The Honest Company, Inc.
- Open
- 3.66
- Day high
- 3.81
- Day low
- 3.66
- Prev close
- 3.66
- Volume
- 581K
- Mkt cap
- $403M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 2.4
- P/S
- 1.1
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$939K over the last 3 months (0 open-market buys, 10 sales)
- 🏛Institutions mixed (13F)
The Honest Company, Inc. (HNST) is a Consumer Cyclical company listed on NASDAQ. The stock is down 28% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 10 sales (SEC Form 4).
The Honest Company, Inc. (HNST) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
HNST earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $0.01 | $0.01 | +0.0% | $78M | +2.4% |
| Feb 25, 2026 | $0.02 | $-0.21 | -1148.3% | $88M | +12.1% |
| Nov 5, 2025 | $-0.01 | $0.01 | +200.0% | $93M | +4.5% |
| Feb 26, 2025 | $-0.02 | $-0.01 | +50.0% | $100M | +3.5% |
| Aug 8, 2024 | $-0.05 | $-0.04 | +20.0% | $93M | +6.6% |
| Mar 6, 2024 | $-0.08 | $0.01 | +112.5% | $90M | +7.3% |
| Mar 16, 2023 | $-0.03 | $-0.08 | -204.3% | $82M | +14.5% |
| Nov 10, 2022 | $-0.08 | $-0.13 | -62.5% | $85M | +5.2% |
| Aug 12, 2022 | $-0.08 | $-0.11 | -37.5% | $78M | +3.6% |
| May 13, 2022 | $-0.15 | $-0.16 | -6.7% | $69M | -0.1% |
| Mar 24, 2022 | $-0.08 | $-0.10 | -25.0% | $80M | -5.0% |
| Aug 13, 2021 | $-0.18 | $-0.17 | +5.6% | $75M | +0.0% |
HNST insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 26, 2026 | Bruce Curtiss James IIIofficer: Chief Financial Officer | Grant | 59,958 | — |
| May 22, 2026 | Turner Andreadirector | Grant | 41,970 | — |
| May 22, 2026 | Warren Jessicadirector | Grant | 41,970 | — |
| May 22, 2026 | Lynch Alissa Hsudirector | Grant | 41,970 | — |
| May 22, 2026 | Sheehey Brendanofficer: General Counsel | Sell | 9,784 | $3.14 |
| May 22, 2026 | Sternweis Thomasofficer: SVP, Enterprise Dev. & Strat. | Sell | 6,673 | $3.14 |
| May 22, 2026 | Winchell Stephenofficer: Chief Innovation Officer | Sell | 12,886 | $3.14 |
| May 22, 2026 | Vernon Carladirector, officer: Chief Executive Officer | Sell | 119,389 | $3.14 |
| May 22, 2026 | von Kunssberg Etienneofficer: SVP, Supply Chain | Sell | 2,651 | $3.14 |
| May 22, 2026 | von Kunssberg Etienneofficer: SVP, Supply Chain | Sell | 4,544 | $3.34 |
| May 22, 2026 | BARKLEY MICHAEL J.director | Grant | 41,970 | — |
| May 22, 2026 | BAYNE KATIE Jdirector | Grant | 41,970 | — |
| May 22, 2026 | Gentile Susandirector | Grant | 41,970 | — |
| May 22, 2026 | Hartung Jackdirector | Grant | 41,970 | — |
| May 22, 2026 | WHITE JAMES Ddirector | Grant | 41,970 | — |
Source: HNST SEC Form 4 filings, latest May 26, 2026. For informational purposes only — not investment advice.
See the full HNST insider & 13F page →The Honest Company, Inc. company profile
Overview
The Honest Company, Inc. (NASDAQ:HNST) is a consumer products company founded in 2012 and headquartered in Los Angeles, California. The company was co-founded by actress Jessica Alba and entrepreneur Brian Lee with a mission to create safe, effective, and affordable products for families. After going public in May 2021, the company has undergone significant operational transformation, shifting from a growth-at-all-costs model to focusing on profitability and margin expansion. Under the leadership of CEO Carla Vernon, who joined in 2022, the company has achieved its first full year of positive adjusted EBITDA in 2024 and has established itself as a leading brand in the natural and clean consumer products space.
Business
The Honest Company operates in the consumer packaged goods industry, specifically focusing on natural and clean family products. The company's core mission centers around providing products that exclude over 3,500 ingredients of concern, adhering to what they call the "Honest Standard" for product safety and transparency. The company's business is organized into three main product categories: Diapers and Wipes (approximately 65% of revenue): This segment includes disposable diapers designed with plant-based materials and baby wipes made without harsh chemicals. The wipes portfolio has been particularly successful, with the company becoming the top natural wipes brand and achieving consumption growth of over 40% in recent quarters. The diaper business focuses on sensitive skin protection and leak prevention technology. Skin and Personal Care (approximately 30% of revenue): This category encompasses baby personal care products including lotions, shampoos, and bath products, as well as adult skincare lines. The sensitive skin collection has been a standout performer, nearly doubling in consumption growth. The company has expanded into anti-aging products with lines like "Ageless Firming" skincare and has refreshed packaging across its adult skincare portfolio. Household and Wellness (approximately 10% of revenue): This segment includes cleaning products, baby clothing, and nursery bedding. The baby apparel business, operating under the Honest Baby Clothing brand, has shown strong growth and represents a significant portion of this category's revenue. The company targets the broader sensitive skin care market, which is expected to reach $80 billion by 2030, positioning itself as a premium alternative to conventional products that may contain harsh chemicals or synthetic ingredients.
