Grove Collaborative Holdings (NYSE: GROV) posts Q2 2026 loss with positive cash flow
Rhea-AI Filing Summary
Grove Collaborative Holdings reported fiscal second-quarter 2026 results with net revenue of $36.6 million, down 16.9% year-over-year but up 1.0% sequentially. Gross margin was 53.6%. Operating expenses fell to $20.4 million, a 27.0% decline, reducing net loss to $0.9 million, a net loss margin of 2.5%.
Adjusted EBITDA was positive $0.5 million with a 1.3% margin, the third consecutive positive quarter, and operating cash flow was $1.3 million. Cash, cash equivalents and restricted cash totaled $11.4 million at June 30, 2026. DTC orders and active customers fell more than 23% year-over-year, while DTC net revenue per order rose 6.1% to $69.19. Plastic Intensity improved to 0.84 pounds of plastic per $100 in net revenue from 0.93 pounds.
For 2026, the company reaffirmed full‑year net revenue guidance of approximately $142.5 million to $152.5 million and Adjusted EBITDA of breakeven to positive low single‑digit millions, and continues to expect sequential net revenue improvement in each remaining quarter of 2026.
Positive
- Adjusted EBITDA turned positive at $0.5 million with a 1.3% margin, marking a third consecutive positive quarter, while operating cash flow reached $1.3 million, indicating improving profitability and cash generation.
- Full-year 2026 guidance was reaffirmed for net revenue of approximately $142.5–$152.5 million and Adjusted EBITDA of breakeven to positive low single-digit millions, with sequential net revenue improvement expected in each remaining quarter.
Negative
- Net revenue declined 16.9% year-over-year to $36.6 million in Q2 2026, driven by a smaller active customer base and lower advertising investment.
- DTC orders and active customers fell over 23% year-over-year, reflecting reduced advertising and customer attrition linked to prior ecommerce platform disruptions.
Insights
Analyzing...
8-K Event Classification
4 items: 2.02, 7.01, 8.01, 9.01
4 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net revenue Q2 2026: $36.6 million
Net loss Q2 2026: $0.9 million
Adjusted EBITDA Q2 2026: $0.5 million
+5 more
8 metrics
Net revenue Q2 2026
$36.6 million
Quarter ended June 30, 2026; down 16.9% year-over-year and up 1.0% sequentially
Net loss Q2 2026
$0.9 million
Quarter ended June 30, 2026; net loss margin (2.5%)
Adjusted EBITDA Q2 2026
$0.5 million
Quarter ended June 30, 2026; 1.3% Adjusted EBITDA margin and third consecutive positive quarter
Operating cash flow Q2 2026
$1.3 million
Quarter ended June 30, 2026; compared to $1.0 million in the prior-year period
Cash, cash equivalents and restricted cash
$11.4 million
Balance as of June 30, 2026; up from $10.4 million as of March 31, 2026
DTC Net Revenue Per Order
$69.19
Quarter ended June 30, 2026; up 6.1% year-over-year from $65.23
Plastic Intensity Q2 2026
0.84 pounds
Pounds of plastic per $100 in net revenue in Q2 2026; improved from 0.93 pounds
2026 net revenue guidance
$142.5–$152.5 million
Full-year 2026 expected net revenue range reaffirmed
Key Terms
Adjusted EBITDA, Net Loss margin, Plastic Intensity, redeemable convertible preferred stock, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA was positive $0.5 million, or 1.3% margin"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Net Loss margin financial
"Net Loss was $0.9 million, or (2.5%) Net Loss margin"
Net loss margin measures how much of a company’s revenue is lost after all expenses, shown as a percentage of sales. It tells investors what portion of each dollar of revenue ends up as a loss — like seeing how much water is leaking from a bucket for every cup poured in — and helps compare how efficiently different companies turn revenue into profit or losses and how risky their business model may be.
Plastic Intensity technical
"Plastic Intensity1 – measured as pounds of plastic per $100 in net revenue"
Plastic intensity measures how much plastic a company uses relative to a business metric (for example per unit produced, per dollar of revenue, or per ton sold), giving a single number that captures the company’s reliance on plastic. Investors care because a high or rising plastic intensity can mean greater exposure to material costs, regulation, recycling liabilities and reputation risk, while reductions can lower expenses and signal improved sustainability—similar to using miles-per-gallon to compare fuel efficiency and running costs.
redeemable convertible preferred stock financial
"Redeemable convertible preferred stock | 24,772"
A redeemable convertible preferred stock is a special class of company shares that combines three features: it pays priority dividends like a safer, higher-ranking share; it can be converted into regular common shares so holders can join in upside; and it can be redeemed, meaning the company can buy it back for cash. For investors this matters because it offers a mix of downside protection and potential upside, but can change ownership stakes (dilution) and cash obligations depending on whether it’s converted or redeemed.
