olivLaw · US equity research
Grove Collaborative Holdings, Inc. GROV
Retail-Catalog & Mail-Order Houses · SIC 5961 · Vertical: Retail-Catalog & Mail-Order Houses (SIC 5961)
Grove Collaborative is a sustainability and health-focused consumer products company that sells mainly through its own direct-to-consumer online platform, offering both its own brands and third-party brands. The company has exited physical retail and is working through a period of declining revenue while reaching slightly positive adjusted EBITDA; its 2026 guidance could suggest stabilization, but whether this holds remains to be seen, with full-year net revenue guided to roughly 142.5 to 152.5 million USD.
At the close of 04 Nov 2026, Grove Collaborative Holdings, Inc. (GROV) stock was 1.11 USD (+0.00% on the day), with market capitalisation 47.4 m USD, beta 0.66, 52-week range 0.92–1.54 USD. Latest reported quarter (Q2 2026): revenue of 36.6 m USD (−16.9% YoY), net income of -920.0 k USD, diluted EPS -0.03 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 61.6
- strong (55–70)
- Bollinger (20, 2)
- 0.96 – 1.12
- in the upper half of the band · %B 0.95 · band width 15.3%
- SMA 50 / 200
- 1.04 / 1.20
- mixed trend
- MACD (12, 26, 9)
- 0.02 / 0.01
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +6.7% | −1.1% | +7.8 pp | — |
| 3 months | +1.8% | −0.5% | +2.3 pp | — |
| 6 months | −8.3% | +4.4% | −12.7 pp | — |
| Year to date | +0.9% | +12.3% | −11.4 pp | — |
| 1 year | −11.2% | +13.5% | −24.7 pp | +6.8% |
| 3 years | −28.8% | +76.4% | −105.3 pp | +16.0% |
| 5 years | −97.7% | +63.7% | −161.4 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 48.3 m | 49.5 m | 43.5 m | 44.0 m | 43.7 m | 42.4 m | 36.2 m | 36.6 m |
| Cost of revenue | 22.7 m | 23.6 m | 20.5 m | 19.6 m | 20.4 m | 19.9 m | 16.4 m | 17.0 m |
| Gross profit | 25.6 m | 25.9 m | 23.1 m | 24.4 m | 23.3 m | 22.5 m | 19.9 m | 19.6 m |
| Research & development | 4.8 m | 4.6 m | 1.8 m | 2.2 m | 1.6 m | 1.9 m | 1.4 m | 1.5 m |
| SG&A | 24.7 m | 26.7 m | 22.0 m | 23.0 m | 21.3 m | 21.2 m | 18.2 m | 17.6 m |
| Operating income | -6.7 m | -8.3 m | -3.5 m | -3.5 m | -2.7 m | -1.6 m | -901.0 k | -783.0 k |
| Depreciation & amortisation | 2.8 m ≈ | 2.4 m | 378.0 k | 488.0 k ≈ | 421.0 k ≈ | 393.0 k | 391.0 k | 399.0 k ≈ |
| Interest expense | 2.9 m | 1.6 m | 346.0 k | 305.0 k | 292.0 k | 282.0 k | 274.0 k | 272.0 k |
| Pre-tax income | -1.3 m | -12.6 m | -3.5 m | -3.6 m | -3.0 m | -1.6 m | -1.0 m | -912.0 k |
| Income tax | 11.0 k | 9.0 k | 9.0 k | 10.0 k | 6.0 k | 8.0 k | 8.0 k | 8.0 k |
| Net income | -1.3 m | -12.6 m | -3.5 m | -3.6 m | -3.0 m | -1.6 m | -1.0 m | -920.0 k |
| Diluted EPS | -0.04 | -0.33 ≈ | -0.10 | -0.10 | -0.08 | -0.04 ≈ | -0.03 | -0.03 |
| Operating cash flow | 750.0 k ≈ | 270.0 k | -6.9 m | 987.0 k ≈ | -1.0 m ≈ | -29.0 k | -683.0 k | 1.3 m ≈ |
| Capex | 486.0 k ≈ | 365.0 k | 541.0 k | 431.0 k ≈ | 161.0 k ≈ | 33.0 k | 294.0 k | 157.0 k ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Revenue | 364.3 m | 383.7 m | 321.5 m | 259.3 m | 203.4 m | 173.7 m |
| Revenue YoY | unavailable | +5.3% | −16.2% | −19.4% | −21.5% | −14.6% |
| Net income | -72.3 m | -135.9 m | -87.7 m | -43.2 m | -27.4 m | -11.7 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| Diluted EPS | -13.45 | -79.28 | -4.85 | -1.28 | -0.76 | -0.34 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | unavailable | unavailable |
| net % | -19.8% | -35.4% | -27.3% | -16.7% | -13.5% | -6.7% |
