Grove (GROV) Q2 2026 Earnings Call Transcript
Grove Collaborative Holdings (GROV) reported Q2 2026 net revenue of $36.6 million, down 16.9% YoY but up 1% sequentially. Adjusted EBITDA was $0.5 million, with three straight positive quarters. Net loss was $0.9 million. DTC orders and active customers fell YoY, while net revenue per order rose to $69.19. Full-year 2026 guidance: revenue $142.5M to $152.5M; adjusted EBITDA breakeven to low single digits.
How this was made
The 30-second read
Why it matters
Traders can reassess the sustainability of profitability (positive adjusted EBITDA, improving operating cash flow) against ongoing DTC demand contraction and margin headwinds from one-time inventory disposals.
Market read
Guidance reaffirmation plus detailed operating KPIs (orders, active customers, margin drivers, cash flow) can drive re-rating and near-term positioning for GROV.
What to watch
The CFO transition (departure scheduled Aug. 16) and the reliance on technology migration completion could introduce execution risk, even if current quarter results look improved.
Background
Grove Collaborative is discussing progress after restructuring and technology migrations, with emphasis on drop-ship capabilities, subscription adoption, and a shift in advertising approach.
Ticker impact
Grove reported Q2 2026 net revenue of $36.6M, reaffirmed FY 2026 revenue guidance, and guided adjusted EBITDA to breakeven to low single digits.
Moderate volatility around guidance interpretation, with focus on whether sequential revenue growth can offset DTC order and customer declines.
Key metrics show sequential improvement but continued year-over-year DTC order and active customer declines, while guidance is reaffirmed rather than raised.
Market effects
Highlights ongoing DTC e-commerce platform disruption effects and the shift toward drop-ship and subscription mix to stabilize margins.
No clear regional spillover beyond US consumer/e-commerce sentiment.
Limited, largely company-specific operating and guidance update.
Counterpoint
Despite sequential revenue growth and positive adjusted EBITDA, the continued 23%+ YoY declines in active customers and orders suggest the turnaround may be fragile if advertising and customer acquisition do not re-accelerate.
Key entities
- companyGrove Collaborative Holdings, Inc.
Reported Q2 2026 results and reaffirmed FY 2026 revenue and adjusted EBITDA guidance, including operational changes like drop-ship and subscription experience updates.
- executiveJeff Yurcisin
CEO who discussed customer trust, human health standards, and plans to expand drop-ship and shift advertising toward upper funnel.
- executiveTom Siragusa
CFO who discussed the drivers of YoY declines and is scheduled to depart Aug. 16, 2026.
