Grove Collaborative Holdings (GROV) AI Stock Analysis

• Market Cap: $52.98M
• Dividend Yield: N/A
• Average Volume (3M): 94.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• 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: 41,387,653
• 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: 1.24
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 0.70
• Enterprise Value/Ebitda: -7.77
• 1Y Price Target: $2.00
• Price Target Upside: 32.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.15
• Revenue Forecast (FY): $177.91M

• Rating: 43 Neutral
• Price Target: $1.00 ▼(-33.77% Downside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is held down primarily by weak financial performance (continued losses and negative free cash flow despite improvement) and bearish technicals (below major moving averages with negative MACD). The earnings call adds some support through margin and cost progress plus a near-term positive EBITDA target, but ongoing revenue/customer declines and limited valuation support keep the overall outlook cautious.

Positive Factors

Gross margin stability (~53%)

Sustained mid-50s gross margins (53.3% reported) reflect tighter promotions and less discounting. Durable gross margin strength improves unit economics across DTC and wholesale channels, giving the company a persistent profitability buffer as revenue stabilizes and cost programs compound.

Material debt reduction

A large reduction in total debt materially lowers interest and refinancing risk, improving solvency and financial flexibility. This stronger leverage profile gives management more runway to invest in platform fixes, product development, or targeted customer acquisition without urgent external financing.

Assortment expansion and cost cuts

A broader third-party assortment diversifies revenue sources and reduces concentration risk while meaningful SG&A cuts improve operating leverage. Together these create a structurally more resilient revenue mix and lower fixed-cost base, aiding durable margin recovery as customer acquisition resumes.

Negative Factors

Declining revenue and customers

Sustained declines in revenue, orders and active customers signal weakening demand and retention for a DTC/replenishment model. Persistent shrinkage of the repeat-purchase base undermines scale economics, raises CAC payback requirements, and makes long-term margin recovery harder without durable customer re-engagement.

Persistent negative cash flow

Chronic negative operating and free cash flow force reliance on external financing or continued cost cuts. That reduces capacity to invest in product, platform and marketing, and creates execution risk over a multi-quarter horizon if cash generation does not sustainably turn positive as advertised.

Thin equity base and sensitivity

A small equity cushion paired with remaining leverage leaves limited ability to absorb further losses or fund growth internally. This structural fragility constrains strategic optionality and raises risk that renewed operating setbacks would quickly pressure liquidity or require dilutive capital raises.

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

Financial quality remains below average: revenue continues to decline and profitability is still negative, with EBITDA below zero and ongoing cash burn. Offsetting this, losses have narrowed meaningfully versus prior years and leverage has improved sharply with debt reduced, but thin equity and negative operating/free cash flow keep execution risk elevated.

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	-1.61M	-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	13.75M	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: 1.51
• 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 1.51 is above the 20-day moving average (MA) of 1.45, above the 50-day MA of 1.36, and above the 200-day MA of 1.38, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 35.11 is Neutral, neither overbought nor oversold. The STOCH value of 13.25 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	$29.86M	33.63	17.85%	9.81%	-18.29%	-43.76%
ACU	66 Neutral	$165.78M	14.99	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	$12.15M	―	16.79%	―	7.75%	-21.61%
SKIN	51 Neutral	$144.08M	-5.72	-18.73%	―	-13.14%	57.98%
MTEX	46 Neutral	$12.74M	2.46	-19.54%	―	-9.17%	-4.64%
GROV	43 Neutral	$52.98M	-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.