Grove Collaborative (GROV) raises 2026 guidance as Q1 EBITDA turns positive
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Grove Collaborative Holdings, Inc. reported first quarter 2026 net revenue of $36.2 million, down 16.8% year-over-year, but delivered positive Adjusted EBITDA of $0.3 million with a 0.8% margin. Net loss narrowed to $1.0 million from $3.5 million a year earlier, reflecting lower operating expenses and higher gross margin of 54.8%, up 180 basis points.
Operating cash flow improved to a $0.7 million outflow from $6.9 million, while cash, cash equivalents and restricted cash totaled $10.4 million as of March 31, 2026. Direct-to-consumer total orders fell 19.2% and active customers declined 18.5%, but net revenue per order rose 2.0% to $67.79 and plastic intensity improved to 0.84 pounds per $100 in net revenue.
The company raised full‑year 2026 net revenue guidance to a range of $142.5 million to $152.5 million and now expects Adjusted EBITDA between breakeven and positive low single‑digit millions, reiterating that first quarter 2026 marked the expected net revenue trough with sequential improvement anticipated for the remaining quarters of 2026.
Positive
- None.
Negative
- None.
Insights
Profitability and guidance improve despite revenue pressure.
Grove Collaborative showed meaningful margin progress in Q1 2026. Net revenue fell to $36.2 million, down 16.8% year-over-year, but gross margin expanded to 54.8% and Adjusted EBITDA turned positive at $0.3 million, its second consecutive profitable quarter on this basis.
Operating cash outflow shrank to $0.7 million from $6.9 million, and cash, cash equivalents and restricted cash were $10.4 million as of March 31, 2026. However, DTC total orders and active customers declined by double digits, highlighting continued demand headwinds following prior ecommerce disruptions and lower advertising spend.
The company raised full-year 2026 net revenue guidance to $142.5–$152.5 million and now projects Adjusted EBITDA between breakeven and positive low single digit millions, while stating Q1 net revenue was the expected trough with sequential growth anticipated. Execution on platform stabilization and measured advertising re-acceleration will be important to support this outlook.
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
Q1 2026 Net Revenue: $36.2 million
Q1 2026 Adjusted EBITDA: $0.3 million
Q1 2026 Net Loss: $1.0 million
+5 more
8 metrics
Q1 2026 Net Revenue
$36.2 million
Quarter ended March 31, 2026; down 16.8% year-over-year
Q1 2026 Adjusted EBITDA
$0.3 million
Second consecutive quarter of positive Adjusted EBITDA; 0.8% margin
Q1 2026 Net Loss
$1.0 million
Improved from $3.5 million net loss in Q1 2025
Operating Cash Flow
-$0.7 million
Q1 2026 operating cash outflow vs. -$6.9 million in Q1 2025
Cash and Restricted Cash
$10.4 million
Cash, cash equivalents and restricted cash as of March 31, 2026
2026 Net Revenue Guidance
$142.5–$152.5 million
Full-year 2026 outlook raised from $140–$150 million
DTC Total Orders
502,000 orders
Three months ended March 31, 2026; down 19.2% year-over-year
Plastic Intensity
0.84 pounds per $100 revenue
Q1 2026 versus 0.99 pounds in Q1 2025
Key Terms
Adjusted EBITDA, gross margin, plastic intensity, Direct to Consumer (DTC), +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA was positive $0.3 million, compared to a loss of $1.6 million in the same period last year"
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.
gross margin financial
"Gross Margin was 54.8%, an increase of 180 basis points compared to 53.0% in the first quarter of 2025"
Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.
plastic intensity other
"Plastic Intensity1 – measured as pounds of plastic per $100 in net revenue across all online and retail sales – was 0.84 pounds"
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.
Direct to Consumer (DTC) financial
"Direct to Consumer (DTC) Total Orders were 502,000, a decline of 19.2% year-over-year"
Direct to consumer (DTC) describes a company selling products or services straight to end customers without using middlemen like retailers or wholesalers. For investors, DTC matters because it usually means the company keeps more profit per sale, has closer access to customer data and feedback, and bears the full cost of finding and keeping customers—similar to a maker selling at a farmers’ market instead of through a big department store.
