The Honest Company, Inc. · NASDAQ:HNST
The Honest — Q2 2026 Earnings Presentation
21 slides from The Honest's earnings presentation, Aug 5, 2026
Slide 1: Q2 2026 Earnings Update
Q2 2026 Earnings Update August 5, 2026
Slide 2: Forward Looking Statements
Forward Looking Statements Forward Looking Statements This presentation contains 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. In some cases, you can identify forward-looking
Slide 3: Our Team
Our Team Carla Vernón Chief Executive Officer Curtiss Bruce Chief Financial & Operating Officer 3
Slide 4: Q2 2026 Key Messages
Q2 2026 Key Messages Top-Line Momentum Continues Behind Higher- 1 Margin Growth Platforms Record Profitability & Durable Foundation Enable 2 Accelerated Reinvestment for Sustainable Growth 3 Raising Full Year 2026 Financial Outlook 4
Slide 5: Q2 2026 Highlights
Q2 2026 Highlights Robust Top-Line Growth and Margin Expansion REVENUE EXPANSION PROFITABILITY +6.7% +340bps Organic Revenue 44% Underlying Growth1 Adj. Gross Margin1 CONSUMER DEMAND BRAND REACH +7.7% 8.1% Consumption Household Growth2 Penetration3 Notes: 1. Non-GAAP measure. See appendix for reconc
Slide 6: Platform Momentum
Platform Momentum Higher-Growth, Higher-Margin Businesses Driving Outperformance TOTAL WIPES TOTAL PERSONAL CARE DIAPERS +26% (vs. +2% Category)1 +19% (vs. +5% Category)1 -21% (vs. -2% Category)1 ALL PURPOSE FLUSHABLES SANITIZING Expected declines to be +16% +201% +55% offset by growth platforms (vs
Slide 7: A Modern Personal Care Company Built to Last
A Modern Personal Care Company Built to Last Anchored by The Honest Standard & Driven by Disciplined Execution Strengthened Modern brand Dynamic Scalable growth financial leadership & foundation culture 7
Slide 8: Focused, Growth-Driven & More Profitable
Focused, Growth-Driven & More Profitable A Durable Financial Foundation to Fuel Continued Reinvestment STRATEGICALLY FOCUSED GROWTH-DRIVEN STRUCTURALLY PROFITABLE Revenue Mix1 Consumption Growth2 Underlying Adj. Gross Margin3 $ Millions 100% Diapers Personal Care 90% Exits +15pts Wipes Diapers 80% 4
Slide 9: Financials
Financials 9
Slide 10: Q2 2026 Financial Results
Q2 2026 Financial Results Strong Organic Growth & Structural Margin Improvement Deliver Record Profitability ORGANIC REVENUE1 MARKETING AS % OF REVENUE UNDERLYING ADJ. EBITDA%1 +6.7% YoY $80.2M 17.4% +390bps YoY 9.8% +160bps YoY | $7.8M Adj. Gross Margin Bridge1 +9.7pts 50.1% 43.8% 40.4% Q2 2025 Str
Slide 11: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Asset-light, Highly Cash Generative; Partially Benefiting from Timing of Inventory FREE CASH FLOW1 CASH & CASH EQUIVALENTS SHARE REPURCHASE $ Millions $ Millions $ Millions $105.9 $35.3 $25.0 $89.6 FY 2025 Q2 2026 ($3.8) H1 2025 H1 2026 $0M $18.7M Debt Executed Notes: 1. No
Slide 12: FY 2026 Financial Outlook
t Half Results to Reflect Accelerated Reinvestment FY 2026 Financial Outlook Raising Outlook on Strong First Half Results & to Reflect Accelerated Reinvestment Metric Updated Guidance Prior Guidance Revenue $319M to $325M $306M to $312M Inc. $10M Apparel Inventory Revenue Organic Revenue Growth 5% t
Slide 13: Appendix
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Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes non-GAAP financial measures, including Organic Revenue, Adjusted EBITDA, Adjusted EBITDA Margin, Underlying Adjusted EBITDA, Underlying Adjusted EBITDA Margin, Adjusted Gross Margin, Underlying Adjusted Gross Margin, Adjusted Operating Expenses,
Slide 15: Organic Revenue Reconciliation
Organic Revenue Reconciliation For Three Months Ended June 30, ($ Millions) 2026 2025 Revenue $83.3 $93.5 Less revenue from: Apparel 3.1 7.8 Honest.com — 9.8 Canada — 0.7 Organic Revenue $80.2 $75.1 Organic Revenue 6.7% Growth 15
Slide 16: Adjusted Gross Margin Reconciliation
Adjusted Gross Margin Reconciliation For Three Months Ended June 30, (percent of revenue) 2026 2025 Gross Margin 48.4% 40.4% Restructuring-related costs 1.7% –% Adjusted Gross Margin 50.1% 40.4% Tariff refunds (7.9)% –% Apparel liquidation 1.6% —% Underlying Adjusted Gross 43.8% 40.4% Margin 16
Slide 17: Adjusted Operating Expenses Reconciliation
Adjusted Operating Expenses Reconciliation For Three Months Ended June 30, ($ Millions) 2026 2025 Total Operating Expenses $30.8 $34.9 Restructuring costs (0.4) — Adjusted Operating Expenses $31.2 $34.9 17
Slide 18: Adjusted Net Income Reconciliation
Adjusted Net Income Reconciliation For Three Months Ended June 30, ($ Millions) 2026 2025 Net Income $10.7 $3.9 Restructuring-related costs 1.0 – Adjusted Net Income $11.7 $3.9 Tariff refunds 6.6 — Apparel liquidation — — Underlying Adjusted Net Income $5.1 $3.9 Underlying Adjusted Net Income 6.3% 4
Slide 19: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation For Three Months Ended June 30, ($ Millions) 2026 2025 Net income $10.7 $3.9 Interest and other (income) expense, net (1.2) (1.0) Income tax provision 0.1 — Depreciation and amortization 0.7 0.7 Stock-based compensation 3.0 2.7 Securities litigation expense — 0.1 Execu
Slide 20: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation For Six Months Ended June 30, ($ Millions) 2026 2025 Net cash provided by (used in) $37.8 ($3.7) operating activities Purchases of property and (2.5) (0.1) equipment Free Cash Flow $35.3 ($3.8) 20
Slide 21: Thank You
Thank You 21