SAN FRANCISCO--(BUSINESS WIRE)--August 06, 2026--
Grove Collaborative Holdings, Inc. (NYSE: GROV) ("Grove" or the "Company"), the world's first plastic neutral retailer and a leading sustainable consumer products company, certified B Corporation, and Public Benefit Corporation, today reported financial results for its fiscal second quarter ended June 30, 2026.
Key Second Quarter 2026 Financial Highlights:
-- Total Net Revenue was $36.6 million, down 16.9% year-over-year, but up
1.0% sequentially
-- Adjusted EBITDA was positive $0.5 million, compared to negative $0.9
million in the same period last year - the third consecutive quarter of
positive Adjusted EBITDA
-- Net Loss was $0.9 million, compared to a Net Loss of $3.6 million in
the same period last year
-- Operating Cash Flow was positive $1.3 million, compared to positive
$1.0 million in the same period last year
-- Reaffirming full-year Net Revenue guidance of $142.5 million to $152.5
million and Adjusted EBITDA guidance of breakeven to positive low single
digit millions
"Second quarter results came in as we expected when we raised our full-year outlook last quarter. Net Revenue grew 1.0% sequentially to $36.6 million, and we delivered Adjusted EBITDA of $0.5 million, our third consecutive quarter of positive Adjusted EBITDA. This reflects the operating discipline we described in the first quarter continuing to play out and it's now showing up clearly in our financial statements.
As our strategy continues to take hold, we are continuing to invest in the customer experience to drive long-term profitable growth. In the second quarter, we launched our new subscription experience, designed to give customers a seamless and customized experience that matches their ordering cadence, replacing the last major element of our technology migration from early 2025. While that foundational work is now complete, we will move towards customer-first innovation as we build a unique and defensible customer experience that enables them to build a healthier home for the people they love," said Jeff Yurcisin, Chief Executive Officer of Grove Collaborative.
Second Quarter 2026 Financial Results
(All comparisons are versus the quarter ended June 30, 2025 except where otherwise noted)
Net Revenue was $36.6 million for the quarter ended June 30, 2026, a decline of 16.9% year-over-year, but an increase of 1.0% compared to the first quarter of 2026. The year-over-year decline was primarily driven by a smaller active customer base entering the year, reflecting the compounding effects of lower advertising investment -- consistent with the strategy to prioritize profitability and customer experience improvements before re-accelerating growth -- and customer attrition tied to the ecommerce platform disruptions experienced throughout 2025, partially offset by an increase in Direct to Consumer ("DTC") Net Revenue per Order. The sequential increase was driven by growth from non-DTC channels, primarily QVC and Amazon, partially offset by a slight decline in DTC revenue.
Gross Margin was 53.6%, a decrease of 190 basis points compared to 55.4% in the second quarter of 2025. The decrease was primarily driven by one-time disposals in the quarter, as well as a sell-through of previously reserved inventory in the prior year that did not reoccur. These decreases were partially offset by a more targeted promotional strategy, enabled in part by the Grove Green Rewards loyalty program launched in the fourth quarter of 2025.
Operating Expenses were $20.4 million, a decrease of 27.0% compared to $27.9 million in the prior-year period. The decline reflects lower personnel-related expenses from reduced headcount, lower fulfillment costs driven by lower order volume and lower outbound shipping rates, and lower advertising spend.
Net Loss was $0.9 million, or (2.5%) Net Loss margin, compared to a net loss of $3.6 million, or (8.2%) Net Loss margin, in the prior-year period. The year-over-year improvement reflects lower operating expenses, offset by the decline in revenue.
Adjusted EBITDA was positive $0.5 million, or 1.3% margin, compared to negative $0.9 million, or (2.1%) margin, in the prior-year period. This marks the third consecutive quarter of positive Adjusted EBITDA and reflects continued operating discipline as the Company invests in the customer experience.