Redeemable convertible preferred stock financial
"Redeemable convertible preferred stock | 24,772 | | | 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.
derivative liabilities financial
"Changes in fair value of derivative liabilities | (99) | | | (144)"
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: $36.2 million · Guidance included
Q1 2026
Net Revenue
$36.2 million
-16.8% year-over-year
Net Loss
$1.0 million
improved from $3.5 million loss in Q1 2025
Adjusted EBITDA
$0.3 million
improved from -$1.6 million in Q1 2025
Gross Margin
54.8%
+180 basis points year-over-year
Guidance
For full-year 2026, Grove Collaborative expects net revenue of approximately $142.5–$152.5 million and Adjusted EBITDA between breakeven and positive low single digit millions, with Q1 2026 representing the expected net revenue trough and sequential improvement anticipated in each remaining quarter.
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): May 7, 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 May 7, 2026, Grove Collaborative Holdings, Inc. (the "Company") issued a press release announcing its earnings for the quarter ended March 31, 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 May 7, 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 May 7, 2026 announcing the Company's earnings for the quarter ended March 31, 2026 | |||||||||||||||||||||||||
| 99.2 | Investor Presentation dated May 7, 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: May 7, 2026
Exhibit 99.1
Grove Announces First Quarter 2026 Financial Results
SAN FRANCISCO, CA — May 7, 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 first quarter ended March 31, 2026.
Key First Quarter 2026 Financial Highlights:
●Total Net Revenue was $36.2 million, down 16.8% year-over-year
●Adjusted EBITDA was positive $0.3 million, compared to a loss of $1.6 million in the same period last year
●Net Loss was $1.0 million, compared to a Net Loss of $3.5 million in the same period last year
●Operating Cash Flow was negative $0.7 million, compared to negative $6.9 million in the same period last year
●Raising full-year 2026 net revenue guidance to $142.5 million to $152.5 million and Adjusted EBITDA guidance to breakeven to positive low single digit millions
●Sequential Net Revenue growth expected in each remaining quarter
“We executed with discipline in the first quarter, delivering positive Adjusted EBITDA even as net revenue reached its expected trough. That outcome reflects deliberate choices: maintaining disciplined advertising spend while stabilizing the customer experience, and letting the leaner cost structure flow through to the bottom line. What gives us confidence as we look ahead is the quality of what we're seeing underneath the surface: repeat order rates among recent customer cohorts are performing at levels consistent with what we saw prior to the ecommerce migration, and customer acquisition costs justify a gradual increase in investment. We intend to scale spend strategically, increasing as we maintain efficiency and prioritize advertising paybacks and lifetime value.
The most visible milestone in the quarter was the launch of our redesigned mobile application. With approximately half of non-autoship orders being placed through the app, mobile is one of the most important shopping channels for our customers - which is precisely why we made the decision to rebuild it internally. The result is a 5-star app that our customers deserve and that we now fully control, giving us the flexibility to improve and personalize it as we grow.
We also continued to deepen Grove's commitment to human health. In the first quarter, we expanded our ingredient standards to more than 10,000 banned or restricted ingredients — including more than 3,000 that are outright banned across every category we carry. This is what differentiates Grove: not just a curated assortment, but a platform customers can trust to make the hard calls on their behalf.
With the first quarter behind us, we are raising both top and bottom line guidance and still expect sequential Net Revenue improvement through the remainder of 2026.”
First Quarter 2026 Financial Results
(All comparisons are versus the quarter ended March 31, 2025 except where otherwise noted)
Net Revenue was $36.2 million, a decline of 16.8% year-over-year. The decline was primarily driven by a smaller active customer base entering the year — reflecting the compounding impact of lower advertising investment in 2024 and 2025 and customer attrition associated with the ecommerce platform disruptions experienced throughout 2025 — as well as continued disciplined advertising investment in the first quarter, consistent with the strategy to prioritize profitability and customer experience stabilization before re-accelerating growth.
Gross Margin was 54.8%, an increase of 180 basis points compared to 53.0% in the first quarter of 2025. The improvement was primarily driven by more targeted promotional activity, enabled in part by the Grove Green Rewards loyalty program launched in the fourth quarter of 2025. Grove Green Rewards has enabled a shift away from broad discounting toward more efficient incentives.