| Free cash flow | -88.5 m | -132.9 m | -100.5 m | -11.0 m | -11.5 m | -8.1 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 8.5 m USD
- Financial debt
- 7.5 m USD
- Net debt
- -990.0 k USD
- Equity
- -17.0 m USD
- Total assets
- 53.1 m USD
- Debt / equity
- unavailable
- Current ratio
- 1.25x
- ROE
- unavailable
- ROA
- -19.8%
- FCF margin
- -4.7%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 364.3 m | 383.7 m | 321.5 m | 259.3 m | 203.4 m | 173.7 m | SEC (XBRL)· 05 Mar 2026verified |
| Cost of revenue | 188.3 m | 195.2 m | 166.9 m | 121.9 m | 94.1 m | 80.4 m | SEC (XBRL)· 05 Mar 2026verified |
| Gross profit | 176.0 m | 188.5 m | 154.7 m | 137.4 m | 109.3 m | 93.3 m | SEC (XBRL)· 05 Mar 2026verified |
| Research & development | 18.7 m | 23.4 m | 22.5 m | 16.4 m | 18.5 m | 7.5 m | SEC (XBRL)· 05 Mar 2026verified |
| SG&A | 168.3 m | 186.6 m | 206.9 m | 134.9 m | 103.2 m | 87.4 m | SEC (XBRL)· 05 Mar 2026verified |
| Operating income | -66.5 m | -128.9 m | -141.0 m | -35.3 m | -22.5 m | -11.3 m | SEC (XBRL)· 05 Mar 2026verified |
| Depreciation & amortisation | 4.1 m | 5.0 m | 5.7 m | 5.8 m | 9.8 m | 1.7 m | SEC (XBRL)· 05 Mar 2026verified |
| EBITDA | -62.4 m ≈ | -123.9 m ≈ | -135.3 m ≈ | -29.4 m ≈ | -12.7 m ≈ | -9.6 m ≈ | SEC (XBRL)· 05 Mar 2026derived |
| Interest expense | 5.6 m | 5.2 m | 9.7 m | 16.1 m | 12.8 m | 1.2 m | SEC (XBRL)· 05 Mar 2026verified |
| Pre-tax income | -72.2 m | -135.8 m | -87.7 m | -43.2 m | -27.4 m | -11.7 m | SEC (XBRL)· 05 Mar 2026verified |
| Income tax | 41.0 k | 52.0 k | 54.0 k | 38.0 k | 40.0 k | 33.0 k | SEC (XBRL)· 05 Mar 2026verified |
| Net income | -72.3 m | -135.9 m | -87.7 m | -43.2 m | -27.4 m | -11.7 m | SEC (XBRL)· 05 Mar 2026verified |
| Diluted EPS | -13.45 | -79.28 | -4.85 | -1.28 | -0.76 | -0.34 | SEC (XBRL)· 05 Mar 2026verified |
| Weighted average diluted shares | 5.4 m | 1.7 m | 18.1 m | 34.8 m | 37.0 m | 39.0 m | SEC (XBRL)· 05 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 176.5 m | 78.4 m | 81.1 m | 86.4 m | 19.6 m | 8.5 m | SEC (XBRL)· 05 Mar 2026verified |
| Receivables | — | — | — | — | 439.0 k | 3.1 m | SEC (XBRL)· 05 Mar 2026verified |
| Inventories | — | 54.5 m | 44.1 m | 28.8 m | 19.4 m | 18.4 m | SEC (XBRL)· 05 Mar 2026verified |
| Current assets | — | 140.9 m | 142.0 m | 124.2 m | 44.9 m | 34.7 m | SEC (XBRL)· 05 Mar 2026verified |
| Property, plant & equipment, net | — | 15.9 m | 14.5 m | 11.6 m | 3.7 m | 3.7 m | SEC (XBRL)· 05 Mar 2026verified |
| Intangibles (excl. goodwill) | — | — | — | — | 712.0 k | 2.3 m | SEC (XBRL)· 05 Mar 2026verified |
| Total assets | — | 182.5 m | 174.0 m | 150.7 m | 65.0 m | 53.1 m | SEC (XBRL)· 05 Mar 2026verified |
| Accounts payable | — | 21.3 m | 10.7 m | 8.1 m | 6.8 m | 8.8 m | SEC (XBRL)· 05 Mar 2026verified |
| Short-term debt | — | 10.8 m | 575.0 k | 0 | 0 | 800.0 k | SEC (XBRL)· 05 Mar 2026verified |
| Long-term debt | — | 56.2 m | 60.6 m | 71.7 m | 7.5 m | 6.7 m | SEC (XBRL)· 05 Mar 2026verified |
| Current liabilities | — | 69.2 m | 57.5 m | 35.0 m | 27.1 m | 27.7 m | SEC (XBRL)· 05 Mar 2026verified |
| Total liabilities | — | 150.8 m | 147.5 m | 132.6 m | 48.8 m | 45.3 m | SEC (XBRL)· 05 Mar 2026verified |
| Equity | -339.6 m † | -456.3 m † | 26.5 m † | 8.1 m † | -8.5 m † | -17.0 m † | SEC (XBRL)· 05 Mar 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -83.7 m | -127.1 m | -96.3 m | -8.0 m | -9.7 m | -7.0 m | SEC (XBRL)· 05 Mar 2026verified |
| Capex | 4.8 m | 5.8 m | 4.2 m | 3.0 m | 1.8 m | 1.2 m | SEC (XBRL)· 05 Mar 2026verified |