Non-GAAP Financial Measures financial
"Grove Collaborative Holdings, Inc. Non-GAAP Financial Measures (Unaudited)"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
derivative liabilities financial
"Changes in fair value of derivative liabilities | (72)"
Derivative liabilities are obligations a company records when it owes money under financial contracts whose value depends on something else, like interest rates, stock prices, or currencies. Think of them as bets or insurance policies that can create future cash payments; they matter to investors because they can cause sudden changes in a company’s reported debt, profits and cash flow and reveal exposure to market risks that could affect valuation.
Earnings Snapshot
Net revenue: $36.6 million · Guidance included
Quarter ended June 30, 2026
Net revenue
$36.6 million
Down 16.9% year-over-year; up 1.0% sequentially
Net loss
$0.9 million
Improved from $3.6 million net loss in the prior-year period
Adjusted EBITDA
$0.5 million
Improved from negative $0.9 million in the prior-year period; 1.3% margin
Operating cash flow
$1.3 million
Up from $1.0 million in the prior-year period
DTC Net Revenue Per Order
$69.19
Increased 6.1% year-over-year from $65.23
Guidance
For full-year 2026, the company expects net revenue of approximately $142.5 million to $152.5 million and Adjusted EBITDA of breakeven to positive low single digit millions, with sequential net revenue improvement in each remaining quarter.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Grove Collaborative (GROV)'s Q2 2026 net revenue and growth rates?
Grove Collaborative reported Q2 2026 net revenue of $36.6 million, down 16.9% year-over-year but up 1.0% sequentially. The decline was mainly due to a smaller active customer base and lower advertising, partially offset by higher Direct to Consumer net revenue per order and growth in non-DTC channels.
Did Grove Collaborative (GROV) achieve positive Adjusted EBITDA in Q2 2026?
Yes, Grove generated Adjusted EBITDA of $0.5 million in Q2 2026, representing a 1.3% margin. This compares with negative $0.9 million a year earlier and marks the company’s third consecutive quarter of positive Adjusted EBITDA as operating expenses declined and efficiency improved.
How did Grove Collaborative (GROV)'s customer metrics trend in Q2 2026?
In Q2 2026, DTC Total Orders were 489,000 and DTC Active Customers were 509,000, both down more than 23% year-over-year. However, DTC Net Revenue Per Order rose 6.1% to $69.19, helped by a higher mix of premium items and more efficient promotions.
What cash position and operating cash flow did Grove Collaborative (GROV) report for Q2 2026?
Grove generated positive operating cash flow of $1.3 million in Q2 2026, up from $1.0 million a year earlier. Cash, cash equivalents and restricted cash totaled $11.4 million as of June 30, 2026, reflecting positive operating cash flow partly offset by capitalized platform investments.
What 2026 financial guidance did Grove Collaborative (GROV) reaffirm?
For 2026, Grove reaffirmed net revenue guidance of approximately $142.5–$152.5 million and expects Adjusted EBITDA of breakeven to positive low single-digit millions. Management also continues to expect sequential net revenue improvement in each of the remaining quarters of 2026.
How is Grove Collaborative (GROV) performing on plastic reduction and sustainability?
Grove reported Plastic Intensity of 0.84 pounds per $100 in net revenue in Q2 2026, improving from 0.93 pounds a year earlier. Plastic Intensity tracks pounds of plastic used in products and packaging relative to revenue, supporting the company’s plastic reduction goals.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 6, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
(800 ) 231-8527
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e- 4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On August 6, 2026, Grove Collaborative Holdings, Inc. (the "Company") issued a press release announcing its earnings for the quarter ended June 30, 2026. A copy of such press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.
The information provided pursuant to this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished to the Securities and Exchange Commission and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language within such filings except as expressly set forth by specific reference in such filing
Item 7.01 Regulation FD Disclosure
Investor Presentation
On August 6, 2026, the Company posted an investor presentation on its investor relations website at investors.grove.co, which may be used in presentations by the Company's management to investors, analysts and others from time to time. A copy of this presentation is furnished as Exhibit 99.2 and incorporated into this Item 7.01 by reference.
