Honest Company Management
Management criteria checks 3/4
Honest Company's CEO is Carla Vernon, appointed in Jan 2023, has a tenure of 3.67 years. total yearly compensation is $4.15M, comprised of 18.7% salary and 81.3% bonuses, including company stock and options. directly owns 1.37% of the company’s shares, worth $7.94M. The average tenure of the management team and the board of directors is 2.5 years and 4.3 years respectively.
Key information
Carla Vernon
Chief executive officer
US$4.1m
Total compensation
| CEO salary percentage | 18.66% |
| CEO tenure | 3.7yrs |
| CEO ownership | 1.4% |
| Management average tenure | 2.5yrs |
| Board average tenure | 4.3yrs |
Recent management updates
Recent updates
Narrative Update • Sep 06
HNST: Q2 Execution And Buybacks Will Support Measured Turnaround Re Rating
Honest Company’s analyst fair value estimate has increased from $5.00 to $5.70. Analysts cite the Q2 beat, higher earnings estimates, improving growth and profitability metrics, and what they view as still cautious long term guidance as key supports for the higher targets.
Narrative Update • Aug 23
HNST: Q2 Beat Fuels Turnaround While Execution Risks Keep Outlook Balanced
Honest Company’s updated analyst fair value estimate has moved from $3.40 to $5.00. This reflects a series of higher price targets as analysts respond to the Q2 beat, higher earnings estimates and ongoing progress in the company turnaround.Seeking Alpha • Aug 22
The Honest Company: The Turnaround Is Real, But I'm Not Chasing The Rally
Summary The Honest Company has executed a successful turnaround, driving margin expansion and profitability through strategic exits and cost reductions. HNST's core product lines—wipes and personal care—are now 70% of consumption and are fueling organic growth, offsetting diaper segment declines. Management raised 2026 guidance: $319–$325M revenue, 5–7% organic growth, mid-40% gross margins, and $23–$25M EBITDA. Despite operational improvements, HNST trades at a premium P/E and P/S; I maintain a hold rating until growth and profitability further accelerate. Read the full article on Seeking Alpha
Narrative Update • Aug 09
HNST: Rising Q2 Optimism And Tariff Reinvestment Will Ultimately Restrain Future Returns
Analysts now see higher fair value for Honest Company shares, with the average price target rising from $4 to about $4.82. This shift is supported by recent Q2 outperformance, higher earnings estimates, and an improved outlook for growth and profitability in higher margin categories.Narrative Update • Jul 14
HNST: Discount Rate And Earnings Execution Risks Will Restrain Transformation 2.0 Outlook
Analysts have raised the Honest Company fair value estimate from $3.00 to $3.40 per share, citing updated assumptions on the discount rate, revenue trends, profit margins, and a revised future P/E outlook. Analyst Commentary Recent research updates on Honest Company point to a more constructive fair value estimate, but the tone is not uniformly upbeat.Narrative Update • Jun 30
HNST: Higher P/E Assumptions And Buybacks Will Drive Future Margin Upside
The analyst price target for The Honest Company has been raised to $4.07 from $3.50. Analysts attribute the change to updated views on fair value, profitability assumptions and longer-term P/E expectations.Narrative Update • Jun 16
HNST: Improving Margins And Buybacks Will Support Future Stock Re Rating
The Honest Company stock price target has been adjusted modestly higher, with analysts citing updated valuation work that reflects a slightly different discount rate, revenue outlook, profit margin profile, and future P/E assumptions consistent with recent target increases of $0.40, $0.50, and $1.00 from Street research. Analyst Commentary Recent price target revisions for Honest Company stock point to a more constructive tone from bullish analysts, who are updating models to reflect refreshed assumptions around growth, profitability, and P/E levels rather than any single short term event.Narrative Update • Jun 02
HNST: Improving Margins And Buybacks Will Support Future Re Rating Potential
