Honest Company
HNST on Nasdaq. The Honest Company sells diapers, wipes, personal care, and beauty products to families. Market value $553m.
Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to December 2025.
We can't read total debt from the filing, so debt is left out.
Should I look at this?
Not a fit for our list right now
Why it could be worth it
See Retail & consumer stocks that passed both tests
This is not advice. Check the numbers below.
For every $100 of what the whole company costs, it produced $9.77 of spare cash in the past 12 months. A savings account pays about $4.
The filings do not give us enough to work this out.
The filings do not give us enough to work this out.
Quality score: 47 of 100. Price score: 33 of 100. Our list needs 70 on quality and 60 on price.
$5.03 a share, 143% above its 1-year low
Over the past year the price has ranged from $2.07 to $6.01.
Pays no dividend
Prices from Tuesday’s close (6 October).
Five years of cash, in billions
Spare cash swings from quarter to quarter here: $53 million in the past 12 months, $14 million in the year to December 2025.
| Revenue | |||||
| Revenue | $319m | $314m | $344m | $378m | $371m |
| Operating margin | |||||
| Operating margin | -11.6% | -15.9% | -11.3% | -1.7% | -5.0% |
| Debt to equity | |||||
| Debt to equity | n/a | n/a | n/a | n/a | n/a |
| Shares outstanding | |||||
| Shares outstanding | 0.09bn | 0.10bn | 0.10bn | 0.11bn | 0.11bn |
Health checks
- Free cash flow positive3 of 5 years
- Accounting looks honest (Beneish)Not enough data
- Financial strength (Piotroski)4 of 8 checks we could run
- Profit backed by cash (accruals)No
- DebtUnknown
- Revenue growth, five yearsSlow, 3.9% a year
- Buying back its own sharesNo, 16% more shares since 2021
The quarter to June 2026
How the business did, compared with the same quarter a year earlier.
- Sales: $83 million last quarter, down 11% on a year ago.
- Profit: $11 million, up 176% on a year ago.
- It loses 4 cents on each $1 of sales, after keeping 1 cents a year earlier.
- Spare cash over the past 12 months: $53 million. A year earlier it spent $6 million more than it brought in.
- 1% fewer shares than a year ago. Each share owns a bit more of the company.
- Sales did not grow on a year ago in any of the last 4 quarters.
| Quarter to | Amount |
|---|---|
| September 2024 | $99m |
| December 2024 | $100m |
| March 2025 | $97m |
| June 2025 | $93m |
| September 2025 | $93m |
| December 2025 | $88m |
| March 2026 | $78m |
| June 2026 | $83m |
| Quarter to | Amount |
|---|---|
| September 2024 | $165,000 |
| December 2024 | -$810,000 |
| March 2025 | $3m |
| June 2025 | $4m |
| September 2025 | $758,000 |
| December 2025 | -$24m |
| March 2026 | -$42,000 |
| June 2026 | $11m |
From the company's quarterly reports to the SEC.
Dates
- Next results (estimated)
- n/a
- Last annual report (10-K)
- 25 February 2026
- Next quarterly (estimated, 10-Q)
- 4 November 2026
Who owns it
None of the long-term investors we follow own it. 147 funds in all.
Largest holders overall
- BlackRock$26mAdded
- MAK Capital One$17m
- Vanguard Capital Management$15m
- ArrowMark Colorado Holdings$11mAdded
- Geode Capital Management$9mAdded
- State Street$8mAdded
- Dimensional Fund Advisors LP$7mAdded
- Vanguard Portfolio Management$6m
- Portolan Capital Management$6mCut
- American Century Companies$6mAdded
From 13F filings for the quarter ended 30 June 2026.
Big holders and activists
3 investors own more than 5%.
- Jessica WarrenPassive investor5.4%Since 31 December 2025
- Portolan Capital Management, LLCPassive investorat least 4.3%−1.0 pts(filed with 1 related holder)Since 31 December 2025
- Divisadero Street Capital Management, LPPassive investorat least 2.6%−2.9 pts(filed with 4 related holders)Since 31 March 2025
- Nikolaos VlahosPassive investorSold down below 5%Since 31 December 2024
- The Vanguard GroupPassive investorSold down below 5%Since 13 March 2026
| Holder | Stake | Since | |
|---|---|---|---|
Jessica Warren Passive investor | 5.4% | 31 December 2025 | |
Portolan Capital Management, LLC Passive investor | at least 4.3%−1.0 pts (filed with 1 related holder) | 31 December 2025 | |
Divisadero Street Capital Management, LP Passive investor | at least 2.6%−2.9 pts (filed with 4 related holders) | 31 March 2025 | |
Nikolaos Vlahos Passive investor | Sold down below 5% | 31 December 2024 | |
The Vanguard Group Passive investor | Sold down below 5% | 13 March 2026 |
From Schedule 13D and 13G filings: anyone owning more than 5% must file one.
