GlobeNewswire·Nov 5, 2026, 4:05 PM ET

The Honest Company Reports Third Quarter 2026 Results

HNST

The Honest Company reported third quarter 2026 revenue of $84.6 million, a decrease of 8.6% year-over-year, while organic revenue increased 9.2% to $79.3 million.
Gross margin for the quarter reached 45.0%, an increase of 770 basis points, with underlying adjusted gross margin rising to 48.9%, a 1,160 basis point increase.
Net income totaled $91.3 million, driven primarily by a discrete income tax benefit of $89.4 million related to the release of a valuation allowance on deferred tax assets.
Underlying adjusted net income was $3.1 million, an increase of $2.3 million compared to the prior year period.
The company announced a new $30 million share repurchase authorization approved by its Board of Directors on October 30, 2026.
Full year 2026 financial outlook was raised to include revenue between $322 million and $325 million, organic revenue growth of 6% to 7%, adjusted gross margin of 45.5% to 46.5%, and adjusted EBITDA of $25.0 million to $26.0 million.
Cash and cash equivalents increased by $31.5 million to $103.0 million as of September 30, 2026, with the company reporting no outstanding debt.
Free cash flow for the nine months ended September 30, 2026, was $30.5 million, a significant improvement from negative free cash flow of $4.5 million in the prior year period.
During the nine months ended September 30, 2026, the company repurchased approximately 7.2 million shares for $25.0 million at a weighted average price of $3.47 per share.
Organic revenue growth was driven by strong performance in wipes and personal care products, which offset declines in diaper revenue and the impact of strategic exits under the "Powering Honest Growth" initiative.

Company: The Honest Company, Inc.
Keywords: Nasdaq:HNST, The Honest Company, Inc.