The Honest Company offers eco-friendly consumer goods across beauty, baby, and cleaning categories through a direct-to-consumer online store. Products are designed with clean, safe ingredients and are dermatologist-approved, with options like a Diapers & Wipes Bundle subscription that saves customers on regular shipments. The company works by selling directly to consumers via its website and leveraging subscriptions, with perks such as free US shipping on orders over $50. What sets this company apart is its emphasis on transparency, social justice, ethical practices, and sustainability throughout its supply chain, alongside a strong focus on health-conscious customers. The goal is to provide high-quality, sustainable products while maintaining clear, responsible practices, building a reliable recurring revenue stream, and empowering consumers to make safer, ethically sourced choices.
Company Size
201-500
Company Stage
IPO
Headquarters
Los Angeles, California
Founded
2012
See people who can refer or advise you
Help us improve and share your feedback! Did you find this helpful?
Health Insurance
Dental Insurance
Vision Insurance
401(k) Retirement Plan
401(k) Company Match
Wellness Program
Gym Membership
Professional Development Budget
Unlimited Paid Time Off
Flexible Work Hours
Parental Leave
Pet Insurance
Jessica Alba co-founded The Honest Company with entrepreneur Brian Lee in 2011, securing $6 million in seed funding. The startup emerged from Alba's struggle to find safe, affordable baby and household products during her first pregnancy. The company focused on non-toxic diapers, cleaning supplies, and personal care items with transparent ingredient lists. Four years after its founding, Honest reached a $1.7 billion valuation. The company went public on Nasdaq in May 2021 at approximately $1.4 billion valuation. By mid-2022, it operated in over 1,000 retail locations across North America and Europe, generating more than $150 million in revenue. However, growth brought challenges including lawsuits over ingredient claims and stock volatility following the IPO. Alba eventually stepped back from day-to-day operations as professional management took over.
The Honest Company reported second-quarter results showing total revenue down 10.9% to $83.3 million, whilst net income nearly tripled to $10.7 million from $3.9 million year-over-year. Gross margin expanded 800 basis points to 48.4%. However, much of the profit gain came from non-recurring items. Excluding tariff refunds and costs from strategic exits, underlying adjusted net income was $5.1 million, and underlying adjusted gross margin was 43.8%, up a more modest 340 basis points. Organic revenue, which excludes exited apparel and Canadian operations, rose 6.7% to $80.2 million. The company's tracked channel consumption climbed 7.7%, outpacing category growth of 2.3%. The Honest Company raised full-year revenue guidance to $319 million to $325 million. Cash reserves increased to $105.9 million with no debt outstanding. The company repurchased 5.6 million shares for $18.7 million during the first half.
No imposter syndrome for this CEO. 24th Aug 2026 | 11:00am Hello and welcome to Modern CEO! I'm Stephanie Mehta, CEO and chief content officer of Mansueto Ventures. Each week this newsletter explores inclusive approaches to leadership drawn from conversations with executives and entrepreneurs, and from the pages of Inc. and Fast Company. If you received this newsletter from a friend, you can sign up to get it yourself every Monday morning. By almost every measure, The Honest Company, known for its clean products, is a relatively small player in an enormous ecosystem. With 2025 revenue of $371.3 million and a market capitalization of about $540 million, it is a fraction of the size of Amazon ($717 billion in 2025 sales and $2.87 trillion in market cap) or even General Mills ($19.5 billion in revenue and more than $21 billion in market value) - the two companies where Carla Vernón worked before joining Honest as chief executive officer and board director in 2023. Small but mighty. But Vernón doesn't run Honest like a small business, and she is unabashed about having earned her place alongside other public company CEOs. "CEOs of public companies are all executing our responsibilities against the same exact framework in service of the shareholder," she says. "I can't think of an instance where I walked into a room of CEOs brought together by a bank or at a conference or forum where anyone treated me as if I'm in a different class of business." She adds: "It's sort of like, when people say to me, 'How do you deal with imposter syndrome?' And I say: 'I don't have imposter syndrome, so I can't really help you there.'" Vernón's confidence is refreshing at a time when much of the mainstream business press treats small-cap companies and midsize businesses as a bit of an afterthought despite their contributions to the economy and outsize impact on culture. Indeed, it is often a combination of big consumer packaged goods (CPG) ambition and founder energy that can help further scale the influence and breadth of founder-built brands. It's a playbook Vernón knows intimately. At General Mills, where she rose to president of the natural and organics division, she oversaw brands such as Annie's, Cascadian Farm, Epic Provisions, and Lärabar - all brands that gained distribution and visibility once acquired by the food giant. Founder-built brand breakthroughs. Vernón says that the entrepreneurial brands that break through are the ones that are willing to assemble experts who can build on the founder's vision. "It can't be dependent on one single brain and one single heart in the long run, or you won't get Nike, you won't get Apple, you won't get Amazon," she says, noting several founder-built brands. She adds: "That's the