The foregoing (including Exhibit 99.2) is being furnished pursuant to Item 7.01 and will not be deemed to be filed for purposes of Section 18 of the Exchange Act or otherwise be subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filings, except as expressly set forth by specific reference in such filing. The submission of the information set forth in this Item 7.01 shall not be deemed an admission as to the materiality of any information in this Item 7.01, including the information presented in Exhibit 99.2 that is provided solely in connection with Regulation FD.
Item 8.01 Other Events
Where You Can Find More Information
Investors and others should note that we announce material financial and operational information to company investors using a variety of disclosure channels as a means of disclosing information about the company, our products and for complying with disclosure obligations under Regulation FD , including:
•Our company website (grove.co)
•Our investor relations website (investors.grove.co)
•Our company social media channels including: x.com/grovecollab, instagram.com/grovecollaborative/, linkedin.com/company/grove-collaborative/, tiktok.com/@grovecollaborative, facebook.com/GroveCollab/, reddit.com/user/grovecollaborative/, reddit.com/user/GroveCO
•Jeff Yurcisin's social media accounts, including: linkedin.com/in/yurcisin/, x.com/yurcisin, tiktok.com/@jeffyurcisin and facebook.com/profile.php?id=61550308894238
•Press releases
•SEC filings
•Public conference calls and webcasts
The social media channels that we and our brands intend to use as a means of disclosing information described above may be updated from time to time as listed on our Investor Relations website.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||||||||||||||||||||
| 99.1 | Press Release dated August 6, 2026 announcing the Company's earnings for the quarter ended June 30, 2026 | |||||||||||||||||||||||||
| 99.2 | Investor Presentation dated August 6, 2026 | |||||||||||||||||||||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL) | |||||||||||||||||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
GROVE COLLABORATIVE HOLDINGS, INC. | ||||||||||||||||||||||||||||||||
| By: | /s/ Tom Siragusa | |||||||||||||||||||||||||||||||
| Name: | Tom Siragusa | |||||||||||||||||||||||||||||||
| Title: | Chief Financial Officer | |||||||||||||||||||||||||||||||
Date: August 6, 2026
Exhibit 99.1
Grove Announces Second Quarter 2026 Financial Results
SAN FRANCISCO, CA — August 6, 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 Intensity1 – 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.
Forward-Looking Statements
This press release contains "forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements relating to the plan to move to customer-first innovation; the impact of customer experience changes; sequential net revenue improvement in each of the remaining quarters of 2026; and guidance for 2026, including full year 2026 net revenue and Adjusted EBITDA. The forward-looking statements contained in this press release are based on Grove’s current expectations and beliefs in light of the Company’s experience and perception of historical trends, current conditions and expected future developments and their potential effects on the Company as well as other factors believed to be appropriate under the circumstances. There can be no assurance that future developments affecting the Company will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the Company’s control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including changes in business, market, financial, political and legal conditions; legal and regulatory matters and developments; risks relating to the uncertainty of the projected financial information; Grove’s ability to successfully expand its business; competition; risks relating to tariffs, inflation and interest rates; effectiveness of the Company’s ecommerce platform and selling and marketing efforts; demand for Grove products and other brands that it sells and those factors discussed in documents filed, or to be filed, with the U.S. Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. All forward-looking statements in this press release are made as of the date hereof, based on information available to Grove as of the date hereof, and Grove assumes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Non-GAAP Financial Measures
Some of the financial information and data contained in this press release, such as Adjusted EBITDA and Adjusted EBITDA margin, have not been prepared in accordance with United States generally accepted accounting principles (“GAAP”). These non-GAAP financial measures, and other measures that are calculated using such non-GAAP measures, are an addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to revenue, operating income, profit before tax, net income or any other performance measures derived in accordance with GAAP. Investors should not consider the non-GAAP financial
measures in isolation from, or as a substitute for, GAAP measures. A reconciliation of historical Adjusted EBITDA to Net Income is provided in the tables at the end of this press release. Reconciliations of projected Adjusted EBITDA and projected Adjusted EBITDA Margin to the closest corresponding GAAP measures are not available without unreasonable effort on a forward-looking basis due to the high variability, complexity, and low visibility with respect to the charges excluded from these non-GAAP measures, such as the impact of depreciation and amortization of fixed assets, amortization of internal use software, the effects of net interest expense (income), other expense (income), and non-cash stock based compensation expense. Grove believes these non-GAAP measures of financial results, including on a forward-looking basis, provide useful information to management and investors regarding certain financial and business trends relating to Grove’s financial condition and results of operations. Grove’s management uses these non-GAAP measures for trend analyses and for budgeting and planning purposes. Grove believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends in and in comparing Grove’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Management of Grove does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP measures. Other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore Grove’s non-GAAP measures may not be directly comparable to similarly titled measures of other companies.