Operating Expenses were $20.8 million, a decrease of 21.9% compared to $26.6 million in the prior-year period. The decline reflects the full-quarter benefit of the reduction in force executed in November 2025, lower advertising expense consistent with the current strategy, and lower fulfillment costs on reduced order volume.
Net Loss was $1.0 million, or (2.8%) Net Loss margin, compared to a net loss of $3.5 million, or (8.1%) Net Loss margin, in the prior-year period. The year-over-year improvement reflects lower operating expenses.
Adjusted EBITDA was positive $0.3 million, or 0.8% margin, compared to negative $1.6 million, or (3.7%) margin, in the prior-year period. This marks the second consecutive quarter of positive Adjusted EBITDA and reflects the continued focus on operating discipline as the Company completes the stabilization of the ecommerce platform.
Operating Cash Flow was negative $0.7M for the quarter, primarily reflecting an increase in inventory to support ongoing operational execution, offset by the timing of payables. This compares favorably to negative $6.9 million in the prior-year period, which included a larger net loss, working capital investment in M&A, and other one-time items that did not reoccur.
Cash, Cash Equivalents, and Restricted Cash totaled $10.4 million as of March 31, 2026, down from $11.8 million as of December 31, 2025, primarily reflecting cash used in operating and investing activities, including the development of the recently launched mobile application.
First Quarter 2026 Key Metrics:
| Three Months Ended March 31, | |||||||||||
(in thousands, except DTC Net Revenue Per Order) | 2026 | 2025 | |||||||||
| Financial and Operating Data | |||||||||||
DTC Total Orders | 502 | 622 | |||||||||
DTC Active Customers | 553 | 678 | |||||||||
DTC Net Revenue Per Order | $ | 67.79 | $ | 66.49 | |||||||
Direct to Consumer (DTC) Total Orders were 502,000, a decline of 19.2% 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 553,000 as of March 31, 2026, a decrease of 18.5% year-over-year. The decline is consistent with the factors described above.
DTC Net Revenue Per Order was $67.79, an increase of 2.0% year-over-year. The improvement was driven by a more targeted promotional strategy — including the shift to Grove Green Rewards — and a
larger mix of higher-priced items in customer orders, reflecting the continued expansion of assortment in categories such as clean beauty, personal care, and wellness.
Plastic Intensity1 – measured as pounds of plastic per $100 in net revenue across all online and retail sales – was 0.84 pounds in the first quarter of 2026, improving from 0.99 pounds the first quarter of 2025.
2026 Financial Outlook:
For the twelve-month period ending December 31, 2026, Grove is raising its full-year guidance, reflecting improved cohort performance and customer acquisition efficiency.
●The Company now expects full-year net revenue of approximately $142.5 million to $152.5 million, raised from the prior range of $140 million to $150 million, and Adjusted EBITDA of breakeven to positive low single digit millions, raised from approximately breakeven
●First quarter 2026 net revenue represented the expected trough for the year. Grove expects sequential net revenue improvement in each of the remaining three 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 June 4, 2026 and can be accessed by dialing 877-660-6853 or 201-612-7415, access ID: 13760192. 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 intention to scale spend carefully and to maintain efficiency; prioritizing paybacks and customer lifetime value; improved cohort performance and customer acquisition efficiency; first quarter 2026 being the net revenue trough for the year; 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 continued disruption relating to the ecommerce platform migration, 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 we do not consider representative of the 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, except per share amounts)
| March 31, 2026 | December 31, 2025 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 7,160 | $ | 8,490 | |||||||
| Restricted cash, current | 2,265 | 2,300 | |||||||||
Inventory | 21,479 | 18,421 | |||||||||
Prepaid expenses and other current assets | 2,638 | 5,492 | |||||||||
Total current assets | 33,542 | 34,703 | |||||||||
| Restricted cash, noncurrent | 1,002 | 1,002 | |||||||||
