Organic revenue acceleration to 3.9% and margin expansion validate the restructuring strategy. Reaffirmed guidance provides a stable forward view. Watch for continued improvement in organic growth trajectory and potential tariff headwinds.
Price Chart
Executive Summary
Honest Company reported Q1 2026 revenue of $78.1M (down 19.7% YoY, but organic revenue up 3.9%), GAAP net loss of $42k vs net income of $3.3M last year, and reaffirmed FY2026 guidance. Gross margins expanded 390bps to 42.6% as the Powering Honest Growth restructuring gains traction.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $78.1M, down 19.7% YoY (organic +3.9%)
- GAAP net loss of $42k vs net income $3.3M a year ago
- Adjusted EBITDA $4.0M, down from $6.9M
- Gross margin 42.6%, up 390bps YoY; adjusted gross margin 43.5%
- Reaffirmed FY2026 guidance: revenue $306M-$312M, adjusted EBITDA $20M-$23M
- Repurchased 1.1M shares for $3.0M during the quarter
- Operating cash flow $5.5M vs -$2.9M in Q1 2025
Financial Impact
Reported revenue decline of 19.7% due to strategic exits, offset by 3.9% organic growth and record gross margins; earnings missed consensus, but guidance reaffirmed.
Risk Factors
- Tariff costs and macroeconomic pressure on consumer demand
- Continued decline in diaper revenue
- Execution risk in exiting low-margin categories
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-031240 |
| Document: hnst-20260506.htm | 0001628280-26-031240 |
| Document: 0001628280-26-031240-index-headers.html | 0001628280-26-031240 |
| Document: 0001628280-26-031240-index.html | 0001628280-26-031240 |
| Document: 0001628280-26-031240.txt | 0001628280-26-031240 |
| 8-K Data (Synthetic) | 0001628280-26-031240 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 15, 2026 11d ago | Press Release | $5.00 $4.80 | ▼ −4.00% | ▼ −3.57% | $4.76 (−4.80%) |
Oct 8, 2026 18d ago | 144 | $5.07 $5.00 | ▼ −1.38% | ▲ +0.59% | $4.76 (−6.11%) |
Aug 24, 2026 9w ago | Insider Cluster | $5.51 $5.63 | ▲ +2.27% | ▲ +2.81% | $4.76 (−13.53%) |
Aug 11, 2026 10w ago | Insider Cluster | $5.07 $5.02 | ▼ −0.99% | ▼ −0.54% | $4.76 (−6.11%) |
Jun 18, 2026 18w ago | 8-K | $3.48 $3.60 | ▲ +3.45% | ▲ +5.52% | $4.76 (+36.78%) |
May 27, 2026 21w ago | 8-K | $3.71 $3.31 | ▼ −10.78% | ▼ −10.73% | $4.76 (+28.30%) |
May 22, 2026 22w ago | Insider Cluster | $3.56 $3.49 | ▲ +1.97% | ▲ +3.05% | $4.76 (−33.71%) |
May 22, 2026 22w ago | Insider Cluster | $3.56 $3.38 | ▲ +5.06% | ▲ +6.27% | $4.76 (−33.71%) |
May 22, 2026 22w ago | Insider Cluster | $3.56 $3.49 | ▼ −1.97% | ▼ −3.05% | $4.76 (+33.71%) |
May 22, 2026 22w ago | Insider Cluster | $3.56 $3.38 | ▼ −5.06% | ▼ −6.27% | $4.76 (+33.71%) |
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