Honest Company Q4 revenue falls

Reuters
02/26
Honest Company Q4 revenue falls

Overview

  • Personal care firm's Q4 revenue slightly missed analyst expectations, down 11.8% yr/yr

  • Adjusted EBITDA for Q4 missed estimates, declining to $3.8 mln

Outlook

  • Honest Company expects 2026 revenue between $306 mln and $312 mln, down 16%-18%

  • Company anticipates 2026 organic revenue growth of 4% to 6%

  • Honest Company forecasts 2026 adjusted EBITDA in the $20 mln to $23 mln range

Result Drivers

  • STRATEGIC EXITS - Revenue decline attributed to strategic exits under Powering Honest Growth, impacting diaper and apparel categories

  • HIGHER MARGIN FOCUS - Co concentrated resources on higher margin categories to drive growth, per CEO Carla Vernón

Company press release: ID:nGNXb1jjhX

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Slight Miss*

$88.04 mln

$88.61 mln (5 Analysts)

Q4 Net Income

-$23.57 mln

Q4 Adjusted EBITDA

Miss

$3.75 mln

$3.87 mln (5 Analysts)

Q4 Gross Margin

15.7%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "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 Honest Company Inc is $3.60, about 59.3% above its February 24 closing price of $2.26

  • The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 34 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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