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Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 4:45 p.m. ET Vice President of Investor Relations - Chris Mandeville Chief Executive Officer - Carla Vernon Chief Financial and Operating Officer - Curtiss Bruce Operator: Ladies and gentlemen, thank you for standing by, and welcome to The Honest Company's Second Quarter 26 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising that your hand has been raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. It is now my pleasure to introduce Chris Mandeville, vice president of investor relations at The Honest Company. Please go ahead. Chris Mandeville: Good afternoon. And thank you for joining our second quarter 26 conference call. With me today are Carla Vernon, our Chief Executive Officer and Curtiss Bruce, our Chief Financial and Operating Officer. Before we begin, I will remind you that our remarks today include forward looking statements subject to risks and uncertainties. We do not undertake any obligation to update these statements. And actual results may differ materially. For a detailed discussion of these factors, please refer to our Safe Harbor statements in today's earnings materials and our recent SEC filings. We will also discuss certain non GAAP financial measures. Reconciliations to the most directly comparable GAAP measure are included in our earnings release and accompanying presentation which are available at investors.honest.com. Finally, please note that all consumption data included in our today, unless otherwise noted, will reflect CercanaMULo plus measured channel data for the 13 weeks ended 06/28/2026, as compared to the prior year. And with that, I will turn the call over to Carla. Carla Vernon: Thank you, Chris. Before I share our results for the second quarter of 26, I want to welcome Chris in his new role as Vice President of Investor Relations. Chris Mandeville: While Chris has already been with us for the last 2 earnings calls, we are thrilled that he has officially joined Honest. Carla Vernon: And now I am pleased to share our results for the second quarter of 26, which reflects the continued strength and momentum of our business. We achieved strong organic revenue growth of nearly 7% and our highest profit margins in the history of The Honest Company with underlying adjusted gross margins of 43.8%. And underlying adjusted EBITDA margins of 9.8%. Given our sound first half execution, and confidence in the path ahead, we are raising our full year outlook. These Q2 results are product of the ongoing structural improvements to our business and the team's continued commitment to operational excellence. Importantly, this strengthened financial foundation provides us with additional horsepower to accelerate investments in support of all 3 of our strategic pillars. Of brand maximization, margin enhancement, and operating discipline. Looking specifically at our first pillar, brand maximization, this quarter clearly showcased the power of our strategy. We are encouraged by our momentum as we scale our broad collection of cleanly formulated and sustainably designed Honest products. In addition to our top line results, our overall consumption growth was up nearly 8%. This growth continued to be volume led and significantly outpaced the 2% growth in our comparative categories. Our vision to scale Honest is grounded in 2 important consumer truths. The first key consumer truth is the resonance of our honest standard. Our portfolio is formulated without 3.5 thousand ingredients of concern that we choose not to use in our products. These high standards mean our products meet the high expectations of modern consumers who want clean formulation, excellent product performance, and joyful design in their personal care. The second key consumer truth is the broad appeal of Honest across households of all ages and stages. While we are often recognized for our wonderful portfolio of baby products, today, over half of our households have no kids at all. Our strength across household types is an important driver of scaling the Honest brand through our brand maximization strategy. Today, 89% of households in The United States do not have any children under the age of 7. And 75% of all US households have no children at all. We continue to see progress in scaling Honest across a broad range of households This quarter, our household penetration of 8.1% improved 100 basis points with nearly 2 thirds of that growth coming from no kid households. This growth gives us material evidence that more households are embracing Honest each year. In addition to this excellent progress, we are encouraged by the significant runway we see across our growth platforms. To put that opportunity into perspective, in baby personal care, key branded competitors hold household penetration anywhere from 2 to 6x greater than we do. And in all purpose wipes, larger brands have as much as 5 to 7x our household penetration. Let me share a closer look at how this momentum is being driven across our businesses, beginning with our Wipe portfolio. Our total wipes portfolio delivered consumption growth of 26% versus comparative category growth of 2%. Our extensive wipes platform crosses several categories and uses, With such wide ranging collections of wipes, Honest offers a variety of benefits that appeal to a broad range of household types. Our collections include our clean conscious wipes which are the #1 natural baby wipe brand and grew 16% this quarter. Our flushable wipes, which grew more than 200% in Q2, making us the fastest growing branded player in the segment. And our sanitizing wipes, which grew 55% in Q2 and are the second largest hand sanitizing wipes brand in the category. These wipes businesses are all significantly outpacing the growth of their respective categories, and each delivers on the honest standard of clean formulation, strong product performance, and joyful design. This year, our flushable wipes entered the spotlight with a new campaign that speaks to the category in an elegant yet irreverent style that is candid in a way that only honest can be. In fact, our groundbreaking campaign called it is Time to Get Honest drove significant viral engagement, delivering well over 3 billion media impressions and increasing awareness of the Honest brand across a new broader community. In addition to meeting the high standard for product quality, our flushable wipes packaging is designed to be a room accessory that is both elegant and unapologetic. The collection is gaining strong traction online and across brick and mortar retailers, including our recent addition into the feminine care aisle at CVS. Building on this momentum, we see greater things ahead expanding distribution, increasing product offerings, and driving greater brand awareness for our flushable wipes. The strong Q2 performance of our wipes business also benefited from our 3 pronged strategy to maximize tentpole merchandising events such as Amazon Prime Day. While strong consumer deal events can be treated as a onetime boost to sales, Our team partners closely with retailers to ensure that we leverage these events to introduce our full honest assortment to new shoppers, build recurring subscriptions, and increase brand discovery. We saw this working to great success across Prime Day with 58% of the visitors to our Honest storefront being entirely new to the Honest brand. And our team has great plans to build on these early relationships to earn lasting loyalty across our full collection of Honest products, Now turning to personal care. In Q2, our personal care portfolio grew 19% outpacing the category's 5% growth rate. We design our personal care products to bring genuine joy and happiness to everyday routines. For some members of our honest community, that means utilizing rich, beautifully authentic touches like the naturally derived soothing lavender in our signature baby personal care collection. And for the members of our community with the most sensitive skin, it means providing products that are gently yet effective and often fragrance free. By delivering on both preferences seamlessly, we maintained our position as the #2 brand in total baby personal care. And earlier this year, the Honest brand made its debut into the big kid aisle, welcoming us into a new set of homes. The launch of our kid friendly personal care lineup was timed in coordination with the Toy Story 5 movie premiere and in partnership with Pixar's media campaign. The film, which debuted 30 years after the original movie, delivered the #1 biggest global opening weekend in Pixar history. The magic of brands like Pixar and Honest is that they unlock the power of multigenerational appeal. Our Toy Story collection, which launched earlier this year at Walmart and Amazon, is getting ready to greet new families in the food channel, starting with retailers, including each and select Ahold Delhaize banners. More than ever, Honest is expanding to meet consumers with products they love, wherever they shop. Before concluding my remarks, it is important to acknowledge that the strong results in the quarter include a dampening effect from our diaper business. Current headwinds and shifting consumer dynamics appear to be structural for the diaper category with most national brands experiencing declines. While our diaper business is navigating these same pressures, we remain committed to providing families with a diaper offering that meets the expectations of the Honest standard for quality, performance, and joy. Because of the importance of families with babies, we are pleased to announce a new strategic partnership allowing the Honest brand to maintain its important place in baby and family friendly apparel. Through a new licensing agreement, with an industry leading apparel manufacturer, Honest will transition back to an outbound licensing approach for this category. We are glad that families will have the honest standard available to them when choosing bedding and baby apparel for their newest little ones. As you can see, we are energized about the strength of the Honest brand across all the segments we serve. 