Honest Co Q2 revenue beats estimates; raises 2026 outlook
HNST•What drove the quarter
- Product mix shift - Growth in wipes and personal care products offset declines in diaper revenue, driving organic revenue higher.
- Gross margin expansion - Gross margin rose, primarily due to tariff refunds, favorable product mix, and benefits from strategic exits.
- Operating cost reduction - Operating expenses fell due to lower selling, general & administrative costs, despite higher marketing spend on growth platforms.
Analyst coverage and valuation
The current average analyst rating on the shares is hold and the breakdown of recommendations is 3 strong buy or buy, 3 hold and 1 sell or strong sell.
The average consensus recommendation for the miscellaneous specialty retailers peer group is buy.
Wall Street's median 12-month price target for The Honest Company, Inc. is $4.00, about 2.8% above its August 4 closing price of $3.89.
The stock recently traded at 47 times the next 12-month earnings vs. a P/E of 39 three months ago.
