\nGrove Collaborative Holdings, Inc. (NYSE: GROV) (\u201cGrove\u201d or the \u201cCompany\u201d), the world\u2019s first plastic neutral retailer and a leading sustainable consumer products company, certified B Corporation, and Public Benefit Corporation, today reported financial results for its fiscal second quarter ended June 30, 2026.<\/p>\n
Key Second Quarter 2026 Financial Highlights:<\/span><\/b><\/p>\n \n\u201cSecond quarter results came in as we expected when we raised our full-year outlook last quarter. Net Revenue grew 1.0% sequentially to $36.6 million, and we delivered Adjusted EBITDA of $0.5 million, our third consecutive quarter of positive Adjusted EBITDA. This reflects the operating discipline we described in the first quarter continuing to play out and it\u2019s now showing up clearly in our financial statements.<\/p>\n \nAs our strategy continues to take hold, we are continuing to invest in the customer experience to drive long-term profitable growth. In the second quarter, we launched our new subscription experience, designed to give customers a seamless and customized experience that matches their ordering cadence, replacing the last major element of our technology migration from early 2025. While that foundational work is now complete, we will move towards customer-first innovation as we build a unique and defensible customer experience that enables them to build a healthier home for the people they love,\u201d said Jeff Yurcisin, Chief Executive Officer of Grove Collaborative.<\/p>\n Second Quarter 2026 Financial Results<\/span><\/b><\/p>\n (All comparisons are versus the quarter ended June 30, 2025 except where otherwise noted)<\/i><\/p>\n Net Revenue <\/b>was $36.6 million for the quarter ended June 30, 2026, a decline of 16.9% year-over-year, but an increase of 1.0% compared to the first quarter of 2026. The year-over-year decline was primarily driven by a smaller active customer base entering the year, reflecting the compounding effects of lower advertising investment \u2013 consistent with the strategy to prioritize profitability and customer experience improvements before re-accelerating growth \u2013 and customer attrition tied to the ecommerce platform disruptions experienced throughout 2025, partially offset by an increase in Direct to Consumer (\u201cDTC\u201d) Net Revenue per Order. The sequential increase was driven by growth from non-DTC channels, primarily QVC and Amazon, partially offset by a slight decline in DTC revenue.<\/p>\n Gross Margin<\/b> was 53.6%, a decrease of 190 basis points compared to 55.4% in the second quarter of 2025. The decrease was primarily driven by one-time disposals in the quarter, as well as a sell-through of previously reserved inventory in the prior year that did not reoccur. These decreases were partially offset by a more targeted promotional strategy, enabled in part by the Grove Green Rewards loyalty program launched in the fourth quarter of 2025.<\/p>\n Operating Expenses <\/b>were $20.4 million, a decrease of 27.0% compared to $27.9 million in the prior-year period. The decline reflects lower personnel-related expenses from reduced headcount, lower fulfillment costs driven by lower order volume and lower outbound shipping rates, and lower advertising spend.<\/p>\n Net Loss <\/b>was $0.9 million, or (2.5%) Net Loss margin, compared to a net loss of $3.6 million, or (8.2%) Net Loss margin, in the prior-year period. The year-over-year improvement reflects lower operating expenses, offset by the decline in revenue.<\/p>\n Adjusted EBITDA <\/b>was positive $0.5 million, or 1.3% margin, compared to negative $0.9 million, or (2.1%) margin, in the prior-year period. This marks the third consecutive quarter of positive Adjusted EBITDA and reflects continued operating discipline as the Company invests in the customer experience.<\/p>\n Operating Cash Flow<\/b> was positive $1.3 million for the quarter, reflecting favorable working capital movements, including a decrease in inventory, and the benefit of non-cash expenses added back to Net Loss. This compares to positive $1.0 million in the prior-year period.<\/p>\n Cash, Cash Equivalents, and Restricted Cash<\/b> totaled $11.4 million as of June 30, 2026, up from $10.4 million as of March 31, 2026, primarily reflecting positive Operating Cash Flow, partially offset by higher capitalized expenditures as a result of continued investment in eCommerce platform enhancements.<\/p>\n Second Quarter 2026 Key Metrics<\/span>:<\/b><\/p>\n\n
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