The Honest Company Reports Record Gross Margins and Raised Full Year Guidance in Q3 2026
The Honest Company (HNST) delivered strong third-quarter results, highlighted by organic revenue of $79.3 million, a 9.2% increase driven by significant volume growth in the Wipes and Personal Care portfolios. The company achieved a record underlying adjusted gross margin of 48.9%, representing an improvement of 1,160 basis points year-over-year due to supply chain efficiencies and favorable product mix. While diaper consumption saw a planned decline of 27%, the Wipes segment grew by 15%, outperforming category averages significantly. This growth, combined with expanded distribution in retailers like CVS, has helped the company diversify its consumer base, with over 50% of households now being non-parent households. Following these results, management raised its full-year revenue and adjusted EBITDA guidance.
Tickers: $HNST
Topics: EBITDA Gross Margin Improvement Market Share Expansion Net Income Organic Revenue Growth