The Honest Company reported second quarter revenue of $83.3 million, a 10.9% decrease year-over-year due to strategic exits but beating analyst estimates. Diluted EPS was $0.09, also exceeding expectations. The company raised its full-year 2026 financial guidance, citing momentum in its core growth platforms and improved profitability.
Key Highlights
- Organic revenue, which excludes the impact of exited businesses, grew 6.7% year-over-year to $80.2 million, driven by wipes and personal care products.
- Gross margin expanded significantly by 800 basis points to a record 48.4%, primarily driven by tariff refunds, favorable product mix, and benefits from its restructuring initiatives.
- The company raised its full-year 2026 revenue outlook to a range of $319 million to $325 million, up from $306 million to $312 million previously.
- Full-year Adjusted EBITDA guidance was also increased to a range of $23.0 million to $25.0 million, from a prior range of $20.0 million to $23.0 million.