GROV

SAN FRANCISCO, August 06, 2026--(BUSINESS WIRE)--Grove Collaborative Holdings, Inc. (NYSE: GROV) ("Grove" or the "Company"), the world’s 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. Key Second Quarter 2026 Financial Highlights: Total Net Revenue was $36.6 million, down 16.9% year-over-year, but up 1.0% sequentially Adjusted EBITDA was positive $0.5 million, compared to negative $0.9 million in the same period last year - the third consecutive quarter of positive Adjusted EBITDA Net Loss was $0.9 million, compared to a Net Loss of $3.6 million in the same period last year Operating Cash Flow was positive $1.3 million, compared to positive $1.0 million in the same period last year Reaffirming full-year Net Revenue guidance of $142.5 million to $152.5 million and Adjusted EBITDA guidance of breakeven to positive low single digit millions "Second 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’s now showing up clearly in our financial statements. As 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," said Jeff Yurcisin, Chief Executive Officer of Grove Collaborative. Second Quarter 2026 Financial Results (All comparisons are versus the quarter ended June 30, 2025 except where otherwise noted) Net Revenue 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 – consistent with the strategy to prioritize profitability and customer experience improvements before re-accelerating growth – and customer attrition tied to the ecommerce platform disruptions experienced throughout 2025, partially offset by an increase in Direct to Consumer ("DTC") 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. Gross Margin 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. Operating Expenses 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. Net Loss 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. Adjusted EBITDA 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. Operating Cash Flow 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. Cash, Cash Equivalents, and Restricted Cash 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. Second Quarter 2026 Key Metrics: Direct to Consumer (DTC) Total Orders were 489,000, a decline of 23.6% year-over-year. The decrease was primarily driven by a smaller active customer base entering the year, reflecting lower advertising investment relative to prior years and customer attrition associated with the 2025 ecommerce platform disruptions, both of which resulted in fewer new customers and, given the recurring nature of the business, fewer repeat orders. DTC Active Customers – defined as the number of customers that have 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 decline is consistent with the factors described above. DTC Net Revenue Per Order was $69.19, an increase of 6.1% year-over-year. The improvement was driven primarily by a larger mix of higher-priced items in customer orders, reflecting the Company’s continued category expansion, as well as greater efficiency in promotional spend following the launch of the Company’s new loyalty program. The year-over-year comparison also benefited from a prior-year test that temporarily increased the volume of smaller value orders, which did not reoccur in the second quarter of 2026. Plastic Intensity1 – measured as pounds of plastic per $100 in net revenue across all online and retail sales — was 0.84 pounds in the second quarter of 2026, improving from 0.93 pounds in the second quarter of 2025. 2026 Financial Outlook: For the twelve-month period ending December 31, 2026, Grove is reaffirming its full-year guidance. The Company continues to expect full-year net revenue of approximately $142.5 million to $152.5 million, and Adjusted EBITDA of breakeven to positive low single digit millions The Company continues to expect sequential net revenue improvement in each of the remaining quarters of 2026. Webcast and Conference Call Information: The Company will host an investor conference call and webcast to review these financial results at 5:00pm ET / 2:00pm PT on the same day. The webcast can be accessed at https://investors.grove.co/. The conference call can be accessed by calling 877-413-7205. International callers may dial +1 201-689-8537. A replay of the call will be available until September 3, 2026 and can be accessed by dialing 877-660-6853 or 201-612-7415, access ID: 13761742. The webcast will remain available on the Company’s investor relations website for 30 days following the webcast. About Grove Collaborative Holdings, Inc. Grove Collaborative Holdings, Inc. (NYSE: GROV) is the one-stop online destination for everyday essentials that create a healthier home and planet. Explore thousands of thoughtfully vetted products for every room and everyone in your home, including household cleaning, personal care, health and wellness, laundry, clean beauty, kitchen, pantry, kids, baby, pet care, and beyond. Everything Grove sells meets a higher standard — from health to sustainability and performance — so you get a great value without compromising your values. As a B Corp and Public Benefit Corporation, Grove goes beyond selling products: every order is carbon neutral, supports plastic waste cleanup initiatives, and lets you see and track the positive impact of your choices. Shopping with purpose starts at Grove.com. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements relating to the plan to move to customer-first innovation; the impact of customer experience changes; sequential net revenue improvement in each of the remaining quarters of 2026; and guidance for 2026, including full year 2026 net revenue and Adjusted EBITDA. The forward-looking statements contained in this press release are based on Grove’s current expectations and beliefs in light of the Company’s experience and perception of historical trends, current conditions and expected future developments and their potential effects on the Company as well as other factors believed to be appropriate under the circumstances. There can be no assurance that future developments affecting the Company will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the Company’s control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including changes in business, market, financial, political and legal conditions; legal and regulatory matters and developments; risks relating to the uncertainty of the projected financial information; Grove’s ability to successfully expand its business; competition; risks relating to tariffs, inflation and interest rates; effectiveness of the Company’s ecommerce platform and selling and marketing efforts; demand for Grove products and other brands that it sells and those factors discussed in documents filed, or to be filed, with the U.S. Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. All forward-looking statements in this press release are made as of the date hereof, based on information available to Grove as of the date hereof, and Grove assumes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Non-GAAP Financial Measures Some of the financial information and data contained in this press release, such as Adjusted EBITDA and Adjusted EBITDA margin, have not been prepared in accordance with United States generally accepted accounting principles ("GAAP"). These non-GAAP financial measures, and other measures that are calculated using such non-GAAP measures, are an addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to revenue, operating income, profit before tax, net income or any other performance measures derived in accordance with GAAP. Investors should not consider the non-GAAP financial measures in isolation from, or as a substitute for, GAAP measures. A reconciliation of historical Adjusted EBITDA to Net Income is provided in the tables at the end of this press release. Reconciliations of projected Adjusted EBITDA and projected Adjusted EBITDA Margin to the closest corresponding GAAP measures are not available without unreasonable effort on a forward-looking basis due to the high variability, complexity, and low visibility with respect to the charges excluded from these non-GAAP measures, such as the impact of depreciation and amortization of fixed assets, amortization of internal use software, the effects of net interest expense (income), other expense (income), and non-cash stock based compensation expense. Grove believes these non-GAAP measures of financial results, including on a forward-looking basis, provide useful information to management and investors regarding certain financial and business trends relating to Grove’s financial condition and results of operations. Grove’s management uses these non-GAAP measures for trend analyses and for budgeting and planning purposes. Grove believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends in and in comparing Grove’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Management of Grove does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP measures. Other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore Grove’s non-GAAP measures may not be directly comparable to similarly titled measures of other companies. Grove calculates Adjusted EBITDA as net loss, adjusted to exclude: stock-based compensation expense; depreciation and amortization; changes in fair values of derivative liabilities; interest income; interest expense; restructuring costs; transaction related costs related to certain strategic merger & acquisition projects; provision for income taxes and certain litigation and legal settlement expenses that the Company does not consider representative of its underlying operations. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by net revenue. Because Adjusted EBITDA excludes these elements that are otherwise included in the Company’s GAAP financial results, this measure has limitations when compared to net loss determined in accordance with GAAP. Further, Adjusted EBITDA is not necessarily comparable to similarly titled measures used by other companies. For these reasons, investors should not consider Adjusted EBITDA in isolation from, or as a substitute for, net loss determined in accordance with GAAP. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806536704/en/ Contacts Investor Relations Contact [email protected] Media Relations Contact [email protected]

