Grove Collaborative Holdings (GROV)
NYSE:GROV
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Grove Collaborative Holdings
(NYSE:GROV)
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Rating:47Neutral
Price Target:
$1.00
▼(-24.81% Downside)
Action:Reiterated
Date:05/10/26
The score is held down primarily by weak financial performance (declining revenue, ongoing losses, and negative free cash flow), partially offset by improving profitability trends (strong gross margin, narrowing losses, reduced leverage). Technicals are mixed with only early signs of improvement, while valuation is difficult to support given negative earnings. The earnings call adds modest positivity due to raised guidance and consecutive positive adjusted EBITDA, but customer and order declines and limited liquidity remain key constraints.
Positive Factors
High Gross Margin
A sustained ~54.8% gross margin provides a structural profitability buffer driven by private‑label mix and tighter promotions. High gross margins allow the company to cover variable costs, absorb marketing investment, and support loyalty incentives, improving long‑term margin durability even if scale rebuild is gradual.
Negative Factors
Shrinking Customer Base and Revenue Declines
A material decline in revenue and active customers signals lost scale that structurally raises per‑customer fixed cost absorption and weakens unit economics. Restoring scale requires sustained, effective marketing and customer winback over several quarters; failure to regain customers risks permanent margin pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margin
A sustained ~54.8% gross margin provides a structural profitability buffer driven by private‑label mix and tighter promotions. High gross margins allow the company to cover variable costs, absorb marketing investment, and support loyalty incentives, improving long‑term margin durability even if scale rebuild is gradual.
Read all positive factors
Grove Collaborative Holdings (GROV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$52.11M
Dividend YieldN/A
Average Volume (3M)94.82K
Price to Earnings (P/E)―
Beta (1Y)0.34
Revenue Growth-13.98%
EPS Growth64.53%
CountryUS
Employees339
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)-0.26
Shares Outstanding42,028,076
10 Day Avg. Volume97,316
30 Day Avg. Volume94,821
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)5.53
Price to Sales (P/S)0.25
P/FCF Ratio-5.29
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue0.37
Enterprise Value/Gross Profit0.69
Enterprise Value/Ebitda-9.66
Forecast
1Y Price Target
$2.00Price Target Upside50.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.28
Revenue Forecast (FY)$145.05M
Grove Collaborative Holdings Business Overview & Revenue Model
Company Description
Grove Collaborative Holdings, Inc., headquartered in San Francisco, California, operates as a purveyor of consumer goods across the United States, with a core focus on plastic neutrality. The company supplies a diverse range of items for domestic ...
How the Company Makes Money
Grove Collaborative primarily makes money by selling consumer products to customers through its online storefront and subscription-style replenishment model. Revenue is generated from (1) product sales of Grove-owned brands (e.g., home cleaning, p...
Grove Collaborative Holdings Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed cautious optimism: operational fixes (mobile app relaunch, loyalty program), margin expansion (+180bps) and improved unit economics led to positive adjusted EBITDA and an upward revision to FY guidance. However, material YoY declines in revenue (‑16.8%), orders (‑19.2%) and active customers (‑18.5%), reduced ad investment, and modest cash balances remain meaningful headwinds. Management’s narrative emphasizes that the platform disruption is largely behind them and that recent cohort metrics justify gradual reacceleration of growth investments.Positive Updates
Adjusted EBITDA Turned Positive
Adjusted EBITDA of $0.3M (0.8% margin) in Q1 2026, the second consecutive quarter of positive adjusted EBITDA, marking improvement from negative $1.6M (‑3.7% margin) in the prior year period.
Negative Updates
Year‑Over‑Year Revenue Decline
Net revenue of $36.2M in Q1 2026 was down 16.8% year‑over‑year, reflecting a smaller active customer base and fewer total orders stemming from the 2025 platform disruption and reduced prior advertising investment.
Read all updates
Q1-2026 Updates
Positive
Negative
Adjusted EBITDA Turned Positive
Adjusted EBITDA of $0.3M (0.8% margin) in Q1 2026, the second consecutive quarter of positive adjusted EBITDA, marking improvement from negative $1.6M (‑3.7% margin) in the prior year period.
