Honest (NASDAQ:HNST) Issues Earnings Results

Posted by Brian Himes on Nov 6th, 2026

Honest (NASDAQ:HNST – Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.03 EPS for the quarter, FiscalAI reports. The business had revenue of $84.61 million for the quarter, compared to analyst estimates 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 Trading Up 5.2%

Shares of Honest stock traded up $0.23 on Friday, reaching $4.67. The stock had a trading volume of 5,461,777 shares, compared to its average volume of 1,857,073. Honest has a 1 year low of $2.07 and a 1 year high of $6.01. The company has a market cap of $514.07 million, a P/E ratio of 71.67 and a beta of 2.48. The business’s 50 day moving average is $5.14 and its two-hundred day moving average is $3.81.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. Telsey Advisory Group lifted their target price on shares of Honest from $4.00 to $5.00 and gave the stock a “market perform” rating in a research note on Thursday, August 6th. Northland Securities set a $5.50 price target on shares of Honest in a research note on Thursday, August 6th. Weiss Ratings downgraded shares of Honest from a “hold (c-)” rating to a “sell (d+)” rating in a report on Monday. Wall Street Zen upgraded shares of Honest from a “hold” rating to a “buy” rating in a research note on Saturday, August 8th. Finally, Alliance Global Partners reiterated a “buy” rating on shares of Honest in a research note on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, three have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Honest presently has an average rating of “Hold” and a consensus target price of $5.42.

Get Our Latest Analysis on Honest

Key Honest News

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

Insider Activity at Honest

In related news, Director Andrea Turner sold 34,396 shares of the business’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $5.30, for a total transaction of $182,298.80. Following the completion of the transaction, the director owned 282,304 shares of the company’s stock, valued at approximately $1,496,211.20. The trade was a 10.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, General Counsel Brendan Sheehey sold 9,664 shares of the firm’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $4.99, for a total transaction of $48,223.36. Following the completion of the transaction, the general counsel directly owned 706,224 shares of the company’s stock, valued at approximately $3,524,057.76. The trade was a 1.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 294,149 shares of company stock valued at $1,503,306 in the last quarter. 9.40% of the stock is currently owned by company insiders.

About Honest

(Get Free Report)

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.