Grove Collaborative (GROV) Q3 2026 earnings summary

Executive summary

• Q3 net revenue was $36.821M, down 15.8% YoY but up 0.7% QoQ for a second consecutive quarter of sequential growth.

• Net income was $0.102M versus a $2.960M loss; Adjusted EBITDA was $1.4M for a fourth consecutive positive quarter.

• Positive net income and Adjusted EBITDA were achieved together for the first time as a public company; FY2026 guidance narrowed to $144M–$146M revenue and $1M–$2M Adjusted EBITDA.

Financial highlights

• Q3 operating income was $0.245M versus a $2.731M loss YoY; nine-month operating loss narrowed to $1.439M from $9.729M.

• Gross margin was 55.8%, up 250 bps YoY; results included a $1.2M tariff refund recorded as a reduction in cost of goods sold.

• Operating expenses fell 22.1% YoY to $20.3M, reflecting lower fulfillment, personnel and advertising costs.

• Nine-month revenue was $109.614M versus $131.307M; nine-month net loss narrowed to $1.827M from $10.133M.

Outlook and guidance

• FY2026 revenue guidance narrowed to $144M–$146M, within the prior $142.5M–$152.5M range; Adjusted EBITDA guidance is $1M–$2M.

• Q4 revenue is expected modestly below Q3, which included $1.2M from a QVC Today's Special Value program not expected to recur; DTC revenue is expected approximately flat QoQ.

• The stated goal for 2027 is a return to YoY revenue growth; no quarter-by-quarter growth timing was given.

• Prior-year platform disruption and lower advertising investment are expected to have a diminishing impact on YoY comparisons in 2027.