Property and equipment, net | 3,524 | 3,653 | |||||||||
| Intangible assets, net | 2,198 | 2,302 | |||||||||
Operating lease right-of-use assets | 9,084 | 9,535 | |||||||||
Other long-term assets | 1,715 | 1,899 | |||||||||
Total assets | $ | 51,065 | $ | 53,094 | |||||||
Liabilities and Stockholders’ Deficit | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 8,685 | $ | 8,828 | |||||||
Accrued expenses | 8,000 | 9,476 | |||||||||
Deferred revenue | 5,857 | 5,033 | |||||||||
| Debt, current | — | 800 | |||||||||
Operating lease liabilities, current | 3,049 | 2,895 | |||||||||
Other current liabilities | 603 | 665 | |||||||||
Total current liabilities | 26,194 | 27,697 | |||||||||
| Debt, noncurrent | 7,500 | 6,700 | |||||||||
| Operating lease liabilities, noncurrent | 9,225 | 10,053 | |||||||||
| Derivative liabilities | 772 | 871 | |||||||||
Total liabilities | 43,691 | 45,321 | |||||||||
| Redeemable convertible preferred stock | 24,772 | 24,772 | |||||||||
Stockholders’ deficit: | |||||||||||
| Common stock | 4 | 4 | |||||||||
Additional paid-in capital | 643,836 | 643,226 | |||||||||
Accumulated deficit | (661,238) | (660,229) | |||||||||
| Total stockholders’ deficit | (17,398) | (16,999) | |||||||||
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit | $ | 51,065 | $ | 53,094 | |||||||
2
Grove Collaborative Holdings, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share amounts)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
Revenue, net | $ | 36,224 | $ | 43,547 | |||||||
Cost of goods sold | 16,369 | 20,483 | |||||||||
Gross profit | 19,855 | 23,064 | |||||||||
Operating expenses: | |||||||||||
Advertising | 1,162 | 2,807 | |||||||||
Product development | 1,435 | 1,779 | |||||||||
Selling, general and administrative | 18,159 | 21,986 | |||||||||
Operating loss | (901) | (3,508) | |||||||||
Non-operating expenses (income): | |||||||||||
Interest expense | 274 | 346 | |||||||||
| Changes in fair value of derivative liabilities | (99) | (144) | |||||||||
Other income, net | (75) | (172) | |||||||||
Total non-operating expenses (income), net | 100 | 30 | |||||||||
Loss before provision for income taxes | (1,001) | (3,538) | |||||||||
Provision for income taxes | 8 | 9 | |||||||||
Net loss | $ | (1,009) | $ | (3,547) | |||||||
| Less: Accumulated dividends on redeemable convertible preferred stock | (375) | (375) | |||||||||
| Net loss attributable to common stockholders, basic and diluted | $ | (1,384) | $ | (3,922) | |||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.03) | $ | (0.10) | |||||||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 40,086,439 | 38,209,966 | |||||||||
3
Grove Collaborative Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
Cash Flows from Operating Activities | |||||||||||
Net loss | $ | (1,009) | $ | (3,547) | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
| Stock-based compensation expense | 806 | 969 | |||||||||
| Depreciation and amortization | 391 | 378 | |||||||||
| Changes in fair value of derivative liabilities | (99) | (144) | |||||||||
| Non-cash interest expense | 53 | 139 | |||||||||
| Inventory write-down | — | (107) | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Inventory | (3,058) | (536) | |||||||||
Prepaids and other assets | 3,044 | (61) | |||||||||
Accounts payable | (143) | (816) | |||||||||
Accrued expenses | (1,340) | (2,733) | |||||||||
Deferred revenue | 824 | (520) | |||||||||
Operating lease right-of-use assets and liabilities | (223) | 188 | |||||||||
Other liabilities | 71 | (82) | |||||||||
Net cash used in operating activities | (683) | (6,872) | |||||||||
Cash Flows from Investing Activities | |||||||||||
| Cash paid for acquisitions | — | (2,848) | |||||||||
| Purchase of property and equipment | (294) | (541) | |||||||||
Net cash used in investing activities | (294) | (3,389) | |||||||||
Cash Flows from Financing Activities | |||||||||||
| Payment of issuance costs related to preferred stock and SEPA | — | (15) | |||||||||
| Payment on finance agreement | (192) | — | |||||||||
| Payments related to stock-based award activities, net | (196) | (521) | |||||||||
Net cash used in financing activities | (388) | (536) | |||||||||
Net decrease in cash, cash equivalents and restricted cash | (1,365) | (10,797) | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 11,792 | 24,304 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 10,427 | $ | 13,507 | |||||||
4
Grove Collaborative Holdings, Inc.
