Honest Company, Inc. 8-K

What Happened

• On June 14, 2026, The Honest Company, Inc. announced it signed a lease with Dellwood Farm LLC for approximately 38,240 rentable square feet at 12121 Bluff Creek Drive, Suite 500, Playa Vista, California. The company intends to relocate its corporate headquarters to the new space by May 1, 2027 (its current lease expires April 30, 2027).
• The lease term begins on the later of March 1, 2027 or the date tenant improvements are substantially complete, and has an initial 10-year term. The lease includes a staged base rent schedule that results in total base rent over the initial term (net of a 10-month rent abatement) of about $33,440,756.

Key Details

• Rent schedule (per rentable sq ft, per month): $3.50 (Year 1), $3.75 (Year 2), $7.25 (Year 3), escalating to $9.224 by Year 10. Ten-month rent abatement applies to the first ten months of the third lease year.
• Tenant improvement allowance: $180.00 per rentable square foot (≈ $6.88 million based on 38,240 sq ft).
• Security: the Company must provide an irrevocable $1.2 million letter of credit to secure lease obligations. The Company also pays additional amounts for taxes, insurance, maintenance and other operating expenses.
• Options/rights: one five-year renewal option, right of first refusal on remaining space on the building’s fifth floor, and specific early termination rights for severe casualty, eminent domain, or prolonged landlord failure to cure certain issues.

Why It Matters

• This is a material long-term real estate commitment that creates a direct financial obligation (Item 1.01/Item 2.03). Investors should note the roughly $33.4M base rent commitment (net of abatement) plus ongoing operating expense liabilities and the $1.2M letter of credit.
• The tenant improvement allowance reduces upfront build-out cash needs, but the lease will meaningfully affect occupancy costs and cash flows over the next decade. Watch future financial filings for how the company records lease liabilities, cash flow impacts, and any relocation costs.