| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 83.30 | 6.7% | 10.9% |
| Total Income | 83.30 | 6.7% | 10.9% |
| Expenditure | 73.73 | 6.4% | 18.6% |
| PBT | 10.75 | 174.9% | |
| Net Profit | 10.69 | 26825.0% | 176.2% |
| OPM | 11.50% | 12.34pp | 8.41pp |
| NPM | 12.83% | 12.88pp | 8.69pp |
| EPS | 0.10 | 233.3% |
The Honest Company Reports Q2 2026 Results with Increased Profitability and Raised Full Year Outlook
06 Aug 2026 · 6 Aug, 1:44 am
Summary
The Honest Company reported second quarter 2026 results with revenue of $83.3 million, down 10.9% year-over-year, though organic revenue grew 6.7%. The company achieved a significant improvement in gross margin to 48.4%, up 800 basis points, and net income rose to $10.7 million. Management highlighted accelerated organic revenue growth and record underlying margins, leading them to raise the full-year 2026 financial outlook for key metrics including revenue and Adjusted EBITDA.
Key Highlights
- 1
The Honest Company reported revenue of $83.3 million for the second quarter ended June 30, 2026, a decrease of 10.9% compared to the prior year period.
- 2
Organic Revenue increased by 6.7% to $80.2 million, driven by growth in wipes and personal care products.
- 3
Gross margin significantly improved to 48.4%, an increase of 800 basis points year-over-year.
- 4
Net income for the quarter increased by $6.8 million to $10.7 million.
- 5
Underlying Adjusted EBITDA was $7.8 million, with an Underlying Adjusted EBITDA Margin of 9.8%, an increase of 160 basis points.
- 6
The company is raising its full year 2026 financial outlook for Revenue, Organic Revenue growth, Adjusted Gross Margin, and Adjusted EBITDA.
Management Comments
Carla Vernón
For the second quarter we delivered accelerated Organic Revenue growth of 7% and record underlying margins. With consumption growth of nearly 8%, we believe the momentum across our fastest-growing, most profitable platforms is proving to be durable. This strong performance, built upon a vibrant growth vision and increased structural profitability, is evidence that The Honest Company is a modern personal care company built to last. We are now well-positioned to thoughtfully deploy additional investments to expand household penetration and drive operational excellence of The Honest Company. With confidence in our continued momentum, we are raising our full-year 2026 financial outlook.
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