Interested in Grove Collaborative Holdings, Inc.? Here are five stocks we like better. Grove Collaborative beat first-quarter expectations as the company said the impact from 2025 e-commerce platform disruptions is mostly behind it. Revenue still fell 16.8% year over year to $36.2 million, but adjusted EBITDA turned positive for a second straight quarter at $0.3 million. Margins improved even as sales declined, with gross margin rising to 54.8% from 53% a year ago. Management said better promotional strategy through Grove Green Rewards, reduced discounting and improved efficiency helped offset lower order volume. The company raised full-year 2026 guidance after the quarter outperformed internal expectations. Grove now sees revenue of $142.5 million to $152.5 million and adjusted EBITDA ranging from breakeven to positive low single-digit millions, while expecting Q1 to be the year’s revenue low point. Grove Collaborative (NYSE:GROV) said its first-quarter 2026 results came in ahead of internal expectations as the company continued to recover from e-commerce platform disruptions that weighed on performance throughout 2025. Chief Executive Officer Jeff Yurcisin told investors that the company’s platform disruption is “largely behind us” and that Grove expects the first quarter to represent the revenue trough for the year. The company reported net revenue of $36.2 million, down 16.8% from the prior-year period, and adjusted EBITDA of $0.3 million, marking its second consecutive quarter of positive adjusted EBITDA. → Wells Fargo’s Comeback Is Real—But Not Risk-Free “The cost structure is more efficient, the customer experience is improving, and we are seeing green shoots as it relates to recent cohort behavior,” Yurcisin said. He added that repeat order rates among recent customer cohorts have recovered to levels consistent with those seen before the platform migration. Chief Financial Officer Tom Siragusa said the year-over-year revenue decline was primarily due to fewer orders, reflecting a smaller active customer base. He attributed that smaller base to reduced advertising investment in prior periods and customer attrition tied to the 2025 e-commerce platform disruptions. → Rocket Lab Posts Record Q1 Revenue, Raises Q2 Guidance Direct-to-consumer total orders fell 19.2% year over year to 502,000, while active customers declined 18.5% to 553,000 at quarter-end. However, DTC net revenue per order rose 2% to $67.79. Siragusa said the increase was driven by more targeted promotional strategies, the shift to loyalty-based incentives through Grove Green Rewards and a larger mix of higher-priced items in categories including clean beauty, personal care and wellness. Gross margin expanded to 54.8%, up 180 basis points from 53% in the first quarter of 2025. Management pointed to Grove Green Rewards as a meaningful contributor, saying the loyalty program has allowed the company to move away from broad discounting and free gifts toward rewards-based incentives. → The Great Crypto Thaw: Regulation Ignites an Infrastructure Boom Yurcisin said the program has helped create “a structural shift” in the company’s promotional strategy, improving gross margin while still giving customers a reason to shop with Grove. In response to an analyst question, he said the primary driver of margin improvement was reduced discounting and different promotional economics, though he also cited better operating efficiency and strength in average order value. Grove reported a net loss of $1 million, or a 2.8% net loss margin, compared with a net loss of $3.5 million, or an 8.1% net loss margin, in the prior-year period. Adjusted EBITDA improved to positive $0.3 million, or a 0.8% margin, compared with negative $1.6 million, or a negative 3.7% margin, a year earlier. Operating expenses declined across several categories. Advertising spending was $1.2 million, down 58.6% year over year and in line with fourth-quarter spending levels. Product development expense fell 19.4% to $1.4 million, reflecting lower consulting expenses tied to the e-commerce platform migration and reduced own-brand development. Selling, general and administrative expense declined 17.4% to $18.2 million, driven by the full-quarter benefit of a reduction in force executed in November 2025, lower fulfillment costs from fewer orders and ongoing cost optimization. Siragusa said the company deliberately reduced advertising to preserve liquidity and drive profitability while the customer experience was stabilized. He said current trends in customer acquisition costs and repeat order rates support gradually increasing advertising investment through the rest of the year. Yurcisin said the redesigned mobile app, launched in February, was the most visible milestone of the quarter. The company rebuilt a custom application after customer experience issues stemming from its previous third-party approach following the e-commerce migration. Mobile app orders represent about half of non-autoship orders, and Yurcisin said the app is a primary interface for customers managing subscriptions. He said early feedback has been encouraging, citing five-star app reviews and improved customer engagement signals. In the question-and-answer session, Alec, speaking on behalf of Susan Anderson of Canaccord Genuity, asked when the app issue was fully resolved. Yurcisin said the relaunch occurred around mid-February, while noting that the company continues to make rolling releases. Subscriptions remain a key part of Grove’s model. Yurcisin said subscriptions drove 60% of revenue in 2025 and were present in 79% of total orders. He said Grove is focused on building a “world-class subscription experience” and remains committed to delivering a meaningfully improved subscription experience by the time it reports second-quarter results. Grove raised its full-year 2026 guidance following the first-quarter outperformance. The company now expects: Net revenue of $142.5 million to $152.5 million, up from a previous range of $140 million to $150 million. Adjusted EBITDA of breakeven to positive low single-digit millions, up from approximately breakeven. Management reiterated that it expects first-quarter revenue to be the lowest quarterly level of the year, with sequential improvement in each remaining quarter. The company ended the quarter with $10.4 million in cash equivalents and restricted cash, down from $11.8 million at the end of the fourth quarter. Siragusa said the decline primarily reflected cash used in operating and investing activities, including development of the newly launched mobile app. Grove also had $1.7 million available under its asset-based loan facility, up from $1.1 million at the end of the fourth quarter due to an increase in inventory. Operating cash flow was negative $0.7 million, compared with negative $6.9 million in the prior-year period. Siragusa said the first-quarter cash use primarily reflected working capital needs, including inventory to support operations. Yurcisin also highlighted Grove’s positioning around clean, sustainable and non-toxic household products. He said the company has more than 10,000 banned or restricted ingredients, including more than 3,000 that are outright banned across every category it carries. During the quarter, Grove onboarded a chief medical advisor, began establishing a Human Health Advisory Council and started onboarding physician advisors to help translate scientific insights into consumer education, according to Yurcisin. He also pointed to Grove’s collaboration with the Oceanic Preservation Society around “The Plastic Detox,” a Netflix documentary about microplastic exposure, and the launch of the Unplastic Shop, a curated assortment intended to reduce exposure to plastics and endocrine-disrupting chemicals. Yurcisin said Grove continues to evaluate strategic options that could accelerate its path to scale, strengthen its competitive position or unlock shareholder value. He said any action would be guided by customer focus, capital efficiency and shareholder value creation. On tariffs, Yurcisin said Grove’s 2026 guidance assumes the continuation of current trade policy. He said the company would pursue any available clawbacks, as other affected brands may do, but did not provide an update that would change guidance. Grove Collaborative is a direct-to-consumer digital marketplace offering a broad assortment of sustainable home and personal care products. Operating as a public benefit corporation, the company provides an online platform designed to simplify the shopping experience for eco-friendly essentials, including cleaning supplies, personal care items, baby and family products, wellness goods and pet care. The company's business model centers on a subscription-based delivery service that enables members to schedule regular shipments of both third-party and private-label products. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Grove Collaborative Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Grove Collaborative Holdings, Inc. (NYSE:GROV) just released its quarterly report and things are looking bullish. Results overall were solid, with revenues arriving 9.5% better than analyst forecasts at US$36m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.03 per share, were 9.5% smaller than the analyst expected. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. After the latest results, the consensus from Grove Collaborative Holdings' solitary analyst is for revenues of US$148.8m in 2026, which would reflect a definite 11% decline in revenue compared to the last year of performance. Losses are predicted to fall substantially, shrinking 21% to US$0.20. Before this latest report, the consensus had been expecting revenues of US$145.7m and US$0.15 per share in losses. So it's pretty clear the analyst has mixed opinions on Grove Collaborative Holdings even after this update; although they upped their revenue numbers, it came at the cost of a very substantial increase in per-share losses. Check out our latest analysis for Grove Collaborative Holdings It will come as a surprise to learn that the consensus price target rose 33% to US$2.00, with the analyst clearly more interested in growing revenue, even as losses intensify. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would also point out that the forecast 14% annualised revenue decline to the end of 2026 is better than the historical trend, which saw revenues shrink 21% annually over the past three years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 6.3% annually. So it's pretty clear that, while it does have declining revenues, the analyst also expect Grove Collaborative Holdings to suffer worse than the wider industry. The most important thing to take away is that the analyst increased their loss per share estimates for next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time. Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here. However, before you get too enthused, we've discovered 2 warning signs for Grove Collaborative Holdings that you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

SAN FRANCISCO, May 07, 2026--(BUSINESS WIRE)--Grove Collaborative Holdings, Inc. (NYSE: GROV) ("Grove" or the "Company"), the world’s 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 first quarter ended March 31, 2026. Key First Quarter 2026 Financial Highlights: Total Net Revenue was $36.2 million, down 16.8% year-over-year Adjusted EBITDA was positive $0.3 million, compared to a loss of $1.6 million in the same period last year Net Loss was $1.0 million, compared to a Net Loss of $3.5 million in the same period last year Operating Cash Flow was negative $0.7 million, compared to negative $6.9 million in the same period last year Raising full-year 2026 net revenue guidance to $142.5 million to $152.5 million and Adjusted EBITDA guidance to breakeven to positive low single digit millions Sequential Net Revenue growth expected in each remaining quarter "We executed with discipline in the first quarter, delivering positive Adjusted EBITDA even as net revenue reached its expected trough. That outcome reflects deliberate choices: maintaining disciplined advertising spend while stabilizing the customer experience, and letting the leaner cost structure flow through to the bottom line. What gives us confidence as we look ahead is the quality of what we're seeing underneath the surface: repeat order rates among recent customer cohorts are performing at levels consistent with what we saw prior to the ecommerce migration, and customer acquisition costs justify a gradual increase in investment. We intend to scale spend strategically, increasing as we maintain efficiency and prioritize advertising paybacks and lifetime value. The most visible milestone in the quarter was the launch of our redesigned mobile application. With approximately half of non-autoship orders being placed through the app, mobile is one of the most important shopping channels for our customers - which is precisely why we made the decision to rebuild it internally. The result is a 5-star app that our customers deserve and that we now fully control, giving us the flexibility to improve and personalize it as we grow. We also continued to deepen Grove's commitment to human health. In the first quarter, we expanded our ingredient standards to more than 10,000 banned or restricted ingredients — including more than 3,000 that are outright banned across every category we carry. This is what differentiates Grove: not just a curated assortment, but a platform customers can trust to make the hard calls on their behalf. With the first quarter behind us, we are raising both top and bottom line guidance and still expect sequential Net Revenue improvement through the remainder of 2026." First Quarter 2026 Financial Results (All comparisons are versus the quarter ended March 31, 2025 except where otherwise noted) Net Revenue was $36.2 million, a decline of 16.8% year-over-year. The decline was primarily driven by a smaller active customer base entering the year — reflecting the compounding impact of lower advertising investment in 2024 and 2025 and customer attrition associated with the ecommerce platform disruptions experienced throughout 2025 — as well as continued disciplined advertising investment in the first quarter, consistent with the strategy to prioritize profitability and customer experience stabilization before re-accelerating growth. Gross Margin was 54.8%, an increase of 180 basis points compared to 53.0% in the first quarter of 2025. The improvement was primarily driven by more targeted promotional activity, enabled in part by the Grove Green Rewards loyalty program launched in the fourth quarter of 2025. Grove Green Rewards has enabled a shift away from broad discounting toward more efficient incentives. Operating Expenses were $20.8 million, a decrease of 21.9% compared to $26.6 million in the prior-year period. The decline reflects the full-quarter benefit of the reduction in force executed in November 2025, lower advertising expense consistent with the current strategy, and lower fulfillment costs on reduced order volume. Net Loss was $1.0 million, or (2.8%) Net Loss margin, compared to a net loss of $3.5 million, or (8.1%) Net Loss margin, in the prior-year period. The year-over-year improvement reflects lower operating expenses. Adjusted EBITDA was positive $0.3 million, or 0.8% margin, compared to negative $1.6 million, or (3.7%) margin, in the prior-year period. This marks the second consecutive quarter of positive Adjusted EBITDA and reflects the continued focus on operating discipline as the Company completes the stabilization of the ecommerce platform. Operating Cash Flow was negative $0.7M for the quarter, primarily reflecting an increase in inventory to support ongoing operational execution, offset by the timing of payables. This compares favorably to negative $6.9 million in the prior-year period, which included a larger net loss, working capital investment in M&A, and other one-time items that did not reoccur. Cash, Cash Equivalents, and Restricted Cash totaled $10.4 million as of March 31, 2026, down from $11.8 million as of December 31, 2025, primarily reflecting cash used in operating and investing activities, including the development of the recently launched mobile application. First Quarter 2026 Key Metrics: Direct to Consumer (DTC) Total Orders were 502,000, a decline of 19.2% year-over-year. The decrease was primarily driven by a smaller active customer base entering the year, reflecting lower advertising investment relative to prior years and customer attrition associated with the 2025 ecommerce platform disruptions, both of which resulted in fewer new customers and, given the recurring nature of the business, fewer repeat orders. DTC Active Customers – defined as the number of customers that have placed an order in the trailing twelve months – totaled 553,000 as of March 31, 2026, a decrease of 18.5% year-over-year. The decline is consistent with the factors described above. DTC Net Revenue Per Order was $67.79, an increase of 2.0% year-over-year. The improvement was driven by a more targeted promotional strategy — including the shift to Grove Green Rewards — and a larger mix of higher-priced items in customer orders, reflecting the continued expansion of assortment in categories such as clean beauty, personal care, and wellness. Plastic Intensity1 – measured as pounds of plastic per $100 in net revenue across all online and retail sales – was 0.84 pounds in the first quarter of 2026, improving from 0.99 pounds the first quarter of 2025. 