Grove Collaborative Holdings, Inc.

What they do

The company primarily sells household, beauty, and personal care products through its DTC website and mobile app, alongside Grove-branded items. It also sells on third-party ecommerce platforms and, since exiting brick-and-mortar retail in 2025, operates no physical stores. Grove Brands accounted for approximately 41% of net revenue in 2025, with 73% of that from home care products.

Revenue drivers

• DTC platform — Primary sales channel; sells Grove Brands and third-party natural products; revenue per order increased but active customers declined, driving overall revenue down.
• Grove Brands — Company-owned brands, including flagship Grove Co.; contributed ~41% of 2025 net revenue, with home care as the dominant category.
• Third-party ecommerce channels — Includes QVC and Amazon; grew sequentially in Q2 2026 and partially offset a slight DTC decline.

Recent performance

For Q2 2026 (quarter ended June 30, 2026), net revenue was $36.6 million, down 16.9% year-over-year but up 1.0% sequentially. Net loss narrowed to $0.9 million from $3.6 million in the prior-year quarter. Adjusted EBITDA was positive $0.5 million, the third consecutive quarter of positive Adjusted EBITDA. Operating cash flow was positive $1.3 million. Revenue has declined annually from $383.7M in 2021 to $173.7M in 2025, with an accumulated deficit of $662.2 million as of June 30, 2026.

Strategy

Management is prioritizing profitability and customer experience over growth, having reduced advertising spend and completed the migration to a new ecommerce platform. The company launched a new subscription experience in Q2 2026 and a loyalty program (Grove Green Rewards) in late 2025. It exited brick-and-mortar retail to focus on DTC and third-party ecommerce. The stated goal is to build a defensible customer experience to re-accelerate growth once profitability is sustained.

Risks

• Sustained revenue decline — Revenue has fallen for three consecutive years, driven by reduced ad spend, platform migration disruptions, and customer attrition; management expects this pressure to continue in the near to medium term.
• Customer acquisition costs — Rising online advertising costs and changes in privacy/algorithm factors could impair the company's ability to efficiently acquire new customers on its DTC platform.
• Dependence on consumer discretionary spending — Macroeconomic conditions and consumer behavior patterns could further reduce demand for the company's products.
• Liquidity and financing risk — With $8.3 million in cash as of June 30, 2026 and a history of operating losses, the company may require additional financing, which may not be available on acceptable terms.

Outlook

Management reaffirmed full-year 2026 net revenue guidance of $142.5 million to $152.5 million and Adjusted EBITDA guidance of breakeven to positive low single-digit millions. They expect the focus on profitability and customer experience to continue, with foundational technology work now complete. They anticipate continued headwinds from consumer behavior and macroeconomic factors in the near term.