What The Honest Company, Inc. told the SEC could break it.

Honest sells ~91% of revenue through retailers, with Amazon (39%), Target (28%) and Walmart (8%) its three largest under term-less vendor agreements, so losing or reduced shelf space with any would materially hurt revenue.

“In 2025, our three largest retailers, Amazon, Target and Walmart accounted for approximately 39%, 28% and 8% of our total revenue, respectively.”

Honest buys all of its diapers from one supplier and substantially all of its wipes from one supplier; a change in supplier could cause manufacturing delays, inventory shortages and lost revenue.

“The Company currently buys all of its diapers from one supplier. Additionally, the Company currently buys substantially all of its wipes from one supplier.”

Honest's wipes are made in China and diapers in Mexico by third-party manufacturers, and it depends heavily on ocean-container delivery and one major domestic carrier — port strikes or freight disruptions could halt supply.

“We depend heavily on ocean container delivery to receive shipments of certain of our products such as wipes from our third-party manufacturers located in China and contracted third-party delivery service providers to deliver our products to our fulfillment centers located in Las Vegas, Nevada and Breinigsville, Pennsylvania, and from there to our consumers and retail customers.”

Escalating U.S. trade disputes with China, Mexico and Canada have raised tariff costs (a headwind to 2025 gross profit) and could bring further tariffs or revoked exclusions restricting the flow of Honest's China-made wipes and Mexico-made diapers.

“the escalating trade dispute between the United States and China, the United States and Mexico, and the United States and Canada has and may in the future lead to increased tariffs or trade barriers, and the revocation of current tariff exclusions for certain of our products, which may restrict the flow of goods from China, Mexico, and/or Canada to the United States.”