2026 Financial Outlook: For the twelve-month period ending December 31, 2026, Grove is raising its full-year guidance, reflecting improved cohort performance and customer acquisition efficiency. The Company now expects full-year net revenue of approximately $142.5 million to $152.5 million, raised from the prior range of $140 million to $150 million, and Adjusted EBITDA of breakeven to positive low single digit millions, raised from approximately breakeven. First quarter 2026 net revenue represented the expected trough for the year. Grove expects sequential net revenue improvement in each of the remaining three quarters of 2026. Webcast and Conference Call Information: The Company will host an investor conference call and webcast to review these financial results at 5:00pm ET / 2:00pm PT on the same day. The webcast can be accessed at https://investors.grove.co/. The conference call can be accessed by calling 877-413-7205. International callers may dial +1 201-689-8537. A replay of the call will be available until June 4, 2026 and can be accessed by dialing 877-660-6853 or 201-612-7415, access ID: 13760192. The webcast will remain available on the Company’s investor relations website for 30 days following the webcast. About Grove Collaborative Holdings, Inc. Grove Collaborative Holdings, Inc. (NYSE: GROV) is the one-stop online destination for everyday essentials that create a healthier home and planet. Explore thousands of thoughtfully vetted products for every room and everyone in your home, including household cleaning, personal care, health and wellness, laundry, clean beauty, kitchen, pantry, kids, baby, pet care, and beyond. Everything Grove sells meets a higher standard — from health to sustainability and performance — so you get a great value without compromising your values. As a B Corp and Public Benefit Corporation, Grove goes beyond selling products: every order is carbon neutral, supports plastic waste cleanup initiatives, and lets you see and track the positive impact of your choices. Shopping with purpose starts at Grove.com. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements relating to the intention to scale spend carefully and to maintain efficiency; prioritizing paybacks and customer lifetime value; improved cohort performance and customer acquisition efficiency; first quarter 2026 being the net revenue trough for the year; sequential net revenue improvement in each of the remaining quarters of 2026; and guidance for 2026, including full year 2026 net revenue and Adjusted EBITDA. The forward-looking statements contained in this press release are based on Grove’s current expectations and beliefs in light of the Company’s experience and perception of historical trends, current conditions and expected future developments and their potential effects on the Company as well as other factors believed to be appropriate under the circumstances. There can be no assurance that future developments affecting the Company will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the Company’s control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including continued disruption relating to the ecommerce platform migration, changes in business, market, financial, political and legal conditions; legal and regulatory matters and developments; risks relating to the uncertainty of the projected financial information; Grove’s ability to successfully expand its business; competition; risks relating to tariffs, inflation and interest rates; effectiveness of the Company’s ecommerce platform and selling and marketing efforts; demand for Grove products and other brands that it sells and those factors discussed in documents filed, or to be filed, with the U.S. Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. All forward-looking statements in this press release are made as of the date hereof, based on information available to Grove as of the date hereof, and Grove assumes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Non-GAAP Financial Measures Some of the financial information and data contained in this press release, such as Adjusted EBITDA and Adjusted EBITDA margin, have not been prepared in accordance with United States generally accepted accounting principles ("GAAP"). These non-GAAP financial measures, and other measures that are calculated using such non-GAAP measures, are an addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to revenue, operating income, profit before tax, net income or any other performance measures derived in accordance with GAAP. Investors should not consider the non-GAAP financial measures in isolation from, or as a substitute for, GAAP measures. A reconciliation of historical Adjusted EBITDA to Net Income is provided in the tables at the end of this press release. Reconciliations of projected Adjusted EBITDA and projected Adjusted EBITDA Margin to the closest corresponding GAAP measures are not available without unreasonable effort on a forward-looking basis due to the high variability, complexity, and low visibility with respect to the charges excluded from these non-GAAP measures, such as the impact of depreciation and amortization of fixed assets, amortization of internal use software, the effects of net interest expense (income), other expense (income), and non-cash stock based compensation expense. Grove believes these non-GAAP measures of financial results, including on a forward-looking basis, provide useful information to management and investors regarding certain financial and business trends relating to Grove’s financial condition and results of operations. Grove’s management uses these non-GAAP measures for trend analyses and for budgeting and planning purposes. Grove believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends in and in comparing Grove’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Management of Grove does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP measures. Other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore Grove’s non-GAAP measures may not be directly comparable to similarly titled measures of other companies. Grove calculates Adjusted EBITDA as net loss, adjusted to exclude: stock-based compensation expense; depreciation and amortization; changes in fair values of derivative liabilities; interest income; interest expense; restructuring costs; transaction related costs related to certain strategic merger & acquisition projects; provision for income taxes and certain litigation and legal settlement expenses that we do not consider representative of the underlying operations. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by net revenue. Because Adjusted EBITDA excludes these elements that are otherwise included in the Company’s GAAP financial results, this measure has limitations when compared to net loss determined in accordance with GAAP. Further, Adjusted EBITDA is not necessarily comparable to similarly titled measures used by other companies. For these reasons, investors should not consider Adjusted EBITDA in isolation from, or as a substitute for, net loss determined in accordance with GAAP. View source version on businesswire.com: https://www.businesswire.com/news/home/20260507291700/en/ Contacts Investor Relations Contact [email protected] Media Relations Contact [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management declared the platform migration disruptions that weighed on 2025 results are largely resolved, positioning Q1 2026 as the expected revenue trough for the year. Performance attribution for the Q1 beat was credited to improved customer experience and the successful February relaunch of a custom mobile application. The Green Grove Rewards loyalty program improved the underlying gross margin structure by shifting away from broad discounting toward rewards-based incentives, contributing to a 180 basis point year-over-year gross margin expansion. Strategic positioning is shifting toward 'human health authority,' utilizing a new Chief Medical Adviser and Advisory Council to differentiate via stringent ingredient standards. Operational leverage is expected to improve as revenue grows sequentially, supported by a more efficient cost structure following a November 2025 reduction in force. Repeat order rates among recent customer cohorts have recovered to levels consistent with performance prior to the 2025 e-commerce migration. Management raised full-year 2026 revenue guidance to $142.5–$152.5 million, assuming sequential growth in every remaining quarter of the year. Adjusted EBITDA guidance was increased to a range of breakeven to positive low single-digit millions, reflecting confidence in sustained cost discipline. The company plans to gradually reaccelerate advertising spend throughout 2026, justified by improved customer acquisition costs and unit economics. A world-class subscription experience update is scheduled for completion by the time the company reports second-quarter results. Guidance assumes a continuation of current trade policies and does not factor in potential impacts or refunds from pending tariff clawbacks. Active customer counts declined 18.5% year-over-year, a lagging effect of reduced advertising and prior-year platform instability. Product development expenses decreased 19.4% as the company deprioritized owned brand innovation to focus resources on core technology stabilization. Operating cash flow remained negative at $0.7 million, primarily due to a strategic increase in inventory to support operational execution. Management continues to evaluate strategic options to accelerate scale or unlock shareholder value, though no specific transactions were announced. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management attributed the beat to the mobile app relaunch and the Green Grove Rewards program, which stabilized revenue and sessions. The shift toward human health content across digital touchpoints is showing early positive signals in customer engagement data. The 54.8% gross margin is viewed as a durable improvement resulting from reduced discounting and higher average revenue per order. A majority of active customers are now members of the rewards program, with strong year-over-year improvement in VIP tier adoption among new customers. Management confirmed they are pursuing tariff clawbacks similar to other impacted brands but have not included any potential refunds in their 2026 guidance.