Read all positive updates
Company Guidance
Grove raised its full‑year 2026 guidance to $142.5–$152.5 million in net revenue (up from $140–$150M) and now expects adjusted EBITDA of breakeven to positive low‑single‑digit millions (vs. ~breakeven prior), reiterating that Q1 was the revenue trough and forecasting sequential revenue improvement each quarter as advertising is gradually reaccelerated; Q1 actuals underpinning the guide included $36.2M net revenue, $0.3M adjusted EBITDA, 54.8% gross margin (+180 bps YoY), 502k DTC orders (‑19.2% YoY), 553k active customers (‑18.5% YoY), net revenue per order $67.79 (+2% YoY), $1.2M ad spend (‑58.6% YoY), $18.2M SG&A, $1.0M net loss (‑2.8% margin), operating cash flow of ‑$0.7M (vs. ‑$6.9M prior year), $10.4M cash and $1.7M available on the ABL — management says improved CAC, repeat rates and unit economics justify increased investment.Grove Collaborative Holdings Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
34
Negative
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 166.39M | 173.72M | 203.43M | 259.28M | 321.53M | 383.69M |
| Gross Profit | 90.06M | 93.27M | 109.35M | 137.36M | 154.65M | 188.50M |
| EBITDA | -6.42M | -8.78M | -4.79M | -21.29M | -72.26M | -125.65M |
| Net Income | -9.18M | -11.72M | -27.42M | -43.23M | -87.72M | -135.90M |
Balance Sheet | ||||||
| Total Assets | 51.06M | 53.09M | 65.01M | 150.74M | 174.04M | 182.47M |
| Cash, Cash Equivalents and Short-Term Investments | 9.43M | 8.49M | 19.63M | 86.41M | 81.08M | 78.38M |
| Total Debt | 19.77M | 20.45M | 22.09M | 89.56M | 81.09M | 90.51M |
| Total Liabilities | 43.69M | 45.32M | 48.79M | 132.62M | 147.51M | 150.83M |
| Stockholders Equity | 7.37M | 7.77M | 16.22M | 18.12M | 26.53M | 31.64M |
Cash Flow | ||||||
| Free Cash Flow | -1.68M | -8.12M | -11.51M | -10.98M | -100.48M | -132.86M |
| Operating Cash Flow | -765.00K | -6.95M | -9.75M | -7.99M | -96.26M | -127.09M |
| Investing Cash Flow | -904.00K | -4.00M | -1.62M | -2.98M | -4.22M | -5.77M |
| Financing Cash Flow | -1.41M | -1.56M | -59.19M | 9.86M | 118.09M | 34.71M |
Grove Collaborative Holdings Technical Analysis
Neutral
1.33
Price Trends
1.22
Positive
1.30
Negative
1.34
Negative
Market Momentum
<0.01
Negative
53.87
Neutral
93.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GROV, the sentiment is Neutral. The current price of 1.33 is above the 20-day moving average (MA) of 1.20, above the 50-day MA of 1.22, and below the 200-day MA of 1.34, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 93.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GROV.
Grove Collaborative Holdings Risk Analysis
Grove Collaborative Holdings disclosed 57 risk factors in its most recent earnings report. Grove Collaborative Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Grove Collaborative Holdings Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $32.34M | 13.68 | 21.40% | 9.81% | -4.13% | -18.10% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $172.91M | 18.16 | 8.21% | 1.48% | 3.78% | -7.26% | |
47 Neutral | $52.11M | -5.42 | -106.32% | ― | -13.98% | 64.53% | |
47 Neutral | $8.85M | 0.13 | 16.79% | ― | ― | ― | |
45 Neutral | $10.46M | -0.82 | -19.54% | ― | -7.51% | -6001.27% | |
45 Neutral | $85.90M | -14.06 | -9.41% | ― | -8.16% | 85.14% |
* Consumer Defensive Sector Average
GROV
Grove Collaborative Holdings
1.24
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20.39%
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Grove Collaborative Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Grove Collaborative Posts Q1 Results, Raises 2026 Outlook
Positive
May 7, 2026
On May 7, 2026, Grove Collaborative reported first-quarter 2026 results showing net revenue fell 16.8% year-on-year to $36.2 million as a smaller active customer base, lower advertising in 2024–2025, and prior e-commerce disruptions weighed ...
Delistings and Listing ChangesRegulatory Filings and Compliance
Grove Collaborative Regains NYSE Compliance, Avoids Delisting Risk
Positive
Mar 19, 2026
On March 17, 2026, Grove Collaborative Holdings, Inc., a sustainable home and personal care products company, announced it had regained compliance with the New York Stock Exchange’s quantitative continued listing standards. The NYSE confirme...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.