Non-GAAP Financial Measures
(Unaudited)
(In thousands, except percentages)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
Reconciliation of Net Loss to Adjusted EBITDA | (in thousands, except percentages) | ||||||||||
| Net loss | $ | (1,009) | $ | (3,547) | |||||||
Stock-based compensation | 806 | 969 | |||||||||
Depreciation and amortization | 391 | 378 | |||||||||
| Changes in fair value of derivative liabilities | (99) | (144) | |||||||||
| Interest income | (75) | (172) | |||||||||
Interest expense | 274 | 346 | |||||||||
Transaction related costs | — | 563 | |||||||||
Provision for income taxes | 8 | 9 | |||||||||
Total Adjusted EBITDA | $ | 296 | $ | (1,598) | |||||||
Net loss margin | (2.8) | % | (8.1) | % | |||||||
Adjusted EBITDA margin (loss) | 0.8 | % | (3.7) | % | |||||||
Source: Grove Collaborative Holdings, Inc.
5
Investor Presentation Q1 2026 As of May 7, 2026
All information in this presentation is as of May 7, 2026. Forward-Looking Statements Certain statements included in this presentation are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1996, as amended. Forward-looking statements are statements other than statements about historical fact. The forward looking statements in this presentation include, but are not limited to, statements regarding 2026 guidance, including guidance for revenue and Adjusted EBITDA; net revenue reaching a trough in the first quarter; sequential revenue improvement in each of the remaining three quarters of 2026; continued stabilization of the ecommerce platform and improving customer experience metrics; and a measured re-acceleration of customer acquisition investment. These forward-looking statements are subject to a number of risks and uncertainties, and you should not rely upon the forward-looking statements as predictions of future events. The future events and trends discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Grove cannot guarantee that future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. Except as required by law, Grove disclaims any obligation to update these forward-looking statements to reflect future events or circumstances. The forward-looking statements are subject to a number of risks and uncertainties, including: potential disruptions relating to Grove’s technology platform transition to third parties, changes in business, market, financial, political and legal conditions; risks relating to the uncertainty of the projected financial information; Grove’s ability to successfully expand its business; competition; risks relating to inflation and interest rates; risks relating to the technology platform transition and those factors discussed in documents of Grove filed, or to be filed, with the U.S. Securities and Exchange Commission. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements should not be relied upon as representing Grove’s assessments as of any date subsequent to the date of this presentation. See Risk Factors in our Form 10-K filed May 7, 2026. Non-GAAP Information Grove uses certain non-GAAP measures in this presentation including Adjusted EBITDA. Grove believes the presentation of its non-GAAP financial measures enhances investors' overall understanding of the company's historical financial performance. The presentation of the company's non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company's financial results prepared in accordance with GAAP, and the company's non-GAAP measures may be different from non-GAAP measures used by other companies. Reconciliations of these non-GAAP financial measures to the most comparable GAAP measures, may be found in the Appendix at the end of this presentation. Safe Harbor Statement/Non-GAAP Measures
home, family, planet, healthier. Your