Image source: The Motley Fool. Thursday, March 5, 2026 at 5:00 p.m. ET Chief Executive Officer — Jeff Yurcisin Chief Financial Officer — Tom Siragusa Hosting today's call are Grove Collaborative Holdings, Inc.’s CEO, Jeff Yurcisin, and CFO, Tom Siragusa. Some of the statements made today about future prospects, financial results, business strategies, industry trends, and Grove Collaborative Holdings, Inc.’s ability to successfully respond to business risks may be considered forward-looking, including statements relating to reactivation of lapsed customers, future increases in advertising spend, stabilization of our e-commerce platform, sequential revenue growth throughout the year while maintaining profitability discipline, increased capacity to execute additional growth initiatives, savings from reduction in force, improved subscription experience, future increases in product development, guidance for 2026 including guidance related to revenue and adjusted EBITDA, net revenue reaching a low point in 2026, seasonality and advertising investment in 2026, sequential improvement in revenue, and acceleration of advertising investment. Such statements are based on current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially, including those risks discussed in Grove Collaborative Holdings, Inc.’s filings with the Securities and Exchange Commission. All of these statements are based on Grove Collaborative Holdings, Inc.’s views today, and Grove Collaborative Holdings, Inc. assumes no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws. During today's call, Grove Collaborative Holdings, Inc. will also discuss certain non-GAAP financial measures that adjust GAAP results to eliminate the impact of certain items. You will find additional information regarding these non-GAAP financial measures and reconciliations of these non-GAAP items to the most directly comparable GAAP financial measures in Grove Collaborative Holdings, Inc.’s earnings release, which is also available on Grove Collaborative Holdings, Inc.’s Investor Relations website. I would now like to turn the call over to Jeff Yurcisin to begin. Jeff Yurcisin: Thank you, operator. Thank you to everyone joining us. I want to start with the financial headline. We delivered on our revised full year 2025 revenue and adjusted EBITDA guidance, and we returned to positive adjusted EBITDA in the fourth quarter. This was our first positive adjusted EBITDA quarter in the last six quarters, and the result reflects a deliberate choice to prioritize liquidity and adjusted EBITDA profitability while we work through customer experience disruptions tied to our e-commerce platform migration. Stepping back, Grove Collaborative Holdings, Inc.’s focus remains the same: driving long-term shareholder value by building a stronger, more resilient business—one that can deliver sustainable growth and consistent profitability over time. Our mission is also unchanged: to be the leading destination for clean, sustainable, non-toxic products for every room in the home. To earn that position in a market dominated by scaled digital platforms, we have to win where it matters by delivering a customer experience that is meaningfully differentiated, with unit economics that support profitable growth. That starts with execution in the near term. Today’s consumer is navigating a fragmented, often confusing marketplace crowded with options, inconsistent standards, and marketing claims that are hard to verify. I have higher conviction than ever that Grove Collaborative Holdings, Inc. is positioned to capitalize on this consumer problem by building a platform of curated and highly vetted products, leading with transparency, and making it easier for customers to align everyday purchases with their values without sacrificing efficacy. For the conscientious 57 million consumers who care about ingredients, performance, and sustainability, shopping can feel like a trade-off between convenience and trust. We believe Grove Collaborative Holdings, Inc. is uniquely positioned to simplify that decision. We curate and vet products to a higher standard, we lead with transparency, and we make it easier for customers to align everyday purchases with their values without sacrificing efficacy. That positioning matters because it is not just a brand promise—it is a business model that we believe can drive durable unit economics over time. When customers trust the curation and feel confident in the experience, we earn repeat behavior. When we earn repeat behavior, we can invest more efficiently and scale more profitably. However, 2025 was a challenging year, and a meaningful part of that came from our e-commerce platform migration early in the year. While the migration was strategically important, the transition created real friction in the customer experience, most notably across the mobile app, subscriptions, and our VIP program. When those areas did not perform consistently, we saw more churn in 2025 than we originally expected. That was particularly disappointing because we entered 2025 with real momentum. We had delivered our first quarter of sequential revenue growth in Q4 2024 and our first full year of positive adjusted EBITDA. The migration issues interrupted that progress. We ended 2025 with 599,000 active customers, down 13% from 689,000 at the end of 2024. That ending customer base is the starting point for our 2026 revenue expectations. Importantly, we do not view the customers who churned as gone forever. As we continue to stabilize our e-commerce platform and restore reliability in the customer experience, we believe we have an opportunity to reactivate a meaningful portion of them over time. But first, we need to build the best possible shopping experience for clean, sustainable products that arrive regularly in one’s home. That is what 2026 is for us: a year of rebuilding that momentum. We are encouraged by the direction because we now have clarity on the root e-commerce platform issues, and we are making tangible progress fixing them. As those fixes take hold, we expect to stabilize active customers, reactivate lapsed ones, and measurably increase advertising spend to acquire new customers. We expect to deliver sequential revenue growth through the year while maintaining profitability discipline, and as the core experience stabilizes, we will also have more capacity to execute additional growth initiatives, which I am looking forward to highlighting in future quarters. As we execute that plan, we are staying anchored to the same four key pillars we have discussed throughout the year: balance sheet strength, sustainable profitability, revenue growth, and environmental and human health. These pillars continue to represent the framework that keeps us focused as we are still rebuilding parts of the customer experience. Starting with balance sheet strength and profitability, in the fourth quarter we delivered $1.6 million of positive adjusted EBITDA. It reinforces our commitment to navigate this transformation responsibly, protecting liquidity, managing profitability, and scaling advertising spend only when the customer experience is stable and paybacks justify it. We also delivered breakeven operating cash flow in the quarter. This is the fifth quarter in the last eight where we have achieved at least breakeven or positive operating cash flow. That consistency matters. It underscores our focus on disciplined execution and building a more durable operating model. Contributing to these results, we continued to align expenses to the current scale of the business. We executed a reduction in force in November that we expect to generate approximately $5 million of annualized savings. This action was necessary to match our cost structure to the business today, improve operating leverage, and create capacity to invest as performance improves. On the revenue and customer side, we advanced several important initiatives to strengthen the experience and rebuild engagement. First, we launched our loyalty program, Grove Green Rewards, in the fourth quarter. The program is designed to deepen engagement, reward repeat behavior, and reinforce the value customers get from shopping Grove Collaborative Holdings, Inc. It includes a sign-up bonus, differentiated earn rates for VIP customers, and enhanced earning on subscriptions. It also gives us multiple levers to run points-based promotions and exclusive VIP deals, and importantly, it allows us to incorporate rewards into new customer offers and reintroduce referral capabilities. Second, in February, we launched our redesigned mobile app, which is a key step toward stabilizing the mobile experience. We moved away from our prior third-party approach and rebuilt our own custom app. Mobile is too important