# Grove Collaborative Q1 2026 revenue falls 16.8% YoY, adjusted EBITDA

**Published:** 2026-07-07T01:42:48.738Z  
**Topic:** Grove  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/d8ed9316-42a3-4368-b82b-318acc132a3a

Grove Collaborative reports Q1 2026 net revenue of $36.2 million, down 16.8% YoY, while adjusted EBITDA flips to $0.3 million. See guidance lift and mobile app

Grove Collaborative posted a $36.2 million net revenue for the quarter ended March 31 2026, a 16.8% year‑over‑year decline, but posted a positive adjusted EBITDA of $0.3 million, marking the second straight quarter in the black and prompting an upward revision of full‑year guidance [1].

| At a glance | |
|---|---|
| Net Revenue | $36.2 million (‑16.8% YoY) |
| Adjusted EBITDA | $0.3 million (positive vs. ‑$1.6 million YoY) |
| Net Loss | $1.0 million (‑$3.5 million YoY) |
| Mobile App | New 5‑star app launched, now handling ~50% of non‑autoship orders |

## Revenue dip and cost discipline  
Revenue contraction stemmed from a smaller active customer base entering 2026, a lingering effect of reduced advertising spend in 2024‑2025 and ecommerce platform disruptions in 2025, according to management [1]. Operating expenses fell 21.9% to $20.8 million, driven by a November 2025 workforce reduction, lower ad spend, and reduced fulfillment costs, helping narrow the net loss margin to 2.8% from 8.1% a year earlier. The company’s gross margin improved to 54.8%, up 180 basis points, thanks to more targeted promotions via the Grove Green Rewards program launched in Q4 2025 [1].

## Guidance lift and mobile strategy  
Grove raised its full‑year 2026 net‑revenue outlook to $142.5‑$152.5 million, up from $140‑$150 million, and now expects adjusted EBITDA to break even to a low‑single‑digit positive range [1]. Management attributes confidence to “repeat order rates among recent customer cohorts” matching pre‑migration levels and to a “gradual increase” in customer‑acquisition efficiency. A key operational milestone was the internal rebuild of its mobile app, now a 5‑star experience that captures roughly half of non‑autoship orders, giving Grove greater control over personalization and future innovation [1].

## Technology replatforming backdrop  
Earlier, Grove announced a technology partnership with Shopify, Ordergroove, and Tapcart to replace its homegrown ecommerce and subscription stack, a move aimed at lowering costs and boosting customer lifetime value [2]. The replatforming is expected to unlock site‑wide flexibility and scale, supporting the company’s growth ambitions and the recently launched mobile experience.

## What to watch  
- **Revenue guidance range:** $142.5 million – $152.5 million for FY 2026.  
- **Mobile app adoption:** Share of non‑autoship orders held at ~50%; any shift could signal changes in customer engagement.  
- **Cost trends:** Quarterly operating expense trajectory, especially advertising spend, as the company scales its marketing investment.

Grove’s ability to turn adjusted EBITDA positive while navigating a shrinking customer base highlights the impact of disciplined cost management and strategic tech upgrades. Whether the raised revenue guidance holds will hinge on the firm’s success in re‑engaging customers and scaling its new mobile platform.

## Sources
1. Morningstar — [Grove Announces First Quarter 2026 Financial Results](https://www.morningstar.com/news/business-wire/20260507291700/grove-announces-first-quarter-2026-financial-results)
2. Stockhouse — [Grove Collaborative Invests in Industry-Leading Tech Stack to Grow Customer Lifetime Value via Enhanced Customer Experiences](https://stockhouse.com/news/press-releases/2024/09/12/grove-collaborative-invests-in-industry-leading-tech-stack-to-grow-customer)

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Cite as: TrendWatcher, "Grove Collaborative Q1 2026 revenue falls 16.8% YoY, adjusted EBITDA", https://www.trendwatcher.in/article/d8ed9316-42a3-4368-b82b-318acc132a3a