Grove Collaborative (GROV) Q2 2026 earnings summary

Executive summary

• Net revenue for Q2 2026 was $36.6 million, down 16.9%–17% year-over-year but up 1% sequentially, reflecting stabilization after prior disruptions and platform migration.

• Achieved third consecutive quarter of positive adjusted EBITDA at $0.5 million (1.3% margin), with net loss narrowing to $0.9 million and positive operating cash flow of $1.3 million.

• DTC total orders declined 23.6% year-over-year to 489,000; active customers fell 23.3% to 509,000, but net revenue per order increased 6.1% to $69.19.

• Strategic focus remains on customer experience, category expansion, new subscription and loyalty programs, and technology migration to drive retention and efficiency.

• Announced CFO Tom Siragusa's departure and continued cost management, including workforce reductions and operating expense declines.

Financial highlights

• Net revenue: $36.6 million (down 16.9%–17% YoY, up 1% QoQ); gross margin: 53.6%–54%, down 190 bps YoY due to one-time disposals and inventory sell-through.

• Adjusted EBITDA: $0.5 million (1.3% margin), third consecutive positive quarter, up $1.4 million YoY.

• Net loss: $0.9 million (2.5% margin), improved from $3.6 million (8.2% margin) prior year.

• Operating cash flow: $1.3 million, up from $1.0 million prior year; cash, cash equivalents, and restricted cash totaled $11.4 million at quarter end.

• Operating expenses declined significantly, with advertising, product development, and SG&A all reduced.

Outlook and guidance

• Full-year 2026 net revenue guidance reaffirmed at $142.5–$152.5 million; adjusted EBITDA guidance at breakeven to positive low single digit millions.

• Sequential revenue improvement expected in each remaining quarter of 2026.

• Management expects existing liquidity to fund operations for at least one year but may require additional capital for sustained profitability.