to the customer experience to tolerate instability. This release restores much of the functionality and experience customers had prior to the migration. There is still work ahead to improve performance over the coming quarters, but this release represents a meaningful step forward in delivering a better customer experience. Third, we are focused on strengthening our subscription experience, which is a core driver of retention and lifetime value, and an experience that was negatively impacted in the platform migration. In 2025, subscription units drove 60% of our revenue, and orders with subscriptions were 79% of total orders. By the time we report second quarter earnings, expect to meaningfully improve the subscription experience to customers who want a box of home essentials delivered on a regular basis to their home. Taken together, Grove Green Rewards, the redesigned mobile app, and our planned subscription improvements are foundational to our strategy this year. They are designed to restore elements of the experience customers know and love, deepen engagement through loyalty, improve discovery and convenience, and help us deliver a more personalized and reliable experience that reinforces Grove Collaborative Holdings, Inc. as the destination for clean and sustainable essentials. Our fourth pillar is environmental and human health. In 2026, we expanded Grove Collaborative Holdings, Inc.’s ingredient standards to cover more than 10,000 banned or restricted ingredients, including more than 3,000 outright banned across every category we carry. To our knowledge, these are the most stringent standards and curated assortment that exists in this space. These standards are also informed by leading EU frameworks and often go beyond baseline U.S. requirements through tighter limits and stricter exclusions. For customers, the benefit is straightforward: more confidence in what comes into their home. Strategically, it further differentiates Grove Collaborative Holdings, Inc. versus competitors that have shorter, less comprehensive lists, reinforcing our role as the trusted curator, not just the marketplace. Alongside our focus on core execution, as we have stated previously, we continue to evaluate strategic options to maximize shareholder value. These may include additional acquisitions or partnerships, divestitures, and other strategic options consistent with our mission and long-term vision. Any action we take will be guided by the same principles that shape how we operate the business every day: customer focus, capital efficiency, and sustainable shareholder value creation. In closing, I am energized about 2026 because the work in front of us is clear and gives us a credible path to stabilizing the business and then reaccelerating responsibly, without sacrificing profitability discipline. Grove Collaborative Holdings, Inc. remains uniquely positioned to lead in human health and wellness by combining trusted standards with the convenience and economics of a modern digital platform. I will now turn the call over to Tom Siragusa for the financial results and our 2026 outlook. Tom Siragusa: Thank you, Jeff, and welcome everyone. I will walk through our fourth quarter and full year financial results and then review our outlook for 2026. Starting at the top line, revenue for the fourth quarter was $42.4 million, down 14.3% year over year. The decline was primarily driven by fewer orders, reflecting reduced advertising investment and the lagging effects of disruptions from our e-commerce platform migration earlier in the year. That decline was partially offset by $2.9 million of QVC revenue driven by an increase in the Today’s Special Value program. QVC was an existing Acreage sales channel that Grove Collaborative Holdings, Inc. acquired as part of the Acreage acquisition in the first quarter. For the full year, revenue was $173.7 million, within our revised guidance range. While revenue declined 14.6% year over year, we made deliberate trade-offs to protect liquidity and profitability while prioritizing fixes to the customer experience, and we ended the year with positive adjusted EBITDA in the fourth quarter. Turning to our operating metrics, DTC total orders were 539,000, a decline of 25% year over year, while active customers ended the quarter at 599,000, down 13% versus the prior year. These declines were driven primarily by headwinds related to the e-commerce migration and lower advertising spend relative to prior years, which reduced new acquisition and, in turn, repeat orders given the recurring nature of our business. DTC net revenue per order was $69.50, an increase of 4.1% year over year. The increase was primarily driven by more targeted promotional strategies and a larger mix of higher-priced items in customer orders as we continue to expand our selection. Our gross margin was 53%, an increase of 60 basis points compared to 52.4% in 2024. The increase was primarily driven by lower promotional activity, partially offset by a nonrecurring benefit in the prior-year period related to the sell-through of previously reserved inventory. Turning to advertising, we invested $1.0 million in the quarter, a 65.2% decrease year over year. This reduction reflects a strategic decision to preserve liquidity and drive profitability while we focus on optimizing the core experience through ongoing improvements across our web and app platforms. Product development expense was $1.9 million, down 59.2% year over year. This decline reflects our decision to streamline our technology organization as well as lower amortization costs following the e-commerce platform migration. In the near term, we have also been more selective in owned brand innovation, prioritizing resources toward stabilizing and improving our core technology and customer experience. As the platform work progresses, we expect to rebalance our investment in product development to support both innovation and growth initiatives aligned with our financial discipline. SG&A expense was $21.2 million, a 20.8% decrease versus the prior year. The reduction was driven by lower fulfillment costs from fewer orders, ongoing cost optimization initiatives including the reduction in force executed in the fourth quarter, as well as reduced depreciation and amortization and lower stock-based compensation. Net loss was $1.6 million, or a 3.7% net loss margin, compared to a net loss of $12.6 million, or a 25.5% net loss margin, in the prior year. The year-over-year improvement reflects lower operating expenses and lower interest expense, as well as the absence of the non-cash loss on debt extinguishment related to the payoff of our term loan in 2024. Adjusted EBITDA was $1.6 million, or a 3.7% margin, compared to negative $1.6 million, or a negative 3.3% margin, in the prior year. The year-over-year increase reflects structural cost reductions, including our reduction in force from November, and disciplined advertising investment. As Jeff mentioned, this is a return to positive adjusted EBITDA for the first time in six quarters, reaffirming our commitment to navigating our transformation with discipline. For the full year, net loss was $11.7 million, and adjusted EBITDA was negative $2.2 million, which is in line with our revised full year adjusted EBITDA guidance and reflects the trade-offs we made throughout the year as we navigated the migration and reset our cost structure. Turning to the balance sheet and liquidity, we ended the quarter with $11.8 million in cash, cash equivalents, and restricted cash, down from $12.3 million at the end of the third quarter, primarily reflecting cash used in investing and financing activities. Operating cash flow was breakeven for the quarter, as non-cash items more than offset the net loss, while working capital was a modest use of cash. This is compared to a $0.3 million operating cash inflow in the prior year. Now turning to our outlook, for the full year 2026 we expect net revenue to be approximately $140 million to $150 million and adjusted EBITDA to be approximately breakeven. Looking across the year, we expect Q1 to represent the trough in revenue for the year, reflecting seasonality and continued disciplined advertising investment. From that point, we expect sequential improvement as customer experience enhancements support customer retention and enable a measured reacceleration of customer acquisition investment throughout the year. In closing, our priorities for 2026 are clear: maintain financial discipline as we continue to optimize the customer experience. These actions are laying the foundation for a healthier, more efficient business that can return to profitable growth going forward. With that, I will turn the call back over to Jeff for closing remarks. Jeff