Honest Company, Inc.

Share Repurchase Program

On February 20, 2026, the Honest Company’s Board of Directors approved the Company’s first-ever share repurchase program for up to $25 million of its outstanding common stock.

"Today we’re also announcing our inaugural share repurchase program. This strategic move reflects our confidence in Honest’s potential to deliver sustainable profitable growth," said Chief Financial Officer, Curtiss Bruce. "Our share repurchase program underscores the strength of our balance sheet, our asset-lite model and our ability to enhance long-term shareholder returns while maintaining financial flexibility to support our strategic growth initiatives."

Under the program, share repurchases may be made at the Company’s discretion from time to time in open market transactions or privately negotiated transactions, or by other means, including through Rule 10b5-1 trading plans. The timing and number of shares repurchased under the new program will depend on a variety of factors, including, without limitation, stock price, trading volume, and general business and market conditions. The repurchase program does not obligate the Company to purchase any shares, has no expiration date and may be modified, suspended or terminated at any time. The Company expects to fund repurchases with a combination of existing cash and cash equivalents and cash flows from operations. As of December 31, 2025, the Company had cash and cash equivalents of $89.6 million.

(2) Represents gross margin excluding the discrete costs of Powering Honest Growth. See the reconciliation of Adjusted Gross Margin, a non-GAAP financial measure, to gross margin in the table under “Use of Non-GAAP Financial Measures” below in this press release.

(3) Represents net income excluding the discrete costs of Powering Honest Growth. See the reconciliation of Adjusted Net Income, a non-GAAP financial measure, to net loss in the table under “Use of Non-GAAP Financial Measures” below in this press release.

(4) See the reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin, non-GAAP financial measures, to net income (loss) and net income (loss) margin in the table under “Use of Non-GAAP Financial Measures” below in this press release.