Aug 6, 2026, 4:11 PM ETConsumer Defensive

Grove Collaborative Holdings, Inc. — Second Quarter 2026 Earnings Summary

GROVGROVE COLLABORATIVE HOLDINGS INC

Financial Performance

Total Net Revenue was $36.6 million, a 16.9% decrease year-over-year (YoY) but a 1.0% increase sequentially.
Adjusted EBITDA was positive $0.5 million (1.3% margin), compared to negative $0.9 million (-2.1% margin) in the prior-year period, marking the third consecutive quarter of positive Adjusted EBITDA.
Net Loss was $0.9 million (-2.5% margin), an improvement from a $3.6 million loss (-8.2% margin) in the prior-year period.
Operating Cash Flow was positive $1.3 million, up from positive $1.0 million in the prior-year period.
Gross Margin was 53.6%, a decrease of 190 basis points from 55.4% in the prior-year period, driven by one-time disposals and the non-reoccurrence of prior-year reserved inventory sell-throughs.
Operating Expenses were $20.4 million, a 27.0% decrease from $27.9 million in the prior-year period, due to lower personnel expenses, fulfillment costs, and advertising spend.
Cash, Cash Equivalents, and Restricted Cash totaled $11.4 million as of June 30, 2026, up from $10.4 million as of March 31, 2026.
Deferred Revenue was $6.9 million as of June 30, 2026, up from $5.0 million as of December 31, 2025.
Total Debt was $7.5 million (noncurrent) as of June 30, 2026, compared to $7.5 million ($0.8 million current, $6.7 million noncurrent) as of December 31, 2025.

Reaffirmed full-year 2026 Net Revenue guidance of $142.5 million to $152.5 million.
Reaffirmed full-year 2026 Adjusted EBITDA guidance of breakeven to positive low single-digit millions.
Expects sequential net revenue improvement in each of the remaining quarters of 2026.

Direct to Consumer (DTC) Net Revenue Per Order increased 6.1% YoY to $69.19, driven by a larger mix of higher-priced items and improved promotional efficiency.
DTC Total Orders were 489,000, a 23.6% decline YoY.
DTC Active Customers totaled 509,000, a 23.3% decline YoY.
Non-DTC channels, primarily QVC and Amazon, drove the sequential revenue increase, partially offset by a slight decline in DTC revenue.
Launched a new subscription experience in the second quarter to replace the final element of the 2025 technology migration.
Plastic Intensity improved to 0.84 pounds per $100 in net revenue in Q2 2026, down from 0.93 pounds in the prior-year period.

The year-over-year revenue decline was attributed to a smaller active customer base resulting from lower advertising investment and customer attrition tied to 2025 ecommerce platform disruptions.
The company is prioritizing profitability and customer experience improvements over re-accelerating growth in the near term.

Customer attrition and a smaller active customer base continue to impact revenue growth.
Gross margin was negatively impacted by one-time disposals and the non-reoccurrence of favorable inventory conditions from the prior year.
Forward-looking statements note risks including changes in business, market, financial, political, and legal conditions; competition; tariffs; inflation; interest rates; and the effectiveness of the ecommerce platform.

CEO Jeff Yurcisin stated that results came in as expected following the previous quarter's outlook raise, reflecting continued operating discipline.
Management emphasized that the foundational technology migration is complete and the company is shifting focus to customer-first innovation to build a defensible customer experience.
The tone highlighted the transition from foundational work to building a unique customer experience that enables healthier homes.

The company is a certified B Corporation and Public Benefit Corporation.
The Grove Green Rewards loyalty program, launched in Q4 2025, contributed to a more targeted promotional strategy.
The company reported positive Adjusted EBITDA for three consecutive quarters.
Capitalized expenditures increased in the quarter due to continued investment in eCommerce platform enhancements.