Grove Collaborative Reports 17% Revenue Decline to $36.6 Million in Q2 2026

Grove Collaborative Holdings, Inc. reported a net revenue of $36.6 million for the second quarter of 2026, a decrease of 17% compared to $44.0 million in the same period of 2025. For the first half of 2026, the company generated $72.8 million in revenue, down from $87.6 million in the prior year. The decline in revenue was attributed to a reduction in direct-to-consumer (DTC) total orders, which fell to 489,640 from 991, primarily due to decreased advertising spending and disruptions related to the migration of its e-commerce platform. Despite the revenue drop, the company reported a smaller net loss of $920,000 for the quarter, compared to a loss of $3.6 million in the same quarter last year.

Grove's gross profit for the second quarter was $19.6 million, resulting in a gross margin of 54%, slightly down from 55% in the previous year. The cost of goods sold also decreased to $17.0 million from $19.6 million, reflecting a 13% reduction. Operating expenses were reduced significantly, with selling, general, and administrative expenses dropping to $17.6 million from $23.0 million, largely due to lower fulfillment costs and a decrease in advertising expenses, which fell by 55% year-over-year.

In terms of strategic developments, Grove Collaborative has focused on enhancing customer engagement through its Green Rewards loyalty program, launched in December 2025. This program allows customers to earn rewards on purchases, which has contributed to a more favorable product mix and improved promotional strategies. The company has also completed the migration of its e-commerce platform to third-party service providers, aiming to optimize customer experience and operational efficiency.

As of June 30, 2026, Grove reported total assets of $50.8 million, down from $53.1 million at the end of 2025. The company had $8.3 million in cash and cash equivalents, alongside $7.5 million in outstanding debt under its Siena Revolver, which matures in April 2028. The company’s accumulated deficit reached $662.2 million, reflecting its ongoing investment in growth and sustainability initiatives. Looking ahead, Grove Collaborative anticipates the need for additional capital to fund operations and strategic initiatives, emphasizing the importance of achieving profitable growth and positive cash flow in the coming periods.