The Honest Company, Inc. (HNST) 10-Q 13 Aug 21 2021 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2021	Aug. 09, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-40378
Entity Registrant Name	The Honest Company, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	90-0750205
Entity Address, Address Line One	12130 Millennium Drive
Entity Address, Address Line Two	#500
Entity Address, City or Town	Los Angeles
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90094
City Area Code	888
Local Phone Number	862-8818
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Trading Symbol	HNST
Security Exchange Name	NASDAQ
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		90,272,332
Entity Central Index Key	0001530979
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 41,438	$ 29,259
Restricted cash	0	1,752
Short-term investments	53,673	34,425
Accounts receivable, net	27,396	22,795
Inventories, net	82,413	76,669
Prepaid expenses and other current assets	10,698	8,657
Total current assets	215,618	173,557
Restricted cash, net of current portion	0	6,189
Property and equipment, net	54,774	56,703
Goodwill	2,230	2,230
Intangible assets, net	476	511
Other assets	4,010	1,542
Total assets	277,108	240,732
Current liabilities
Accounts payable	32,709	31,132
Accrued expenses	17,612	22,222
Deferred revenue	775	716
Total current liabilities	51,096	54,070
Long term liabilities
Lease financing obligation, net of current portion	37,983	38,426
Other long-term liabilities	8,242	8,657
Total liabilities	97,321	101,153
Commitments and contingencies (Note 8)
Redeemable convertible preferred stock, $0.0001 par value, 49,192,248 shares authorized at December 31, 2020; 49,100,928 shares issued and outstanding as of December 31, 2020; (liquidation preference of $396,726 as of December 31, 2020)	0	376,404
Stockholders’ equity (deficit)
Preferred stock, $0.0001 par value, 20,000,000 shares authorized at June 30, 2021, none issued or outstanding as of June 30, 2021	0
Common stock, $0.0001 par value, 1,000,000,000 and 150,000,000 shares authorized at June 30, 2021 and December 31, 2020, respectively; 90,288,407 and 34,089,186 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively	9	3
Additional paid-in capital	557,285	116,055
Accumulated deficit	(377,495)	(352,977)
Accumulated other comprehensive income (loss)	(12)	94
Total stockholders’ equity (deficit)	179,787	(236,825)
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)	$ 277,108	$ 240,732

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Redeemable convertible preferred stock, par value (in USD per share)		$ 0.0001
Redeemable convertible preferred stock, authorized (in shares)		49,192,248
Redeemable convertible preferred stock, issued (in shares)		49,100,928
Redeemable convertible preferred stock, outstanding (in shares)	0	49,100,928
Redeemable convertible preferred stock, liquidation preference		$ 396,726,000
Preferred stock, par value (in USD per share)	$ 0.0001
Preferred stock authorized (in shares)	20,000,000
Preferred stock, shares issued (in shares)	0
Preferred stock, shares outstanding (in shares)	0
Common stock, par value (in USD per share)	$ 0.0001	$ 0.0001
Common stock authorized (in shares)	1,000,000,000	150,000,000
Common stock issued (in shares)	90,288,407	90,288,407
Common stock outstanding (in shares)	34,089,186	34,089,186

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Revenue	$ 74,576	$ 72,354	$ 155,607	$ 144,726
Cost of revenue	47,633	45,867	100,284	92,434
Gross profit	26,943	26,487	55,323	52,292
Operating expenses
Selling, general and administrative	30,091	14,940	46,788	29,646
Marketing	14,009	10,625	28,182	19,818
Research and development	2,345	1,100	3,991	2,266
Total operating expenses	46,445	26,665	78,961	51,730
Operating income (loss)	(19,502)	(178)	(23,638)	562
Interest and other income (expense), net	(510)	(175)	(836)	(334)
Income (loss) before provision for income taxes	(20,012)	(353)	(24,474)	228
Income tax provision	22	22	44	44
Net income (loss)	$ (20,034)	$ (375)	$ (24,518)	$ 184
Net income (loss) per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.17)	$ (0.01)	$ (0.32)	$ 0
Diluted (in dollars per share)	$ (0.17)	$ (0.01)	$ (0.32)	$ 0
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:
Basic (in shares)	68,079,387	34,069,346	51,184,615	34,065,173
Diluted (in shares)	68,079,387	34,069,346	51,184,615	35,064,356
Other comprehensive income (loss)
Unrealized gain (loss) on short-term investments, net of taxes	$ (24)	$ 169	$ (106)	$ 162
Comprehensive income (loss)	$ (20,058)	$ (206)	$ (24,624)	$ 346

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Unaudited) (Deficit) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)		34,033,074
Beginning balance (in shares) at Dec. 31, 2019	49,100,928
Beginning balance at Dec. 31, 2019	$ 376,404
Ending balance (in shares) at Mar. 31, 2020	49,100,928
Ending balance at Mar. 31, 2020	$ 376,404
Beginning balance at Dec. 31, 2019	(230,277)	$ 3	$ 108,109	$ (338,511)	$ 122
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	559			559
Other comprehensive loss	(7)				(7)
Stock options exercised (in shares)		29,420
Stock options exercised	13		13
Stock-based compensation	1,923		1,923
Ending balance (in shares) at Mar. 31, 2020		34,062,494
Ending balance at Mar. 31, 2020	$ (227,789)	$ 3	110,045	(337,952)	115
Beginning balance (in shares) at Dec. 31, 2019	49,100,928
Beginning balance at Dec. 31, 2019	$ 376,404
Ending balance (in shares) at Jun. 30, 2020	49,100,928
Ending balance at Jun. 30, 2020	$ 376,404
Beginning balance at Dec. 31, 2019	(230,277)	$ 3	108,109	(338,511)	122
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	184
Other comprehensive loss	162
Ending balance (in shares) at Jun. 30, 2020		34,083,994
Ending balance at Jun. 30, 2020	$ (225,664)	$ 3	112,376	(338,327)	284
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)		34,062,494
Beginning balance (in shares) at Mar. 31, 2020	49,100,928
Beginning balance at Mar. 31, 2020	$ 376,404
Ending balance (in shares) at Jun. 30, 2020	49,100,928
Ending balance at Jun. 30, 2020	$ 376,404
Beginning balance at Mar. 31, 2020	(227,789)	$ 3	110,045	(337,952)	115
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(375)			(375)
Other comprehensive loss	169				169
Stock options exercised (in shares)		21,500
Stock options exercised	6		6
Stock-based compensation	2,325		2,325
Ending balance (in shares) at Jun. 30, 2020		34,083,994
Ending balance at Jun. 30, 2020	$ (225,664)	$ 3	112,376	(338,327)	284
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)		34,083,994
Beginning balance (in shares)		34,089,186
Beginning balance (in shares) at Dec. 31, 2020	49,100,928
Beginning balance at Dec. 31, 2020	$ 376,404
Ending balance (in shares) at Mar. 31, 2021	49,100,928
Ending balance at Mar. 31, 2021	$ 376,404
Beginning balance at Dec. 31, 2020	(236,825)	$ 3	116,055	(352,977)	94
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(4,484)			(4,484)
Other comprehensive loss	(82)				(82)
Stock options exercised (in shares)		38,188
Stock options exercised	33		33
Stock-based compensation	1,838		1,838
Ending balance (in shares) at Mar. 31, 2021		34,127,374
Ending balance at Mar. 31, 2021	$ (239,520)	$ 3	117,926	(357,461)	12
Beginning balance (in shares) at Dec. 31, 2020	49,100,928
Beginning balance at Dec. 31, 2020	$ 376,404
Ending balance (in shares) at Jun. 30, 2021	0
Ending balance at Jun. 30, 2021	$ 0
Beginning balance at Dec. 31, 2020	(236,825)	$ 3	116,055	(352,977)	94
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(24,518)
Other comprehensive loss	(106)
Ending balance (in shares) at Jun. 30, 2021		90,288,407
Ending balance at Jun. 30, 2021	$ 179,787	$ 9	557,285	(377,495)	(12)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)		34,127,374
Beginning balance (in shares) at Mar. 31, 2021	49,100,928
Beginning balance at Mar. 31, 2021	$ 376,404
Increase (Decrease) in Temporary Equity [Roll Forward]
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares)	49,100,928
Conversion of redeemable convertible preferred stock to common stock upon initial public offering	$ 376,404
Ending balance (in shares) at Jun. 30, 2021	0
Ending balance at Jun. 30, 2021	$ 0
Beginning balance at Mar. 31, 2021	(239,520)	$ 3	117,926	(357,461)	12
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(20,034)			(20,034)
Other comprehensive loss	$ (24)				(24)
Stock options exercised (in shares)	53,694	53,694
Stock options exercised	$ 295		295
Dividends paid	(35,000)		(35,000)
Issuance of common stock pursuant to initial public offering, net of underwriting commissions and discounts and offering costs of $12.2 million (in shares)		6,451,613
Issuance of common stock pursuant to initial public offering, net of underwriting commissions and discounts and offering costs of $12.2 million	91,039	$ 1	91,038
Conversion of redeemable convertible preferred stock to common stock upon initial public offering (in shares)		49,649,023
Conversion of redeemable convertible preferred stock to common stock upon initial public offering	376,405	$ 5	376,400
Vested restricted stock units (in shares)		6,703
Stock-based compensation	6,626		6,626
Ending balance (in shares) at Jun. 30, 2021		90,288,407
Ending balance at Jun. 30, 2021	$ 179,787	$ 9	$ 557,285	$ (377,495)	$ (12)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (in shares)		90,288,407

