Grove Collaborative Holdings (GROV) AI Stock Analysis

• Market Cap: $54.21M
• Dividend Yield: N/A
• Average Volume (3M): 94.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.18
• Revenue Growth: -15.42%
• EPS Growth: 7.12%
• Country: US
• Employees: 339
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): -0.05
• Shares Outstanding: 42,023,693
• 10 Day Avg. Volume: 97,316
• 30 Day Avg. Volume: 94,821
• PEG Ratio: 0.07
• Price to Book (P/B): 5.53
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -5.29
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 0.70
• Enterprise Value/Ebitda: -10.14
• 1Y Price Target: $2.00
• Price Target Upside: 55.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.15
• Revenue Forecast (FY): $177.91M

• Rating: 44 Neutral
• Price Target: $1.00 ▼(-22.48% Downside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is held down primarily by weak financial fundamentals (continued losses and cash burn alongside declining revenue) and bearish technicals (below major moving averages with negative MACD). The latest earnings call adds some support via breakeven EBITDA guidance and demonstrated cost discipline, but it is tempered by a lower revenue outlook, customer attrition, and tight liquidity; valuation is only modestly supportive given the negative P/E and no dividend.

Positive Factors

Recurring Subscription Revenue

A high share of revenue and orders from subscriptions provides durable recurring demand, reducing revenue volatility and lowering marginal acquisition needs. This supports predictable unit volumes, retention-driven lifetime value improvements and steadier working-capital needs over the medium term.

Stable/Growing Gross Margin

A sustained ~53% gross margin indicates resilient unit economics driven by mix and lower promotions. Stable gross margins afford management flexibility to invest in retention or marketing as growth resumes and underpin the path to durable profitability if fixed-cost base remains controlled.

Cost Discipline and Profitability Progress

Demonstrated cost cuts, breakeven operating cash flow in Q4 and a return to positive adjusted EBITDA show the company can compress opex and move toward sustainable profitability. This structural expense discipline reduces liquidity dependence and improves survivability during slower top-line periods.

Negative Factors

Multi-year Revenue Decline

Material top-line contraction over multiple quarters indicates weakening demand or acquisition effectiveness. Persistent revenue shrinkage pressures operating leverage, makes fixed-cost absorption harder, and lengthens the timeline to restore unit economics even if margins at the product level remain healthy.

Weak Cash Generation and Limited Liquidity

Continued negative operating and free cash flow and a modest cash balance leave limited runway for sustained customer reacquisition or platform investments without external funding. This structural cash weakness elevates refinancing and execution risk if profitability improvements stall.

Execution Risk from Platform Migration & Ad Pullback

Growth recovery depends on fixing e-commerce platform and restoring subscription functionality; until platform reliability and CX are demonstrably improved, reactivating lapsed customers and scaling marketing remain uncertain, making top-line recovery execution risk a persistent structural constraint.

Grove Collaborative Holdings Business Overview & Revenue Model

Company Description

Grove Collaborative Holdings, Inc. operates as a plastic neutral consumer products retailer in the United States. It provides household cleaning, personal care, laundry, clean beauty, baby, and pet care products for households. The company is based in San Francisco, California.

How the Company Makes Money

Grove Collaborative generates revenue primarily through its subscription-based e-commerce model, where customers can sign up for regular deliveries of their favorite products. This model encourages customer loyalty and recurring revenue. Additionally, the company earns money through direct sales of individual products on its platform. Key revenue streams include sales from branded products, as well as partnerships with various brands to feature their eco-friendly products on the Grove platform. The company also benefits from strong customer retention rates and a growing customer base that is increasingly focused on sustainability, which contributes to its overall earnings.

Grove Collaborative Holdings Financial Statement Overview

Summary

Multi-year improvement is evident (losses narrowed materially and gross margin stayed ~53%), and leverage has been reduced sharply. However, the company remains unprofitable with negative EBITDA, revenue has continued to decline, equity is thin versus remaining debt (debt-to-equity ~1.77x), and operating/free cash flow are still negative—keeping financial quality below average.

Income Statement

Profitability is improving but still weak. Revenue has contracted for several years (2025 down ~3.9% vs. 2024), and the company remains unprofitable with negative net margins in every year shown. The key positive is a sharp step-up in earnings quality versus prior years: 2025 net loss narrowed to about -$11.7M from -$27.4M in 2024 and far larger losses in 2021–2022, while gross margin stayed relatively stable around ~53% in 2024–2025. However, operating performance is still slightly negative (EBITDA remains below zero), indicating the turnaround is not yet complete.

