Quarterly ResultMay 6, 2026, 04:14 PM
Honest Company Q1 Revenue $78.1M (-19.7%); Organic Revenue +3.9%
AI Summary
The Honest Company reported Q1 2026 financial results, with revenue decreasing 19.7% to $78.1 million due to strategic exits, while Organic Revenue grew 3.9%. The company achieved record gross margins of 42.6%, up 390 basis points, driven by favorable freight and product mix improvements. Despite a net loss of less than $0.1 million, Adjusted Net Income was $1.3 million, and the company reaffirmed its full-year 2026 financial outlook, highlighting the success of its "Powering Honest Growth" strategy.
Key Highlights
- Q1 2026 Revenue decreased 19.7% to $78.1 million.
- Organic Revenue (excluding strategic exits) increased 3.9% to $78.1 million.
- Gross margin reached a record 42.6%, up 390 basis points year-over-year.
- Adjusted Gross Margin was 43.5%, an increase of 480 basis points year-over-year.
- Net loss was less than $0.1 million; Adjusted Net Income was $1.3 million.
- Adjusted EBITDA decreased $3.0 million to $4.0 million.
- Cash and cash equivalents increased $17.5 million to $90.4 million.
- Reaffirmed full-year 2026 revenue outlook of $306M-$312M and 4%-6% Organic Revenue growth.