HNST

EX-99.1

2 honestcoq3-26exhibit991.htm

EX-99.1

Document

Exhibit 99.1

The Honest Company Reports Third Quarter 2026 Results

Underlying Business Momentum Drives Strong Third Quarter Performance

Announces New $30 Million Share Repurchase Authorization

Raises Full Year 2026 Financial Outlook

LOS ANGELES, Calif. – November 5, 2026 – The Honest Company (Nasdaq: HNST), a personal care company dedicated to creating cleanly-formulated and sustainably-designed products for everyone from babies to adults, today reported financial results for its third quarter ended September 30, 2026.

Third Quarter 2026 Financial Highlights Compared to Prior Year Period:

•Revenue of $84.6 million decreased 8.6%; Organic Revenue(1) increased 9.2%

•Gross margin of 45.0% increased 770 bps; Underlying Adjusted Gross Margin(1) of 48.9% increased 1,160 bps

•Net income was $91.3 million(2); Underlying Adjusted Net Income(1) of $3.1 million increased $2.3 million

•Underlying Adjusted EBITDA(1) was $6.3 million; Underlying Adjusted EBITDA Margin(1) of 7.9% increased 300 bps

•Cash and cash equivalents of $103.0 million increased $31.5 million

"Our third quarter results demonstrate what a modern personal care company can deliver when the brand, the portfolio, and the P&L are pointed in the same direction," said Carla Vernón, Chief Executive Officer. “We achieved over 9% Organic Revenue growth and a record Underlying Adjusted Gross Margin of 49%. As a result of our year-to-date performance and a strong roadmap ahead, we are once again raising our full-year outlook. Given our notable margin progress, we are building on our current investments to continue driving brand scale across baby, big kid, and adult households. With a clear strategic vision, a strong financial foundation, and the continued executional discipline of our Honest team, we believe Honest is well positioned to be the most iconic personal care brand of this generation.”

Share Repurchase Program

On October 30, 2026, the Company’s Board of Directors approved a new share repurchase program for up to $30 million of its outstanding common stock. As of August 6, 2026, the Company had completed its prior $25 million share repurchase program.

Under the program, share repurchases may be made at the Company’s discretion from time to time in open market or privately negotiated transactions, or by other means, including through Rule 10b5-1 trading plans. The timing and number of shares repurchased under the new program will depend on a variety of factors, including, without limitation, stock price, trading volume, and general business and market conditions. The share repurchase program does not obligate the Company to purchase any shares, has no expiration date and may be modified, suspended or terminated at any time. The Company expects to fund repurchases with a combination of existing cash and cash equivalents and cash flows from operations.

Third Quarter Results

(All comparisons are versus the third quarter of 2025)

For the three months ended September 30,

2026

2025 Change

(In thousands, except percentages)

Revenue$84,613 $92,571 (8.6)%

Organic Revenue(1) $79,270 $72,577 9.2 %

Gross margin45.0 %37.3 %770 bps

Underlying Adjusted Gross Margin(1) 48.9 %37.3 %1,160 bps

Net income(2) $91,319 $758 $90,561

Underlying Adjusted Net Income(1) $3,056 $758 $2,298

Underlying Adjusted Net Income Margin(1) 3.9 %1.0 %290 bps

Underlying Adjusted EBITDA(1) $6,285 $3,523 $2,762

Underlying Adjusted EBITDA Margin(1) 7.9 %4.9 %300 bps

1

(1) These are non-GAAP financial measures. See tables below under “Use of Non-GAAP Financial Measures” for information on how we calculate and define these non-GAAP financial measures, including a reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures.

(2) Includes an income tax benefit of $89.4 million for the three months ended September 30, 2026, primarily related to the discrete income tax benefit related to the release of the valuation allowance against our net deferred tax assets in the current period.

Revenue decreased 8.6% to $84.6 million, reflecting the impact of strategic exits under Powering Honest Growth and diaper revenue declines, partially offset by continued growth in wipes and personal care products.

Organic Revenue(1) increased 9.2% to $79.3 million, driven by growth in wipes and personal care products, partially offset by a decline in diaper revenue.

Tracked channel consumption(2) for the Company increased 1.3%, compared with 2.1% growth for the comparative categories in the same period. Consumption of our higher-growth, higher-margin wipes and personal care platforms increased 13.2% in aggregate, four times the 3.3% aggregate growth of their comparative categories.