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Unaudited) (Parenthetical) $ in Millions	3 Months Ended
	Jun. 30, 2021USD ($)$ / shares
Statement of Stockholders' Equity [Abstract]
Dividends paid (in USD per share) | $ / shares	$ 0.42
Underwriting commissions, discounts, and offering costs | $	$ 12.2

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) (Statement) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities
Net income (loss)	$ (24,518)	$ 184
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
Depreciation and amortization	2,117	2,557
Stock-based compensation	8,464	4,248
Other	93	39
Changes in assets and liabilities:
Accounts receivable, net	(4,601)	3,083
Inventories	(5,744)	667
Prepaid expenses and other assets	(4,507)	(1,896)
Accounts payable, accrued expenses and other long-term liabilities	(3,969)	4,721
Deferred revenue	58	(117)
Net cash (used in) provided by operating activities	(32,607)	13,486
Cash flows from investing activities
Purchases of short-term investments	(54,009)	(4,459)
Proceeds from sales of short-term investments	25,362	5,830
Proceeds from maturities of short-term investments	9,207	31,932
Purchases of property and equipment	(100)	(56)
Net cash (used in) provided by investing activities	(19,540)	33,247
Cash flows from financing activities
Proceeds from initial public offering, net of underwriting commissions and discounts	96,517	0
Dividends paid	(35,000)	0
Proceeds from exercise of stock options	328	19
Payment of initial public offering costs	(4,892)	0
Payments on lease obligations	(568)	(496)
Net cash provided by (used in) financing activities	56,385	(477)
Net increase in cash, cash equivalents and restricted cash	4,238	46,256
Cash, cash equivalents and restricted cash
Beginning of the period	37,200	13,543
End of the period	41,438	59,799
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets
Cash and cash equivalents	41,438	51,858
Restricted cash, current	0	1,313
Restricted cash, non-current	0	6,628
Total cash, cash equivalents and restricted cash	41,438	59,799
Supplemental disclosures of noncash activities
Equipment acquired under capital lease obligations	95	46
Deferred IPO costs included in accounts payable and accrued expenses	585	0
Capital expenditures included in accounts payable and accrued expenses	$ 9	$ 18

Nature of Business

Nature of Business	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	Nature of Business The Honest Company, Inc. (the “Company”) was incorporated in the State of California on July 19, 2011 and on May 23, 2012 was re-incorporated in the State of Delaware under the same name. The Company is a mission-driven lifestyle brand that formulates, designs and sells clean products with a focus on sustainability and thoughtful design. The Company sells its products through digital and retail sales channels in the following product categories: Diapers and Wipes, Skin and Personal Care, and Household and Wellness. Initial Public Offering The Company’s registration statement on Form S-1 (“IPO Registration Statement”) related to its initial public offering (“IPO”) was declared effective on May 4, 2021, and the Company’s common stock began trading on the Nasdaq Global Select Market on May 5, 2021. On May 7, 2021, the Company completed its IPO of 25,807,000 shares of the Company's common stock, $0.0001 par value per share at an offering price of $16.00 per share. The Company sold 6,451,613 shares and certain existing stockholders sold an aggregate of 19,355,387 shares. The Company received aggregate net proceeds of approximately $91.0 million after deducting underwriting discounts and commissions of $6.7 million and other offering expenses of $5.5 million, $0.6 million of which was unpaid at June 30, 2021. The Company granted the underwriters an option for a period of 30 days to purchase up to an additional 3,871,050 shares of common stock from the selling stockholders at $16.00 per share less the underwriting discounts and commissions. In May 2021, the underwriters fully exercised the option to purchase these additional shares from the selling stockholders. The Company did not receive any proceeds from the sale of shares of its common stock by the selling stockholders. Upon completion of the IPO, the Company paid $9.5 million in cash bonuses to certain employees including members of management, as well as $0.2 million in related payroll taxes and expenses. Cash bonuses of $9.1 million were recorded in sales, general and administrative expenses and $0.4 million were recorded in research and development expenses in the accompanying condensed consolidated statement of operations and comprehensive income (loss) for the three and six months ended June 30, 2021.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2020. The condensed consolidated financial statements are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and include, in the opinion of management, all adjustments, consisting of normal recurring items, necessary for the fair statement of the condensed consolidated financial statements. The consolidated balance sheet as of December 31, 2020 has been derived from the audited financial statements at that date but does not include all of the disclosures required by GAAP. The condensed consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries after elimination of intercompany transactions and balances. There have been no changes in the accounting policies from those disclosed in the audited consolidated financial statements and related notes for the year ended December 31, 2020. Stock Split In April 2021, the Company effected a 1-for-2 forward stock split of its common and redeemable convertible preferred stock. In connection with the forward stock split, each issued and outstanding share of common stock, automatically and without action on the part of the holders, became two shares of common stock and each issued and outstanding share of redeemable convertible preferred stock, automatically and without action on the part of the holders, became two shares of redeemable convertible preferred stock. The par value per share of common and redeemable convertible preferred stock was not adjusted. All share, per share and related information presented in the condensed consolidated financial statements and accompanying notes have been retroactively adjusted, where applicable, to reflect the impact of the stock split. Segment Reporting and Geographic Information The Company’s Chief Executive Officer, as the chief operating decision maker, organizes the Company, manages resource allocations, and measures performance on the basis of one operating segment. All of the Company’s long-lived assets are located in the United States and substantially all of the Company’s revenue is from customers located in the United States. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s estimates, which are subject to varying degrees of judgment, include the valuation of inventories, sales returns and allowances, allowances for doubtful accounts, valuation of short-term investments, valuation of build-to-suit lease, capitalized software, useful lives associated with long-lived assets, valuation allowances with respect to deferred tax assets, accruals and contingencies, recoverability of goodwill and long-lived assets, and the valuation and assumptions underlying stock-based compensation and common stock. On an ongoing basis, the Company evaluates its estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities. In March 2020, the World Health Organization declared the outbreak of the novel coronavirus disease (“COVID-19”) a pandemic. The full extent to which the outbreak of the COVID-19 pandemic will impact the Company’s business, results of operations and financial condition is still unknown and will depend on future developments, which are uncertain and cannot be predicted, including, but not limited to, the duration and spread of the outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume. In light of the currently unknown ultimate duration and severity of COVID-19, the Company faces a greater degree of uncertainty than normal in making certain judgments and estimates needed to apply significant accounting policies. The Company assessed certain accounting matters and estimates that generally require consideration of forecasted information in context with the information reasonably available to the Company as of the respective balance sheet dates and through the date these condensed consolidated financial statements were issued. Management is not aware of any specific event or circumstance that would require an update to estimates or judgments or a revision to the carrying value of assets or liabilities. However, these estimates and judgments may change as new events occur and additional information is obtained, which may result in changes being recognized in the Company’s consolidated financial statements in future periods. For example, based on macro-Household & Wellness trends, consumer demand for sanitizing and disinfecting products has decelerated at a more rapid than expected rate as more consumers have become vaccinated and retailers continue to manage heavy inventories of sanitization and disinfecting products in stores. The Company will continue to monitor and evaluate the uncertainty and volatility of these conditions and the ultimate impact on the Company’s inventory valuations in the future. Cash, Cash Equivalents, and Restricted Cash Cash equivalents consist of short-term, highly liquid investments with stated maturities of three months or less from the date of purchase. Cash equivalents comprise amounts invested in money market funds. Restricted cash consisted of deposits in a bank account used to collateralize the letters of credit for certain lease arrangements. The Company is no longer required to post collateral in a restricted cash account. Refer to Note 6 included in these condensed consolidated financial statements for additional information on the restricted cash account. Accounts Receivable Accounts receivable is presented net of allowances. The Company does not accrue interest on its trade receivables. On a periodic basis, the Company evaluates accounts receivable estimated to be uncollectible, and provides allowances as necessary for doubtful accounts. The allowance for doubtful accounts was $1.4 million as of June 30, 2021 and December 31, 2020. Deferred IPO Costs Deferred offering costs consist of costs incurred in connection with the sale of the Company’s common stock in its IPO, including certain legal, accounting, and other IPO-related costs. As of June 30, 2021, the deferred offering costs of $5.5 million were recorded in stockholders’ equity (deficit) as a reduction from the proceeds of the offering. As of December 31, 2020, deferred offering costs of $0.5 million had been recorded in other assets on the Company’s condensed consolidated balance sheets. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses the following hierarchy in measuring the fair value of the Company’s assets and liabilities, focusing on the most observable inputs when available: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than Level 1 quoted prices, such as quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active for identical or similar assets and liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Valuations are based on inputs that are unobservable and significant to the overall fair value measurement of the assets or liabilities. Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Fair value is based on quoted market prices, if available. If listed prices or quotes are not available, fair value is based on internally developed models that primarily use market-based or independently sourced market parameters as inputs. Cash equivalents, consisting primarily of money market funds, represent highly liquid investments with maturities of three months or less at purchase. Market prices, which are Level 1 in the fair value hierarchy, are used to determine the fair value of the money market funds. Investments in debt securities are measured using broker provided indicative prices developed using observable market data, which are considered Level 2 in the fair value hierarchy. Certain assets, including long-lived assets, goodwill and intangible assets are also subject to measurement at fair value on a non-recurring basis if they are deemed to be impaired as a result of an impairment review. The fair value is measured using Level 3 inputs in the fair value hierarchy. Recent Accounting Pronouncements As an “emerging growth company”, the Jumpstart Our Business Startups Act, allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use the adoption dates applicable to private companies. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies. Recently Issued Accounting Pronouncements – Not Yet Adopted In February 2016, the Financial Accounting Standards Board (the "FASB") issued ASU No 2016-02, Leases (Topic 842), as subsequently amended, collectively codified under Topic 842. Topic 842 requires lessees to recognize on the balance sheet assets and liabilities for leases with lease terms of more than twelve months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP which requires only capital leases to be recognized on the balance sheet, the new ASU will require both types of leases to be recognized on the balance sheet. ASU 2016-02 was effective for public business entities for fiscal years beginning after December 15, 2018. In June 2020, FASB issued ASU No. 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) – Effective Dates for Certain Entities , which extended the effective date of this guidance for certain non-public entities for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is evaluating the adoption of this guidance and the potential effects on its consolidated financial statements. The Company anticipates the adoption of this guidance may result in a material impact to the Company’s consolidated financial statements as it relates to its build-to-suit lease and recording other operating leases on the consolidated balance sheets. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , to amend the accounting for credit losses for certain financial instruments. This guidance replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. In November 2019, FASB issued ASU No. 2019-10 which delayed the effective dates of the guidance. This guidance is effective for public business entities that meet the definition of an SEC filer, excluding entities eligible to be smaller reporting companies (“SRC”) for fiscal years beginning after December 15, 2019 and all other entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is evaluating the adoption of this guidance and the potential effects on the consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this guidance eliminate Step 2 from the goodwill impairment test, whereby an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under this amendment, an entity should perform its goodwill impairment test by comparing the value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In November 2019, the FASB issued ASU No. 2019-10 which delayed the effective dates of this guidance. This guidance is effective for public business entities excluding entities eligible to be SRCs for annual and any interim impairment test performed for periods beginning after December 15, 2019. For all other entities the guidance is effective for fiscal years beginning after December 15, 2022. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is evaluating the adoption of this guidance and the potential effects on the consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740 as well as by improving consistent application of the topic by clarifying and amending existing guidance. For public business entities, the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the ASU is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for (1) public business entities for periods for which financial statements have not yet been issued and (2) all other entities for periods for which financial statements have not yet been made available for issuance. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company does not expect ASC 740 to have a material impact on the Company’s consolidated financial statements.

