Grove Collaborative Holdings, Inc. (GROV) Q1 2026 Earnings Call Transcript – Image for illustrative purposes only (Image credits: Unsplash)
Grove Collaborative Holdings delivered its first-quarter 2026 results on May 7, showing early signs that its stabilization efforts are taking hold. Revenue declined as expected following last year’s platform migration, yet the company posted a modest profit on an adjusted basis and raised its full-year outlook. The update comes at a critical time for the sustainable consumer goods firm as it works to rebuild customer momentum and restore consistent growth.
Revenue Decline Masks Margin Gains
Net revenue for the quarter ended March 31 fell 16.8 percent to $36.2 million. The drop reflected fewer orders tied to reduced advertising spend and lingering effects from the 2025 e-commerce platform transition. Gross margin expanded to 54.8 percent, reflecting tighter cost controls and a more favorable product mix. Management highlighted that these improvements helped offset the top-line pressure and supported the shift toward profitability.
Adjusted EBITDA Turns Positive
The company recorded adjusted EBITDA of $0.3 million, marking its second straight quarter in positive territory. Chief Executive Jeff Yurcisin noted that the first quarter performed ahead of internal expectations. This outcome stemmed from disciplined expense management and sequential improvements in repeat purchase rates. The result signals that operational fixes implemented after the platform migration are beginning to stabilize the business.
Raised Full-Year Guidance
Grove Collaborative lifted its 2026 revenue target to a range of $142.5 million to $152.5 million. It also raised the adjusted EBITDA outlook to breakeven or a low single-digit million-dollar profit. The updated forecast assumes continued sequential growth in customer acquisition and expanded third-party product assortment. Executives emphasized that these targets remain achievable even with a cautious advertising approach.
What Matters Now
The company’s ability to deliver positive adjusted EBITDA while navigating a revenue reset demonstrates resilience. Stakeholders, including shareholders and suppliers, now have clearer visibility into a path that balances cost discipline with measured growth.