Operating Cash Flow was positive $1.3 million for the quarter, reflecting favorable working capital movements, including a decrease in inventory, and the benefit of non-cash expenses added back to Net Loss. This compares to positive $1.0 million in the prior-year period.
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, primarily reflecting positive Operating Cash Flow, partially offset by higher capitalized expenditures as a result of continued investment in eCommerce platform enhancements.
Second Quarter 2026 Key Metrics:
Three Months Ended
June 30,
------------------------
(in thousands, except DTC Net Revenue Per
Order) 2026 2025
------------ ----------
Financial and Operating Data
DTC Total Orders 489 640
DTC Active Customers 509 664
DTC Net Revenue Per Order $ 69.19 $ 65.23
Direct to Consumer (DTC) Total Orders were 489,000, a decline of 23.6% year-over-year. The decrease was primarily driven by a smaller active customer base entering the year, reflecting lower advertising investment relative to prior years and customer attrition associated with the 2025 ecommerce platform disruptions, both of which resulted in fewer new customers and, given the recurring nature of the business, fewer repeat orders.
DTC Active Customers -- defined as the number of customers that have placed an order in the trailing twelve months -- totaled 509,000 as of June 30, 2026, a decrease of 23.3% year-over-year. The decline is consistent with the factors described above.
DTC Net Revenue Per Order was $69.19, an increase of 6.1% year-over-year. The improvement was driven primarily by a larger mix of higher-priced items in customer orders, reflecting the Company's continued category expansion, as well as greater efficiency in promotional spend following the launch of the Company's new loyalty program. The year-over-year comparison also benefited from a prior-year test that temporarily increased the volume of smaller value orders, which did not reoccur in the second quarter of 2026.
Plastic Intensity(1) -- measured as pounds of plastic per $100 in net revenue across all online and retail sales -- was 0.84 pounds in the second quarter of 2026, improving from 0.93 pounds in the second quarter of 2025.
2026 Financial Outlook:
For the twelve-month period ending December 31, 2026, Grove is reaffirming its full-year guidance.
-- The Company continues to expect full-year net revenue of approximately
$142.5 million to $152.5 million, and Adjusted EBITDA of breakeven to
positive low single digit millions
-- The Company continues to expect sequential net revenue improvement in
each of the remaining quarters of 2026.
Webcast and Conference Call Information:
The Company will host an investor conference call and webcast to review these financial results at 5:00pm ET / 2:00pm PT on the same day. The webcast can be accessed at https://investors.grove.co/. The conference call can be accessed by calling 877-413-7205. International callers may dial +1 201-689-8537. A replay of the call will be available until September 3, 2026 and can be accessed by dialing 877-660-6853 or 201-612-7415, access ID: 13761742. The webcast will remain available on the Company's investor relations website for 30 days following the webcast.
About Grove Collaborative Holdings, Inc.
Grove Collaborative Holdings, Inc. (NYSE: GROV) is the one-stop online destination for everyday essentials that create a healthier home and planet. Explore thousands of thoughtfully vetted products for every room and everyone in your home, including household cleaning, personal care, health and wellness, laundry, clean beauty, kitchen, pantry, kids, baby, pet care, and beyond. Everything Grove sells meets a higher standard -- from health to sustainability and performance -- so you get a great value without compromising your values. As a B Corp and Public Benefit Corporation, Grove goes beyond selling products: every order is carbon neutral, supports plastic waste cleanup initiatives, and lets you see and track the positive impact of your choices. Shopping with purpose starts at Grove.com.
_______________ (1) Grove defines plastic intensity as pounds of plastic used per $100 in revenue as a way to hold itself accountable for the pace at which it decouples revenue from the use of plastic. To calculate plastic intensity, Grove defines "plastic" as any of the following materials within both products and packaging: plastic resin codes #1-7 (from the ASTM International Resin Identification Coding System), inclusive of polyvinyl alcohol (PVA, PVOH, PVAl), silicone, bioplastics, and any plastic liners, coatings, and resins.
Forward-Looking Statements