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what it is
Honest sells diapers, wipes, skincare, and home products through its website, Amazon, and about 49,000 retail locations.
how it gets paid
Last year Hnst made $371M in revenue. Diapers was the main engine at $140M, or 38% of sales.
why growth slowed
Revenue fell 1.9% last year. Quarterly EPS improved from a string of losses in 2023 to break-even to slightly positive territory.
what just happened
The latest reported quarter showed $0.01 EPS, a sharp improvement from prior-year losses.
At a glance
B balance sheet — gets the job done, barely
37.2x trailing p/e — you're paying up for this one
-$0.06 fy2024 eps est
$378M fy2024 rev est
5.0% operating margin
xvary composite: 47/100 — below average
What they do
Honest sells diapers, wipes, skincare, and home products through its website, Amazon, and about 49,000 retail locations.
Honest wins on shelf access and brand familiarity. Your products sit in about 49,000 stores across the U.S., Canada, and Europe, plus Target, Amazon, and Walmart. Omnichannel → selling in stores and online → so what: you are not relying on one website to move $371 million of product.
How they make money
$371M
annual revenue · their business grew -1.9% last year
Diapers
$140M
Wipes
$80M
Skin and Personal Care
$110M
Household and Wellness
$41M
The products that matter
core baby essentials
Diapers & Wipes
~$204M · about 55% of revenue
This is the engine of the business and it declined about 5% last year. When your largest category slips, the rest of the portfolio has to run faster just to keep revenue flat.
largest segment
higher-margin brand extension
Skincare & Beauty
~$111M · about 30% of revenue
This category grew about 8%. That's why management keeps leaning into launches here. It is one of the few parts of the story moving in the right direction.
growth lever
adjacent household basics
Household & Wellness
~$56M · about 15% of revenue
A roughly $56M segment that stayed flat. It helps fill out the brand, but right now it is too small to offset weakness in baby products on its own.
supporting segment
Key numbers
5.0%
operating margin
Operating margin → profit from the core business → so what: Honest loses about 5 cents on every $1 of sales before interest and taxes.
$371M
annual revenue
This is a real consumer brand at real scale. The problem is that $371 million of sales still did not produce durable profit.
38.8%
gross margin
Gross margin → sales left after product costs → so what: the products are not the problem by themselves; overhead and execution are.
$6M
long-term debt
Long-term debt → money owed over years → so what: balance-sheet risk is low, which buys management more time to fix the business.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 5 / 100
- long-term debt $6M (2% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for HNST right now.
source: institutional data · return history unavailable
What just happened
beat estimates
The latest reported quarter showed $0.01 EPS, a sharp improvement from prior-year losses.
Quarterly EPS improved from a string of losses in 2023 to break-even to slightly positive territory. Gross margin was 38.8%, which shows the products can make money before corporate costs show up.
$93M
revenue
$0.01
eps
38.8%
gross margin
the number that mattered
The 38.8% gross margin matters most because it says the product economics are workable even while operating margin stays negative.
source: company earnings report, 2026
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What could go wrong
the #1 risk is continued decline in diapers and wipes.
high
Core category erosion
Diapers and wipes are about 55% of revenue, or roughly $204M, and that category fell about 5% last year.
puts the majority of the revenue base under pressure
high
Tariff exposure
Management flagged about $8M of gross tariff exposure in 2025. On a company this size, that is not rounding error.
threatens about 2% of revenue before you even talk about competition
med
Margin compression
Gross margin dropped from 38.2% to 29.4%. That is an 8.8-point decline in one year.
erodes the economics of every unit sold
Between roughly $204M of core-category exposure and $8M of tariff pressure, this company does not have much room for another margin hit.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
gross margin needs to stabilize
29.4% is the number on trial. If that keeps slipping after falling from 38.2%, the turnaround story gets much harder to defend.
trend
diapers and wipes trend line
About 55% of revenue comes from this category. If the roughly 5% decline continues, skincare growth will not be enough to carry the business.
calendar
next earnings report
The next print should tell you whether the buyback came alongside improving operations or merely alongside weaker fundamentals.
risk
tariff cost absorption
Roughly $8M of gross tariff exposure is a real number for a company that already lost $15.7M last year. Watch what gets passed through and what gets eaten.
Analyst rankings
street consensus
Reduce
Analysts are not calling for a collapse. They are saying the turnaround case still needs proof. In human-speak, the street is interested but not convinced.
avg. 12-month target
~$3.00
That sits about 34% above the current $2.23 price. The gap tells you expectations are not dead. The rating tells you confidence still is not high.
volatility signal
1.6 beta
Beta measures how much a stock moves versus the market. At 1.6, HNST tends to swing more than the index. Not a bunker stock.
source: institutional data
Institutional activity
institutional ownership data for HNST is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$2
current price
n/a
target midpoint · n/a from current
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