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The Honest Company HNST Trade Agreements — Trade agreements asset

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Other financials

Income statement

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Revenue$83.3M-10.9%
Gross profit$40.4M+6.9%
Operating income$9.6M+232%
Net income$10.7M+176%
EPS (diluted)$0.09+200%

Balance sheet

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Cash & equivalents$105.9M+46.9%
Total debt$9.5M-45.7%
Total equity$167.0M-10.7%
Total assets$220.1M-11.6%

Cash flow

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Operating cash flow$32.2M+4,428%
CapEx$762.0K+841%
Free cash flow$31.5M+3,912%

Valuation

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Market cap$585.77M+31.6%
Enterprise value$489.38M+25.3%
P/S1.7×+0.6×

Profitability

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Gross margin35.7%-3.5pp
Operating margin-4.4%-5.5pp
Net margin-3.6%-5.2pp
FCF margin15.4%

Returns & leverage

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Return on equity-6.9%-11.0pp
Debt / equity0.1×0.0×
Current ratio3.9×-0.2×

Where this comes from

Reported directly by The Honest Company in its filing.

Tagged under the XBRL concept us-gaap:ContractWithCustomerAssetNet.

The source filing: The Honest Company’s 10-Q, filed August 5, 2026.

Filed
Aug 5, 2026, 4:07 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0001628280-26-053323

As of June 30, 2026, the Company made the decision to discontinue further utilization of the uncommitted marketing and transportation credits. As a result, the Company recorded a $1.5 million reduction to revenue in the condensed consolidated statements of comprehensive income and a corresponding write-off of $1.5 million of remaining uncommitted marketing and transportation credit assets, consisting of a $0.8 million reduction to prepaid expenses and other current assets and a $0.7 million reduction to other assets in the condensed consolidated balance sheets. As of June 30, 2026, $0.1 million committed trade credits remain that are expected to be utilized in the third quarter of 2026.

Item 1. Condensed Consolidated Financial Statements (Unaudited)

FAQ

What is The Honest Company's trade agreements — trade agreements asset?
The Honest Company (HNST) reported trade agreements — trade agreements asset of $100K in Q2 2026.
What does trade agreements — trade agreements asset mean?
Represents the capitalized value of rights or benefits acquired through trade agreements that are expected to provide future economic value to the company. This asset reflects the long-term strategic value of contractual relationships with retailers or distributors. Changes in this balance indicate the company's investment in securing or maintaining market access through formal trade arrangements.

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