Analysts have raised their $4.91 price target on Honest Company to $5.00, citing updated assumptions around revenue trends, improving profit margin expectations, and a lower projected future P/E multiple. Analyst Commentary Recent Street research points to a cluster of higher price targets on Honest Company, with bullish analysts citing updated assumptions around revenue trends, improving profit margin expectations, and a revised outlook for the stock's future P/E multiple.Narrative Update • May 02
HNST: Consistent Execution And Buybacks Will Shape Future Margin And Rating Outlook
Honest Company's analyst price target has moved to $3.50, with the reduction from prior $4 to $6 levels reflecting Q4 results that came in slightly below Street expectations but within guidance, and a shared view among analysts that the stock may require several quarters of consistent execution before any meaningful re rating. Analyst Commentary Analysts have reduced their price targets on Honest Company following the Q4 update, but many still maintain positive ratings while flagging the need for proof of consistent execution before any valuation improvement.Narrative Update • Apr 18
HNST: Consistent Execution Over Coming Quarters Will Drive Re Rating Potential
Narrative Update on Honest Company Analysts have trimmed the blended price target for Honest Company from about $5.95 to roughly $4.91 as they factor in lower revenue growth assumptions, a more modest future P/E of around 34 versus above 100, and the view that the company needs several quarters of consistent execution after Q4 results that were slightly shy of Street expectations but within guidance. Analyst Commentary Recent Street commentary on Honest Company centers on recalibrated price targets that reflect more measured expectations around execution, while still signaling constructive sentiment on the long-term opportunity.Narrative Update • Apr 03
HNST: Consistent Execution And Buybacks Will Support Future Margin Upside
Analysts trimmed their price target on Honest Company to $3.50, down from prior targets of $4 to $6. They cited Q4 results that came in slightly below Street expectations but within guidance, and a view that the company must show several quarters of consistent execution before shares can re-rate.Narrative Update • Mar 19
HNST: Consistent Execution And Buyback Program Will Shape Transformation 2.0 Outlook
Analysts have trimmed Honest Company's average price target by about $1 to align with revised firm targets of $5 and $3.50, citing slightly soft Q4 results, the need for several quarters of consistent execution, and a longer timeline before the business outlook becomes clearer. Analyst Commentary Bearish analysts are resetting expectations on Honest Company, trimming price targets and flagging a longer wait before the story becomes clearer.Narrative Update • Mar 05
HNST: Consistent Execution And Buyback Program Will Support Future Margin Improvement
Narrative Update The updated analyst price target for Honest Company has shifted to $3.50, reflecting lowered Street targets after Q4 results that were slightly below prior expectations but still within guidance. Analysts are emphasizing the need for several quarters of steadier execution and clearer long term visibility before they expect shares to re-rate meaningfully.Narrative Update • Feb 19
HNST: Refined Discount Rate And Higher Future P/E Will Support Upside Potential
Analysts have modestly raised their $ fair value estimate for Honest Company, citing updated assumptions for revenue growth, profit margins, discount rate, and a higher future P/E, even as recent research includes a downgrade that reflects a more cautious stance on execution and profitability. Analyst Commentary JPMorgan's recent downgrade highlights some concern around Honest Company's execution and path to sustained profitability.Narrative Update • Feb 05
HNST: Transformation 2.0 Execution Will Support Future Margin Improvement