Grove calculates Adjusted EBITDA as net loss, adjusted to exclude: stock-based compensation expense; depreciation and amortization; changes in fair values of derivative liabilities; interest income; interest expense; restructuring costs; transaction related costs related to certain strategic merger & acquisition projects; provision for income taxes and certain litigation and legal settlement expenses that the Company does not consider representative of its underlying operations. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by net revenue. Because Adjusted EBITDA excludes these elements that are otherwise included in the Company’s GAAP financial results, this measure has limitations when compared to net loss determined in accordance with GAAP. Further, Adjusted EBITDA is not necessarily comparable to similarly titled measures used by other companies. For these reasons, investors should not consider Adjusted EBITDA in isolation from, or as a substitute for, net loss determined in accordance with GAAP.
Investor Relations Contact
ir@grove.co
Media Relations Contact
pr@grove.co
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.
1
Grove Collaborative Holdings, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
| June 30, 2026 | December 31, 2025 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 8,345 | $ | 8,490 | |||||||
| Restricted cash, current | 2,065 | 2,300 | |||||||||
Inventory | 19,458 | 18,421 | |||||||||
Prepaid expenses and other current assets | 4,043 | 5,492 | |||||||||
Total current assets | 33,911 | 34,703 | |||||||||
| Restricted cash, noncurrent | 1,002 | 1,002 | |||||||||
Property and equipment, net | 3,469 | 3,653 | |||||||||
| Intangible assets, net | 2,098 | 2,302 | |||||||||
Operating lease right-of-use assets | 8,613 | 9,535 | |||||||||
Other long-term assets | 1,696 | 1,899 | |||||||||
Total assets | $ | 50,789 | $ | 53,094 | |||||||
Liabilities and Stockholders’ Deficit | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 6,390 | $ | 8,828 | |||||||
Accrued expenses | 9,434 | 9,476 | |||||||||
Deferred revenue | 6,906 | 5,033 | |||||||||
| Debt, current | — | 800 | |||||||||
Operating lease liabilities, current | 3,171 | 2,895 | |||||||||
Other current liabilities | 1,047 | 665 | |||||||||
Total current liabilities | 26,948 | 27,697 | |||||||||
| Debt, noncurrent | 7,500 | 6,700 | |||||||||
| Operating lease liabilities, noncurrent | 8,400 | 10,053 | |||||||||
| Derivative liabilities | 700 | 871 | |||||||||
Total liabilities | 43,548 | 45,321 | |||||||||
| Redeemable convertible preferred stock | 24,772 | 24,772 | |||||||||
Stockholders’ deficit: | |||||||||||
| Common stock | 4 | 4 | |||||||||
Additional paid-in capital | 644,623 | 643,226 | |||||||||
Accumulated deficit | (662,158) | (660,229) | |||||||||
| Total stockholders’ deficit | (17,531) | (16,999) | |||||||||
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit | $ | 50,789 | $ | 53,094 | |||||||
2
Grove Collaborative Holdings, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Revenue, net | $ | 36,569 | $ | 44,026 | $ | 72,793 | $ | 87,573 | |||||||||||||||
Cost of goods sold | 16,984 | 19,631 | 33,353 | 40,114 | |||||||||||||||||||
Gross profit | 19,585 | 24,395 | 39,440 | 47,459 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Advertising | 1,235 | 2,722 | 2,397 | 5,529 | |||||||||||||||||||
Product development | 1,513 | 2,207 | 2,948 | 3,986 | |||||||||||||||||||
Selling, general and administrative | 17,620 | 22,956 | 35,779 | 44,942 | |||||||||||||||||||
Operating loss | (783) | (3,490) | (1,684) | (6,998) | |||||||||||||||||||
Non-operating expenses (income): | |||||||||||||||||||||||
Interest expense | 272 | 305 | 546 | 651 | |||||||||||||||||||
| Changes in fair value of derivative liabilities | (72) | (70) | (171) | (214) | |||||||||||||||||||
Other income, net | (71) | (109) | (146) | (281) | |||||||||||||||||||