What insiders did
No insider bought shares on the open market in the last 12 months. 10 sold $4m, $3m of it under preset trading plans.
- Sternweis ThomasSVP, Enterprise Dev. & Strat.Soldunder a preset trading plan
- Date
- 14 September 2026
- Shares
- 25,000
- Price
- $5.48
- Value
- $137,000
- von Kunssberg EtienneSVP, Supply ChainSoldunder a preset trading plan
- Date
- 21 August 2026
- Shares
- 4,578
- Price
- $5.01
- Value
- $22,936
- Sternweis ThomasSVP, Enterprise Dev. & Strat.Soldunder a preset trading plan
- Date
- 20 August 2026
- Shares
- 6,403
- Price
- $4.99
- Value
- $31,951
- Sheehey BrendanGeneral CounselSoldunder a preset trading plan
- Date
- 20 August 2026
- Shares
- 9,664
- Price
- $4.99
- Value
- $48,223
- Mayle JonathanSVP, Customer SalesSoldunder a preset trading plan
- Date
- 20 August 2026
- Shares
- 6,161
- Price
- $4.99
- Value
- $30,743
- von Kunssberg EtienneSVP, Supply ChainSoldunder a preset trading plan
- Date
- 20 August 2026
- Shares
- 2,617
- Price
- $4.99
- Value
- $13,059
- Vernon CarlaChief Executive Officer, DirectorSoldunder a preset trading plan
- Date
- 20 August 2026
- Shares
- 117,893
- Price
- $4.99
- Value
- $588,286
- Bruce Curtiss James IIIChief Fin. & Operating OfficerSoldunder a preset trading plan
- Date
- 20 August 2026
- Shares
- 3,129
- Price
- $4.99
- Value
- $15,614
- Ball Dorria L.Chief People OfficerSoldunder a preset trading plan
- Date
- 20 August 2026
- Shares
- 6,812
- Price
- $4.99
- Value
- $33,992
- Turner AndreaDirectorSold
- Date
- 11 August 2026
- Shares
- 29,899
- Price
- $5.21
- Value
- $155,774
| Date | Who | Did | Shares | Price | Value |
|---|---|---|---|---|---|
| 14 September 2026 | Sternweis Thomas SVP, Enterprise Dev. & Strat. | Sold under a preset trading plan | 25,000 | $5.48 | $137,000 |
| 21 August 2026 | von Kunssberg Etienne SVP, Supply Chain | Sold under a preset trading plan | 4,578 | $5.01 | $22,936 |
| 20 August 2026 | Sternweis Thomas SVP, Enterprise Dev. & Strat. | Sold under a preset trading plan | 6,403 | $4.99 | $31,951 |
| 20 August 2026 | Sheehey Brendan General Counsel | Sold under a preset trading plan | 9,664 | $4.99 | $48,223 |
| 20 August 2026 | Mayle Jonathan SVP, Customer Sales | Sold under a preset trading plan | 6,161 | $4.99 | $30,743 |
| 20 August 2026 | von Kunssberg Etienne SVP, Supply Chain | Sold under a preset trading plan | 2,617 | $4.99 | $13,059 |
| 20 August 2026 | Vernon Carla Chief Executive Officer, Director | Sold under a preset trading plan | 117,893 | $4.99 | $588,286 |
| 20 August 2026 | Bruce Curtiss James III Chief Fin. & Operating Officer | Sold under a preset trading plan | 3,129 | $4.99 | $15,614 |
| 20 August 2026 | Ball Dorria L. Chief People Officer | Sold under a preset trading plan | 6,812 | $4.99 | $33,992 |
| 11 August 2026 | Turner Andrea Director | Sold | 29,899 | $5.21 | $155,774 |
From Form 4 filings: insiders must report trades in their own company's shares within two days.
Warning signs in its filings
Problems the company itself reported to the SEC, in its own words.
None of the warning signs we check for were found.
We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.
We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 25 Feb 2026, plus the 10-Q filed 5 Aug 2026 and 6 later 8-Ks.
A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.
What could go wrong
Cheap for a reason is the question the numbers cannot answer.
Whether the price already reflects the risks is what the deep dive is for.
The deep dive
Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.
- What the business is worth, as a range, and the margin of safety at today’s price
- Prices to start buying, buy, and buy hard
- The three things that would make this a mistake
- Every number footnoted to the filing it came from
Your first deep dive is free.
Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.