Grove’s transformation fuels momentum for future growth Strategic Pillars - First Quarter Summary Sustainable Profitability ➔ Delivered $0.3M Adjusted EBITDA at the expected revenue trough, second consecutive quarter of positive Adjusted EBITDA, demonstrating structural cost improvements are holding ➔ Gross margin expanded 180bps year-over-year to 54.8%, driven by Grove Green Rewards enabling a structural shift away from broad promotional discounting to rewards-based promos Balance Sheet Strength ➔ Ended the quarter with $10.4M in cash, cash equivalents, and restricted cash ➔ Operating cash flow was negative $0.7 million, primarily reflecting an increase in inventory during the period Revenue Growth ➔ Net Revenue of $36.2M, down 16.8% year-over-year, but ahead of expectations; Q1 represents the expected trough with sequential growth expected each quarter through year-end ➔ Redesigned mobile app launched in February; subscription experience revamp on track for Q2 ➔ Early repeat order rates among recent cohorts tracking at pre-migration levels, signaling the customer experience is recovering and supporting a measured re-acceleration of advertising investment Environmental & Human Health Leadership ➔ Onboarded a Chief Medical Advisor, anchoring Grove's Human Health Worldview in clinical credibility ➔ Expanded ingredient standards to 10,000+ banned or restricted substances, including 3,000+ outright banned across every category carried, the most stringent standard that we know of in the space
MEASURING OUR IMPACT Q1 2026 Financial results
Q1 2026 Financial Results ADJUSTED EBITDA GROSS MARGIN NET REVENUE $36.2M -16.8% vs. LY -14.6% vs. Q4 25 54.8% +180 bps vs. LY $0.3M, 0.8% +$1.9M, +450 bps vs. LY -$0.7M +$6.2M vs. LYOPERATING CASH FLOW Net Revenue decline driven by smaller active customer base associated with ecommerce platform migration issues in 2025 and lower advertising spend Gross Margin expansion driven by targeted promotions following the launch of Grove Green Rewards loyalty program in Q4 2025 Adjusted EBITDA improvement reflects gross margin expansion and lower operating expenses Operating Cash Flow primarily reflects an increase in inventory to support ongoing operational execution
Cost Discipline and Structural Changes are Driving Sustainable Profitability Adjusted EBITDA ($M) Delivered second straight quarter of positive Adjusted EBITDA, even at expected revenue trough
Cash Flow Improvements Reflecting Continued Operational Discipline Operating Cash Flow ($M) Lease termination (one-time) and interest payments Larger net loss and one-time items that did not reoccur
Sustained Structural Gross Margin Improvements vs 2022 GAAP Gross Margin Structural margin improvements continue to flow through P&L
Q1 Marks the Expected Revenue Trough with Sequential Improvement Expected Through 2026 Quarterly Net Revenue ($M) Q4-2025 includes $2.9M revenue from one-time QVC TSV Advertising pullback in Q4-2025 (-65% Y/Y) and Q1-2026 (-59%) i i ll i ( ) ( ) Measured increase in advertising investment, and improved repeat order rates from platform improvements Reflects measured increase in advertising investment, and expected sustained improved repeat order rates from platform improvements
11 Financial outlook Net Revenue ➔ The Company now expects full-year Net Revenue of approximately $142.5 million to $152.5 million, raised from the prior range of $140 million to $150 million. ➔ First quarter 2026 net revenue represented the expected trough for the year. Grove expects sequential revenue improvement in each of the remaining three quarters of 2026 reflecting continued disciplined advertising investment, driven by continued stabilization of the ecommerce platform and improving customer experience metrics. Adjusted EBITDA ➔ Full year 2026 Adjusted EBITDA is expected to be breakeven to positive low single digit millions, raised from the prior range of approximately breakeven. 2026 Guidance
CONFIDENTIAL Supplemental
Balance Sheet and Cash Balance Sheet Cash & Debt Mar 31, 2026 Dec 31, 2025 Ending Cash, Cash Equivalents & Restricted Cash $10.4 million $11.8 million Outstanding Debt $7.5 million ABL $7.5 million ABL ABL Availability $1.7 million $1.1 million
