Grove Collaborative Reports $36.2M Revenue in Q1 2026, Down 17% Year-Over-Year

Grove Collaborative Holdings, Inc. reported a net revenue of $36.2 million for the first quarter of 2026, a decrease of 17% compared to $43.5 million in the same period of 2025. The decline was attributed to a reduction in direct-to-consumer (DTC) total orders, which fell due to lower advertising expenditures and disruptions related to the migration from the company's legacy e-commerce platform to third-party service providers. The cost of goods sold also decreased by 20% to $16.4 million, resulting in a gross profit of $19.9 million and a gross margin of 55%, up from 53% in the prior year.

The company reported an operating loss of $0.9 million for the quarter, a significant improvement from the $3.5 million loss recorded in the same period last year. This improvement was driven by a reduction in operating expenses, which totaled $18.2 million, down from $22.0 million in 2025. Notably, advertising expenses decreased by 59% to $1.2 million, while selling, general, and administrative expenses also saw a decline, reflecting the company's ongoing cost management initiatives.

Grove Collaborative's customer engagement metrics showed a decline in active customers, which numbered 553,678 as of March 31, 2026, down from the previous year. The company processed 502,622 total DTC orders during the quarter, indicating challenges in customer acquisition and retention. However, the DTC net revenue per order increased to $67.79, attributed to more targeted promotional efforts and the introduction of the Green Rewards customer loyalty program in late 2025.

Looking ahead, Grove Collaborative aims to enhance its operational efficiency and customer experience following the completion of its e-commerce platform transition. The company has indicated that it will need to raise additional capital to support its growth initiatives and achieve profitability. As of March 31, 2026, Grove had $7.2 million in unrestricted cash and cash equivalents, alongside an outstanding debt of $7.5 million under its revolving credit facility with Siena Lending Group. The company believes its current resources will be sufficient to meet its obligations for at least the next year, but acknowledges the need for further financing to sustain operations and growth.