Revenue

Revenue	6 Months Ended
	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Disaggregation of Revenue Revenue by sales channel: For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 (In thousands) Digital $ 34,820 $ 46,065 $ 77,281 $ 87,561 Retail 39,756 26,289 78,326 57,165 Total revenue $ 74,576 $ 72,354 $ 155,607 $ 144,726 Revenue by product category: For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 (In thousands) Diapers and wipes $ 47,831 $ 48,744 $ 97,404 $ 99,227 Skin and personal care 23,866 20,558 50,111 39,040 Household and wellness 2,879 3,052 8,092 6,459 Total revenue $ 74,576 $ 72,354 $ 155,607 $ 144,726 Non-Monetary Transaction In March 2021, the Company entered into $4.0 million in trade agreements with a vendor for the exchange of legacy beauty inventory for future marketing and transportation credits. The fair value of the marketing and transportation credits are recognized as revenue, with the corresponding asset included in prepaid expenses and other current assets and other assets in the accompanying condensed consolidated balance sheets. The Company may use the marketing and transportation credits over four years, with an option to extend for another two years if agreed upon by both parties. For the three and six months ended June 30, 2021, the Company recognized $0.5 million and $3.9 million, respectively, of revenue and $0.3 million and $2.2 million, respectively, of associated cost of revenue based on timing of delivery of goods. The Company assesses the recoverability of the

Investments

Investments	6 Months Ended
	Jun. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Investments	Investments As of June 30, 2021 and December 31, 2020, all investments in debt securities are classified as available-for-sale investments. All investments are reported within current assets because the securities represent investments of cash available for current operations. As of June 30, 2021 and December 31, 2020, the Company held $36.9 million and $27.5 million, respectively, of investments with contractual maturities of less than one year. As of June 30, 2021 and December 31, 2020, the Company held $16.8 million and $6.9 million, respectively, of investments with contractual maturities between one and two years. Available-for-sale investments are recorded at fair value, and unrealized holding gains and losses are recorded as a component of other comprehensive income (loss). The following table summarizes the Company’s available-for-sale investments: As of June 30, 2021 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value (In thousands) Corporate bonds $ 22,787 $ 1 $ (12) $ 22,776 Certificates of deposit 24,904 — (3) 24,901 U.S. government and agency securities 5,995 1 — 5,996 Total investments $ 53,686 $ 2 $ (15) $ 53,673 As of December 31, 2020 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value (In thousands) Corporate bonds $ 22,894 $ 58 $ (3) $ 22,949 Commercial paper 538 — — 538 Certificates of deposit 4,447 1 — 4,448 U.S. government and agency securities 6,452 38 — 6,490 Total investments $ 34,331 $ 97 $ (3) $ 34,425 Realized gains and losses on investments in debt securities were immaterial for the three and six months ended June 30, 2021 and 2020.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Financial assets measured and recorded at fair value on a recurring basis consist of the following as of: June 30, 2021 Level 1 Level 2 Level 3 Total (In thousands) Cash equivalents Money market funds $ 17,300 $ — $ — $ 17,300 Corporate bonds (1) — 433 — 433 Certificates of deposit (1) — 3,500 — 3,500 Total cash equivalents 17,300 3,933 — 21,233 Short-term investments Corporate bonds — 22,776 — 22,776 Certificates of deposit — 24,901 — 24,901 U.S. government and agency securities — 5,996 — 5,996 Total short-term investments — 53,673 — 53,673 Total $ 17,300 $ 57,606 $ — $ 74,906 (1) Consists of short-term corporate bonds and certificates of deposit with stated maturities of three months or less. December 31, 2020 Level 1 Level 2 Level 3 Total (In thousands) Cash equivalents Money market funds $ 12,696 $ — $ — $ 12,696 Total cash equivalents 12,696 — — 12,696 Short-term investments Corporate bonds — 22,949 — 22,949 Commercial paper — 538 — 538 Certificates of deposit — 4,448 — 4,448 U.S. government and agency securities — 6,490 — 6,490 Total short-term investments — 34,425 — 34,425 Total $ 12,696 $ 34,425 $ — $ 47,121

Credit Facilities

Credit Facilities	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
Credit Facilities	Credit Facilities On June 4, 2020, the Company terminated its Asset Backed Loan facility (“ABL Revolver”). The Company had no outstanding borrowings under the ABL Revolver immediately prior to termination. Upon termination of the ABL Revolver, the Company was required to post collateral of $7.9 million in a restricted cash account to collateralize the letters of credit related to certain facility leases. As of December 31, 2020, the letters of credit issued related to facility leases of $7.7 million were collateralized by the Company’s restricted cash of $7.9 million. Upon entering into the 2021 Credit Facility (defined below), the Company is no longer required to maintain collateral in a restricted cash account. 2021 Credit Facility In April 2021, the Company entered into a first lien credit agreement (“2021 Credit Facility”), with JPMorgan Chase Bank, N.A., as administrative agent and lender, and the other lenders party thereto, which provides for a $35.0 million revolving credit facility that matures April 2026. The 2021 Credit Facility includes a subfacility that provides for the issuance of letters of credit in an amount of up to $10.0 million at any time outstanding, which reduces the amount available under the 2021 Credit Facility. The 2021 Credit Facility is subject to customary fees for loan facilities of this type, including a commitment fee based on the average daily undrawn portion of the revolving credit facility. The Company expensed the commitment fee and included it in interest and other expense, net in the consolidated statement of operations and comprehensive income (loss). For the three and six months ended June 30, 2021, the commitment fee incurred was immaterial. The interest rate applicable to the 2021 Credit Facility is, at the Company’s option, either (a) the LIBOR (or a replacement rate established in accordance with the terms of the 2021 Credit Facility) (subject to a 0.00% LIBOR floor), plus a margin of 1.50% or (b) the CB floating rate minus a margin of 0.50%. The CB floating rate is the higher of (a) the Wall Street Journal prime rate and (b)(i) 2.50% plus (ii) the adjusted LIBOR rate for a one-month interest period. As of June 30, 2021, there was no outstanding balance under the 2021 Credit Facility.

