# Grove Collaborative posts first EBITDA‑positive quarter amid profit

**Published:** 2026-07-07T01:42:48.738Z  
**Topic:** Grove  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/e87d442a-3d67-430c-a9b4-48507fedfe07

Grove Collaborative reports $61.8 M Q3 revenue, first adjusted EBITDA profit and $94.7 M cash, while cutting marketing spend and rebranding its private label.

Grove Collaborative announced a profit‑making adjusted EBITDA quarter in Q3 2023, a milestone the company says marks an inflection point as it pivots toward sustainable growth and prepares for a potential IPO.

| At a glance | |
|---|---|
| Revenue (Q3) | $61.8 M |
| Adjusted EBITDA | Positive (first quarter) |
| Cash on hand | $94.7 M |
| Catalyst | Marketing spend cut & brand re‑launch |

## Profitability breakthrough and cash cushion  
The 20.6% YoY drop in net revenue to $61.8 M was offset by an operating loss that shrank 82% to $4.1 M, allowing Grove to record its first adjusted EBITDA‑positive quarter [1]. CEO Jeff Yurcisin highlighted the achievement as a turning point, noting that the company will stay focused on profitability while targeting growth in the second half of 2024. The cash balance rose by $5 M to $94.7 M, buoyed by a $10 M investment from Volition Capital earlier in the year [1].

## Strategic shifts: marketing, branding and sustainability  
Grove is trimming advertising spend, which has already slowed active DTC customers by 30.2% to one million [1]. The reduction aims to improve payback efficiency and is expected to lift margins over the next few quarters. Simultaneously, the firm relaunched its private‑label brand as “Grove Co.” to consolidate product lines, introduce aluminum‑packaged essentials, and reinforce its zero‑plastic narrative [2]. The rebrand includes new fragrances and a “Perfect Isn’t Sustainable, Progress Is” campaign timed for Earth Month, underscoring the company’s sustainability focus.

## Outlook and governance changes  
Grove lowered its full‑year revenue guidance to $257.5‑$262.5 M, down from $260‑$270 M, reflecting the advertising pullback and a shift toward profitability [1]. Leadership changes accompany the operational overhaul: former co‑founder Stuart Landesberg moves to executive chairman, while Jeff Yurcisin, a former Amazon executive, leads the profit‑first strategy [3]. The board also added Volition Capital’s Larry Cheng and former Seventh Generation CEO John Replogle, signaling intent to explore retail expansion and possible acquisitions.

## What to watch
- **Q4 adjusted EBITDA** – CFO Sergio Cervantes warned of an expected loss, which will test the sustainability of the profit pivot.  
- **Active customer count** – Continued decline or stabilization will indicate the effectiveness of reduced marketing spend.  
- **Progress on the Grove Co. rebrand** – Adoption of new packaging and product lines could drive margin improvement and brand differentiation.

The adjusted EBITDA profit shows Grove Collaborative can generate cash‑positive operations despite revenue contraction, but the path to consistent profitability—and a potential public listing—will hinge on how quickly the company can translate cost efficiencies and its sustainability narrative into sustained growth.

## Sources
1. Retail Dive — [Grove Collaborative’s DTC active customers decline amid profitability focus](https://www.retaildive.com/news/grove-collaborative-dtc-active-customers-profitability-ceo-jeff-yurcisin/699568/)
2. Retail Dive — [Grove Collaborative refreshes core brand Grove Co.](https://www.retaildive.com/news/grove-collaborative-refreshes-core-brand-grove-co/712009/)
3. Retail TouchPoints — [Grove Collaborative Names Zulily and Shopbop Alum New CEO](https://www.retailtouchpoints.com/news/grove-collaborative-ceo-change/136487/)

---
Cite as: TrendWatcher, "Grove Collaborative posts first EBITDA‑positive quarter amid profit", https://www.trendwatcher.in/article/e87d442a-3d67-430c-a9b4-48507fedfe07