3.5 years ago, we began what was a necessary transformation to build a more powerful, Honest brand and Honest company. We are now a fundamentally stronger enterprise. Built on a durable foundation. The evidence of our progress is clear across an array of metrics First, we are more strategically focused. We have intentionally shifted our revenue mix towards our higher growth and higher margin wipes and personal care platforms which now represent over 70% of our revenue. Second, we are more growth driven. Since 2022, we have delivered an 11% consumption growth CAGR. And third, we are more structurally profitable. Our second quarter underlying adjusted gross margin of 44% is 1.5 thousand basis points higher than we were in 2022. These gains have allowed us to make considerable progress towards operating a virtuous cycle for profitable growth. But our convictions are not simply based on metrics. Honest was founded to be more than a disruptor brand. We were built to bring the world a modern personal care company that delivers on a standard built for the modern era. Transformation alone is not the finish line. Our ongoing goal is to achieve true scale. With great intention and clarity, we have identified right-to-win categories where we are leading and delivering exactly what today's modern households need. And we have executed this year in and year out with strict financial discipline. As we scale operationally, many of the important things about The Honest Company have not changed. Our team of Honest butterflies is an intense team of builders that pairs passion and vision with a focused approach to execution. Every product we create upholds our rigorous guiding principles. it is this joy, commitment, and uncompromising quality that makes Honest unique and meaningful to households of all types. And this is the true heartbeat giving the Honest brand both relevance and power. With that, I will now turn the call over to Curtiss to provide more details on our Q2 financial results and walk through our raised full year outlook. Curtiss Bruce: Thank you, Carla, and good afternoon, everyone. As you just heard, Q2 was a significant milestone that clearly validates our trajectory and highlights the robust results generated when our strategic focus meets disciplined execution. Let's dive into how that performance materialized across our metrics starting with the top line. Second quarter reported revenue was $83.3 million, a decrease of 10.9% compared to the prior year period. This reflects the impact of strategic powering Honest growth and our diaper revenue declines. Which were partially offset by our continued strength in wipes and personal care. On an organic basis, revenue increased 6.7%, reflecting the momentum we continue to see in our higher growth higher margin wipes and personal care platforms. Our Q2 reported gross margin came in at 48.4%, On an adjusted basis, gross margin was 50.1%, an improvement of 970 basis points. This expansion includes a $6.6 million tariff refund and dilution from our apparel liquidation. Excluding these 2 items, our underlying margin was 43.8%. An improvement of approximately 340 basis points. This was driven by favorable product mix and operational improvements including earlier than expected realization of supply chain savings. Total operating expenses decreased by $4.1 million to $30.8 million highlighting progress made to rightsize our SG&A. Within this, we strategically increased marketing by nearly 20%. This step up in spend focused heavily on our wipes and personal care platforms was designed to capitalize on our momentum heading into the second half of the year. This targeted allocation of capital supports our ongoing focus on driving household penetration which remains our primary catalyst for sustaining long term growth. Net income for the quarter was $10.7 million compared to $3.9 million in the prior year period. Adjusted EBITDA was $14.5 million, yielding an adjusted EBITDA margin of 17.3%. To understand our true underlying profitability, it is important to exclude the onetime tariff refund and apparel liquidation. When doing so, our underlying adjusted EBITDA margins of 9.8% expanded by approximately 160 basis points and marked an all time high for the company. Our asset light operating model continues to provide exceptional financial flexibility We ended the quarter with $105.9 million in cash and cash equivalents and 0 debt. Free cash flow was $35.3 million for the first 6 months of the year, a substantial improvement compared to negative free cash flow of $3.8 million the prior year period. This was primarily driven by increased earnings continued working capital improvements, and our asset light operating model. While we do expect a timing benefit regarding inventory, to partially reverse in the second half of the year, we maintain a distinct line of sight to further long term working capital. Year to date, we have repurchased 5.6 million shares for $18.7 million at an average price of $3.35 per share. At the end of the quarter, $6.3 million remained under our existing share repurchase authorization. These actions underscore our commitment to balancing aggressive reinvestment in our growth initiatives with returning value to our shareholders. Our strong execution in the first half of the year which drove our top line momentum and structural margin enhancements, gives us the confidence to raise our outlook. The tariff refunds provide additional flexibility and fuel for our strategic initiatives. We plan to aggressively reinvest these dollars now to accelerate household penetration and build a stronger Honest foundation for 2027 and beyond. With that context, our raised full-year 2026 outlook is as follows. Reported revenue in the range of $319 million to $325 million. Which now includes an approximate $10 million benefit from apparel inventory liquidation revenue. Organic revenue growth of 5% to 7% up from 4% to 6%, reflecting accelerated momentum in second half versus first half of the year. Adjusted gross margin to land in the mid forties up from the low forties as we expect a continuation of robust year over year expansion driven by favorable mix and supply chain efficiencies. And adjusted EBITDA of $23 million to $25 million up from $20 million to $23 million Lastly, please assume our new apparel licensing agreement will be immaterial to our 2026 results. As I wrap up, I want to reiterate how pleased we are with our strong execution through the first half of the year. Our record underlying profitability and robust free cash flow generation prove that our financial model is fundamentally stronger today than ever before. With our pristine balance sheet, structural margin improvement, and strategic reinvestment of our tariff refund, we have the fuel needed to confidently fund our next phase of profitable growth. With that, I will turn it back to Carla for final remarks. Carla Vernon: Thank you, Curtiss. Before we move to Q&A, I want to express my deep gratitude to our incredible team of Honest Butterflies. Their passion and dedication are the true driving force behind the business performance results we shared today. As we look ahead, we will continue to deliver on our evergreen strategic pillars of brand maximization, margin enhancement, and operating discipline. By combining disciplined execution, with our unwavering commitment to the Honest standard, we are unlocking the true vision of a modern personal care company. We enter the second half of the year well positioned to build on our momentum, deliver on our raised 2026 outlook, and continue creating long term shareholder value. With that, I now turn it over to the operator to open the line for questions. Operator: Certainly. As a reminder, to ask a question, please press 11 on your telephone. Wait for your name to be announced. To withdraw your question, please press 11 again. And we ask that you please limit yourself to 1 question and 1 follow-up. Question. 1 moment, please. And our question comes from the line of Aaron Grey with Alliance Global Partners. Aaron Grey: Hi. Good evening, and thank you very much for the questions. First question for me, just on the guidance. Just quick clarification on the profit guidance. You know, assuming that the tariff is not included in that full year guide because I know I see the 2 adjusted EBITDA numbers, 1 including tariff, 1 not including for the quarter. And then secondly, in line with that for the profits, just for the back half, if we take some assumptions on profitability versus what we saw, you know, in 2Q, it does seem like it is coming down with some assumed either marketing or SG&A spend based off the gross margin guide. So I would love to get some color in terms of what you are expecting for marketing in the back half, and if you are seeing the ROI that you would have expected with the increased marketing that we have seen in the first half of the year. Thanks. Curtiss Bruce: Good evening, Aaron. Let me clarify the adjusted gross margin guide. So our adjusted gross margin does include both the favorable impact of the tariffs and also the depressing impact of the liquidation of the apparel on the full year. So that adjusted gross margin includes both. I think what is important to remember is the underlying performance. Again, as we think about Q2, underlying gross margin year to date, 44%. And now we have a expectation or we continue to have the expectation that our underlying gross margin performance will be stronger in the second half than in the front half. The definition for adjusted has not changed. From 1 quarter to the next. And it remains the same as you reflect on what the guidance is. Let me now get part of the question you asked about marketing. We will be investing, as the remarks said, we started off with, marketing investment against both wipes and personal care. We will continue to focus on those 2 categories, to drive additional household penetration in the second half. It will be a step up both in dollars and a percent basis. What I want to also highlight is the investment that we will be making in the second half are broader than marketing. We will be investing in capabilities to help us scale the business more effectively and efficiently as we move forward as well. You will see those investments come through the SG&A line. Carla Vernon: And then let me just hop in and tell you how our spending is working. Well, I am feeling pretty great. You know, we see that for the quarter, consumption was up 8%. And we also reflected on just overall the trajectory of our business performance has been strong over the course of the 3 years. 