Accrued Expenses

Accrued Expenses	6 Months Ended
	Jun. 30, 2021
Payables and Accruals [Abstract]
Accrued Expenses	Accrued Expenses Accrued expenses consisted of the following as of: June 30, 2021 December 31, 2020 (In thousands) Payroll and payroll related expenses $ 1,750 $ 6,115 Accrued inventory purchases 4,330 4,588 Accrued returns 1,983 2,585 Other accrued expenses 9,549 8,934 Total accrued expenses $ 17,612 $ 22,222

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation From time to time, the Company is subject to various claims and contingencies which are in the scope of ordinary and routine litigation incidental to its business, including those related to regulation, litigation, business transactions, employee-related matters and taxes, among others. When the Company becomes aware of a claim or potential claim, the likelihood of any loss or exposure is assessed. If it is probable that a loss will result and the amount or range of the loss can be reasonably estimated, the Company records a liability for the loss and discloses the possible loss in the consolidated financial statements . Legal costs are expensed as incurred. On September 17, 2019, the Nevada Department of Taxation (the “Department”) issued a Deficiency Notice against the Company to initiate administrative legal proceedings before the Department for the alleged non-compliance with employee retention requirements provided in exchange for tax benefits in establishing the Company’s Las Vegas distribution center in a December 2016 Abatement Agreement the Company had executed with the State of Nevada via its Governor’s Office of Economic Development. The Company has denied the allegations. An administrative hearing was held in the matter on January 15, 2021. On June 9, 2021 the court upheld the Department's Deficiency Notice against the Company in its entirety. The loss resulting from this matter is $0.7 million including penalties and interest, for which the Company has recorded an accrual of $0.6 million in accrued expenses on the consolidated balance sheets as of June 30, 2021 and December 31, 2020. During the three and six months ended June 30, 2021, the Company recorded interest expense of $0.1 million in interest and other expense, net on the consolidated statement of operations and comprehensive income (loss). The Company filed its Notice of Appeal on July 1, 2021. On September 23, 2020, the Center for Advanced Public Awareness served a 60-Day Notice of Violation on the Company, alleging that the Company violated California’s Health and Safety Code (“Prop 65”) because of the amount of lead in the Company’s Diaper Rash Cream and seeking statutory penalties and product warnings available under Prop 65. The Company intends to vigorously defend itself in this matter. The matter’s outcome and materiality are uncertain at this time. Therefore, the Company cannot estimate the probability of loss or make an estimate of the loss or range of loss in this matter. On January 28, 2021, Rosaura Navar filed a putative class action complaint (Rosaura Navar, et al. v. The Honest Company, Inc.—Los Angeles County Superior Court, Case No. 21STCV03381) alleging that the Company violated California’s Unfair Competition Law by failing to comply with California’s Automatic Renewal Law. The complaint demands restitution, injunctive and declaratory relief. This matter was settled in April 2021 for an immaterial amount. The loss on settlement was recorded in accrued expenses in the accompanying condensed consolidated balance sheets as of June 30, 2021. As of June 30, 2021 and December 31, 2020, the Company is not subject to any other currently pending legal matters or claims that could have a material adverse effect on its financial position, results of operations, or cash flows should such litigation be resolved unfavorably. Indemnifications In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to investors, directors and officers with respect to certain matters, including, but not limited to, losses arising out of the Company’s breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock Options The following table summarizes the stock option activity for the three months ended June 30, 2021: Number of Options Weighted Average Exercise Price Outstanding at March 31, 2021 17,829,264 $ 5.24 Granted — $ — Exercised (53,694) $ 5.49 Forfeited (99,007) $ 5.34 Outstanding at June 30, 2021 17,676,563 $ 5.24 From 2018 to 2020, the Company granted stock options that vest based upon achieving a qualifying liquidity event, provided the employee remains employed on the date the vesting condition is satisfied. In conjunction with the IPO, 2,442,918 stock option awards with a weighted average exercise price of $5.54 vested based on the achievement of the IPO qualifying liquidity event, which resulted in the recognition of stock-based compensation expense of $3.1 million during the three and six months ended June 30, 2021. 2021 Equity Incentive Plan In April 2021, the Company’s board of directors adopted the Company’s 2021 Equity Incentive Plan (the “2021 Plan”), which became effective in connection with the IPO. All equity-based awards granted on or after the effectiveness of the 2021 Plan will be granted under the 2021 Plan. The 2021 Plan provides for grants of incentive stock options (“ISOs”) within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), to the Company’s employees and its parent and subsidiary corporations’ employees, and for the grant of nonstatutory stock options (“NSOs”), stock appreciation rights, restricted stock awards, restricted stock units ("RSUs") awards, performance awards and other forms of awards to the Company’s employees, directors and consultants and any of its affiliates’ employees and consultants. Initially, the maximum number of shares of the Company’s common stock that may be issued under its 2021 Plan will not exceed 25,025,580 shares of the Company’s common stock. In addition, the number of shares of the Company’s common stock reserved for issuance under its 2021 Plan will automatically increase on January 1 of each year for a period of ten years, beginning on January 1, 2022 and continuing through January 1, 2031, in an amount equal to (1) 4% of the total number of shares of the Company’s common stock outstanding on December 31 of the immediately preceding year, or (2) a lesser number of shares determined by the Company’s board of directors prior to the date of the increase. The maximum number of shares of the Company’s common stock that may be issued on the exercise of ISOs under its 2021 Plan is 75,100,000 shares. RSU Awards The following table summarizes the RSU activity for the six months ended June 30, 2021: Number of Shares Weighted Average Grant Date Fair Value Per Share Non-Employee Directors Directors, Officers and Employees Non-Employee Directors Directors, Officers and Employees Unvested RSUs at December 31, 2020 — — $ — $ — Granted (1) 110,267 2,605,555 $ 16.00 $ 14.31 Vested 6,703 — $ 16.00 $ — Forfeited — — $ — $ — Unvested RSUs at June 30, 2021 116,970 2,605,555 $ 16.00 $ 14.31 (1) Includes 200,000 RSUs granted to an officer of the Company in February 2021 under the 2011 Stock Incentive Plan. As of June 30, 2021, there was $36.2 million of unrecognized stock-based compensation expense related to unvested RSUs, which is expected to be recognized over a weighted-average period of 2.12 years. 2021 Employee Stock Purchase Plan In April 2021, the Company’s board of directors adopted the Company’s 2021 Employee Stock Purchase Plan (the “2021 ESPP”). The Company authorized the issuance of 1,175,000 shares of common stock under the 2021 ESPP. In addition, the number of shares available for issuance under the 2021 ESPP will be annually increased on January 1 of each year for a period of ten years, beginning on January 1, 2022 and continuing through January 1, 2031 by the lesser of (i) 1% of the total number of shares of common stock outstanding on December 31 of the immediately preceding year; and (ii) 3,525,000 shares, except before the date of any such increase, the Company’s board of directors may determine that such increase will be less than the amount set forth in clauses (i) and (ii). Subject to any limitations contained therein, the 2021 ESPP allows eligible employees to contribute (in the form of payroll deductions or otherwise to the extent permitted by the administrator) an amount established by the administrator from time to time in its discretion to purchase common stock at a discounted price per share. Under the 2021 ESPP, eligible employees are granted the right to purchase shares of common stock at the lower of 85% of the fair value at the time of grant or 85% of the fair value at the time of exercise. The right to purchase shares of common stock is granted in May and November of each year for an offering period of approximately six months. The first offering period under the 2021 ESPP commenced in May 2021. For the three and six months ended June 30, 2021, no shares were purchased under the 2021 ESPP. The following table summarizes the key input assumptions used in the Black-Scholes option-pricing model to estimate the grant-date fair value of the 2021 ESPP: For the three months ended June 30, 2021 Expected life of options (in years) 0.50 Expected stock price volatility 54.83% Risk free interest rate 0.04% Expected dividend yield —% Weighted average grant-date fair value per share $4.86 Stock-based Compensation Expense Stock-based compensation expense related to RSU awards, ESPP purchases and stock options, as applicable, are as follows: For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 (In thousands) Selling, general and administrative $ 6,194 $ 2,242 $ 7,942 $ 4,087 Research and development 432 83 522 161 Total stock-based compensation expense $ 6,626 $ 2,325 $ 8,464 $ 4,248

