Grove Collaborative Holdings, Inc.

Second-quarter net revenue was $36.6 million, down 16.9% year over year but up 1% sequentially. Gross margin was 53.6%, down 190 basis points from 55.4% last year. Net loss was $900 thousand, compared with a net loss of $3.6 million a year ago; adjusted EBITDA was positive $500 thousand versus negative $900 thousand last year. DTC orders were 489 thousand, down 23.6% year over year, active customers were 509 thousand, down 23.3%, and DTC net revenue per order was $69.19, up 6.1%. For 2026, management reaffirmed full-year net revenue guidance of $142.5 million to $152.5 million and adjusted EBITDA breakeven to positive low single digit millions, and said it still expects sequential revenue improvement in each remaining quarter.

Jeff Yurcisin said the quarter showed the company’s plan is working: revenue improved sequentially, EBITDA stayed positive, cash flow was positive, and customer-experience investments are starting to show through. He emphasized Grove’s positioning as a trusted destination for conscientious consumers, pointing to survey data that 9 out of 10 customers trust Grove more than Amazon and mass retailers for safe and healthy products. He also framed the strategy around four pillars: sustainable profitability, balance-sheet strength, revenue growth, and human and environmental health, with a stronger focus on human health in the company’s messaging.

Tom Siragusa said results were in line with the prior outlook and attributed the year-over-year revenue decline mainly to a smaller active customer base, lower advertising investment, and customer attrition tied to eCommerce platform disruptions, partly offset by higher DTC net revenue per order. He noted gross margin of 53.6% declined 190 basis points due mainly to one-time disposals and prior-year inventory reserve sell-through, while SG&A fell 23.2% and advertising spend was $1.2 million, or 3.4% of revenue, up slightly from Q1. He highlighted $11.4 million in cash, cash equivalents and restricted cash, positive operating cash flow of $1.3 million, and reaffirmed full-year guidance.

There was no substantive analyst Q&A in the transcript provided, so management’s main clarifications came in the prepared remarks. The key points were that sequential revenue growth came from non-DTC channels like Amazon and QVC, while DTC remained pressured by prior-year advertising pullback and platform disruption effects. Management also said it plans to grow advertising investment with discipline and expects sequential revenue improvement in each remaining quarter of 2026.