The Honest Company boosts profits and raises 2026 guidance amid successful turnaround.

The Honest Company has successfully turned its business around by focusing on its core products like wipes and personal care, which now make up 70% of consumption and drive organic growth. This strategy has offset declines in its diaper segment and led to margin expansion and profitability. Management has raised its 2026 guidance, expecting $319–$325 million in revenue, 5–7% organic growth, mid-40% gross margins, and $23–$25 million EBITDA. Despite these improvements, the stock trades at a premium valuation, leading the analyst to maintain a hold rating until growth and profitability further accelerate.