Grove Collaborative | 8-K: FY2026 Q2 Revenue Misses Estimate at USD 36.57 M

Revenue: As of FY2026 Q2, the actual value is USD 36.57 M, missing the estimate of USD 36.77 M.

EPS: As of FY2026 Q2, the actual value is USD -0.03.

EBIT: As of FY2026 Q2, the actual value is USD -783 K.

Financial Highlights

Grove Collaborative Holdings, Inc. reported total net revenue of $36.6 million for the second quarter of 2026, marking a decrease of 16.9% year-over-year but a sequential increase of 1.0% compared to the first quarter of 2026. The gross margin for the quarter was 53.6%, a decrease of 190 basis points compared to 55.4% in the second quarter of 2025. Operating expenses decreased by 27.0% year-over-year to $20.4 million, down from $27.9 million in the prior-year period. Operating expenses were down 27% year-over-year. The company achieved a positive Adjusted EBITDA of $0.5 million, a significant improvement from - $0.9 million in the same period last year, marking the third consecutive quarter of positive Adjusted EBITDA. This figure represents an increase of $1.4 million and 340 basis points compared to the prior year. The net loss for the quarter was $0.9 million, an improvement from a net loss of $3.6 million in the prior-year period. The net loss margin was -2.5%, compared to -8.2% in the prior-year period, while the Adjusted EBITDA margin was 1.3%, up from -2.1% in the prior-year period. Trailing 12 months Adjusted EBITDA as of Q2 2026 was $1.1 million.

Cash Flow and Liquidity

Operating cash flow was positive $1.3 million, an increase from positive $1.0 million in the same period last year. This reflected favorable working capital movements, including a decrease in inventory, and the benefit of non-cash expenses added back to Net Loss, representing an increase of $0.3 million compared to the prior year. Cash, cash equivalents, and restricted cash totaled $11.4 million as of June 30, 2026, an increase from $10.4 million as of March 31, 2026. This also marked an increase of $1.0 million from the end of the first quarter. Outstanding debt was $7.5 million ABL, with ABL availability of $0.4 million.

Operational Metrics

Direct to Consumer (DTC) total orders were 489,000, representing a decline of 23.6% year-over-year. DTC active customers, defined as those who placed an order in the trailing twelve months, totaled 509,000 as of June 30, 2026, a decrease of 23.3% year-over-year. The company reported 5.5 million lifetime customers. DTC net revenue per order increased by 6.1% year-over-year to $69.19. Plastic intensity, measured as pounds of plastic per $100 in net revenue, improved to 0.84 pounds in the second quarter of 2026 from 0.93 pounds in the second quarter of 2025. The average fulfillment cost per unit was $2.00. Over 80% of orders included a subscription.

Outlook / Guidance

Grove Collaborative Holdings, Inc. reaffirmed its full-year 2026 guidance, expecting net revenue to be approximately $142.5 million to $152.5 million. Full-year 2026 Adjusted EBITDA is projected to range from breakeven to positive low single digit millions. The company also anticipates sequential net revenue improvement in each of the remaining quarters of 2026.