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Grove Collaborative Holdings (GROV)
NYSE:GROV
US Market
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Grove Collaborative Holdings (GROV) AI Stock Analysis

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GROV

Grove Collaborative Holdings

(NYSE:GROV)

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Neutral 45 (OpenAI - 5.2)
Rating:45Neutral
Price Target:
$1.00
▼(-24.81% Downside)
Action:Reiterated
Date:07/10/26
The score is held down primarily by weak financial performance (declining revenue, continued losses, and negative free cash flow) and a bearish technical setup (price below key moving averages with negative MACD). Offsetting these, the latest earnings call was modestly supportive due to raised FY2026 guidance, improving margins, and a trend toward breakeven adjusted EBITDA, but execution risk remains high given customer/order declines and limited liquidity.
Positive Factors
High Gross Margins
Sustained gross margins near the mid-50s reflect strong private-label economics, improved promotion mix via loyalty, and higher AOV. This margin strength provides durable operating leverage, cushioning the business while management reinvests to recover scale and supports path to profitability.
Negative Factors
Revenue and Customer Contraction
A pronounced decline in revenue and an 18.5% drop in active customers indicate lost scale and lower market penetration. Persistent shrinkage requires sustained ad ROI improvement and retention execution to restore volumes; failure to regain customers risks margin dilution and higher unit costs.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margins
Sustained gross margins near the mid-50s reflect strong private-label economics, improved promotion mix via loyalty, and higher AOV. This margin strength provides durable operating leverage, cushioning the business while management reinvests to recover scale and supports path to profitability.
Read all positive factors

Grove Collaborative Holdings (GROV) vs. SPDR S&P 500 ETF (SPY)

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
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
Financials show improvement but remain weak: revenue is still declining (TTM down ~4%) and the company remains unprofitable (about -6% net margin). Gross margin is strong (~54% TTM) and losses have narrowed materially versus 2021–2022, while debt has been reduced. The biggest constraint is ongoing negative operating and free cash flow, with recent deterioration in TTM FCF indicating the business is not yet self-funding.
Income Statement
28
Negative
Balance Sheet
34
Negative
Cash Flow
22
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue166.39M173.72M203.43M259.28M321.53M383.69M
Gross Profit90.06M93.27M109.35M137.36M154.65M188.50M
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 Assets51.06M53.09M65.01M150.74M174.04M182.47M
Cash, Cash Equivalents and Short-Term Investments9.43M8.49M19.63M86.41M81.08M78.38M
Total Debt19.77M20.45M22.09M89.56M81.09M90.51M
Total Liabilities43.69M45.32M48.79M132.62M147.51M150.83M
Stockholders Equity7.37M7.77M16.22M18.12M26.53M31.64M
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-59.19M9.86M118.09M34.71M

Grove Collaborative Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.33
Price Trends
50DMA
1.21
Negative
100DMA
1.25
Negative
200DMA
1.31
Negative
Market Momentum
MACD
-0.03
Positive
RSI
35.11
Neutral
STOCH
12.27
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 1.33 is above the 20-day moving average (MA) of 1.21, above the 50-day MA of 1.21, and above the 200-day MA of 1.31, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 35.11 is Neutral, neither overbought nor oversold. The STOCH value of 12.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$33.10M13.9421.40%9.81%-4.13%-18.10%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
58
Neutral
$178.10M18.848.21%1.48%3.78%-7.26%
50
Neutral
$111.84M-16.32-9.41%-8.16%85.14%
50
Neutral
$9.44M0.2116.79%77.22%-89.32%
45
Neutral
$45.81M-4.05-106.32%-13.98%64.53%
45
Neutral
$8.80M-0.70-19.54%-7.51%-6001.27%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GROV
Grove Collaborative Holdings
1.07
-0.44
-29.14%
ACU
Acme United
47.29
6.28
15.32%
MTEX
Mannatech
4.71
-3.30
-41.20%
UG
United-Guardian
7.25
-1.49
-17.01%
SKIN
Beauty Health
0.91
-0.82
-47.38%
TKLF
Yoshitsu Co. Ltd. Sponsored ADR
2.20
-1.82
-45.27%

Grove Collaborative Holdings Corporate Events

Executive/Board ChangesShareholder Meetings
Grove Collaborative Announces CFO Resignation and Governance Updates
Neutral
Jun 24, 2026
Grove Collaborative Holdings, Inc., a consumer products company specializing in eco-friendly household and personal care items for sustainability-minded customers, announced leadership changes and governance developments in June 2026. The company ...
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 ...
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.Date of analysis: Jul 10, 2026