Yurcisin: Thank you, Tom. As we close out the year, I want to bring us back to what is most important. Grove Collaborative Holdings, Inc. is rebuilding for the long term, but we also have to deliver in the short term. Over the past year, we have done the really hard work: migrating to a modern platform, reshaping our cost base, and refocusing the organization on fixing the core customer experience. We now believe we are past the most disruptive phase of this migration. Our priorities for the next phase are clear. First, keep improving the experience, especially on mobile and subscriptions, so customers can reliably shop, subscribe, and reorder with confidence. Second, operate with tight financial discipline, protecting liquidity and ensuring that investments meet our standards for payback and lifetime value. Third, as these improvements take hold, return to measured growth built on stronger unit economics and a more efficient cost structure. The last year has not been good enough, but we know the path forward, and we are executing with urgency and discipline. That is how we will rebuild long-term shareholder value and reinforce Grove Collaborative Holdings, Inc. as the destination for clean and sustainable essentials. We will now open for questions. Operator, please open the line for questions. Thank you. Operator: Thank you. Our first question is from Susan Anderson with Canaccord Genuity. Susan Anderson: Hi, good evening. Thanks for taking my question. Maybe just to start off, if you could talk about the first quarter being the trough in sales and then the pickup after that, and the drivers that are going to drive the sequential pickup in sales as we go throughout the year. And then also, maybe if you could talk about your customer acquisition investment for this year. Are you expecting to invest more in customer acquisition versus what you did last year? Thank you. Jeff Yurcisin: Thank you, Susan. Let me take that, and then I will let Tom share in terms of total acquisition spend. The core reason we are expecting the sequential growth goes back to building a better customer experience. Over the last twelve months since we jumped on the platform migration, it has been a rough customer experience. The mobile app alone was a really big change that we just launched in Q1, and we are seeing early positive signals. The loyalty program in Q4—each one of these will improve the core customer experience. We mentioned the subscription experience that we hope to be able to announce before our next call. You put all of this together, and it is pretty energizing in terms of what we can accomplish. That is the primary driver. Then, in parallel, we do expect to be increasing marketing spend because we are seeing better repeat rates and a better LTV to CAC, and ultimately better paybacks. Tom, I will let you handle the specifics around marketing spend. Tom Siragusa: Thanks, Jeff. Yes, Susan, if you look at our email in the fourth quarter, we took our advertising spend down from about $33 million in the third quarter to about $1 million in the fourth quarter. We expect to be in about the same range in the first quarter, and we are not going to give specifics as to what we think that ramp is going to look like over the course of the year. But given some of the technology improvements and the impact that those will have on the CX, those should be the enabler for us to grow advertising spend because there will be a better user experience. That should be one of the key enablers for growth over the course of the year, along with stabilizing the existing customer base. That is how I would think about the cadence. Susan Anderson: Okay, great. And then maybe if you could talk about the categories that you offer currently on your site, and is there any white space left? You have obviously been able to expand quite a bit into health and wellness, and then beauty and pet as well. So maybe talk about where you are at with those newer categories and then also any white space opportunity ahead? Thanks. Jeff Yurcisin: Appreciate that. We think most of the opportunity is within our core category, and we see real growth paths within the type of assortment that we are currently selling. Are there opportunities adjacent? Of course there are. Some of those will be, when we think about wellness, thinking in a more broad perspective than just vitamins, minerals, and supplements, but everything going into air filters and even potentially mattresses, where the opportunity is to deliver and curate the best products for a healthy home. That goes beyond just our kind of standard categories. I would also say this year we will be enabling some drop-ship capabilities, which will allow us to get into some higher AOV categories. The right type of economics, but again, all through the lens of these 3,000 banned ingredients and substances, the highest standards from an ingredient perspective, and also the most curated assortment out there. From a category perspective, we are seeing success in all these new categories. Whenever we launch more products, customers love it, and we are seeing growth. But the real opportunity is serving the core customer, with an adjacency toward drop-ship, which will expand our overall categories beyond just VMS into broader human health. Susan Anderson: Okay, great. And then maybe last, if you could talk about the margins for this year and if there is any varying cadence by quarter, whether it is gross margin or operating expense, to get to your breakeven for the year? Thanks. Jeff Yurcisin: Tom, I will let you take this. Tom Siragusa: So, thinking in terms of margins, without giving specific guidance, from a gross margin perspective, we do not expect there to be a lot to move the needle one way or the other. We did launch our loyalty program, which will allow us to be more tactical with our promotions from a points-based perspective, so we will be leaning into that and using that to be as effective as we possibly can from a promotional perspective to engage customers. From an advertising perspective, we are going to spend similar to the fourth quarter in the first quarter, and then we will scale it from there. Given the discretionary nature of advertising spend, we will lean in as we see the results from some of the technology improvements and from a new customer acquisition perspective. From an operating expense perspective, we executed the RIF in the fourth quarter that reset our cost base lower, and that is probably a good baseline to think about what our operating and structural expense looks like going forward. Susan Anderson: Okay, great. Thanks so much for all of the color. Good luck this year. Tom Siragusa: Thank you, Susan. Operator: Thank you. There are no further questions at this time. I would like to hand the floor back over to Jeff Yurcisin for any closing comments. Jeff Yurcisin: Thank you very much. I just want to thank everyone who joined the call and hope you have a great night. Thank you. Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Grove Collaborative, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Grove Collaborative wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $534,008!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,073!* Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 190% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of March 9, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Grove Collaborative (GROV) Earnings Transcript was originally published by The Motley Fool

