Filing Flows › Honest Company (HNST) › Guidance & outlook
Honest Company (HNST) guidance and outlook
Honest Company (HNST) raised its guidance on Nov 5, 2026. Honest Company's 10-Q filed Nov 5, 2026 makes 44 forward-looking statements.
Guidance and outlook
Forward-looking statements, 10-Q filed Nov 5, 2026
- Of this range, we expect approximately $5.0 million to $7.0 million to be related to restructuring costs, primarily comprising contractual and external obligation costs, employee and personnel-related costs and asset and other restructuring-related costs, and approximately $23.0 million to $24.0 million to be related to other costs included in cost of revenue, primarily related to a discrete inventory write-down…
- • Powering Honest Growth is expected to result in annualized benefits in the range of approximately $14.0 million to $17.0 million, and the Company has begun seeing benefits in 2026.
- • We expect the restructuring element of Powering Honest Growth to be substantially completed by December 31, 2026.
- We expect to continue driving benefits from the three Transformation Pillars of Brand Maximization, Margin Enhancement, and Operating Discipline:
- To grow our business, we intend to continue to improve our operational and marketing efficiency, which includes attracting new consumers, increasing community engagement and connection with our brand, and improving fulfillment and distribution operations.
- It is important to maintain reasonable costs for these marketing efforts relative to the revenue we expect to derive from our consumers.
- We will continue to pursue partnerships with a wide variety of retailers, including mass retailers, online retailers, club retailers, grocery stores, drugstores and specialty retailers.
- For example, we experienced distribution losses with two of our largest customers on certain diaper SKUs mainly related to these retailers' footprint changes for certain product categories overall and a shift to more exclusive non-gendered prints with one of these retailers, which has impacted our revenue since 2025, and we expect will continue to negatively impact our diaper revenue
- Product offerings in the diaper category remain competitive and retailer decisions related to the sale or promotion of competitive diaper products have negatively impacted our diaper revenue in 2026, which we expect to continue in the future.
- Our discontinuation of Honest.com as a direct shipping and fulfillment channel negatively impacted our revenue for the year ended December 31, 2025 and nine months ended September 30, 2026; however, we also expect that it will enable improved gross margin in future years.
- Even though our growth strategy aims to boost sales across products by increasing total distribution, we intend to prioritize growth in products with attractive margin characteristics, including wipes and personal care, and leverage our brand equity and consumer insights to extend into new products.
- We believe our brand strength will enable us to continue to launch new products, allowing us to deepen relationships with consumers.
Honest Company's latest quarter
Honest Company, Q3 2026: revenue $84.6M (-9% year over year), operating margin 1.4%, net earnings $91.3M, operating cash flow −$4.5M. The chart follows the revenue to costs, profit and cash.
Questions
Did Honest Company raise or lower its guidance?
Honest Company (HNST) raised its guidance on Nov 5, 2026.
What does Honest Company expect?
Of this range, we expect approximately $5.0 million to $7.0 million to be related to restructuring costs, primarily comprising contractual and external obligation costs, employee and personnel-related costs and asset and other restructuring-related costs, and approximately $23.0 million to $24.0 million to be related to other costs included in cost of revenue, primarily related to a discrete inventory write-down… • Powering Honest Growth is expected to result in annualized benefits in the range of approximately $14.0 million to $17.0 million, and the Company has begun seeing benefits in 2026.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.