journey we're on." Founded in 2011 and launched in 2012 by actress Jessica Alba, Honest helped drive the popularity of clean personal care and baby products, which are now a mainstay in big retailers. Alba was among the first in a wave of celebrity entrepreneurs to start a business rather than license her name or serve as a spokesperson. (Alba stepped down as chief creative officer of Honest in April 2024 and remains on the board of directors.) The company went public in 2021, but the stock today trades well off its highs. Vernón, who was vice president of consumables categories at Amazon before joining Honest, says she's imported from Amazon and General Mills a focus on execution and a long-term mindset. "To run an enterprise that's going to be around for a long time, [Honest is] going to have to have the discipline on the sunshiny days and the rainy days to stick with the strategy and stick with the operating plan," she says. Under Vernón, the company has prioritized profitability, exiting retail and online stores in Canada and shuttering its direct-to-consumer business. The strategy is starting to take root. Gross margin in the second quarter climbed eight points to 48.4% from 40.4%. And while Vernon's mindset is very much coming from an enterprise mindset, her counsel on how to build a CPG business should ring true for stewards of upstart and legacy brands alike: "You have to [be] focused on what your brand's values and your brand's mission are. Why does your brand need to exist in the world?" she asks. "That part needs to be focused so you make great choices on what your brand should strive to do." How do you "go big?" Being a founder requires measures of confidence, vision, and resolve that not everyone can muster. How do you keep imposter syndrome or other forces from getting in the way of your goals and aspirations? Send me your thoughts: [email protected]. I'll share some of these tips in a future newsletter. Read more: breakthrough brands * Inside David Protein's billion-dollar playbook * How Grüns broke the internet with its $1.2 billion sale to Unilever * To compete for crowded shelf space, pasta maker Goodles dials up the weird
The Honest Company (NASDAQ:HNST) Reports Strong Q2 Earnings, Analyst Raises price target. Aug 12, 2026 Market News FMPThe Honest Company (NASDAQ:HNST) Reports Strong Q2 Earnings, Analyst Raises Pric... * The Honest Company (NASDAQ:HNST) exceeded Q2 earnings expectations, reporting $0.04 per share, double the consensus estimate. * Morgan Stanley raised its price target for The Honest Company to $5.70, suggesting a potential 10.9% upside from its current stock price. * Despite a total revenue decrease, The Honest Company demonstrated strong organic revenue growth of 6.7% and significant profitability improvements, with gross margin at 48.4% and net income reaching $10.7 million. The Honest Company is a consumer products business that specializes in baby, beauty, and household items. Its product lines include diapers, wipes, and personal care goods. The company has a market capitalization of approximately $566.68 million, which is the total value of all its shares on the stock market. Following its recent performance, an analyst from Morgan Stanley raises the price target for The Honest Company to $5.70. With the stock's price at $5.14 at the time of the announcement, this new target suggests a potential upside of about 10.9%. This positive revision comes after the company released strong second-quarter financial results. The company announces second-quarter earnings of $0.04 per share, which is double the Zacks Consensus Estimate of $0.02 per share, as highlighted by Zacks Investment Research. This metric, known as earnings per share (EPS), shows how much profit is attributed to each outstanding share of a company's stock. While total revenue for the quarter is $83.3 million, a 10.9% decrease from the previous year, this is due to planned exits from certain business areas. The company's organic revenue, which reflects sales from its core, ongoing operations, shows healthy growth of 6.7%. This indicates strength in its main product lines. Profitability also sees significant improvement, with the gross margin increasing to 48.4%. Gross margin is the profit a company makes from selling its products before accounting for other business costs. Net income, or the final profit, rises to $10.7 million. This strong performance prompts The Honest Company to raise its financial outlook for the full year. Market news and analyst rating coverage Alex Lavoie covers market-moving news and analyst activity for the FMP blog, summarizing price-target changes, upgrades and downgrades, earnings results, and company developments. The focus is on turning timely market events into concise, data-backed updates that help readers stay current on the companies they follow. Financial data for every need. Real-time quotes and 30+ years of historical data, including prices, fundamentals, and insider transactions - all accessible via API. Stock Screener 2017-2026 (C) FMP
The Honest Company reported second-quarter 2026 sales of $83.3 million and net income of $10.69 million, completing a $25 million share buyback covering 7,354,127 shares. Despite lower quarterly sales versus the prior year, the company raised its full-year 2026 revenue outlook to $319 million–$325 million, up from $306 million–$312 million. The upgraded guidance and profitable quarter support the company's margin and earnings story, particularly after the buyback reduced share count by approximately 6.6%. However, continued pressure on core category volumes and lost distribution remain concerns. Narrative projections suggest revenue of $327.8 million and earnings of $2.2 million by 2029, implying a 2.4% yearly revenue decline but a $21.2 million earnings increase from current levels.