Returned to positive adjusted EBITDA: Grove met its revised 2025 guidance and posted Q4 revenue of $42.4M (down 14.3% YoY) with a net loss of $1.6M and adjusted EBITDA of +$1.6M versus -$1.6M a year earlier. Platform migration drove churn and cost cuts: A problematic e-commerce migration led to higher churn and a 25% decline in DTC orders, prompting a steep cut in advertising (from about $33M to ~$1M) and leaving active customers down 13% to 599,000, although net revenue per order rose to $69.50 and gross margin improved to 53.0%. 2026 recovery plan and outlook: Management expects net revenue of $140–150M and roughly break-even adjusted EBITDA for 2026, forecasting Q1 as the trough and sequential improvement as a new loyalty program, redesigned mobile app and subscription fixes restore retention, while evaluating strategic M&A/partnership/divestiture options. Interested in Grove Collaborative Holdings, Inc.? Here are five stocks we like better. Grove Collaborative (NYSE:GROV) said it met its revised full-year 2025 revenue and adjusted EBITDA guidance and returned to positive adjusted EBITDA in the fourth quarter, as the company continued working through customer experience disruptions tied to an e-commerce platform migration. CEO Jeff Yurcisin described 2025 as a challenging year, citing friction created by the platform transition—particularly across the mobile app, subscriptions, and the company’s VIP program—which contributed to higher churn than expected. CFO Tom Siragusa said the company deliberately reduced advertising investment and focused on protecting liquidity and profitability while addressing the customer experience issues. → Uber and Joby Aviation Team Up: Game Changer or Hype? For the fourth quarter, Grove reported revenue of $42.4 million, down 14.3% year-over-year. Siragusa attributed the decline primarily to fewer orders, reflecting reduced advertising investment and the lingering impacts of the platform migration earlier in the year. The decline was partially offset by $2.9 million of QVC revenue driven by an 8Greens “Today’s Special Value” program; Grove acquired 8Greens in the first quarter and QVC was described as an existing 8Greens sales channel. Grove posted net loss of $1.6 million in the quarter, compared with a net loss of $12.6 million in the prior-year period. Adjusted EBITDA was positive $1.6 million, compared with adjusted EBITDA of negative $1.6 million a year earlier. Yurcisin said the fourth quarter marked the company’s first positive adjusted EBITDA quarter in the last six quarters, reflecting a decision to prioritize liquidity and adjusted EBITDA profitability while fixing customer experience disruptions. → BigBear.ai Stock Is Down Big, But Smart Money Is Quietly Buying Siragusa highlighted reduced operating expenses and lower interest expense as contributors to the year-over-year improvement, as well as the absence of a non-cash loss on debt extinguishment that occurred in the fourth quarter of 2024 related to paying off a term loan. Grove ended 2025 with 599,000 active customers, down 13% from 689,000 at the end of 2024. Yurcisin said the ending customer base is the starting point for the company’s 2026 revenue expectations, but added that management does not view churned customers as “gone forever” and believes there is an opportunity to reactivate a meaningful portion over time as the platform stabilizes. → Archer Aviation Stock Tanks—The Real Story Is What Wall Street Overlooked Direct-to-consumer total orders were 539,000 in the fourth quarter, down 25% year-over-year. Siragusa said the declines were driven primarily by headwinds tied to the e-commerce migration and lower advertising spend relative to prior years, which reduced new customer acquisition and, in turn, repeat orders. Despite lower volume, DTC net revenue per order rose 4.1% year-over-year to $69.50, which Siragusa said reflected more targeted promotional strategies and a mix shift toward higher-priced items as the company expanded its selection. Gross margin was 53.0%, up 60 basis points from 52.4% in the prior-year quarter, driven primarily by lower promotional activity and partially offset by a non-recurring gross margin benefit in the prior-year period related to sell-through of previously reserved inventory. Grove’s advertising spend was $1 million in the fourth quarter, a 65.2% decrease year-over-year. Siragusa said the reduction was a strategic decision to preserve liquidity and focus on optimizing the core experience across the web and app platforms. In the Q&A, Siragusa added that advertising spend fell from about $33 million in the third quarter to about $1 million in the fourth quarter, and he expects spending to be “in about the same range” in the first quarter, with the ramp dependent on the impact of customer experience improvements. Product development expense was $1.9 million, down 59.2% year-over-year, reflecting a streamlined technology organization and lower amortization following the migration. Siragusa said Grove has also been more selective with owned-brand innovation in the near term, prioritizing resources toward stabilizing and improving core technology and customer experience. SG&A expense was $21.2 million, down 20.8% year-over-year, reflecting lower fulfillment costs from fewer orders, cost optimization initiatives, reduced depreciation and amortization, and lower stock-based compensation. Yurcisin said the company executed a reduction in force in November that is expected to generate approximately $5 million of annualized savings, describing the move as necessary to align the cost structure with the current scale of the business and improve operating leverage. Grove reported break-even operating cash flow in the fourth quarter, which Yurcisin said was the fifth quarter in the last eight with at least break-even or positive operating cash flow. The company ended the quarter with $11.8 million in cash equivalents and restricted cash, down from $12.3 million at the end of the third quarter, which Siragusa said primarily reflected cash used in investing and financing activities. Management emphasized that restoring a reliable customer experience is the primary driver of its 2026 plan. Yurcisin said Grove now has clarity on the root causes of the platform issues and is making progress on fixes. The company launched a loyalty program, Grove Green Rewards, in the fourth quarter, which is designed to deepen engagement and reward repeat behavior through features including a sign-up bonus, differentiated earn rates for VIP customers, enhanced earning on subscriptions, and points-based promotions and exclusive VIP deals. Yurcisin also said the program enables rewards to be incorporated into new customer offers and allows referral capabilities to be reintroduced. In February, Grove launched a redesigned mobile app after moving away from a prior third-party approach and rebuilding a custom app. Yurcisin said the release restores much of the functionality customers had prior to the migration, though he noted there is still work ahead to improve performance in coming quarters. Subscriptions were described as a key retention and lifetime value driver that was negatively impacted by the migration. Yurcisin said subscription units drove 60% of 2025 revenue and orders with subscriptions represented 79% of total orders. He added that by the time the company reports second quarter earnings, it expects to have “meaningfully improved” the subscription experience for customers who want regular deliveries of home essentials. For full-year 2026, Grove expects net revenue of approximately $140 million to $150 million and adjusted EBITDA of approximately break-even. Siragusa said the company expects the first quarter to represent the trough in revenue due to seasonality and continued disciplined advertising investment, followed by sequential improvement as customer experience enhancements support retention and enable a measured re-acceleration of customer acquisition investment throughout the year. In the Q&A, Yurcisin said sequential improvement is expected to be driven primarily by customer experience upgrades—including the new mobile app, the loyalty program, and planned subscription improvements—alongside increased marketing spend as repeat rates improve and lifetime value-to-customer acquisition costs and paybacks strengthen. Yurcisin also discussed expanding Grove’s ingredient standards in the first quarter of 2026 to cover more than 10,000 banned or restricted ingredients, including more than 3,000 outright bans across every category carried. He said the standards are informed by EU safety frameworks and are intended to further differentiate Grove as a trusted curator. On category expansion, Yurcisin said the company sees most opportunity within its core categories, with potential adjacencies tied to a broader view of wellness and the “healthy home.” He added that Grove plans to enable some dropship capabilities in 2026, which he said would allow entry into higher average order value categories with appropriate economics. Finally, Yurcisin said Grove continues to evaluate strategic options to maximize shareholder value, including potential acquisitions or partnerships and divestitures, while remaining guided by customer focus, capital efficiency, and sustainable shareholder value creation. Grove Collaborative is a direct-to-consumer digital marketplace offering a broad assortment of sustainable home and personal care products. Operating as a public benefit corporation, the company provides an online platform designed to simplify the shopping experience for eco-friendly essentials, including cleaning supplies, personal care items, baby and family products, wellness goods and pet care. The company's business model centers on a subscription-based delivery service that enables members to schedule regular shipments of both third-party and private-label products. The article "Grove Collaborative Q4 Earnings Call Highlights" was originally published by MarketBeat.