Jason Buursma VP, Marketing Jennifer Pann VP, Merchandising & E-Commerce Terrance Underwood VP, Fulfillment Operations Keith Davey CTO Jeff Yurcisin CEO Tom Siragusa CFO Scott Giesler Chief Legal Officer 14 Leadership Team With Depth of Ecommerce Experience to Execute
Appendix
Adjusted EBITDA Reconciliation - Quarterly $MM (1) Reconciliation of Net (Loss) Income to Adjusted EBITDA(1) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Net Loss ($47.4) ($35.3) $7.7 ($12.7) ($13.1) ($10.9) ($9.8) ($9.5) ($3.4) ($10.1) ($1.3) ($12.6) ($3.5) ($3.6) ($3.0) ($1.6) ($1.0) Stock-Based Compensation $4.5 $20.1 $9.8 $11.3 $4.9 $4.9 $2.1 $3.6 $3.1 $3.4 $2.8 $2.7 $1.0 $1.4 $1.1 $0.8 $0.8 Depreciation and Amortization $1.4 $1.5 $1.4 $1.4 $1.4 $1.4 $1.5 $1.5 $2.2 $2.4 $2.8 $2.4 $0.4 $0.5 $0.4 $0.4 $0.4 Changes in Fair Value of Derivative Liabilities ($1.9) ($16.2) ($32.6) ($22.4) $0.3 ($1.7) $2.7 ($1.5) ($0.2) $0.0 ($7.8) ($1.9) ($0.1) ($0.1) $0.0 ($0.2) ($0.1) Transaction Costs Allocated to Derivative Liabilities upon Business Combination — $6.7 $0.2 — ($3.7) — — — — — — — — — — — — Interest Income ($0.0) ($0.1) ($0.2) ($0.5) ($0.4) ($1.0) ($1.2) ($1.1) ($1.1) ($1.0) ($0.6) ($0.4) ($0.2) ($0.1) ($0.1) ($0.1) ($0.1) Interest Expense $2.1 $2.3 $2.5 $2.8 $3.7 $4.0 $4.1 $4.2 $4.1 $4.1 $2.9 $1.6 $0.3 $0.3 $0.3 $0.3 $0.3 Restructuring Expenses $1.6 — $1.4 $5.9 $0.0 $0.6 — $3.2 ($2.9) $2.2 $1.2 $1.6 — — — $1.9 — Transaction related Costs — — — — — — — — — — — — $0.6 $0.7 — — — Loss on Extinguishment of Debt — — — $4.7 — — — — — — — $5.0 — — — — — Provision for Income Taxes $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Litigation and legal settlement expenses — — — — — — $0.7 ($0.2) — — — — — — — — — Adjusted EBITDA ($39.7) ($21.1) ($9.6) ($9.5) ($6.8) ($2.6) $0.2 $0.1 $1.9 $1.1 ($0.0) ($1.6) ($1.6) ($0.9) ($1.2) $1.6 $0.3
17
FAQ
How did Grove Collaborative (GROV) perform financially in Q1 2026?
Grove Collaborative reported Q1 2026 net revenue of $36.2 million, down 16.8% year-over-year, but achieved positive Adjusted EBITDA of $0.3 million with a 0.8% margin. Net loss narrowed to $1.0 million from $3.5 million, reflecting lower operating expenses and stronger gross margin.
What guidance did Grove Collaborative (GROV) provide for full-year 2026?
Grove Collaborative raised 2026 net revenue guidance to $142.5–$152.5 million, up from $140–$150 million. It now expects full-year Adjusted EBITDA between breakeven and positive low single digit millions, assuming continued ecommerce platform stabilization and disciplined advertising investment.
How are Grove Collaborative’s margins and profitability trending?
Gross margin improved to 54.8% in Q1 2026, 180 basis points higher than a year earlier. Adjusted EBITDA reached $0.3 million, or a 0.8% margin, marking the second consecutive quarter of positive Adjusted EBITDA and indicating benefits from cost reductions and more targeted promotions.
What is happening to Grove Collaborative’s customer base and orders?
Direct-to-consumer metrics weakened in Q1 2026: DTC total orders fell 19.2% to 502,000 and DTC active customers declined 18.5% to 553,000. Management links this to prior ecommerce platform disruptions and lower advertising spend, partly offset by higher revenue per order.
How strong is Grove Collaborative’s cash position after Q1 2026?
As of March 31, 2026, Grove Collaborative held $10.4 million in cash, cash equivalents and restricted cash, down from $11.8 million at year-end 2025. Operating cash outflow improved significantly to $0.7 million, versus $6.9 million in the prior-year quarter.
What operational or sustainability metrics did Grove Collaborative highlight?
Grove Collaborative reported DTC net revenue per order of $67.79, up 2.0% year-over-year, and improved plastic intensity to 0.84 pounds per $100 in net revenue from 0.99 pounds. It also expanded ingredient standards to over 10,000 banned or restricted substances.