Honest Co Q2 revenue beats estimates; raises 2026 outlook

The Honest

05/08/2026 21:42

Overview
U.S. personal care maker's Q2 revenue fell 11% but beat analyst expectations
Q2 adjusted EBITDA beat analyst expectations
Company raised full-year 2026 outlook for revenue and adjusted EBITDA

Outlook
Honest Co raises 2026 revenue outlook to $319 mln-$325 mln from $306 mln-$312 mln
Company now expects 2026 organic revenue growth of 5%-7%, up from 4%-6%
Honest Co sees 2026 adjusted EBITDA of $23 mln-$25 mln, up from $20 mln-$23 mln

Result Drivers
PRODUCT MIX SHIFT - Growth in wipes and personal care products offset declines in diaper revenue, driving organic revenue higher
GROSS MARGIN EXPANSION - Gross margin rose, primarily due to tariff refunds, favorable product mix, and benefits from strategic exits
OPERATING COST REDUCTION - Operating expenses fell due to lower selling, general & administrative costs, despite higher marketing spend on growth platforms

Company press release: ID:nGNX3WtvfT

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$83.30 mln
$77.79 mln (6 Analysts)
Q2 Net Income
 
$10.69 mln
 
Q2 Adjusted EBITDA
Beat
$14.45 mln
$4.37 mln (6 Analysts)
Q2 Gross Margin
 
48.40%
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy."
Wall Street's median 12-month price target for The Honest Company, Inc. is $4.00, about 2.8% above its August 4 closing price of $3.89
The stock recently traded at 47 times the next 12-month earnings vs. a P/E of 39 three months ago

Reuters Recommended Reads
Aug 5 - Edgewell Personal Care Q3 sales miss estimates; narrows FY outlook
Aug 4 - Kimberly-Clark cuts annual forecasts as China quality claims hurt diaper sales
Aug 5 - Elf Beauty raises annual forecasts as value bet pays off

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)