Net Income (Loss) per Share Att

Net Income (Loss) per Share Attributable to Common Stockholders	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Net Income (Loss) per Share Attributable to Common Stockholders	Net Income (Loss) per Share Attributable to Common Stockholders The Company computes net income (loss) per share using the two-class method required for participating securities. The two-class method requires net income be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. In periods where the Company has net losses, losses are not allocated to participating securities as they are not required to fund the losses. The Company considers its redeemable convertible preferred stock to be participating securities as preferred stockholders have rights to participate in dividends with the common stockholders. Basic net income (loss) attributable to common stockholders per share is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding. The Company computes diluted net income per share under a two-class method where income is reallocated between common stock, potential common stock and participating securities. Diluted net income (loss) per share attributable to common stockholders adjusts the basic net income (loss) per share attributable to common stockholders and the weighted-average number of shares of common stock outstanding for the potentially dilutive impact of stock options using the treasury stock method. The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share attributable to common stockholders: For the three months ended June 30, For the six months ended June 30, (In thousands, except for share and per share values) 2021 2020 2021 2020 Numerator: Net income (loss) $ (20,034) $ (375) $ (24,518) $ 184 Less: undistributed earnings allocated to redeemable convertible preferred stock — — — (109) Add: gain on conversion of preferred stock (1) 28,994 — 28,994 — Less: dividends paid to preferred stockholders (2) (20,637) — (20,637) — Net income (loss) attributable to common stockholders - basic $ (11,677) $ (375) $ (16,161) $ 75 Add: undistributed earnings reallocated to common stockholders — — — 2 Net income (loss) attributable to common stockholders - diluted $ (11,677) $ (375) $ (16,161) $ 77 Denominator: Weighted average shares of common stock outstanding - basic 68,079,387 34,069,346 51,184,615 34,065,173 Add: effect of dilutive stock options — — — 999,183 Weighted average shares of common stock outstanding - diluted 68,079,387 34,069,346 51,184,615 35,064,356 Net income (loss) per share, attributable to common shareholders: Basic $ (0.17) $ (0.01) $ (0.32) $ 0.00 Diluted $ (0.17) $ (0.01) $ (0.32) $ 0.00 (1) The conversion price of the Company’s Series C and Series D redeemable convertible preferred stock was adjusted as the offering price in the initial public offering was below a certain threshold resulting in the preferred stockholders receiving a fixed dollar amount on conversion settled into a variable number of shares, or a stock-settled redemption feature. Upon the settlement of this redemption feature, the Company recorded a gain on extinguishment of the redeemable convertible preferred stock of $29.0 million as an adjustment to net loss to arrive at net loss attributable to common stockholders to calculate earnings per share. The extinguishment gain was measured as the difference between the carrying amount of the redeemable convertible preferred stock and the fair value of common stock upon the IPO date that the preferred stock converted into. (2) In April 2021, the Company's board of directors declared a cash dividend of $35.0 million to the holders of record of our common stock as of May 3, 2021, that was contingent upon the closing of the Company's IPO. On June 29, 2021, the Company paid the dividend, of which $20.6 million was paid to the holders of the Company's redeemable convertible preferred stock. The following potentially dilutive shares were excluded from the computation of diluted net income (loss) per share because including them would have been antidilutive: For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 Redeemable convertible preferred stock (1) — 49,100,928 — 49,100,928 Stock options to purchase common stock 17,676,563 17,414,024 17,676,563 11,963,528 Unvested restricted stock units 2,709,119 — 2,709,119 — Employee stock purchase plan 30,789 — 30,789 — Total 20,416,471 66,514,952 20,416,471 61,064,456 (1) Immediately prior to the completion of the IPO, 49,100,928 outstanding shares of redeemable convertible preferred stock with a carrying value of $376.4 million converted into 49,649,023 shares. of common stock.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes In determining quarterly provisions for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date loss, adjusted for discrete items arising in that quarter. The Company’s annual estimated effective tax rate differs from the U.S. federal statutory rate of 21% primarily as a result of a valuation allowance against net deferred tax assets, stock-based compensation, state taxes, and other permanent differences. The Company has evaluated the available positive and negative evidence supporting the realization of its gross deferred tax assets, including cumulative losses, and the amount and timing of future taxable income, and has determined it is more likely than not that the assets will not be realized. Accordingly, the Company has recorded a full valuation allowance against the U.S. federal and state deferred tax assets as of each balance sheet date presented. During the three and six months ended June 30, 2021 and 2020, the Company has not recorded any uncertain tax positions and has not recognized interest or penalties in the consolidated statement of operations and comprehensive income (loss).

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2021
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions In April 2020, the Company engaged Summit House Studios LLC, a third-party consultant, to provide digital ad production services. Summit House Studios LLC is owned by a major shareholder of the Company. Based on services provided, the Company incurred $0.2 million and $0.3 million, respectively, of advertising costs for the three and six months ended June 30, 2021, and $0.1 million

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events None.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2020. The condensed consolidated financial statements are unaudited. The unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and include, in the opinion of management, all adjustments, consisting of normal recurring items, necessary for the fair statement of the condensed consolidated financial statements. The consolidated balance sheet as of December 31, 2020 has been derived from the audited financial statements at that date but does not include all of the disclosures required by GAAP. The condensed consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries after elimination of intercompany transactions and balances. There have been no changes in the accounting policies from those disclosed in the audited consolidated financial statements and related notes for the year ended December 31, 2020.
Stock Split	Stock Split In April 2021, the Company effected a 1-for-2 forward stock split of its common and redeemable convertible preferred stock. In connection with the forward stock split, each issued and outstanding share of common stock, automatically and without action on the part of the holders, became two shares of common stock and each issued and outstanding share of redeemable convertible preferred stock, automatically and without action on the part of the holders, became two shares of redeemable convertible preferred stock. The par value per share of common and redeemable convertible preferred stock was not adjusted. All share, per share and related information presented in the condensed consolidated financial statements and accompanying notes have been retroactively adjusted, where applicable, to reflect the impact of the stock split.
Segment Reporting and Geographic Information	Segment Reporting and Geographic InformationThe Company’s Chief Executive Officer, as the chief operating decision maker, organizes the Company, manages resource allocations, and measures performance on the basis of one operating segment. All of the Company’s long-lived assets are located in the United States and substantially all of the Company’s revenue is from customers located in the United States.
Use of Estimates	Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company’s estimates, which are subject to varying degrees of judgment, include the valuation of inventories, sales returns and allowances, allowances for doubtful accounts, valuation of short-term investments, valuation of build-to-suit lease, capitalized software, useful lives associated with long-lived assets, valuation allowances with respect to deferred tax assets, accruals and contingencies, recoverability of goodwill and long-lived assets, and the valuation and assumptions underlying stock-based compensation and common stock. On an ongoing basis, the Company evaluates its estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities. In March 2020, the World Health Organization declared the outbreak of the novel coronavirus disease (“COVID-19”) a pandemic. The full extent to which the outbreak of the COVID-19 pandemic will impact the Company’s business, results of operations and financial condition is still unknown and will depend on future developments, which are uncertain and cannot be predicted, including, but not limited to, the duration and spread of the outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume.
Cash, Cash Equivalents, and Restricted Cash	Cash, Cash Equivalents, and Restricted Cash Cash equivalents consist of short-term, highly liquid investments with stated maturities of three months or less from the date of purchase. Cash equivalents comprise amounts invested in money market funds. Restricted cash consisted of deposits in a bank account used to collateralize the letters of credit for certain lease arrangements.
Accounts Receivable	Accounts ReceivableAccounts receivable is presented net of allowances. The Company does not accrue interest on its trade receivables. On a periodic basis, the Company evaluates accounts receivable estimated to be uncollectible, and provides allowances as necessary for doubtful accounts.
Deferred IPO Costs	Deferred IPO CostsDeferred offering costs consist of costs incurred in connection with the sale of the Company’s common stock in its IPO, including certain legal, accounting, and other IPO-related costs. As of June 30, 2021, the deferred offering costs of $5.5 million were recorded in stockholders’ equity (deficit) as a reduction from the proceeds of the offering.
Fair Value Measurements	Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses the following hierarchy in measuring the fair value of the Company’s assets and liabilities, focusing on the most observable inputs when available: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than Level 1 quoted prices, such as quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active for identical or similar assets and liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Valuations are based on inputs that are unobservable and significant to the overall fair value measurement of the assets or liabilities. Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Fair value is based on quoted market prices, if available. If listed prices or quotes are not available, fair value is based on internally developed models that primarily use market-based or independently sourced market parameters as inputs. Cash equivalents, consisting primarily of money market funds, represent highly liquid investments with maturities of three months or less at purchase. Market prices, which are Level 1 in the fair value hierarchy, are used to determine the fair value of the money market funds. Investments in debt securities are measured using broker provided indicative prices developed using observable market data, which are considered Level 2 in the fair value hierarchy. Certain assets, including long-lived assets, goodwill and intangible assets are also subject to measurement at fair value on a non-recurring basis if they are deemed to be impaired as a result of an impairment review. The fair value is measured using Level 3 inputs in the fair value hierarchy.
Recent Accounting Pronouncements	Recent Accounting Pronouncements As an “emerging growth company”, the Jumpstart Our Business Startups Act, allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use the adoption dates applicable to private companies. As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective date for new or revised accounting standards that are applicable to public companies. Recently Issued Accounting Pronouncements – Not Yet Adopted In February 2016, the Financial Accounting Standards Board (the "FASB") issued ASU No 2016-02, Leases (Topic 842), as subsequently amended, collectively codified under Topic 842. Topic 842 requires lessees to recognize on the balance sheet assets and liabilities for leases with lease terms of more than twelve months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP which requires only capital leases to be recognized on the balance sheet, the new ASU will require both types of leases to be recognized on the balance sheet. ASU 2016-02 was effective for public business entities for fiscal years beginning after December 15, 2018. In June 2020, FASB issued ASU No. 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) – Effective Dates for Certain Entities , which extended the effective date of this guidance for certain non-public entities for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, with early adoption permitted. The Company is evaluating the adoption of this guidance and the potential effects on its consolidated financial statements. The Company anticipates the adoption of this guidance may result in a material impact to the Company’s consolidated financial statements as it relates to its build-to-suit lease and recording other operating leases on the consolidated balance sheets. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , to amend the accounting for credit losses for certain financial instruments. This guidance replaces the incurred loss impairment methodology with a methodology that reflects expected credit losses. In November 2019, FASB issued ASU No. 2019-10 which delayed the effective dates of the guidance. This guidance is effective for public business entities that meet the definition of an SEC filer, excluding entities eligible to be smaller reporting companies (“SRC”) for fiscal years beginning after December 15, 2019 and all other entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is evaluating the adoption of this guidance and the potential effects on the consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this guidance eliminate Step 2 from the goodwill impairment test, whereby an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under this amendment, an entity should perform its goodwill impairment test by comparing the value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In November 2019, the FASB issued ASU No. 2019-10 which delayed the effective dates of this guidance. This guidance is effective for public business entities excluding entities eligible to be SRCs for annual and any interim impairment test performed for periods beginning after December 15, 2019. For all other entities the guidance is effective for fiscal years beginning after December 15, 2022. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is evaluating the adoption of this guidance and the potential effects on the consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740 as well as by improving consistent application of the topic by clarifying and amending existing guidance. For public business entities, the ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the ASU is effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for (1) public business entities for periods for which financial statements have not yet been issued and (2) all other entities for periods for which financial statements have not yet been made available for issuance. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. The Company does not expect ASC 740 to have a material impact on the Company’s consolidated financial statements.

