Grove Collaborative (GROV) Q2 2026 earnings summary

Executive summary

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

• Adjusted EBITDA was $0.5 million (1.3% margin), marking the third consecutive quarter of positive adjusted EBITDA.

• Net loss improved to $0.9 million (2.5% margin), down from $3.6 million in the prior year period.

• Operating cash flow was positive at $1.3 million, with cash and equivalents rising to $11.4 million.

• Customer experience improvements included a new subscription model, loyalty program, and technology migration, supporting retention and higher net revenue per order.

Financial highlights

• Net revenue: $36.6 million, down 16.9% year-over-year, up 1% quarter-over-quarter.

• Adjusted EBITDA: $0.5 million (1.3% margin), up from -$0.9 million (-2.1% margin) year-over-year.

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

• Gross margin: 53.6%, down 190 basis points year-over-year due to one-time disposals and inventory sell-through.

• Operating expenses down 27% year-over-year, reflecting headcount and shipping cost reductions.

Outlook and guidance

• Full-year 2026 net revenue expected at $142.5–$152.5 million.

• Adjusted EBITDA guidance reaffirmed at break-even to positive low single-digit millions.

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

• Management expects existing cash and equivalents to fund operations for at least one year but anticipates the need for additional capital over the longer term.

• Focus remains on optimizing DTC platform, customer experience, and cost efficiencies.