Gross margin was 45.0%, reflecting an increase of 770 bps. This expansion compared to 2025 was primarily driven by favorable supply chain rates, favorable product mix, and improvements related to strat

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EX-99.1

2 honestcoq1-26exhibit991.htm

EX-99.1

Document

Exhibit 99.1

The Honest Company Reports First Quarter 2026 Results

Delivers Accelerated Revenue Growth, Led by Wipes & Personal Care

Achieves Record Gross Margins, Fueled by Powering Honest Growth

Reaffirms Full Year 2026 Financial Outlook

LOS ANGELES, Calif. – May 6, 2026 – The Honest Company (NASDAQ: HNST), a personal care company dedicated to creating cleanly-formulated and sustainably-designed products for everyone from babies to adults, today reported financial results for the three months ended March 31, 2026.

First Quarter 2026 Financial Highlights Compared to Prior Year Period:

•Revenue of $78.1 million decreased 19.7%; Organic Revenue (excluding Powering Honest Growth exits)(1) increased 3.9%

•Gross margin of 42.6% increased 390 basis points; Adjusted Gross Margin(1) of 43.5% increased 480 basis points

•Net loss of less than $0.1 million; Adjusted Net Income(1) was $1.3 million

•Adjusted EBITDA(1) of $4.0 million decreased $3.0 million

•Cash and cash equivalents of $90.4 million increased $17.5 million

“We are pleased with our first quarter results, demonstrating that Powering Honest Growth is successfully transforming Honest into an enterprise that is more strategically focused, growth-driven, and structurally profitable," said Chief Executive Officer, Carla Vernón. "By sharpening our focus on the areas where we believe we have the greatest right to win, particularly with our wipes and personal care platforms, we delivered accelerated organic revenue momentum and achieved record gross margins. This expanding profitability creates a virtuous cycle, enabling us to strategically reinvest in our brand and expand Honest across households with babies, big kids, and even no kids at all. Thanks to the incredible discipline of our Honest Butterflies, we are reaffirming our full-year guidance with confidence in our path to sustained, profitable growth.”

First Quarter Results

(All comparisons are versus the first quarter of 2025)

For the three months ended March 31,

2026

2025 Change

(In thousands, except percentages)

Revenue$78,099 $97,250 (19.7)%

Organic Revenue(1) $78,099 $75,155 3.9 %

Gross margin42.6 %38.7 %390 bps

Adjusted Gross Margin(1) 43.5 %38.7 %480 bps

Net (loss) income$(42)$3,254 $(3,296)

Adjusted Net Income(1) $1,250 $3,254 $(2,004)

Net (loss) income margin(0.1)%3.3 %(340)bps

Adjusted EBITDA(1) $3,950 $6,929 $(2,979)

Adjusted EBITDA Margin(1) 5.1 %7.1 %(200)bps

(1) Organic Revenue, Adjusted Gross Margin, Adjusted Net Income, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. See tables below under “Use of Non-GAAP Financial Measures” for information on how we calculate and define these non-GAAP financial measures, including a reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures.

1

Revenue decreased 19.7% to $78.1 million compared to $97.3 million, reflecting the impact of strategic exits under Powering Honest Growth and diaper revenue declines, partially offset by continued growth in wipes and personal care.

Organic Revenue (excluding Powering Honest Growth exits)(1) increased 3.9% to $78.1 million compared to $75.2 million, driven by growth in wipes and personal care, partially offset by a decline in diaper revenue.

Tracked channel consumption(2) for the Company increased 8.3% versus 2.6% for the comparative categories in the same period.

Gross margin was 42.6% compared to 38.7%, reflecting an increase of 390 basis points. This increase was primarily driven by favorable freight, as well as product mix improvements related to strategic exits under Powering Honest Growth(3), partially offset by an increase in tariff costs. Adjusted Gross Margin(1), calculated by excluding the discrete costs of Powering Honest Growth, was 43.5%, reflecting an increase of 480 basis points.

Operating expenses decreased $1.2 million to $33.9 million. The decrease in operating expenses was driven by a decrease in selling, general & administrative expenses, partially offset by increased marketing investment to support our higher growth, higher margin wipes and personal care platforms. Adjusted Operating Expenses(1), calculated by excluding the discrete costs of Powering Honest Growth, was $33.3 million. Selling, general & administrative expenses as a percentage of revenue increased over 70 basis points mainly driven by a decline in revenue, partially offset by a reduction in third-party apparel service fees and legal expense.

Net loss of less than $0.1 million compared to net income of $3.3 million primarily related to the discrete costs of Powering Honest Growth. Adjusted Net Income(1) excluding the impact of Powering Honest Growth was $1.3 million.

Adjusted EBITDA(1) was $4.0 million compared to $6.9 million.

Balance Sheet and Cash Flow

As of March 31, 2026, the Company had no debt outstanding and $90.4 million in cash and cash equivalent