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	Revenue by sales channel: For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 (In thousands) Digital $ 34,820 $ 46,065 $ 77,281 $ 87,561 Retail 39,756 26,289 78,326 57,165 Total revenue $ 74,576 $ 72,354 $ 155,607 $ 144,726 Revenue by product category: For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 (In thousands) Diapers and wipes $ 47,831 $ 48,744 $ 97,404 $ 99,227 Skin and personal care 23,866 20,558 50,111 39,040 Household and wellness 2,879 3,052 8,092 6,459 Total revenue $ 74,576 $ 72,354 $ 155,607 $ 144,726

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jun. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Schedule of Available-for-sale Investments	The following table summarizes the Company’s available-for-sale investments: As of June 30, 2021 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value (In thousands) Corporate bonds $ 22,787 $ 1 $ (12) $ 22,776 Certificates of deposit 24,904 — (3) 24,901 U.S. government and agency securities 5,995 1 — 5,996 Total investments $ 53,686 $ 2 $ (15) $ 53,673 As of December 31, 2020 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value (In thousands) Corporate bonds $ 22,894 $ 58 $ (3) $ 22,949 Commercial paper 538 — — 538 Certificates of deposit 4,447 1 — 4,448 U.S. government and agency securities 6,452 38 — 6,490 Total investments $ 34,331 $ 97 $ (3) $ 34,425

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value, Assets Measured on Recurring Basis	Financial assets measured and recorded at fair value on a recurring basis consist of the following as of: June 30, 2021 Level 1 Level 2 Level 3 Total (In thousands) Cash equivalents Money market funds $ 17,300 $ — $ — $ 17,300 Corporate bonds (1) — 433 — 433 Certificates of deposit (1) — 3,500 — 3,500 Total cash equivalents 17,300 3,933 — 21,233 Short-term investments Corporate bonds — 22,776 — 22,776 Certificates of deposit — 24,901 — 24,901 U.S. government and agency securities — 5,996 — 5,996 Total short-term investments — 53,673 — 53,673 Total $ 17,300 $ 57,606 $ — $ 74,906 (1) Consists of short-term corporate bonds and certificates of deposit with stated maturities of three months or less. December 31, 2020 Level 1 Level 2 Level 3 Total (In thousands) Cash equivalents Money market funds $ 12,696 $ — $ — $ 12,696 Total cash equivalents 12,696 — — 12,696 Short-term investments Corporate bonds — 22,949 — 22,949 Commercial paper — 538 — 538 Certificates of deposit — 4,448 — 4,448 U.S. government and agency securities — 6,490 — 6,490 Total short-term investments — 34,425 — 34,425 Total $ 12,696 $ 34,425 $ — $ 47,121

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2021
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	Accrued expenses consisted of the following as of: June 30, 2021 December 31, 2020 (In thousands) Payroll and payroll related expenses $ 1,750 $ 6,115 Accrued inventory purchases 4,330 4,588 Accrued returns 1,983 2,585 Other accrued expenses 9,549 8,934 Total accrued expenses $ 17,612 $ 22,222

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Schedule of Stock Option Activity	The following table summarizes the stock option activity for the three months ended June 30, 2021: Number of Options Weighted Average Exercise Price Outstanding at March 31, 2021 17,829,264 $ 5.24 Granted — $ — Exercised (53,694) $ 5.49 Forfeited (99,007) $ 5.34 Outstanding at June 30, 2021 17,676,563 $ 5.24
Schedule of Restricted Stock Unit Activity	The following table summarizes the RSU activity for the six months ended June 30, 2021: Number of Shares Weighted Average Grant Date Fair Value Per Share Non-Employee Directors Directors, Officers and Employees Non-Employee Directors Directors, Officers and Employees Unvested RSUs at December 31, 2020 — — $ — $ — Granted (1) 110,267 2,605,555 $ 16.00 $ 14.31 Vested 6,703 — $ 16.00 $ — Forfeited — — $ — $ — Unvested RSUs at June 30, 2021 116,970 2,605,555 $ 16.00 $ 14.31 (1) Includes 200,000 RSUs granted to an officer of the Company in February 2021 under the 2011 Stock Incentive Plan.
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The following table summarizes the key input assumptions used in the Black-Scholes option-pricing model to estimate the grant-date fair value of the 2021 ESPP: For the three months ended June 30, 2021 Expected life of options (in years) 0.50 Expected stock price volatility 54.83% Risk free interest rate 0.04% Expected dividend yield —% Weighted average grant-date fair value per share $4.86
Stock-based Compensation Expense	Stock-based compensation expense related to RSU awards, ESPP purchases and stock options, as applicable, are as follows: For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 (In thousands) Selling, general and administrative $ 6,194 $ 2,242 $ 7,942 $ 4,087 Research and development 432 83 522 161 Total stock-based compensation expense $ 6,626 $ 2,325 $ 8,464 $ 4,248

Net Income (Loss) per Share A_2

Net Income (Loss) per Share Attributable to Common Stockholders (Tables)	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share attributable to common stockholders: For the three months ended June 30, For the six months ended June 30, (In thousands, except for share and per share values) 2021 2020 2021 2020 Numerator: Net income (loss) $ (20,034) $ (375) $ (24,518) $ 184 Less: undistributed earnings allocated to redeemable convertible preferred stock — — — (109) Add: gain on conversion of preferred stock (1) 28,994 — 28,994 — Less: dividends paid to preferred stockholders (2) (20,637) — (20,637) — Net income (loss) attributable to common stockholders - basic $ (11,677) $ (375) $ (16,161) $ 75 Add: undistributed earnings reallocated to common stockholders — — — 2 Net income (loss) attributable to common stockholders - diluted $ (11,677) $ (375) $ (16,161) $ 77 Denominator: Weighted average shares of common stock outstanding - basic 68,079,387 34,069,346 51,184,615 34,065,173 Add: effect of dilutive stock options — — — 999,183 Weighted average shares of common stock outstanding - diluted 68,079,387 34,069,346 51,184,615 35,064,356 Net income (loss) per share, attributable to common shareholders: Basic $ (0.17) $ (0.01) $ (0.32) $ 0.00 Diluted $ (0.17) $ (0.01) $ (0.32) $ 0.00
Schedule of Potentially Dilutive Shares	The following potentially dilutive shares were excluded from the computation of diluted net income (loss) per share because including them would have been antidilutive: For the three months ended June 30, For the six months ended June 30, 2021 2020 2021 2020 Redeemable convertible preferred stock (1) — 49,100,928 — 49,100,928 Stock options to purchase common stock 17,676,563 17,414,024 17,676,563 11,963,528 Unvested restricted stock units 2,709,119 — 2,709,119 — Employee stock purchase plan 30,789 — 30,789 — Total 20,416,471 66,514,952 20,416,471 61,064,456 (1) Immediately prior to the completion of the IPO, 49,100,928 outstanding shares of redeemable convertible preferred stock with a carrying value of $376.4 million converted into 49,649,023 shares. of common stock.

