Key Points – Grove Collaborative beat first-quarter expectations as the company said the impact from 2025 e-commerce platform disruptions is mostly behind it.
Revenue still fell 16.8% year over year to $36.2 million, but adjusted EBITDA turned positive for a second straight quarter at $0.3 million. – Margins improved even as sales declined, with gross margin rising to 54.8% from 53% a year ago
Management said better promotional strategy through Grove Green Rewards, reduced discounting and improved efficiency helped offset lower order volume. – The company raised full-year 2026 guidance after the quarter outperformed internal expectations. Grove now sees revenue of $142.5 million to $152.5 million and adjusted EBITDA ranging from breakeven to positive low single-digit millions, while expecting Q1 to be the year’s revenue low point. Grove Collaborative (NYSE:GROV) said its first-quarter 2026 results came in ahead of internal expectations as the company continued to recover from e-commerce platform disruptions that weighed on performance throughout 2025.
Chief Executive Officer Jeff Yurcisin told investors that the company’s platform disruption is “largely behind us” and that Grove expects the first quarter to represent the revenue trough for the year. The company reported net revenue of $36.2 million, down 16.8% from the prior-year period, and adjusted EBITDA of $0.3 million, marking its second consecutive quarter of positive adjusted EBITDA. “The cost structure is more efficient, the customer experience is improving, and we are seeing green shoots as it relates to recent cohort behavior,” Yurcisin said. He added that repeat order rates among recent customer cohorts have recovered to levels consistent with those seen before the platform migration.