Financial Education on $HNST (Nov 6, 2026)

Now to be honest, I think this stock has a lot of potential. Lots of possibilities. I'm looking at the numbers. The company's organic revenue grew by 9.2%. A truly great number from Carla and the management team there.

Gross margin was 45%, compared to 37.3% in the same quarter last year.

But the core gross margins, that is, the businesses they are surviving in—because they are exiting some businesses this year. And that's why their revenue looks lower than last year.

But in the businesses where they have survived, revenue is growing very strongly.

Look at the underlying adjusted gross margin of the business. This is about 49% compared to 37.3% in the same quarter last year. This is an increase of 1160 basis points year-on-year.

Underlying adjusted net income was $3 million. It was $758,000 in the same quarter last year. And adjusted underlying EBID came in at 6.2 million, up from 3.5 million previously.

The underlying adjusted EBA margin came in at 7.9%, up from 4.9%.

So, it seems to me that they are doing really well. They are doing really well and are building this company into a very strong one for years to come. It was a tough decision for the management team to exit some businesses and that's why the share price was $2 earlier this year , right?

And I believe it will end up well above $5 this year. That's my personal opinion, right?

Revenue. They have either directed the revenue to be raised to 320 or they have increased the lower limit of the limit. So now they are giving instructions from 322 to 325. They will probably surpass that too.

Organic revenue growth of 6 to 7 percent, up from 5 to 7 percent previously. Adjusted gross margin 45 to 46.5. So we can call it a 46 percent adjusted gross margin, which is what they're expecting , previously they were talking about the mid-40s.

Mid-40s means like 45 percent, right? So adjusted EBITDA is moving to the midpoint of 25.5 million , previously they were at 24 million. So it's good in every way.

Next we look at the balance sheet. Remember, Honest is a very small market cap company. The company's entire market cap might be $400 or $500 million. This is a very small market cap.

They have more than $100 million in cash and cash equivalents. $103 million, right? This is an incredible number. I mean, they're flush with cash without any debt , right?

And then, of course they have increased their profits a lot and they still have a lot of work to do. Um, when it comes down to it, that profit has to continue to grow. Excellent income statement.

But, the main point of the story is, Honest is a really great opportunity.