1 of the things that is unique about this year is that for the first time, we were doing some marketing in different ways and on different things than we have done before. You remember that in the first half of the year, we supported this big launch into the big kid aisle. With the Toy Story Pixar launch, which we were beneficiaries of being included in some of Disney's own marketing for the movie and as well as our marketing for the movie, feeling really good about how those businesses have kick started off to the first half of the year. We also launched that flushable wipes campaign that I talked about in the script. And there are some images you will find in some of our investor presentations And just supporting flushable wipes is a really new kind of marketing spending for us. Because you remember that I have been talking about the strength of the Honest brand across 3 different types of households, baby households, these big kid households, that is squarely where the Toy Story stuff is aimed. And then the households with no kids at all. And so our flushable wipes allows us to cascade across all those households. This campaign was the first time that Honest on a national basis on a big broad campaign did marketing directly to adult consumers for themselves for this brand, at such a level. And you can see that it is working when you see our household penetration gains. More than half of our households are households with no kids at all, and the larger part of the 100 basis points of household penetration increase we saw in the quarter came from no kid households. This was really the first time we did national big national campaign spending against those kinds of households. And then lastly, we also launched a really broad portfolio covering campaign that we call the mother of all standards. And this is a strong new campaign that we can reach even more households now that we are in a position to drive some greater upper funnel marketing in the back half. Aaron Grey: Thank you both, Curtiss and Carla. that is helpful. Second quick question for me just on the licensing apparel and switching to the to licensing versus direct. I understand that it is going to be immaterial for 2020. Maybe just talk bigger picture about why you feel like, that is going to be the right structure and setup for you guys and how you expect that, segment will look like for you guys maybe in 2027 and beyond. Curtiss Bruce: Yeah, Aaron. Let me take that. Our strategy of this enterprise being asset light and so the licensing model really lives into our asset light DNA. Carla Vernon: So, we are excited to be able to be in the apparel business, for consumers who love the Honest brand, for babies, both clothes and bedding and such. And so this is an opportunity for us to do 2 things. Participate in the category and do it in a asset light low capital intensive way. Curtiss Bruce: And as you know, licensing is a margin accretive proposition. And so we are excited on all fronts. About this new agreement. Carla Vernon: We are not going to speculate about the sort of impact longer term. We are excited about the agreement. We have got a great new partner. and it is on the strategy of maintaining the strategy of being asset light. Aaron Grey: Thank you. Operator: And our next question comes from the line of Dara Mohsenian with Morgan Stanley. Patty: Hi, good afternoon. it is actually Patty Kanata on for Dara. I just had a couple of questions. 1, just to follow-up on the reinvestment piece. Stepping up reinvestment. You spoke about marketing but could you say a bit more about how you are thinking or where the incremental dollars are going in terms of how you are prioritizing across not just marketing, but also innovation and distribution. Thank you. Carla Vernon: Alright. it is nice to see you, or it is nice to hear from you. The way to think about this is that we have got strategic investments designed to map to the growth levers we have talked about in our strategy. As a reminder, we have talked about the growth levers in our strategy by the platforms that are our highest growth, highest margin platforms. We are showing that we are gaining share. We are winning. Consumers clearly, households are embracing the products we bring, and that is wipes and personal care. Those are really broad platforms. When we talk about wipes and personal care, as a reminder, we are in the wipes segment in a number of ways. We have got the baby aisle where we have our all purpose wipes. We have got the general adult aisle where we have got our flushable wipes and our sanitizing hand sanitizing wipes. We have got makeup remover wipes. So we are very broad based, and our wipes are winning. So we have a lot of opportunities to tell more households. In many cases, our wipes businesses are at less than 2% household penetration. and our competitive categories are significantly from anywhere from 2 to 6x more households buy those brands, know those brands. We have got a lot of people that we get to talk to across many different Wipes platforms. So there is brand awareness that we need to do as well as just telling people about the honest standard. And this really differentiated benefit that our products bring. Similarly, with personal care, our personal care is a business. We are the number 2 baby personal care business in that aisle and category, and we are up 19% in the Personal Care business. We want to continue fueling that leadership and talking to consumers, bringing new households in, as baby households, that is a set of households that you have to constantly be recruiting against because new families come in and then families migrate over. So we will be we will be investing in those 2 platforms. Both to make sure that we make consumers aware of all that we have to offer as well as continuing to always recruit new households. Then as a reminder, we also have a strategy to be speaking broadly across households that is very new for us in terms of our marketing investment structure, making sure that across whether that is streaming or social or retail marketing, that we are showing up with the right creative messages and showing up in the right channels and media spends to talk to these very compelling 75% of households that have no kids at all and the other 14% that have big kids. So that is how we are gonna be using a lot of our marketing as well as starting to take the Honest brand and, you know, just bigger, broader ways that upper funnel marketing can do. To make sure more people understand this brand was built for the modern age. it is different than the other brands in the aisles, and we have got a lot of people we need to tell about that. Now all of our added investment spending in the back half is not marketing. And it is important to talk about that because you remember our third pillar of our strategy is operating discipline. We have been a founder built, startup, early stage brand. We have got many, many systems that are getting more sophisticated and efficient as we continue to grow. As a company. And so we are investing in making sure we are bringing online technologies that make us efficient, investing in this new and improved supply chain approach, that we can be working with our retail partners in a more integrated way. So our spending is across both marketing and how we operate. that is really helpful. Patty: And just maybe a quick 1 on diapers. The category is still obviously very competitive, but anything you could share with us in terms of promotion and pricing dynamics that you are seeing and just how you are thinking about the environment from here. Thank you. Carla Vernon: Great. I want to take kind of a 2 part approach to this. I want to start with diapers, and then I wanna zoom farther out and talk about baby. First of all, it is-- listen, it is not easy to say it, but the diaper category is very challenged right now. We are seeing it. We are hearing the other brands see it. We believe that what we are seeing, and Curtiss and I spent a lot of time in CPG. We have been in a lot of categories. We have seen a lot of eras and dynamics. And what we are seeing in the diaper category is something that looks structural, and looks like it will be the dynamic for the foreseeable future. it is very honest and important to think of it that way so that we make sure we manage that business wisely against this strategy we have committed to of growing the top line faster than our categories, and expanding profit faster than we grow the top line. So when we look at that for diapers, we see all the major national branded players are losing share. They are losing unit growth, and that is really challenging. For us, as we see it, we have been investing in our diaper business in a couple of ways. We want to make sure, first of all, we bring a great diaper forward that delivers the honest standard. So you may remember we recently improved our actual diaper technology, and we wanted to make sure that people have that both product performance and that clean commitment that we bring to the aisle along with that style, you know, the joy that we always bring in our diapers. That makes our diapers unique, and that is important because our diapers need to be worth it. We have also been investing in value, making sure that we show up with retailers to at least bring our diaper forward in the value we believe fits the Honest brand. But what I would say about our approach to baby, if you remember, we are actually winning in baby. We are doing very well. Our all purpose baby wipes are the #1 natural baby wipe in the category, up 16%. We have got this beautiful extended portfolio of baby personal care products up almost 20% in the quarter. And with this addition of the licensing strategy we told you about, in today's message, making sure that our soft, organic baby onesies, baby bedding is available to those babies' families so that we have a full surround. What we are most glad for is that our baby portfolio is allowing us to offset the dampening effect that we see structurally in diapers. And our business has evolved such that diapers are now actually less than 25% of our overall consumption. So between our wipes and our personal care business, that is now 70% of Honest consumption. So the way we are balancing it allows us to deliver raised guidance and the continued commitment of top line that grows faster than our categories and bottom line that outpaces the top. Thank you. Operator: And our next question comes from the line of Anna Glaessgen B. Riley Securities. Anna: Hi. Good afternoon. Thanks for taking my questions. I would like to touch on distribution. In the past, you sort of disclose ACV and talk about the number of doors you were in, but it got a little complicated. Between categories. Could you maybe just update us in terms of you are investing in marketing to expand household penetration in the higher growth categories like wipes and personal care. Could you maybe remind us where you sit today in terms of distribution and how much expanded door growth could support growth ahead? Thanks. Carla Vernon: Yes. I am so glad you said that, Anna. it is started to get very complicated to talk about distribution because each of our categories is so dramatically different, and they play in aisles with really, really different structural approaches to distribution. I am gonna just give you a contrast and an example. What it means to have great distribution of flushable, lifestyle, really different than trial and travel, really different than baby. So what we have tried to do to make it a little bit more uniform is still talk about the great runway ahead that we have and make it in a way that is easier to monitor every time we are together with less of the noise and confusion by focusing it on the household penetration, a little bit more of a uniform fact Although I will note, it does not really allow us to tell you about the great growth we are doing online when we talk about distribution. So it is helpful to be focused on household