Honest (NASDAQ:HNST) Announces Earnings Results

Honest (NASDAQ:HNST) released its earnings results on Thursday. The company reported $0.03 EPS for the quarter, FiscalAI reports. The company had revenue of $84.61 million during the quarter, compared to analysts’ expectations of $80.79 million. Honest had a negative net margin of 3.56% and a positive return on equity of 4.31%.

Here are the key takeaways from Honest’s conference call:

• Third-quarter organic revenue grew 9.2%, while underlying adjusted gross margin reached a company-record 48.9% and underlying adjusted EBITDA margin rose to 7.9%. The company raised its full-year organic revenue growth outlook to 6%–7% and adjusted EBITDA outlook to $25 million–$26 million.
• Wipes and personal care drove growth: wipes consumption rose 15%, including nearly 170% growth in flushable wipes, while personal care consumption increased 11%. Distribution of wipes and personal care was up nearly 20% year to date.
• Diaper consumption fell 27%, continuing to pressure the category. Overall Q3 consumption grew just 1%, although management said the shift in Amazon Prime Day timing accounted for most of the slowdown.
• Honest ended the quarter with $103 million in cash, no debt, and $30.5 million in year-to-date free cash flow. After completing its prior $25 million buyback, the board authorized a new share repurchase program of up to $30 million.
• Management plans to increase marketing and SG&A investment in Q4 to support brand building and growth, while saying structural margin improvements remain intact. The company did not provide longer-term margin expectations, saying it would give more detail in early 2027.

Honest Stock Performance

Honest stock traded up $0.23 during midday trading on Friday, reaching $4.67. The company’s stock had a trading volume of 5,461,777 shares, compared to its average volume of 1,857,073. The firm has a market capitalization of $514.07 million, a PE ratio of 6.77 and a beta of 2.48. Honest has a fifty-two week low of $2.07 and a fifty-two week high of $6.01. The stock’s 50 day simple moving average is $5.12 and its 200 day simple moving average is $3.82.

Honest News Roundup

Here are the key news stories impacting Honest this week:

• Positive Sentiment: Q3 revenue of $84.6 million beat analyst estimates of $80.79 million, while organic revenue grew 9.2%. Gross margin increased 7.7 percentage points to 45.0%, and adjusted EBITDA rose to $6.3 million, with a 7.9% margin. Reported net income was $91.3 million, but underlying adjusted net income was $3.1 million, so the reported figure should not be taken as a measure of recurring profitability. Third-quarter results
• Positive Sentiment: Honest raised its 2026 adjusted EBITDA outlook to $25 million–$26 million and authorized a $30 million share repurchase, signaling improved expectations and a commitment to return capital to shareholders. Outlook and buyback
• Positive Sentiment: B. Riley reaffirmed its Buy rating and raised its price target to $5.50 from $5.00. Analyst rating
• Neutral Sentiment: Full-year 2026 revenue guidance of $322 million–$325 million is broadly in line with the $322.5 million consensus estimate. Company outlook
• Negative Sentiment: Despite organic growth and the quarterly revenue beat, reported Q3 revenue fell 8.6% year over year, a sign that headline sales trends remain a concern. Quarterly results

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on HNST shares. Northland Securities set a $5.50 price target on shares of Honest in a report on Thursday, August 6th. Freedom Capital raised Honest from a “hold” rating to a “strong-buy” rating in a report on Thursday, August 6th. Alliance Global Partners reaffirmed a “buy” rating on shares of Honest in a report on Thursday, August 6th. Telsey Advisory Group boosted their target price on Honest from $4.00 to $5.00 and gave the stock a “market perform” rating in a research report on Thursday, August 6th. Finally, Morgan Stanley increased their target price on Honest from $3.40 to $5.70 and gave the stock an “equal weight” rating in a research note on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $5.42.

Insider Buying and Selling at Honest

In other news, General Counsel Brendan Sheehey sold 9,664 shares of the stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $4.99, for a total value of $48,223.36. Following the completion of the transaction, the general counsel owned 706,224 shares in the company, valued at $3,524,057.76. This trade represents a 1.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Jonathan Mayle sold 79,000 shares of the stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $5.22, for a total transaction of $412,380.00. Following the completion of the transaction, the senior vice president owned 370,155 shares of the company’s stock, valued at $1,932,209.10. This represents a 17.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 294,149 shares of company stock worth $1,503,306. Company insiders own 9.40% of the company’s stock.

Honest Company Profile

The Honest Company, Inc is a consumer products company that develops and sells personal care, beauty, baby, and household products. Its offerings include diapers, wipes, baby care items, skin care, hair care, personal care products, and household cleaning solutions, with an emphasis on ingredient transparency and products positioned as safer and more sustainable alternatives.

Founded in 2011 by actress and entrepreneur Jessica Alba, Honest sells its products through its website and retail partners.