Grove Collaborative Q1 revenue falls on smaller customer base

Grove Collaborative Holdings

07/05/2026 22:07

Overview

US sustainable consumer goods retailer's fiscal Q1 revenue fell 17% yr/yr

Company posted positive adjusted EBITDA for a second straight quarter despite lower revenue

Grove raised full-year 2026 revenue and adjusted EBITDA guidance, expecting sequential revenue growth

Outlook

Grove raises 2026 net revenue guidance to $142.5 mln-$152.5 mln from $140 mln-$150 mln

Company lifts 2026 Adjusted EBITDA guidance to breakeven to positive low single digit mlns

Grove expects sequential net revenue growth in each remaining 2026 qtr

Result Drivers

SMALLER CUSTOMER BASE - Co said revenue decline was primarily due to fewer active customers, reflecting lower advertising investment in 2024 and 2025 and customer attrition from 2025 ecommerce platform disruptions

DISCIPLINED ADVERTISING SPEND - Co maintained lower advertising investment to prioritize profitability and stabilize customer experience

TARGETED PROMOTIONS - Gross margin improvement driven by more targeted promotional activity and shift to Grove Green Rewards loyalty program

Company press release: ID:nBw8JLQnTa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
-$0.03
Q1 Net Income
-$1.009 mln
Q1 Gross Profit
$19.86 mln
Q1 Operating Income
-$901,000


Analyst Coverage

The one available analyst rating on the shares is "buy"

The average consensus recommendation for the online services peer group is "buy"

Wall Street's median 12-month price target for Grove Collaborative Holdings Inc is $2.00, about 65.3% above its May 6 closing price of $1.21

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)