Analysts have trimmed their price target for The Honest Company to $3 from $4.25, citing weaker than expected Q3 results, reduced full year guidance, and limited visibility around the recently announced Transformation 2.0 plan. Analyst Commentary Bullish Takeaways Bullish analysts see the reset to a US$3 price target as aligning expectations more closely with current execution, which can reduce the risk of sharp valuation surprises if results continue to track recent trends.Narrative Update • Jan 21
HNST: Transformation 2.0 Progress Will Drive Upside Despite Recent Downgrades
Narrative Update Analysts have trimmed their 12 month price target on Honest Company to about $3.00 from roughly $4.25, citing weaker than expected Q3 results, reduced full year guidance, and limited visibility as the company works through its Transformation 2.0 plan. Analyst Commentary Recent Street research highlights a more cautious tone around Honest Company, with bearish analysts focusing on execution risks around Transformation 2.0 and what they describe as limited visibility into the next few quarters.Narrative Update • Jan 07
HNST: Transformation 2.0 Execution Will Determine Upside From Depressed Expectations
Analysts have trimmed Honest Company's price target to US$3.00 from US$4.25, citing weaker than expected Q3 results, reduced full year guidance, and low visibility around the newly announced Transformation 2.0 plan. Analyst Commentary Bearish analysts have responded to Honest Company's recent update by trimming price targets and stressing that weak Q3 results and lower full year guidance add uncertainty to the story.Narrative Update • Dec 22
HNST: Transformation 2.0 Progress Will Drive Future Margin Expansion And Share Upside
Analysts have lowered their price target on Honest Company from approximately $4.25 to $3.00, citing weaker than expected Q3 results, reduced full year guidance, and ongoing uncertainty around the company’s Transformation 2.0 initiatives. Analyst Commentary Bullish analysts acknowledge the near term challenges facing Honest Company but continue to see a path for the shares to perform in line with the broader market.Narrative Update • Dec 08
HNST: Transformation 2.0 Will Improve Margins Despite Lowered Guidance
The analyst price target for Honest Company has been reduced from $4.25 to $3.00 per share, as analysts cite weaker than expected Q3 results, lowered full year guidance, and uncertainty surrounding the company’s Transformation 2.0 initiative. Analyst Commentary Analysts remain cautious on Honest Company following the latest quarter, highlighting a mix of execution challenges and potential upside if the Transformation 2.0 initiative delivers on its objectives.Narrative Update • Nov 24
HNST: Transformation 2.0 Will Drive Recovery Despite Lowered Guidance
Analysts have reduced their price target for Honest Company, lowering it from $4.25 to $3 per share. They cite weaker than anticipated third-quarter performance and ongoing uncertainty in the company's outlook.Analysis Article • Nov 12
Honest Company's (NASDAQ:HNST) Promising Earnings May Rest On Soft Foundations
Last week's profit announcement from The Honest Company, Inc. ( NASDAQ:HNST ) was underwhelming for investors, despite...Analysis Article • Nov 08
Results: The Honest Company, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates
One of the biggest stories of last week was how The Honest Company, Inc. ( NASDAQ:HNST ) shares plunged 22% in the week...Narrative Update • Nov 07
HNST: Earnings Outperformance Will Support Turnaround Momentum Despite Slower Revenue
Narrative Update on Honest Company Analysts have lowered their price target for Honest Company from $5.50 to $4.25 per share. This change reflects expectations for slower growth rates and a slightly reduced valuation multiple, even though recent earnings exceeded consensus.Analysis Article • Jul 12
Why We're Not Concerned About The Honest Company, Inc.'s (NASDAQ:HNST) Share Price
There wouldn't be many who think The Honest Company, Inc.'s ( NASDAQ:HNST ) price-to-sales (or "P/S") ratio of 1.3x is...Analysis Article • Jun 18
We Think Honest Company (NASDAQ:HNST) Can Easily Afford To Drive Business Growth
There's no doubt that money can be made by owning shares of unprofitable businesses. For example, although Amazon.com...
