Honest (NASDAQ:HNST) Releases Earnings Results, Beats Expectations By $998.99 EPS

06 May 2026, 23:52 by Teresa Graham · The Cerbat Gem

Honest (NASDAQ:HNST – Get Free Report) announced its quarterly earnings results on Wednesday. The company reported $999.00 EPS for the quarter, beating analysts’ consensus estimates of $0.01 by $998.99, reports. Honest had a negative net margin of 4.22% and a positive return on equity of 4.57%. The company had revenue of $78.10 million for the quarter, compared to analysts’ expectations of $76.25 million.

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

Adjusted gross margin reached a record 43.5% (up ~480 bps YoY), driven by the Powering Honest Growth mix shift and favorable freight, indicating meaningful structural margin improvement.
Consumption accelerated to 8.3% (unit consumption +20%) and organic revenue grew 3.9%, while household penetration hit a record 8.1% (+50 bps), bringing 1.6M new households over the past year.
Wipes and personal care led growth: total wipes consumption ~25% (flushable wipes +200%, now #4) and personal care +16% (now #2 in baby personal care), supported by targeted marketing (influencer and Toy Story activations).
Diapers remain pressured—Q1 declines moderated to -9.6% from -18.3%—and management expects the diaper category will continue to face competitive and promotional headwinds, deprioritizing it relative to higher‑margin platforms.
Company reaffirmed FY26 framework: reported revenue down 18%–16% (due to strategic exits) with organic growth 4%–6%, adjusted gross margins in the low 40s and adjusted EBITDA $20M–$23M; balance sheet strength includes $90.4M cash, zero debt, $3.8M FCF, and ~ $11.3M of share buybacks executed/announced.

Honest Trading Down 1.7%

Shares of HNST traded down $0.06 during mid-day trading on Wednesday, reaching $3.39. 2,040,536 shares of the stock traded hands, compared to its average volume of 1,622,546. The company has a market cap of $380.80 million, a price-to-earnings ratio of -24.21 and a beta of 2.15. Honest has a 1 year low of $2.07 and a 1 year high of $5.55. The firm has a fifty day moving average price of $2.98 and a 200 day moving average price of $2.80.

Honest declared that its Board of Directors has approved a stock buyback plan on Friday, February 20th that permits the company to repurchase $25.00 million in shares. This repurchase authorization permits the company to repurchase up to 9.9% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In other Honest news, CEO Carla Vernon sold 129,335 shares of the company’s stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $2.85, for a total value of $368,604.75. Following the transaction, the chief executive officer directly owned 4,065,546 shares in the company, valued at $11,586,806.10. This represents a 3.08% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Jonathan Mayle sold 12,725 shares of the firm’s stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $2.85, for a total value of $36,266.25. Following the completion of the sale, the senior vice president directly owned 455,391 shares in the company, valued at approximately $1,297,864.35. The trade was a 2.72% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 191,894 shares of company stock valued at $546,898 in the last ninety days. 9.40% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of HNST. The Manufacturers Life Insurance Company lifted its position in Honest by 14.9% during the second quarter. The Manufacturers Life Insurance Company now owns 33,734 shares of the company’s stock valued at $172,000 after purchasing an additional 4,378 shares during the last quarter. Polymer Capital Management US LLC purchased a new stake in shares of Honest during the 3rd quarter valued at $156,000. Captrust Financial Advisors lifted its holdings in shares of Honest by 180.0% during the 4th quarter. Captrust Financial Advisors now owns 53,573 shares of the company’s stock worth $138,000 after acquiring an additional 34,440 shares during the last quarter. HRT Financial LP bought a new stake in shares of Honest during the 4th quarter worth $125,000. Finally, Orion Porfolio Solutions LLC purchased a new position in Honest in the second quarter worth $106,000. 45.54% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several research firms have issued reports on HNST. Telsey Advisory Group restated a “market perform” rating and set a $3.00 target price on shares of Honest in a research report on Thursday, February 26th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Honest in a research report on Thursday, January 22nd. JPMorgan Chase & Co. reiterated an “underweight” rating on shares of Honest in a research note on Friday, January 16th. Wall Street Zen cut Honest from a “hold” rating to a “sell” rating in a report on Saturday, April 4th. Finally, Zacks Research upgraded Honest from a “strong sell” rating to a “hold” rating in a research note on Thursday, March 26th. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and a consensus price target of $3.00.

Read Our Latest Report on Honest

Honest Company Profile

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The Honest Company, Inc (NASDAQ: HNST) is an American consumer goods firm specializing in eco-friendly and responsibly formulated products for babies, personal care, beauty and home cleaning. The company emphasizes transparency in ingredient sourcing and product safety, positioning itself in the premium segment of mass-market retail and direct-to-consumer channels.