penetration. Because it is really a better, more holistic picture When you are looking at household penetration, you are accounting now for what the collective business looks like as we become even more effective on our ecommerce channels then it is important to have that unified language that works across both. And as I told you, household penetration for the whole brand, while at 8.1%, and up a 100 basis points year over year. If you now break that apart and look at any 1 given piece of our business, how much household penetration do you have in personal care, How much household penetration do you have in flushable wipes? that is where the picture changes dramatically for a business like ours that crosses about 10 categories. Kind of accumulate them to get to the 8, but you look at them separately, that is where the magic is. I mean, we are doing phenomenally. Number 2, baby personal care brand, and we have less than 3% household penetration in that aisle. Some of the brands in baby personal care have 6x the household we do, and we are still number 2. So imagine what happens with every point that we add on to household penetration. I will just, like, 1 of the back of the envelope numbers for me, every point that we gain in baby personal care is worth anywhere $25 million to $30 million in annual sales. So this journey we have of going through less than 3% penetration, and it is something like flushable wipes. We do not even have 1% of The US households. it is wild. it is wild. We are so new. We only launched that category 3 years ago. Some of our competitors have been out for twice as long as we have. So we are very encouraged to already be the 4th largest flushable wipes brand with less than 1% of US households. So we, again, we know that those households are worth anywhere $20 million to $30 million every time we gain a point. So that is how we are focusing on the growth, and that is why we wanna talk to you about that when we are whenever we are with you. Got it. Thanks. that is that is super helpful, Carla. And then I just want to follow-up on SG&A. Anna: Pretty big step down year over year And then sequentially, and then given the investments in the back half, it seems like that is stepping back up. Was there anything that potentially shifted from Q2 to Q3 or anything to keep in mind there? Thanks. Curtiss Bruce: Yeah. I think for the question, Anna. The performance that you saw on 02/2002, first, I would just want to recognize the execution of powering Honest growth that was behind that in the front half. And you were thinking about it the right way as you look at the second half of the year. We are talking about the investments in marketing and SG&A capabilities, you know, to set us up for sustained long term scaling. So we will see the SG&A step up from the, call it, low watermark that we had in Q2. Thank you. Operator: And our next question comes from the line of Owen Rickert with Northland Capital Markets. Owen Rickert: Hi, Carla. Hi, Curtiss. Thanks for taking my questions. First for me, how much is the second quarter organic growth acceleration driven by distribution gains versus velocity improvement? Is that mix shifting any 1 way or the other And how durable of a signal is that? Curtiss Bruce: What I would tell you is that first of all, we came into this year expecting that we were gonna have sequential improvement in organic revenue from first quarter to second quarter. And the way to think about that was we were gaining distribution in Q1, and then we were expecting that would take hold and begin to accelerate Q2 and balance of year. And I think that is what we have seen happen in Q2. Right? And so, it is the growth behind our personal care and wipes portfolios that continue to have momentum and win in the marketplace. Yeah. Carla Vernon: And remember, Owen, I think 1 of the things we have talked about on some of our conversations with you is what we wanna do now is make sure that we sync our innovation schedule with the reset schedules that retailers have, especially at brick and mortar, and that we do that in a way that makes sure we get great returns on the investment across the year as we continue to build those. So in general, you will tend to see that the innovation punch happens earlier in the year then we begin focusing on just really planting, as Curtiss said so well. Planting those roots really deep, making sure we invest in velocities, awareness, trial, and things like those tent pole merchandising events like your Target Circle Weeks and your Amazon Prime Day, really give us an opportunity. We try to make sure the innovation is out. it is ready. It is locked and loaded so that we get the chance from the rooftops about it in those periods where you have got a lot of eyeballs on the channel and on our site. So in general, what you are seeing is great performance in foundational durable momentum. And I think that the consistency of the consumption numbers is another indicator for you. That this is not some kind of, high heat, you know, and then cool down period. it is very consistent. Growth. Owen Rickert: Got it. Got it. that is super helpful, guys. And then lastly for me, the powering Honest growth its growth costs are winding down, and you actually had a much smaller restructuring credit this quarter than I expected. Are we essentially through all of the P and L noise related to powering Honest Growth? Curtiss Bruce: First, let me just take an opportunity to recognize the team here that has been executing against Powering Honest Growth. We are going to deliver more savings and less cost than even the previous guidance that we had given. And so we are certainly excited about the opportunity to do that. From a completion standpoint, we are now live in our warehouse. So we have executed against the, warehouse consolidation. We are against seeing some of those savings in Q2, and we are largely through, but not completely through the cost related to the program. But very pleased with the result and the impact that it is had on structural profitability within the business. Owen Rickert: Thank you. Operator: I am showing no further questions. So with that, I will now turn the call back over to CEO, Carla Vernon, for any closing remarks. Carla Vernon: I just wanna take this opportunity once again to echo what Curtiss said. We thank our teams. This has been incredible, powerful work. I also feel like if you have any interest in more answers, there is a great presentation on our investors.honest.com web site, and we look forward to talking to you all next quarter. Operator: Ladies and gentlemen, thank you for participating. This does conclude today's program. And you may now disconnect. Before you buy stock in Honest, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Honest wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Honest Company (HNST) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Honest Company (HNST) moved into the spotlight after reporting second quarter 2026 results, raising full year revenue guidance, and completing a buyback that retired more than 6% of its shares. See our latest analysis for Honest Company. Against this backdrop, Honest Company has seen momentum build, with a 7 day share price return of 49.59% and a year to date share price return of 109.20%. The 3 year total shareholder return of 287.23% highlights how strongly sentiment has shifted over a longer horizon. If recent gains in Honest Company have you thinking about what else is moving, it could be a good time to widen your search with 19 top founder-led companies After a 49.59% move in a week and a buyback that retired more than 6% of the share count, is Honest Company now priced for a healthier business, or for a sharp swing in sentiment that could reset as valuation is tested next? The most followed narrative currently places Honest Company fair value at $5.00, which sits below the latest close of $5.46, so the market is leaning ahead of that view. Read the complete narrative. Want to see what sits behind that confidence in Honest Company? The narrative leans on a specific path for margins, steady revenue, and a richer future earnings multiple. Curious which assumptions really carry the $5.00 fair value. Result: Fair Value of $5.00 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the Honest Company narrative also leans on assumptions that could be challenged if tariff costs bite harder than expected or if weakness in the diaper category persists. Find out about the key risks to this Honest Company narrative. If the split sentiment around Honest Company has you on the fence, now is a good moment to review the numbers yourself and weigh both sides. To see how the current mix of concerns and potential positives lines up, start by checking the 1 key reward and 2 important warning signs. If Honest Company has sharpened your focus on what is possible, do not stop here. Use the Simply Wall Street Screener to surface fresh opportunities now. Target potential mispricings by checking companies that combine quality fundamentals with attractive valuations through the 52 high quality undervalued stocks. Build a steadier income stream by reviewing companies highlighted as potential 8 dividend fortresses. Prioritise resilience by reviewing companies identified in the 83 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HNST. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in The Honest Company, Inc.? Here are five stocks we like better. Honest delivered strong underlying performance despite lower reported revenue: Q2 revenue fell 10.9% to $83.3 million due to strategic exits and diaper weakness, but organic revenue grew 6.7%, underlying adjusted EBITDA margin reached a record 9.8%, and free cash flow improved to $35.3 million in the first half. Wipes and Personal Care drove growth, with consumption up 26% and 19%, respectively, while total consumption rose nearly 8%. Diapers remained a structural drag, although they now account for less than 25% of overall consumption. The company raised its 2026 outlook to 5%–7% organic revenue growth, $319 million–$325 million in reported revenue, and $23 million–$25 million in adjusted EBITDA, while planning increased investments in marketing, technology and supply-chain capabilities. The Honest Company is Undergoing an Honestly Solid Turnaround Honest (NASDAQ:HNST) reported second-quarter results marked by organic revenue growth, record underlying profitability and stronger consumption trends in its Wipes and Personal Care businesses, while reported revenue declined due to strategic exits and continued pressure in diapers. Chief Executive Officer Carla Vernón said the company generated nearly 7% organic revenue growth and reached its highest underlying profit margins to date. Honest raised its full-year outlook following first-half execution that management said reflected progress in brand maximization, margin enhancement and operating discipline. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control The Honest Company Stock is Looking Honestly Good Reported revenue for the second quarter was $83.3 million, down 10.9% from the prior-year period. Chief Financial and Operating Officer Curtiss Bruce said the decline reflected strategic exits and lower diaper revenue, partly offset by growth in Wipes and Personal Care. On an organic basis, revenue increased 6.7%. Reported gross margin was 48.4%, while adjusted gross margin was 50.1%, up 970 basis points year over year. The adjusted figure included a $6.6 million tariff refund as well as dilution from apparel liquidation. Excluding those items, underlying adjusted gross margin was 43.8%, an increase of about 340 basis points, driven by favorable product mix, operational improvements and earlier-than-expected supply-chain savings. → 3 Drone Stocks That Should Soar After the Summer Slump Operating expenses declined $4.1 million to $30.8 million, although the company increased marketing spending by nearly 20% to support Wipes and Personal Care. Net income rose to $10.7 million from $3.9 million a year earlier. Adjusted EBITDA was $14.5 million, representing a 17.3% margin. Excluding the tariff refund and apparel liquidation, underlying adjusted EBITDA margin was 9.8%, up about 160 basis points and an all-time high for the company, according to Bruce. Honest ended the quarter with $105.9 million in cash and cash equivalents and no debt. Free cash flow for the first six months of 2026 was $35.3 million, compared with negative free cash flow of $3.8 million in the prior-year period. The company repurchased 5.6 million shares year to date for $18.7 million at an average price of $3.35 per share, leaving $6.3 million under its existing authorization. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Vernón said total consumption grew nearly 8% during the period, outpacing 2% growth in the company’s comparative categories. Household penetration reached 8.1%, improving 100 basis points year over year, with nearly two-thirds of that increase coming from households without children. Wipes consumption rose 26%, compared with 2% growth in the relevant categories. Honest’s Clean Conscious Wipes, which management described as the leading natural baby wipe brand, grew 16%. Flushable wipes grew more than 200%, while sanitizing wipes rose 55%. The company’s “It’s Time to Get Honest” flushable-wipes campaign generated more than 3 billion media impressions, Vernón said. Honest recently added its flushable wipes to the feminine-care aisle at CVS and sees opportunities for additional distribution, product expansion and awareness-building. Honest also used Amazon Prime Day to acquire new customers, with 58% of visitors to its Amazon storefront being new to the brand, according to Vernón. The company said it aims to use major retailer events not only to generate sales but also to introduce shoppers to its wider assortment and build recurring subscriptions. Personal Care consumption increased 19%, exceeding the category’s 5% growth rate. Honest maintained its position as the No. 2 brand in total baby personal care, Vernón said. The company’s kid-focused Personal Care lineup, launched with a Pixar “Toy Story 5” campaign, is expanding beyond Walmart and Amazon into food retailers including H-E-B and select Ahold Delhaize banners. Management said diapers remain a drag on results as the category faces structural headwinds and broad declines among national brands. Vernón said Honest has continued investing in diaper product performance and value, but described the category as “very challenged.” Diapers now represent less than 25% of Honest’s overall consumption, while Wipes and Personal Care account for 70%, according to management. The company said its growth in baby wipes and baby personal care has helped offset the impact of diaper-category weakness. Honest also announced a new licensing agreement with an industry-leading apparel manufacturer. Under the arrangement, the company will return to an outbound licensing model for baby and family apparel, including bedding and baby clothing. Bruce said the agreement fits Honest’s asset-light operating model and should be margin-accretive, though it is expected to be immaterial to 2026 results. Honest raised its full-year 2026 outlook, now expecting: Reported revenue of $319 million to $325 million, including about $10 million from apparel inventory liquidation revenue. Organic revenue growth of 5% to 7%, compared with its prior outlook of 4% to 6%. Adjusted gross margin in the mid-40% range, up from prior guidance for the low 40% range. Adjusted EBITDA of $23 million to $25 million, compared with prior guidance of $20 million to $23 million. Bruce said full-year adjusted gross-margin guidance includes both the favorable tariff refund effect and the negative impact from apparel liquidation. Management expects underlying gross-margin performance in the second half to exceed first-half levels. The company plans to reinvest tariff-refund proceeds in marketing, technology, supply-chain capabilities and other scaling initiatives. Bruce said marketing investment will increase in both dollars and as a percentage of sales during the second half, while spending on capabilities will flow through selling, general and administrative expenses. Management also said it expects SG&A to increase from the “low watermark” reached in the second quarter as it funds investments intended to support long-term scaling. Honest said its warehouse consolidation is now live and has begun contributing savings, though some costs tied to its Powering Honest Growth initiative remain. The Honest Company, Inc (NASDAQ: HNST) is an American consumer goods firm specializing in eco-friendly and responsibly formulated products for babies, personal care, beauty and home cleaning. The company emphasizes transparency in ingredient sourcing and product safety, positioning itself in the premium segment of mass-market retail and direct-to-consumer channels. Honest was founded in 2011 by actress Jessica Alba and environmental health advocate Christopher Gavigan with a mission to offer parents household and baby care items free from harsh chemicals and synthetic fragrances. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Honest Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record underlying adjusted gross margins of 43.8% and EBITDA margins of 9.8%, driven by structural improvements and a strategic shift toward higher-margin categories. Revenue mix has intentionally shifted toward wipes and personal care platforms, which now represent over 70% of total revenue, effectively offsetting structural declines in the diaper category. Consumption growth of nearly 8% was volume-led and significantly outpaced comparative category growth of 2%, validating the resonance of the 'Honest Standard' across diverse household types. Household penetration increased by 100 basis points to 8.1%, with nearly two-thirds of that growth coming from households without children, expanding the brand's reach beyond its legacy baby-focused identity. The wipes portfolio delivered 26% consumption growth, fueled by the 'It’s Time to Get Honest' campaign for flushable wipes, which generated over 3 billion media impressions. Management characterizes current diaper category headwinds as structural rather than cyclical, with most national brands experiencing declines, prompting a focus on managing the segment for value rather than volume growth. Operational excellence initiatives, including the 'Powering Honest Growth' program, realized supply chain savings earlier than expected and facilitated a transition to an asset-light outbound licensing model for apparel. Raised full-year 2026 guidance to include reported revenue of $319 million to $325 million, organic revenue growth of 5% to 7%, and adjusted EBITDA of $23 million to $25 million, reflecting accelerated momentum in the second half of the year. Management plans to aggressively reinvest tariff refunds into marketing and organizational capabilities to accelerate household penetration and build a foundation for 2027 growth. Marketing spend is expected to step up in the second half of the year, both in absolute dollars and as a percentage of revenue, targeting adult-focused categories like flushable wipes. Adjusted gross margin guidance was raised to the mid-forties, supported by favorable product mix and ongoing supply chain efficiencies despite the dilutive impact of apparel liquidation. The new apparel licensing agreement is expected to be immaterial to 2026 financial results but will contribute to a more margin-accretive, asset-light operating model in future periods. Reported results include a $6.6 million one-time tariff refund, which management has excluded from 'underlying' margin metrics to provide a clearer view of core profitability. The company is exiting direct apparel operations in favor of a licensing model, resulting in temporary margin dilution during the inventory liquidation phase. Diapers now represent less than 25% of overall consumption, a strategic reduction intended to insulate the broader business from the category's structural unit declines. The 'Powering Honest Growth' restructuring program is nearing completion, having successfully consolidated warehouses and delivered savings ahead of schedule and below projected costs. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that adjusted gross margin guidance includes both the tariff refund benefit and apparel liquidation headwinds. Marketing spend will increase to drive household penetration, particularly in wipes and personal care, following successful first-half campaigns like the Toy Story 5 partnership. Incremental investments will also target SG&A capabilities and technology to improve operational efficiency as the company scales. The shift aligns with the company's 'asset-light DNA,' reducing capital intensity while maintaining brand presence in baby apparel and bedding. Management expects the licensing model to be margin-accretive over the long term, though it remains immaterial for the remainder of 2026. Management is shifting focus from door counts to household penetration as a more holistic growth metric across e-commerce and brick-and-mortar channels. Significant runway remains in personal care and flushable wipes, where penetration is currently below 3% and 1% respectively, compared to competitors with 5-7x higher reach. Every 1 percentage point gain in baby personal care penetration is estimated to be worth $25 million to $30 million in annual sales.