Nature of Business (Details)

Nature of Business (Details) - USD ($) $ / shares in Units, $ in Thousands	May 07, 2021	May 06, 2021	Jun. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Sale of Stock [Line Items]
Common stock, par value (in USD per share)	$ 0.0001		$ 0.0001	$ 0.0001		$ 0.0001
Price per share (in USD per share)	$ 16
Underwriting commissions, discounts, and offering costs			$ 12,200
Unpaid stock issuance cost			$ 5,500	$ 5,500		$ 500
IPO Bonus	$ 9,500
Payroll taxes and expenses	$ 200
Common stock authorized (in shares)		1,000,000,000	1,000,000,000	1,000,000,000		150,000,000
Preferred stock authorized (in shares)		20,000,000	20,000,000	20,000,000
Outstanding shares of redeemable convertible preferred stock (in shares)		49,100,928	0	0	49,100,928	49,100,928	49,100,928	49,100,928	49,100,928
Carrying value		$ 376,400	$ 0	$ 0	$ 376,404	$ 376,404	$ 376,404	$ 376,404	$ 376,404
Number of common stock issued from conversion (in shares)		49,649,023
Conversion of redeemable convertible preferred stock to common stock upon initial public offering		$ 29,000	376,405
Selling, general and administrative
Sale of Stock [Line Items]
IPO Bonus			9,100	9,100
Research and development
Sale of Stock [Line Items]
IPO Bonus			$ 400	$ 400
IPO
Sale of Stock [Line Items]
Number of common stock issued in transaction (in shares)	25,807,000
Aggregate net proceeds	$ 91,000
Underwriting commissions, discounts, and offering costs	6,700
Unpaid stock issuance cost	$ 600
IPO - Sold by Company
Sale of Stock [Line Items]
Number of common stock issued in transaction (in shares)	6,451,613
IPO - Sold by Existing Shareholders
Sale of Stock [Line Items]
Number of common stock issued in transaction (in shares)	19,355,387
IPO - Other Offering Expense
Sale of Stock [Line Items]
Underwriting commissions, discounts, and offering costs	$ 5,500
Over-Allotment Option
Sale of Stock [Line Items]
Number of common stock issued in transaction (in shares)	3,871,050
Option to purchase additional shares, period	30 days

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) $ in Millions	1 Months Ended	6 Months Ended
	Apr. 30, 2021	Jun. 30, 2021USD ($)segment	Dec. 31, 2020USD ($)
Class of Stock [Line Items]
Number of operating segments | segment		1
Allowance for doubtful accounts		$ 1.4	$ 1.4
Deferred offering costs		$ 5.5	$ 0.5
Common Stock
Class of Stock [Line Items]
Stock split ratio	0.5
Redeemable Convertible Preferred Stock
Class of Stock [Line Items]
Stock split ratio	0.5

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Revenue	$ 74,576	$ 72,354	$ 155,607	$ 144,726
Diapers and wipes
Disaggregation of Revenue [Line Items]
Revenue	47,831	48,744	97,404	99,227
Skin and personal care
Disaggregation of Revenue [Line Items]
Revenue	23,866	20,558	50,111	39,040
Household and wellness
Disaggregation of Revenue [Line Items]
Revenue	2,879	3,052	8,092	6,459
Digital
Disaggregation of Revenue [Line Items]
Revenue	34,820	46,065	77,281	87,561
Retail
Disaggregation of Revenue [Line Items]
Revenue	$ 39,756	$ 26,289	$ 78,326	$ 57,165

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 74,576,000	$ 72,354,000	$ 155,607,000	$ 144,726,000
Cost of revenue	47,633,000	$ 45,867,000	$ 100,284,000	$ 92,434,000
Trade Agreements
Disaggregation of Revenue [Line Items]
Trade agreements asset					$ 4,000,000
Marketing credits, usage period			4 years
Marketing credits, option to extend			2 years
Revenue	500,000		$ 3,900,000
Cost of revenue	300,000		2,200,000
Impairment	$ 0		$ 0

Investments - Narrative (Detail

Investments - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Investments with contractual maturities of less than one year	$ 36.9	$ 27.5
Investments with contractual maturities between one and two years	$ 16.8	$ 6.9

Investments - Available-for-Sal

Investments - Available-for-Sale Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	$ 53,686	$ 34,331
Gross Unrealized Gains	2	97
Gross Unrealized Losses	(15)	(3)
Total Estimated Fair Value	53,673	34,425
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	22,787	22,894
Gross Unrealized Gains	1	58
Gross Unrealized Losses	(12)	(3)
Total Estimated Fair Value	22,776	22,949
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost		538
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Total Estimated Fair Value		538
Certificates of deposit
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	24,904	4,447
Gross Unrealized Gains	0	1
Gross Unrealized Losses	(3)	0
Total Estimated Fair Value	24,901	4,448
U.S. government and agency securities
Debt Securities, Available-for-sale [Line Items]
Cost or Amortized Cost	5,995	6,452
Gross Unrealized Gains	1	38
Gross Unrealized Losses	0	0
Total Estimated Fair Value	$ 5,996	$ 6,490

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	$ 53,673	$ 34,425
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	22,776	22,949
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments		538
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	24,901	4,448
U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	5,996	6,490
Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	21,233	12,696
Short-term investments	53,673	34,425
Total	74,906	47,121
Fair Value, Recurring | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	22,776	22,949
Fair Value, Recurring | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments		538
Fair Value, Recurring | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	24,901	4,448
Fair Value, Recurring | U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	5,996	6,490
Fair Value, Recurring | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	17,300	12,696
Fair Value, Recurring | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	433
Fair Value, Recurring | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	3,500
Fair Value, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	17,300	12,696
Short-term investments	0	0
Total	17,300	12,696
Fair Value, Recurring | Level 1 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Fair Value, Recurring | Level 1 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments		0
Fair Value, Recurring | Level 1 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Fair Value, Recurring | Level 1 | U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Fair Value, Recurring | Level 1 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	17,300	12,696
Fair Value, Recurring | Level 1 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
Fair Value, Recurring | Level 1 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
Fair Value, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	3,933	0
Short-term investments	53,673	34,425
Total	57,606	34,425
Fair Value, Recurring | Level 2 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	22,776	22,949
Fair Value, Recurring | Level 2 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments		538
Fair Value, Recurring | Level 2 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	24,901	4,448
Fair Value, Recurring | Level 2 | U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	5,996	6,490
Fair Value, Recurring | Level 2 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Fair Value, Recurring | Level 2 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	433
Fair Value, Recurring | Level 2 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	3,500
Fair Value, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Short-term investments	0	0
Total	0	0
Fair Value, Recurring | Level 3 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Fair Value, Recurring | Level 3 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments		0
Fair Value, Recurring | Level 3 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Fair Value, Recurring | Level 3 | U.S. government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Fair Value, Recurring | Level 3 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	$ 0
Fair Value, Recurring | Level 3 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
Fair Value, Recurring | Level 3 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 0

Credit Facilities (Details)

