Grove Collaborative Holdings Stock Earnings Reports

Key points for investors: Grove delivered a better-than-expected Q1 2026 with net revenue of $36.2 million (down 16.8% YoY) and positive adjusted EBITDA of $0.3 million — the second consecutive quarter of positive adjusted EBITDA. Gross margin expanded to 54.8% (+180 bps YoY), driven largely by the new Grove Green Rewards loyalty program which enabled more targeted promotions and reduced broad discounting. Operationally, Grove relaunched a rebuilt mobile app in mid-February, which management says restored customer experience and contributed to improving cohort behavior and repeat order rates. Active customers totaled 553k (−18.5% YoY) and DTC orders were 502k (−19.2% YoY); advertising spend remained disciplined at $1.2 million in Q1 (−58.6% YoY) but management plans a gradual reacceleration as unit economics and CAC improve. Liquidity: cash and equivalents were $10.4 million, operating cash flow was negative $0.7 million (vs. −$6.9M prior year), and availability under the ABL was $1.7 million. Management raised FY26 guidance to net revenue $142.5M–$152.5M (from $140M–$150M) and adjusted EBITDA to breakeven to positive low single-digit millions, reiterating their view that Q1 represents the revenue trough and they expect sequential revenue growth each quarter. Strategic priorities emphasize (1) sustained profitability, (2) balance sheet discipline, (3) reaccelerating revenue via improved customer experience and advertising, and (4) deepening authority in human health (new Chief Medical Adviser, Human Health Advisory Council, physician advisers). Management continues to evaluate strategic options to accelerate scale or unlock shareholder value. Risks remain tied to macro and execution; forward-looking guidance assumes current trade policy.