Total non-operating expenses, net | 129 | 126 | 229 | 156 | |||||||||||||||||||
Loss before provision for income taxes | (912) | (3,616) | (1,913) | (7,154) | |||||||||||||||||||
Provision for income taxes | 8 | 10 | 16 | 19 | |||||||||||||||||||
Net loss | $ | (920) | $ | (3,626) | $ | (1,929) | $ | (7,173) | |||||||||||||||
| Less: Accumulated dividends on redeemable convertible preferred stock | (375) | (375) | (750) | (750) | |||||||||||||||||||
| Net loss attributable to common stockholders, basic and diluted | $ | (1,295) | $ | (4,001) | $ | (2,679) | $ | (7,923) | |||||||||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.03) | $ | (0.10) | $ | (0.07) | $ | (0.21) | |||||||||||||||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 40,553,480 | 38,813,480 | 40,314,583 | 38,513,390 | |||||||||||||||||||
3
Grove Collaborative Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
Cash Flows from Operating Activities | |||||||||||
Net loss | $ | (1,929) | $ | (7,173) | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
| Stock-based compensation expense | 1,651 | 2,347 | |||||||||
| Depreciation and amortization | 790 | 866 | |||||||||
| Changes in fair value of derivative liabilities | (171) | (214) | |||||||||
| Non-cash interest expense | 107 | 219 | |||||||||
| Inventory write-down | — | (351) | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Inventory | (1,037) | 1,013 | |||||||||
Prepaids and other assets | 2,228 | 409 | |||||||||
Accounts payable | (2,520) | (2,912) | |||||||||
Accrued expenses | 89 | (87) | |||||||||
Deferred revenue | 1,873 | (349) | |||||||||
Operating lease right-of-use assets and liabilities | (455) | 625 | |||||||||
Other liabilities | (34) | (278) | |||||||||
Net cash provided by (used in) operating activities | 592 | (5,885) | |||||||||
Cash Flows from Investing Activities | |||||||||||
| Cash paid for acquisitions | — | (2,848) | |||||||||
| Purchase of property and equipment | (451) | (972) | |||||||||
Net cash used in investing activities | (451) | (3,820) | |||||||||
Cash Flows from Financing Activities | |||||||||||
| Payment of issuance costs related to preferred stock and SEPA | — | (15) | |||||||||
| Payment on finance agreement | (267) | — | |||||||||
| Payments related to stock-based award activities, net | (371) | (774) | |||||||||
| Proceeds from issuance under employee stock purchase plan | 117 | 141 | |||||||||
Net cash used in financing activities | (521) | (648) | |||||||||
Net decrease in cash, cash equivalents and restricted cash | (380) | (10,353) | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 11,792 | 24,304 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 11,412 | $ | 13,951 | |||||||
4
Grove Collaborative Holdings, Inc.
Non-GAAP Financial Measures
(Unaudited)
(In thousands, except percentages)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
Reconciliation of Net Loss to Adjusted EBITDA | (in thousands, except percentages) | ||||||||||||||||||||||
| Net loss | $ | (920) | $ | (3,626) | $ | (1,929) | $ | (7,173) | |||||||||||||||
Stock-based compensation | 845 | 1,378 | 1,651 | 2,347 | |||||||||||||||||||
Depreciation and amortization | 399 | 488 | 790 | 866 | |||||||||||||||||||
| Changes in fair value of derivative liabilities | (72) | (70) | (171) | (214) | |||||||||||||||||||
| Interest income | (71) | (109) | (146) | (281) | |||||||||||||||||||
Interest expense | 272 | 305 | 546 | 651 | |||||||||||||||||||
Transaction related costs | — | 712 | — | 1,275 | |||||||||||||||||||
Provision for income taxes | 8 | 10 | 16 | 19 | |||||||||||||||||||
Total Adjusted EBITDA | $ | 461 | $ | (912) | $ | 757 | $ | (2,510) | |||||||||||||||
Net loss margin | (2.5) | % | (8.2) | % | (2.6) | % | (8.2) | % | |||||||||||||||
Adjusted EBITDA margin (loss) | 1.3 | % | (2.1) | % | 1.0 | % | (2.9) | % | |||||||||||||||
Source: Grove Collaborative Holdings, Inc.
5