| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 78.10 | 19.7% |
| Total Income | 78.10 | 19.7% |
| Expenditure | 78.76 | 16.9% |
| PBT | 0.00 | 100.0% |
| Net Profit | -0.04 | 101.2% |
| OPM | -0.84% | 3.42pp |
| NPM | -0.05% | 3.40pp |
| EPS | 0.00 | 100.0% |
The Honest Company Reports Q1 2026: Revenue $78.1M
07 May 2026 · 7 May, 1:43 am
Summary
The Honest Company reported a revenue of $78.1 million for Q1 2026, reflecting a 19.7% decrease compared to the previous year. However, organic revenue grew by 3.9%. The gross margin improved to 42.6%, and the company experienced a net loss of less than $0.1 million. The company is reaffirming its full-year 2026 financial outlook. CEO Carla Vernón stated that Powering Honest Growth is successfully transforming Honest into a more strategically focused, growth-driven, and structurally profitable enterprise.
Key Highlights
- 1
The Honest Company's revenue for the first quarter of 2026 was $78.1 million, a decrease of 19.7% compared to the prior year.
- 2
Organic revenue, excluding Powering Honest Growth exits, increased by 3.9% to $78.1 million.
- 3
Gross margin increased by 390 basis points to 42.6%, while adjusted gross margin increased by 480 basis points to 43.5%.
- 4
The company reported a net loss of less than $0.1 million, with an adjusted net income of $1.3 million.
- 5
Adjusted EBITDA was $4.0 million, a decrease of $3.0 million compared to the prior year.
- 6
Cash and cash equivalents increased by $17.5 million to $90.4 million.
- 7
The company reaffirms its full year 2026 financial outlook for revenue, Organic Revenue growth, Adjusted Gross Margin and Adjusted EBITDA.
Management Comments
Carla Vernón
"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." "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."
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