Honest (HNST) came out with quarterly earnings of $0.04 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +100.00%. A quarter ago, it was expected that this consumer products company would post earnings of $0.01 per share when it actually produced earnings of $0.01, delivering no surprise. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Honest, which belongs to the Zacks Consumer Products - Discretionary industry, posted revenues of $83.3 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 7.28%. This compares to year-ago revenues of $93.46 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Honest shares have added about 50.8% since the beginning of the year versus the S&P 500's gain of 13%. While Honest has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Honest was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.03 on $77.22 million in revenues for the coming quarter and $0.10 on $309.36 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Discretionary is currently in the bottom 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. PVH (PVH), another stock in the broader Zacks Consumer Discretionary sector, has yet to report results for the quarter ended July 2026. This owner of the Calvin Klein and Tommy Hilfiger brands is expected to post quarterly earnings of $3.09 per share in its upcoming report, which represents a year-over-year change of +22.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. PVH's revenues are expected to be $2.1 billion, down 3.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Honest Company, Inc. (HNST) : Free Stock Analysis Report PVH Corp. (PVH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. The Honest Co Inc (NASDAQ:HNST) achieved strong organic revenue growth of nearly 7% in Q2 2026, with overall consumption growth of nearly 8%, significantly outpacing the 2% growth in its comparative categories. The company reported record-high underlying adjusted gross margins of 43.8% and underlying adjusted EBITDA margins of 9.8%, marking an all-time high for the company. The wipes portfolio delivered exceptional consumption growth of 26%, with flushable wipes growing over 200% and sanitizing wipes growing 55%, making The Honest Co Inc (NASDAQ:HNST) the fastest-growing branded player in the flushable segment. The personal care portfolio grew 19% in Q2, outpacing the category's 5% growth rate, and the company maintained its position as the number 2 brand in total baby personal care. The company raised its full-year 2026 outlook, increasing organic revenue growth guidance to 5-7% and adjusted EBITDA guidance to $23-$25 million, reflecting confidence in continued momentum. The Honest Co Inc (NASDAQ:HNST) ended the quarter with $105.9 million in cash and zero debt, and generated $35.3 million in free cash flow for the first half of 2026, a substantial improvement from negative $3.8 million in the prior year period. Household penetration improved 100 basis points to 8.1%, with nearly two-thirds of that growth coming from no-kid households, demonstrating the brand's broad appeal across household types. The company's strategic shift towards higher-growth, higher-margin wipes and personal care platforms, which now represent over 70% of revenue, is driving structural profitability improvements. The new licensing agreement for baby apparel and bedding aligns with the company's asset-light operating model and is expected to be margin accretive. The company's marketing investments are showing strong returns, with the flushable wipes campaign generating over 3 billion media impressions and Prime Day driving 58% new-to-brand visitors. The Honest Co Inc (NASDAQ:HNST) reported a 10.9% decrease in total reported revenue to $83.3 million, reflecting the impact of strategic exits and continued diaper revenue declines. The diaper business continues to face significant headwinds, with management describing the category challenges as 'structural' and expecting them to persist for the foreseeable future. The company's reported gross margin of 48.4% was inflated by a $6.6 million one-time tariff refund and apparel liquidation dilution, masking the true underlying margin of 43.8%. The company plans to aggressively reinvest the tariff refund dollars in the second half of 2026, which will result in a step-up in marketing and SG&A spending, potentially pressuring near-term profitability. The apparel liquidation and transition to a licensing model will create some P&L noise in 2026, and the new licensing agreement is expected to be immaterial to 2026 results. The company's diaper business now represents less than 25% of overall consumption, and the category's structural decline is a persistent drag on overall growth. While the company raised its full-year guidance, the adjusted EBITDA guidance of $23-$25 million implies a significant step-down in profitability from the Q2 annualized run-rate, reflecting planned investment increases. The company's household penetration of 8.1% remains low compared to competitors, with key branded competitors holding 2-6 times greater penetration in baby personal care and 5-7 times in all-purpose wipes. The company expects a timing benefit regarding inventory to partially reverse in the second half of the year, which could impact working capital and cash flow. The company's reliance on tentpole events like Amazon Prime Day, while successful, introduces potential volatility in quarterly sales performance. Warning! GuruFocus has detected 4 Warning Sign with HNST. Is HNST fairly valued? Test your thesis with our free DCF calculator. Q: Can you clarify whether the tariff refund is included in the full-year profit guidance, and what are your expectations for marketing and SG&A investments in the back half of the year?A: Curtis Bruce (CFO & COO): The adjusted gross margin guidance includes both the favorable impact of the tariff refund and the dilutive impact of the apparel liquidation. Underlying gross margin performance is expected to be stronger in the second half than the first half. We will step up marketing investments in dollars and as a percentage of sales, focusing on wipes and personal care to drive household penetration. Additionally, we are investing in capabilities to scale the business, which will be reflected in the SG&A line. Carla Vernon (CEO) added that marketing is working well, citing 8% consumption growth in Q2, and highlighted successful campaigns like the Toy Story/Pixar launch and the flushable wipes campaign, which drove household penetration gains, particularly from no-kid households. Q: How are you prioritizing the incremental reinvestment dollars across marketing, innovation, and distribution?A: Carla Vernon (CEO): We are mapping investments to our highest-growth, highest-margin platformswipes and personal care. In wipes, we have significant runway with household penetration below 2% in many segments, and we need to build brand awareness. In personal care, we are the #2 baby personal care brand and want to continue fueling leadership and recruiting new households. We are also investing in upper-funnel marketing to reach the 75% of US households with no kids and the 14% with big kids. Beyond marketing, we are investing in technologies and supply chain improvements to enhance operational efficiency, aligning with our operating discipline pillar. Q: Can you provide an update on the diaper category dynamics and how you are managing the business?A: Carla Vernon (CEO): The diaper category is structurally challenged, with most national brands experiencing declines in share and unit growth. We are managing this business wisely by investing in product technology and value to meet the Honest standard. Importantly, our baby portfolio is offsetting the diaper headwindsour all-purpose baby wipes are the #1 natural baby wipe brand, and baby personal care grew nearly 20%. Diapers now represent less than 25% of our overall consumption, while wipes and personal care account for 70%, allowing us to deliver on our raised guidance. Q: Where does Honest sit today in terms of distribution, and how much could expanded door growth support future growth?A: Carla Vernon (CEO): We have shifted our focus from ACV to household penetration as a more holistic metric. Overall household penetration is 8.1%, up 100 basis points year-over-year. In baby personal care, we have less than 3% household penetration despite being the #2 brand, and competitors have up to 6 times our penetration. In flushable wipes, we have less than 1% penetration but are already the 4th largest brand. Every point of household penetration gained in baby personal care is worth $25-30 million in annual sales, highlighting the significant runway ahead. Q: Was the Q2 organic growth acceleration driven more by distribution gains or velocity improvement, and how durable is that signal?A: Carla Vernon (CEO): We entered the year expecting sequential improvement from Q1 to Q2, driven by distribution gains in Q1 that would accelerate in Q2. That is what we saw. The growth is foundational and durable, supported by consistent consumption numbers. We are syncing our innovation schedule with retailer reset calendars to maximize returns, with innovation hitting earlier in the year and then focusing on velocity, awareness, and trial through tentpole events like Prime Day. Q: Are we essentially through all the P&L noise related to the "Powering Honest Growth" program?A: Curtis Bruce (CFO & COO): We are largely through the costs related to the program, though not completely. We are now live in our warehouse, having executed the consolidation, and began seeing savings in Q2. We are delivering more savings at less cost than previously guided, which has positively impacted structural profitability. Q: Why did you decide to transition the apparel business to a licensing model, and what are the expectations for 2027 and beyond?A: Curtis Bruce (CFO & COO): The licensing model aligns with our asset-light strategy. It allows us to participate in the apparel category for baby clothes and bedding in a low-capital-intensive way, and licensing is margin-accretive. We are excited about the new agreement with an industry-leading manufacturer but will not speculate on longer-term impacts. The agreement is expected to be immaterial to 2026 results. Q: Can you provide more color on the SG&A step-down in Q2 and expectations for the back half?A: Curtis Bruce (CFO & COO): The Q2 performance reflects strong execution and the benefits of the "Powering Honest Growth" program. As we look to the second half, we expect SG&A to step up from the Q2 low-water mark due to investments in marketing and capabilities to support sustained long-term scaling. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Top-Line Momentum Continues Behind Higher-Margin Growth PlatformsRecord Profitability & Durable Foundation Enable Accelerated Reinvestment for Sustainable Growth Raising Full Year 2026 Financial Outlook LOS ANGELES, Aug. 05, 2026 (GLOBE NEWSWIRE) -- The Honest Company (Nasdaq: HNST), a personal care company dedicated to creating cleanly-formulated and sustainably-designed products for everyone from babies to adults, today reported financial results for its second quarter ended June 30, 2026. Second Quarter 2026 Financial Highlights Compared to Prior Year Period: Revenue of $83.3 million decreased 10.9%; Organic Revenue(1) increased 6.7% Gross margin of 48.4% increased 800 bps; Underlying Adjusted Gross Margin(1) of 43.8% increased 340 bps Net income of $10.7 million increased $6.8 million; Underlying Adjusted Net Income(1) was $5.1 million Underlying Adjusted EBITDA(1) was $7.8 million; Underlying Adjusted EBITDA Margin(1) of 9.8% increased 160 bps Cash and cash equivalents of $105.9 million increased $33.8 million “For the second quarter we delivered accelerated Organic Revenue growth of 7% and record underlying margins,” said Chief Executive Officer, Carla Vernón. “With consumption growth of nearly 8%, we believe the momentum across our fastest-growing, most profitable platforms is proving to be durable. This strong performance, built upon a vibrant growth vision and increased structural profitability, is evidence that The Honest Company is a modern personal care company built to last. We are now well-positioned to thoughtfully deploy additional investments to expand household penetration and drive operational excellence of The Honest Company. With confidence in our continued momentum, we are raising our full-year 2026 financial outlook.” (1) These are non-GAAP financial measures. See tables below under “Use of Non-GAAP Financial Measures” for information on how we calculate and define these non-GAAP financial measures, including a reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures. Revenue decreased 10.9% to $83.3 million, reflecting the impact of strategic exits under Powering Honest Growth and diaper revenue declines, partially offset by continued growth in wipes and personal care products. Organic Revenue(1) increased 6.7% to $80.2 million, driven by growth in wipes and personal care products, partially offset by a decline in diaper revenue. Tracked channel consumption(2) for the Company increased 7.7% versus 2.3% for the comparative categories in the same period. Gross margin was 48.4%, reflecting an increase of 800 bps. This expansion was primarily driven by tariff refunds, favorable product mix, and improvements related to strategic exits under Powering Honest Growth(3) net of the partial liquidation of the remaining apparel inventory. Adjusted Gross Margin(1), calculated by excluding the discrete costs of Powering Honest Growth, was 50.1%, reflecting an increase of 970 bps. Underlying Adjusted Gross Margin(1), calculated by excluding the discrete costs of Powering Honest Growth, tariff refunds and the partial liquidation of the remaining apparel inventory was 43.8%. Operating expenses decreased $4.1 million to $30.8 million. The decrease in operating expenses was driven by lower selling, general & administrative expenses, partially offset by increased marketing investment to support our higher-growth, higher-margin wipes and personal care platforms. Adjusted Operating Expenses(1), calculated by excluding the discrete costs of Powering Honest Growth, was $31.2 million. Selling, general & administrative expenses as a percentage of revenue decreased approximately 380 bps mainly driven by operational efficiencies. Net income increased $6.8 million to $10.7 million primarily related to tariff refunds and growth in Organic Revenue(1). Adjusted Net Income(1) excluding the impact of Powering Honest Growth was $11.7 million. Underlying Adjusted Net Income(1), calculated as Adjusted Net Income excluding tariff refunds was $5.1 million. Adjusted EBITDA(1) was $14.5 million compared to $7.6 million. Underlying Adjusted EBITDA(1), calculated as Adjusted EBITDA excluding tariff refunds was $7.8 million and Underlying Adjusted EBITDA Margin(1) was 9.8%. Balance Sheet and Cash Flow As of June 30, 2026, the Company had no debt outstanding and $105.9 million in cash and cash equivalents, an increase of $33.8 million, primarily related to inventory reductions and higher net income, partially offset by repurchases of common stock versus the prior year period. Net cash provided by operating activities was $37.8 million for the six months ended June 30, 2026, compared to net cash used in operating activities of $3.7 million in the prior year period. During the six months ended June 30, 2026, the Company repurchased approximately 5.6 million shares of its common stock for approximately $18.7 million at a weighted average price of $3.35 per share. As of June 30, 2026, the Company had approximately $6.3 million remaining under its share repurchase program. (1) These are non-GAAP financial measures. See tables below under “Use of Non-GAAP Financial Measures” for information on how we calculate and define these non-GAAP financial measures, including a reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures.(2) According to Circana, Inc. MULO+ tracked channel consumption data. Reflects consumption in the categories in which the Company competes. Weighted category growth represents retail consumption growth of the categories in which the Company competes, weighted by the Company’s category growth for the latest 13 weeks ended June 28, 2026.(3) Refer to the table below under “Transformation 2.0: Powering Honest Growth” for additional information on costs incurred in connection with Powering Honest Growth for the six months ended June 30, 2026. Raising Full Year 2026 Financial Outlook The Company is raising its full year 2026 financial outlook for Revenue, Organic Revenue growth, Adjusted Gross Margin and Adjusted EBITDA. Our financial outlook reflects assumptions, including current tariff levels and our tariff mitigation measures, which are subject to change given the macroeconomic environment. Additional information on the Company’s strategic plans and long-term financial algorithm can be found in its Investor Presentation on its Investor Relations website at https://investors.honest.com. (1) Represents the current outlook for Organic Revenue growth excluding (i) product revenue from our apparel line of $38.5 million in 2025; (ii) revenue from our Honest.com website as a fulfillment center of $35.3 million in 2025; and (iii) revenue from sales to Canadian retailers or channels of $3.4 million in 2025. (2) We do not provide guidance for the most directly comparable GAAP measures, gross margin and net income, as applicable, and similarly cannot provide a reconciliation between our Adjusted Gross Margin outlook and gross margin and Adjusted EBITDA outlook and net income without unreasonable effort due to the unavailability of reliable estimates for certain components of gross margin and net income, including restructuring-related costs, and interest and other (income) expense, net, and the respective reconciliations. These items are not within our control and may vary greatly between periods and could significantly impact our financial results calculated in accordance with GAAP. Webcast and Conference Call Information A webcast and conference call to discuss second quarter 2026 results is scheduled for today, August 5, 2026, at 1:45 p.m. Pacific time/4:45 p.m. Eastern time. Those interested in participating in the conference call by phone, please go to the Q2 2026 Earnings Call and you will be provided with dial-in details. A live webcast of the conference call will be available online at: https://investors.honest.com. A replay of the webcast will be available on the Company’s website for one year. Forward-Looking Statements This press release and earnings call referencing this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements. Such statements may address the Company’s expectations regarding revenue, profit margin or other future financial performance and liquidity, other performance measures and cost savings, strategic initiatives and future operations or operating results. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will” or “would” or the negative of these words or other similar terms or expressions. These forward-looking statements include, but are not limited to, statements concerning our expectations regarding future results of operations and financial condition, including our revenue, Adjusted EBITDA, Organic Revenue and Adjusted Gross Margin outlook for full year 2026 and our growth potential; the durability of the growth in our fastest-growing product platforms; our ability to drive shareholder value in line with our long-term algorithm; our ability to continue to benefit from our Transformation Pillars of Brand Maximization, Margin Enhancement, and Operating Discipline; our ability to successfully implement, execute, and derive benefits from Powering Honest Growth, including transforming Honest into a more strategically focused, financially resilient and profitably built enterprise; our ability to remain profitable, reinvest in our brand, our Transformation Pillars, and accelerate household penetration; our ability to scale efficiently across our categories and grow the Honest Brand and our market share; our ability to accelerate or continue growth in the high-margin categories and to offset declines in other categories; our ability to navigate and manage the impact of evolving macroeconomic conditions and consumer demand or behaviors; our expectations on the impact of tariffs on our business; our ability to achieve or sustain profitability and continue generating positive cash flow; the strength of the Honest brand; our tariff mitigation strategy; our pricing, marketing, new product launches, and distribution strategies; and plans and objectives of management for future operations. You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this press release and the earnings call referencing this press release primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition and operating results. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled “Risk Factors” in the Annual Report, on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission on February 25, 2026, as updated by our Quarterly Reports on Form 10-Q and subsequent filings with the Securities and Exchange Commission. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release or the earnings call referencing this press release. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. In addition, statements that contain “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. The forward-looking statements made in this press release and the earnings call referencing this press release relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments. About The Honest Company Founded in 2012, The Honest Company (Nasdaq: HNST) is on a mission to create personal care that raises the standards of clean and brings joy to each and every moment. By combining thoughtful design with science-based innovation, the Company delivers cleanly-formulated and sustainably-designed personal care products for everyone from babies to adults – showing you don’t have to compromise between performance and peace of mind. The Honest Standard, the Company’s rigorous set of guiding principles that shape every step of product innovation and development, reflects Honest’s ongoing dedication to safety, transparency and integrity. As a leader in Clean Conscious® products, Honest continues to set a new standard for clean formulations, bringing joy to a community that seeks authenticity, transparency and efficacy in everyday essentials. Honest products are available nationwide at major retailers, including Amazon, Target and Walmart. For more information about the Honest Standard and the Company, please visit www.honest.com. Investor Contact:                                    Chris [email protected] Media Contact: Brenna Israel Mast [email protected] The Honest Company, Inc.Use of Non-GAAP Financial Measures (Unaudited) We prepare and present our consolidated financial statements in accordance with GAAP. However, management believes that Organic Revenue, Adjusted EBITDA, Adjusted EBITDA Margin, Underlying Adjusted EBITDA, Adjusted Gross Margin, Underlying Adjusted Gross Margin, Adjusted Operating Expenses, Adjusted Net Income, Adjusted Net Income Margin, Underlying Adjusted Net Income and Underlying Adjusted Net Income Margin, which are non-GAAP financial measures, provide investors with additional useful information in evaluating our performance. We calculate Organic Revenue as net revenue, adjusted to exclude revenue from exited operations in connection with Powering Honest Growth including: (1) product revenue from our apparel line; (2) revenue from our Honest.com website as a fulfillment center; and (3) revenue from sales to Canadian retailers or channels and (4) in certain periods, revenue from other acquisitions, divestitures and product or channel exits. We calculate Adjusted EBITDA as net income, adjusted to exclude: (1) interest and other (income) expense, net; (2) income tax provision; (3) depreciation and amortization; (4) stock-based compensation expense, including payroll tax; (5) litigation and settlement fees associated with certain non-ordinary course securities litigation claims; (6) executive officer transition expenses; and (7) restructuring-related expenses in connection with Powering Honest Growth. We calculate Adjusted EBITDA Margin by dividing Adjusted EBITDA by revenue. We calculate Underlying Adjusted EBITDA as Adjusted EBITDA, adjusted to exclude tariff refunds and the partial liquidation of the remaining apparel inventory. We calculate Adjusted Operating Expenses as total operating expenses, adjusted to exclude restructuring expenses in connection with Powering Honest Growth. We calculate Adjusted Net Income as net income, adjusted to exclude restructuring-related expenses in connection with Powering Honest Growth. We calculate Underlying Adjusted Net Income as Adjusted Net Income, adjusted to exclude tariff refunds and the partial liquidation of the remaining apparel inventory. We calculate Adjusted Gross Margin as gross margin, adjusted to exclude the restructuring-related expenses that are included in cost of revenue in the condensed consolidated statements of comprehensive income in connection with Powering Honest Growth. We calculate Underlying Adjusted Gross Margin as Adjusted Gross Margin, adjusted to exclude tariff refunds and the partial liquidation of the remaining apparel inventory. Our non-GAAP financial measures are not required by, or presented in accordance with GAAP. We believe that our non-GAAP financial measures, when taken together with our financial results presented in accordance with GAAP, provides meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, we believe that the use of these non-GAAP measures are helpful to our investors as they are measures used by management in assessing the health of our business, determining incentive compensation and evaluating our operating performance, as well as for internal planning and forecasting purposes. Additionally, we believe Organic Revenue, Adjusted Gross Margin, Adjusted Operating Expenses and Adjusted Net Income are helpful to our investors as these measures adjust for revenue sources that we exited in connection with Powering Honest Growth. We anticipate disclosing these measures until these costs/exited revenue streams are removed from the comparable prior period and when no additional costs are expected to be incurred in connection with Powering Honest Growth. Adjusted EBITDA and Adjusted EBITDA Margin are presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented in accordance with GAAP. Some of the limitations of Adjusted EBITDA, Underlying Adjusted EBITDA and Adjusted EBITDA Margin include that (1) they do not reflect capital commitments to be paid in the future; (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA, Underlying Adjusted EBITDA and Adjusted EBITDA Margin do not reflect these capital expenditures; (3) they do not consider the impact of stock-based compensation expense; (4) they do not reflect other non-operating expenses, including interest expense; (5) they do not reflect tax payments that may represent a reduction in cash available to us; and (6) they do not include certain non-ordinary cash expenses that we do not believe are representative of our business on a steady-state basis, such as executive officer transition expenses. In addition, our use of non-GAAP financial measures may not be comparable to similarly titled measures of other companies because they may not calculate these non-GAAP measures in the same manner, limiting their usefulness as comparative measures. Because of these limitations, when evaluating our performance, you should consider these non-GAAP financial measures alongside other financial measures, including our revenue, net income and other results stated in accordance with GAAP. The following table presents a reconciliation of revenue, the most directly comparable financial measure stated in accordance with GAAP, to Organic Revenue, for each of the periods presented: The following table presents a reconciliation of net income, the most directly comparable financial measures stated in accordance with GAAP, to Adjusted EBITDA, Underlying Adjusted EBITDA and Underlying Adjusted EBITDA Margin, for each of the periods presented: (1) For the three months ended June 30, 2026 and 2025, this includes bonus costs related to our Chief Financial Officer transition, as well as separation and recruiting costs related to our Chief Financial Officer transition for the three months ended June 30, 2025. (2) Refer to the table below for additional information on the restructuring costs incurred in connection with Powering Honest Growth for the three months ended June 30, 2026.(3) Represents $6.6 million tariff refunds recognized as a reduction in cost of revenue.(4) Represents $3.1 million recognized in revenue and $3.1 million recognized in cost of revenue related to the partial liquidation of the remaining apparel inventory. The following table presents a reconciliation of gross margin, the most directly comparable financial measure stated in accordance with GAAP, to Adjusted Gross Margin and Underlying Adjusted Gross Margin, for each of the periods presented: (1) Represents restructuring-related expenses that are included in cost of revenue on the condensed consolidated statements of comprehensive income in connection with Powering Honest Growth. Refer to the table below for additional information on the restructuring costs incurred in connection with Powering Honest Growth for the three months ended June 30, 2026. (2) Represents the gross margin impact of the $6.6 million tariff refunds recognized as a reduction in cost of revenue.(3) Represents the gross margin impact of the $3.1 million recognized in revenue and the $3.1 million recognized in cost of revenue related to the partial liquidation of the remaining apparel inventory. The following table presents a reconciliation of total operating expenses, the most directly comparable financial measure stated in accordance with GAAP, to Adjusted Operating Expenses, for each of the periods presented: (1) Refer to the table below for additional information on the restructuring costs incurred in connection with Powering Honest Growth for the three months ended June 30, 2026. The following table presents a reconciliation of net income, the most directly comparable financial measure stated in accordance with GAAP, to Adjusted Net Income, Underlying Adjusted Net Income, Net Income Margin and Underlying Adjusted Net Income Margin for each of the periods presented: (1) Refer to the table below for additional information on the restructuring costs incurred in connection with Powering Honest Growth for the three months ended June 30, 2026.(2) Represents $6.6 million tariff refunds recognized as a reduction in cost of revenue.(3) Represents $3.1 million recognized in revenue and $3.1 million recognized in cost of revenue related to the partial liquidation of the remaining apparel inventory. Transformation 2.0: Powering Honest Growth Costs associated with Powering Honest Growth were as follows (in thousands): (1) Represents costs incurred in connection with a warehouse closure for the three months ended June 30, 2026.(2) Includes an adjustment related to contract and external obligation costs for the three months ended June 30, 2026. In future periods, we may incur other charges or cash expenditures not currently contemplated that may occur as a result of or in connection with Powering Honest Growth.

Reynolds Consumer Products (REYN) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.44%. A quarter ago, it was expected that this company would post earnings of $0.25 per share when it actually produced earnings of $0.28, delivering a surprise of +12%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Reynolds Consumer Products, which belongs to the Zacks Consumer Products - Discretionary industry, posted revenues of $944 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.26%. This compares to year-ago revenues of $938 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Reynolds Consumer Products shares have added about 12.6% since the beginning of the year versus the S&P 500's gain of 8.5%. While Reynolds Consumer Products has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Reynolds Consumer Products was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.36 on $915.46 million in revenues for the coming quarter and $1.59 on $3.74 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Discretionary is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Honest (HNST), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This consumer products company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -33.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Honest's revenues are expected to be $77.65 million, down 16.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Reynolds Consumer Products Inc. (REYN) : Free Stock Analysis Report The Honest Company, Inc. (HNST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research