New Narrative • Apr 23
Enhanced Product Availability And Digital Distribution Will Drive Success
Strategic shifts towards digital distribution and efficient operations aim to enhance net margins and profitability.Analysis Article • Apr 07
The Honest Company, Inc. (NASDAQ:HNST) Not Flying Under The Radar
There wouldn't be many who think The Honest Company, Inc.'s ( NASDAQ:HNST ) price-to-sales (or "P/S") ratio of 1.2x is...Seeking Alpha • Mar 27
The Honest Company: The Story Still Needs To Get Better
Summary With grand plans for market leadership likely off the table, the path to upside for The Honest Company probably centers on a sale. A major like Kimberly-Clark or P&G could easily improve margins and distribution; the math for a buyout at $8 per share or more can work. But a seemingly strong turnaround over the past two years has been aided by one-time moves and a key accounting change. HNST can still drive upside, but a lower price and/or execution is needed to make the story more attractive. Read the full article on Seeking AlphaSeeking Alpha • Feb 15
The Honest Company Is Overvalued But A Long-Term Buy
Summary The Honest Company is a buy opportunity due to revenue growth, stock momentum, and a focused management team. The company is a niche player among peers but is growing, and the share price is up significantly over the past year, signifying strong momentum. Risks include dependency on goods made in China, insider selling, legal challenges, and mixed profitability metrics. Hedge funds increased holdings recently. Honest Company has a solid foundation with no significant debt, strong digital marketing, and consumer-friendly policies, making it a potential buying opportunity on dips in the share price. Read the full article on Seeking AlphaCEO Compensation Analysis
| Date | Total Compensation | Salary | Company Earnings |
|---|---|---|---|
| Jun 30 2026 | n/a | n/a | -US$12m |
| Mar 31 2026 | n/a | n/a | -US$19m |
| Dec 31 2025 | US$4m | US$773k | -US$16m |
| Sep 30 2025 | n/a | n/a | US$7m |
| Jun 30 2025 | n/a | n/a | US$6m |
| Mar 31 2025 | n/a | n/a | -US$1m |
| Dec 31 2024 | US$5m | US$725k | -US$6m |
| Sep 30 2024 | n/a | n/a | -US$4m |
| Jun 30 2024 | n/a | n/a | -US$12m |
| Mar 31 2024 | n/a | n/a | -US$22m |
| Dec 31 2023 | US$6m | US$711k | -US$39m |
Compensation vs Market: Carla's total compensation ($USD4.15M) is above average for companies of similar size in the US market ($USD2.41M).
Compensation vs Earnings: Carla's compensation has been consistent with company performance over the past year.
CEO
Carla Vernon (55 yo)
3.7yrs
Tenure
US$4,145,946
Compensation
Ms. Carla Vernon is an Independent Director of Hasbro, Inc. from January 2026. Ms. Vernon is Chief Executive Officer of The Honest Company, Inc. from January 9, 2023 and serves as its Director from January...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.7yrs | US$4.15m | 1.37% $ 7.9m | |
| Founder & Director | no data | US$236.67k | 1.13% $ 6.5m | |
| Chief Financial & Operating Officer and Principal Financial | 1.3yrs | US$1.58m | 0.044% $ 257.5k | |
| Senior Vice President of Supply Chain | 1.6yrs | US$978.24k | 0.36% $ 2.1m | |
| Senior VP | 6.3yrs | no data | 0.35% $ 2.0m | |
| Senior Vice President of Integrated Marketing & Communications | 2.1yrs | no data | no data | |
| Chief People Officer | 3.1yrs | US$1.35m | 0.093% $ 538.4k | |
| Senior Vice President of Customer Sales | 2.8yrs | no data | 0.016% $ 93.9k | |
| Senior Vice President of Strategy & Enterprise Development | 2.5yrs | no data | 0.13% $ 762.6k | |
| SVP of Financial Planning & Analysis (FP&A) and Investor Relations | less than a year | no data | no data |
2.5yrs
Average Tenure
49yo
Average Age
Experienced Management: HNST's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.7yrs | US$4.15m | 1.37% $ 7.9m | |
| Founder & Director | 8.3yrs | US$236.67k | 1.13% $ 6.5m | |
| Independent Director | 7.9yrs | US$266.67k | 0.33% $ 1.9m | |
| Independent Chairman of the Board | 5.3yrs | US$318.70k | 0.30% $ 1.7m | |
| Independent Director | 4.3yrs | US$262.60k | 0.35% $ 2.1m | |
| Independent Director | 5.3yrs | US$264.17k | 0.27% $ 1.5m | |
| Independent Director | 2.8yrs | US$249.17k | 0.21% $ 1.2m | |
| Independent Director | 2.8yrs | US$256.67k | 0.22% $ 1.3m | |
| Independent Director | 2.8yrs | US$259.17k | 0.15% $ 862.7k |
4.3yrs
Average Tenure
59yo
Average Age
Experienced Board: HNST's board of directors are considered experienced (4.3 years average tenure).
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/09/13 12:13 |
| End of Day Share Price | 2026/09/11 00:00 |
| Earnings | 2026/06/30 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
The Honest Company, Inc. is covered by 13 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Aaron Grey | Alliance Global Partners |
| Bryan Spillane | BofA Global Research |
| Anna Glaessgen | B. Riley Securities, Inc. |