesSurge — GDELT DOC · 24 Oct 2026 · RO
- Trump on Lewandowski probe reports: ‘I want my people to be honest’The Hill · 22 Oct 2026 · EN
- Ministers must be honest about Russian threat to UK, says former Foreign Office headThe Guardian World · 17 Oct 2026 · EN
- Exclusive: Zelensky tells Axios Trump's diesel deal with Putin "not fair and not honest"Axios · 09 Oct 2026 · EN
- Polanski’s final pitch in Holborn by-election: I’ll keep Burnham honestPolitico EU · 08 Oct 2026 · EN
- NOW - U.S. President Trump: "If we had an honest election, I would have won Cali…Telegram — Insider Paper (EN, defense leaks) · 30 Sept 2026 · EN
- The Recovery House by Derek Owusu review – a uniquely honest view of mental healthThe Guardian — Health · 21 Sept 2026 · EN
- Who better to defend Reform’s latest millions than Honest Bob Jenrick? | John CraceThe Guardian World · 13 Sept 2026 · EN
- COMIC: If we fight, is our love doomed? And other honest questions about conflictNPR News · 09 Sept 2026 · EN
- Honest Company’s (HNST) Revenue Fell, Yet Profits Nearly TripledYahoo Finance — News · 08 Sept 2026 · EN
- John Healey backs growth but says Labour must be honest on spendingThe Guardian World · 07 Sept 2026 · EN
- NuScale Stock Is Down 83% -- Bargain or Trap? The Honest Answer Will Surprise You.Yahoo Finance — News · 06 Sept 2026 · EN
- With Nige still sulking, Honest Bob was left to unveil Reform’s latest ‘policies’ | John CraceThe Guardian World · 26 Aug 2026 · EN
SEC filings
- Quarterly report05 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Current report18 Jun 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report27 May 2026Departure or appointment of officers · Shareholder vote
- Current report12 May 2026Other events · Financial statements and exhibits
- Quarterly report06 May 2026
- Current report06 May 2026Results of operations · Financial statements and exhibits
- Proxy statement09 Apr 2026
- Current report06 Apr 2026Material agreement · Termination of a material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Annual report25 Feb 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / The Honest Company, Inc. · 25 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / The Honest Company, Inc. · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / The Honest Company, Inc. · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.