Revenue model
The Honest Company generates revenue primarily through product sales across multiple channels. The company operates a hybrid distribution model combining direct-to-consumer sales through its website with extensive retail partnerships. Revenue Channels: The company sells through digital platforms including its own website, Amazon, Walmart.com, and Target.com, as well as physical retail locations. Major retail partners include Target (a 10-year partnership), Walmart, grocery chains, and drug stores. The company currently operates in approximately 50,000 retail doors but sees significant expansion opportunity in the remaining potential 90,000 doors across various retail formats. Customer Base: The primary customers are parents and caregivers seeking natural, safe alternatives to conventional baby and household products. The company has achieved 7.3% household penetration among its target demographic, with strong repeat purchase rates that have increased 32% since its IPO. Margin Drivers: Several factors influence the company's profitability. Positive margin drivers include the company's premium positioning allowing for higher pricing, operational efficiencies from supply chain optimization, and the consolidation of manufacturing partners. The company has achieved significant gross margin expansion from 29% to 38-39% through these initiatives. Product mix also plays a crucial role, with higher-margin categories like wipes and personal care products driving overall profitability. Margin Pressures: The company faces headwinds from potential tariffs on products sourced from China (affecting less than 20% of sales, primarily wipes), raw material cost inflation, and competitive pressure in the natural products space. Economic downturns could pressure consumers to trade down to conventional, lower-priced alternatives, though the company has shown resilience during recent economic uncertainty.
Competitive moat
The Honest Company's competitive moat is moderate but growing, built primarily around brand trust and product differentiation in the natural consumer products space. The company's strongest defensive position comes from its "Honest Standard" - the exclusion of over 3,500 ingredients of concern - which creates a meaningful differentiation from conventional products and appeals to health-conscious parents willing to pay premium prices. Brand Strength: The company benefits from strong brand recognition, particularly among millennial and Gen Z parents who prioritize clean ingredients and transparency. The brand's association with founder Jessica Alba and its decade-long track record in the market has built consumer trust and loyalty, evidenced by improving repeat purchase rates and household penetration growth. Distribution Relationships: Long-term partnerships with major retailers like Target (10-year relationship) and expanding presence across multiple channels create some barriers to entry for new competitors. The company's success in securing premium shelf space and online placement provides defensive positioning. Competitive Vulnerabilities: The moat faces several challenges. Large consumer goods companies like Procter & Gamble and Unilever have launched their own natural product lines with significantly greater resources and distribution power. The "clean" and "natural" positioning is increasingly commoditized as more brands enter the space. Additionally, the company operates in categories where switching costs are low, and consumer loyalty can be price-sensitive during economic downturns. The company's moat is best described as narrow but defensible in its core categories, with the strongest protection in wipes and sensitive skin products where it has achieved market leadership positions. However, sustained investment in innovation, marketing, and distribution expansion will be necessary to maintain competitive positioning against both established CPG giants and emerging natural brands.
Risks & safety
The company demonstrates a solid margin of safety with strong liquidity but faces some execution risks given its recent turnaround trajectory. • Liquidity and Solvency: Strong cash position of $72.8 million with minimal debt (debt-to-equity ratio of 0.06). Current ratio of 3.17 indicates excellent short-term liquidity. However, the company burned $3 million in free cash flow in Q1 2025, though this followed positive cash generation in 2024. • Valuation Metrics: Trading at reasonable multiples with P/E of 39.6x based on recent profitability and EV/EBITDA of 23.3x. Price-to-book ratio of 2.85x reflects some premium but not excessive given the brand value and growth prospects. • Operational Risks: Recent achievement of profitability provides some cushion, but the company is still in early stages of its turnaround. Dependence on key retail relationships and potential tariff impacts on China-sourced products (sub-20% of sales) present moderate risks. • Financial Trajectory: Positive momentum with four consecutive quarters of positive adjusted EBITDA and improving gross margins from 29% to 38-39% provide confidence in the business model sustainability.
Recent development
The Honest Company has undergone significant strategic transformation over the past three years under CEO Carla Vernon's leadership, focusing on three core pillars: brand maximization, margin enhancement, and operating discipline. Operational Transformation: The company achieved a dramatic turnaround from negative EBITDA of -$36 million in 2023 to positive $26 million in 2024, marking its first full year of profitability. This was accomplished through supply chain optimization, including transitioning to more efficient warehousing partners and consolidating personal care manufacturers, resulting in gross margin expansion of 900 basis points. Product Innovation and Portfolio Expansion: Recent product launches include flushable wipes, toddler-specific products, and the "Ageless Firming" skincare line for adults. The company introduced environmentally-friendly packaging innovations like milk carton-style refills and refreshed packaging design across its adult skincare portfolio. The sensitive skin collection has been particularly successful, nearly doubling in consumption. Distribution Strategy: The company has expanded its retail footprint while maintaining strategic focus, currently operating in 50,000 retail doors with plans for selective expansion. New partnerships include enhanced presence at Walmart.com, Target online, and entry into previously untapped channels like dollar stores and club retailers. Organizational Capabilities: Key leadership additions include hiring Etienne Von Kunssberg as SVP of Supply Chain and implementing cross-functional business processes to improve forecast accuracy and operational efficiency. The company has also developed comprehensive risk mitigation strategies, including a three-pronged approach to address potential tariff impacts.
HNST company profile · for informational purposes only — not investment advice.
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