Balance Sheet

Leverage has improved materially, but the equity base is thin. Total debt fell meaningfully from ~$89.6M (2023) to ~$13.7M (2025), reducing balance-sheet risk versus prior years when debt levels were much higher. That said, stockholders’ equity is low (~$7.8M in 2025) and returns on equity remain deeply negative due to ongoing net losses. Debt is still high relative to equity (debt-to-equity ~1.77x in 2025), so the balance sheet remains sensitive if losses persist.

Cash Flow

Cash generation remains a clear weak spot. Operating cash flow is negative across all years provided, including about -$7.0M in 2025, and free cash flow is also negative (about -$8.1M in 2025). While cash burn has come down dramatically versus 2021–2022, 2025 free cash flow still worsened versus 2024 (growth ~-40.5%), suggesting volatility and continued dependence on external funding or further cost/working-capital improvements.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	173.72M	203.43M	259.28M	321.53M	383.69M
Gross Profit	93.27M	109.35M	137.36M	154.65M	188.50M
EBITDA	-6.44M	-4.79M	-21.29M	-72.26M	-125.65M
Net Income	-11.72M	-27.42M	-43.23M	-87.72M	-135.90M
Balance Sheet
Total Assets	53.09M	65.01M	150.74M	174.04M	182.47M
Cash, Cash Equivalents and Short-Term Investments	8.49M	19.63M	86.41M	81.08M	78.38M
Total Debt	20.45M	22.09M	89.56M	81.09M	90.51M
Total Liabilities	45.32M	48.79M	132.62M	147.51M	150.83M
Stockholders Equity	7.77M	16.22M	18.12M	26.53M	31.64M
Cash Flow
Free Cash Flow	-8.12M	-11.51M	-10.98M	-100.48M	-132.86M
Operating Cash Flow	-6.95M	-9.75M	-7.99M	-96.26M	-127.09M
Investing Cash Flow	-4.00M	-1.62M	-2.98M	-4.22M	-5.77M
Financing Cash Flow	-1.56M	-59.19M	9.86M	118.09M	34.71M

Grove Collaborative Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GROV, the sentiment is Negative. The current price of 1.29 is below the 20-day moving average (MA) of 1.44, below the 50-day MA of 1.36, and below the 200-day MA of 1.38, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.55 is Neutral, neither overbought nor oversold. The STOCH value of 15.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GROV.

Grove Collaborative Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UG	74 Outperform	$28.99M	33.63	17.85%	9.81%	-18.29%	-43.76%
ACU	66 Neutral	$161.79M	20.44	9.02%	1.48%	2.35%	-50.52%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
TKLF	55 Neutral	$12.02M	―	16.79%	―	7.75%	-21.61%
SKIN	51 Neutral	$145.35M	-5.72	-18.73%	―	-13.14%	57.98%
MTEX	46 Neutral	$12.43M	2.46	-19.54%	―	-9.17%	-4.64%
GROV	44 Neutral	$54.21M	-3.67	-130.15%	―	-15.42%	7.12%

Grove Collaborative Holdings Corporate Events

Grove Collaborative Highlights 2025 Results and 2026 Outlook

On March 5, 2026, Grove reported fourth-quarter and full-year 2025 results showing a 14.3% year-over-year revenue decline in the quarter to $42.4 million, but a swing to positive adjusted EBITDA of $1.6 million and sharply narrower net losses as cost cuts reduced operating expenses nearly 30%. For 2025, revenue fell 14.6% to $173.7 million and adjusted EBITDA remained slightly negative, while the company managed breakeven operating cash flow in Q4, improved plastic intensity metrics, and launched initiatives such as Grove Green Rewards and a redesigned mobile app to support engagement after ecommerce platform disruptions weighed on orders and active customers.

Management guided 2026 revenue to a lower range of $140 million to $150 million with roughly breakeven adjusted EBITDA, signaling a continued focus on profitability and liquidity over rapid growth as it stabilizes its ecommerce platform and gradually steps up customer acquisition. The update underscores Grove’s effort to balance top-line pressure from reduced advertising and platform issues with margin improvement and sustainability credentials, a trade-off that will be closely watched by investors assessing its path toward durable growth and financial resilience.

The most recent analyst rating on (GROV) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on Grove Collaborative Holdings stock, see the GROV Stock Forecast page.