Credit Facilities (Details)	1 Months Ended
	Apr. 30, 2021USD ($)	Jun. 30, 2021USD ($)	Dec. 31, 2020USD ($)	Jun. 04, 2020USD ($)
Line of Credit Facility [Line Items]
Restricted cash used as collateral			$ 7,900,000
Letters of credit issued			$ 7,700,000
2021 Credit Facility | JP Morgan Chase Bank
Line of Credit Facility [Line Items]
Maximum total net leverage ratio		3.50
2021 Credit Facility | Revolving Credit Facility | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.50%
2021 Credit Facility | Revolving Credit Facility | CB floating rate
Line of Credit Facility [Line Items]
Interest rate base	2.50%
Debt instrument, basis spread on variable rate	0.50%
2021 Credit Facility | Revolving Credit Facility | Minimum | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Interest rate base	0.00%
2021 Credit Facility | Revolving Credit Facility | JP Morgan Chase Bank
Line of Credit Facility [Line Items]
Maximum issuance of letters of credit	$ 35,000,000
2021 Credit Facility | Letter of Credit
Line of Credit Facility [Line Items]
Outstanding borrowings		$ 0
Maximum issuance of letters of credit	$ 10,000,000
Line of Credit | Asset Backed Loan Facility | Revolving Credit Facility
Line of Credit Facility [Line Items]
Outstanding borrowings				$ 0
Restricted cash used as collateral				$ 7,900,000

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Payroll and payroll related expenses	$ 1,750	$ 6,115
Accrued inventory purchases	4,330	4,588
Accrued returns	1,983	2,585
Other accrued expenses	9,549	8,934
Total accrued expenses	$ 17,612	$ 22,222

Commitments and Contingencies (

Commitments and Contingencies (Details) - Nevada Department of Taxation vs. Honest Company - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Loss Contingencies [Line Items]
Accrued expenses	$ 0.6	$ 0.6	$ 0.6
Interest expense	0.1	0.1
Pending Litigation
Loss Contingencies [Line Items]
Potential loss	$ 0.7	$ 0.7

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details)	3 Months Ended
	Jun. 30, 2021$ / sharesshares
Number of Options
Options outstanding, beginning balance (in shares) | shares	17,829,264
Granted (in shares) | shares	0
Exercised (in shares) | shares	(53,694)
Forfeited (in shares) | shares	(99,007)
Options outstanding, ending balance (in shares) | shares	17,676,563
Weighted Average Exercise Price
Weighted-average exercise price, beginning balance (in dollars per share) | $ / shares	$ 5.24
Weighted-average exercise price, granted (in dollars per share) | $ / shares	0
Weighted-average exercise price, exercised (in dollars per share) | $ / shares	5.49
Weighted-average exercise price, forfeited (in dollars per share) | $ / shares	5.34
Weighted-average exercise price, ending balance (in dollars per share) | $ / shares	$ 5.24

Stock-Based Compensation - St_2

Stock-Based Compensation - Stock Option Activity Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	May 07, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average exercise price (in USD per share)		$ 5.24		$ 5.24		$ 5.24
Total stock-based compensation expense		$ 6,626	$ 2,325	$ 8,464	$ 4,248
Stock Options With Liquidity Event Vesting Conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options vested (in shares)	2,442,918
Weighted average exercise price (in USD per share)	$ 5.54
Total stock-based compensation expense		$ 3,100		$ 3,100

Stock-Based Compensation - 2021

Stock-Based Compensation - 2021 Equity Incentive Plan (Details) - 2021 Equity Incentive Plan - shares	1 Months Ended
	Apr. 30, 2021	Apr. 01, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares that may be issued (in shares)	75,100,000	25,025,580
Period to increase available shares for issuance	10 years
Percentage of total number of shares outstanding	400.00%

Stock-Based Compensation - RSU

Stock-Based Compensation - RSU Awards (Details) - Unvested restricted stock units - $ / shares	1 Months Ended	6 Months Ended
	Feb. 28, 2021	Jun. 30, 2021
Non-Employee Directors
Number of Shares
Unvested RSUs, beginning balance (in shares)		0
Granted (in shares)		110,267
Vested (in shares)		6,703
Forfeited (in shares)		0
Unvested RSUs, ending balance (in shares)		116,970
Weighted Average Grant Date Fair Value Per Share
Unvested RSUs, beginning balance (in USD per share)		$ 0
Granted (in USD per share)		16
Vested (in USD per share)		16
Forfeited (in USD per share)		0
Unvested RSUs, ending balance (in USD per share)		$ 16
Directors, Officers and Employees
Number of Shares
Unvested RSUs, beginning balance (in shares)		0
Granted (in shares)		2,605,555
Vested (in shares)		0
Forfeited (in shares)		0
Unvested RSUs, ending balance (in shares)		2,605,555
Weighted Average Grant Date Fair Value Per Share
Unvested RSUs, beginning balance (in USD per share)		$ 0
Granted (in USD per share)		14.31
Vested (in USD per share)		0
Forfeited (in USD per share)		0
Unvested RSUs, ending balance (in USD per share)		$ 14.31
Officer | 2011 Stock Incentive Plan
Number of Shares
Granted (in shares)	200,000

Stock-Based Compensation - RS_2

Stock-Based Compensation - RSU Awards Narrative (Details) - Unvested restricted stock units $ in Millions	6 Months Ended
	Jun. 30, 2021USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	$ 36.2
Period for recognition	2 years 1 month 13 days

Stock-Based Compensation - 20_2

Stock-Based Compensation - 2021 Employee Stock Purchase Plan (Details) - Employee stock purchase plan - 2021 Employee Stock Purchase Plan - shares	1 Months Ended	3 Months Ended	6 Months Ended
	Apr. 30, 2021	Jun. 30, 2021	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock authorized to be issued (in shares)	1,175,000
Period to increase available shares for issuance	10 years
Percentage of total number of shares outstanding	1.00%
Additional shares authorized (in shares)	3,525,000
Purchase price of common stock in percent	85.00%
Shares purchased		0	0

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - Share-based Payment Arrangement, Option	3 Months Ended
	Jun. 30, 2021$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life of options (in years)	6 months
Expected stock price volatility	54.83%
Risk free interest rate	0.04%
Expected dividend yield	0.00%
Weighted average grant-date fair value per share (in USD per share)	$ 4.86

Stock-Based Compensation - St_3

Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 6,626	$ 2,325	$ 8,464	$ 4,248
Selling, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	6,194	2,242	7,942	4,087
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 432	$ 83	$ 522	$ 161

Net Income (Loss) per Share A_3

Net Income (Loss) per Share Attributable to Common Stockholders - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 29, 2021	Apr. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Numerator:
Net income (loss)			$ (20,034)	$ (4,484)	$ (375)	$ 559	$ (24,518)	$ 184
Less: undistributed earnings allocated to redeemable convertible preferred stock			0		0		0	(109)
Add: gain on conversion of preferred stock			28,994		0		28,994	0
Less: dividends paid to preferred stockholders			(20,637)		0		(20,637)	0
Net income (loss) attributable to common stockholders - basic			(11,677)		(375)		(16,161)	75
Add: undistributed earnings reallocated to common stockholders			0		0		0	2
Net income (loss) attributable to common stockholders - diluted			$ (11,677)		$ (375)		$ (16,161)	$ 77
Denominator:
Weighted average shares of common stock outstanding - basic (in shares)			68,079,387		34,069,346		51,184,615	34,065,173
Add: effect of dilutive stock options (in shares)			0		0		0	999,183
Weighted average shares of common stock outstanding - diluted (in shares)			68,079,387		34,069,346		51,184,615	35,064,356
Net income (loss) per share, attributable to common shareholders:
Basic (in dollars per share)			$ (0.17)		$ (0.01)		$ (0.32)	$ 0
Diluted (in dollars per share)			$ (0.17)		$ (0.01)		$ (0.32)	$ 0
Gain on extinguishment of redeemable convertible preferred stock			$ 28,994		$ 0		$ 28,994	$ 0
Cash dividend declared		$ 35,000
Dividends paid to holders of Company's redeemable convertible preferred stock	$ 20,600

Net Income (Loss) per Share A_4

Net Income (Loss) per Share Attributable to Common Stockholders - Potentially Dilutive Shares Excluded From Computation of Diluted Net Income (Loss) Per Share (Details) - USD ($) $ in Thousands	May 06, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)		20,416,471	66,514,952	20,416,471	61,064,456
Outstanding shares of redeemable convertible preferred stock (in shares)	49,100,928	0	49,100,928	0	49,100,928	49,100,928	49,100,928	49,100,928	49,100,928
Carrying value	$ 376,400	$ 0	$ 376,404	$ 0	$ 376,404	$ 376,404	$ 376,404	$ 376,404	$ 376,404
Number of common stock issued from conversion (in shares)	49,649,023
Redeemable convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)		0	49,100,928	0	49,100,928
Stock options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)		17,676,563	17,414,024	17,676,563	11,963,528
Unvested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)		2,709,119	0	2,709,119	0
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)		30,789	0	30,789	0

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Uncertain tax positions	$ 0	$ 0	$ 0	$ 0
Interest and penalties expense	$ 0	$ 0	$ 0	$ 0

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Summit House Studios LLC
Related Party Transaction [Line Items]
Advertising expense	$ 0.2	$ 0.1	$ 0.3	$ 0.1