| Free cash flow | -88.5 m ≈ | -132.9 m ≈ | -100.5 m ≈ | -11.0 m ≈ | -11.5 m ≈ | -8.1 m ≈ | SEC (XBRL)· 05 Mar 2026derived |
| Investing cash flow | -4.8 m | -5.8 m | -4.2 m | -3.0 m | -1.6 m | -4.0 m | SEC (XBRL)· 05 Mar 2026verified |
| Financing cash flow | 228.2 m | 34.7 m | 118.1 m | 9.9 m | -59.2 m | -1.6 m | SEC (XBRL)· 05 Mar 2026verified |
| Share repurchases | 0 | 297.0 k | 32.0 k | — | — | — | SEC (XBRL)· 16 Mar 2023verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 5 of at least 6
- score weight coverage: 33.3% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 47.4 m USD
Key indicators
Coverage and freshness
Score by group
33% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · the base of the ratio is not positive
- Peers: EV/EBITDAunavailable · the base of the ratio is not positive
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | -4.1% | 25 (vs peers) | 19% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | -18.6% | 0 (on a fixed band) | 25% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | -5.4x | 0 (on a fixed band) | 19% |
| Current ratio · Balance sheet | 1.3x | 38 (on a fixed band) | 13% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -2.4% | 0 (on a fixed band) | 25% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet15/100 · 2/3 factors with a value
- Growth· partial0/100 · 1/2 factors with a value
- Quality· partial25/100 · 1/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partial0/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Grove Collaborative Holdings, Inc. (GROV). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 173.7 m USD in 2025; YoY growth -14.6%; net margin -4.1%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (indicators available: 5 of at least 6; score weight coverage: 33.3% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
What contradicts it
- Net margin: -4.1%
- Revenue CAGR 3Y: -18.6%
- Interest coverage: -5.4x
- FCF yield: -2.4%
Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Retail-Catalog & Mail-Order Houses (SIC 5961) · same industry (4-digit SIC) · compared with 28 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AMZNAmazon.com, Inc. | 2,876.6 bn | 21.5 | 27.4% | 16.9% | +12.4% | +14% / +82% |
| CDWCdw Corp | 21.1 bn | 19.7 | 42.5% | 4.5% | +6.8% | +17% / −20% |
| NSITInsight Enterprises, Inc. | 5.2 bn | 25.7 | 13.1% | 2.5% | −5.2% | +103% / +16% |
| JMIAJumia Technologies AG | 1.3 bn | — | -108.9% | -32.6% | +12.8% | −57% / +60% |
| BZUNBaozun Inc. | 597.0 m | — | -6.6% | -2.4% | +10.2% | +21% / +16% |
| LITBLightInTheBox Holding Co., Ltd. | 590.4 m | 68.0 | — | 3.7% | −12.1% | +42% / −63% |
| GCTGigacloud Technology Inc | 539.8 m | 13.7 | 32.3% | 10.6% | +11.1% | +56% / +495% |
| HNSTThe Honest Company, Inc. | 476.3 m | — | -6.9% | -3.6% | −1.9% | +65% / +86% |
| TDUPThredUp Inc. | 290.9 m | — | -39.2% | -6.9% | +19.5% | −71% / +12% |
| DIBS1stdibs.com, Inc. | 186.9 m | — | -9.2% | -8.5% | +1.5% | −3% / +30% |
| NXHNeighborhood Intelligence, Inc. | 163.0 m | — | -47.0% | -7.1% | −25.1% | −72% / −91% |
| AKAa.k.a. Brands Holding Corp. | 116.0 m | — | -29.5% | -4.8% | +4.4% | −26% / +9% |
| SFIXStitch Fix, Inc. | 79.5 m | — | -6.3% | -0.9% | +6.4% | −31% / −21% |
| HOURHour Loop, Inc. | 53.9 m | 37.0 | 21.8% | 1.1% | +3.0% | −28% / +3% |
| GROVGrove Collaborative Holdings, Inc. | 47.4 m | — | — | -4.1% | −14.6% | −11% / −29% |
| LVLULulu’s Fashion Lounge Holdings, Inc. | 31.0 m | — | -602.9% | -3.2% | −10.6% | +107% / −74% |
| UZXLinkage Global Inc | 21.7 m | — | -63.1% | -144.5% | −50.5% | −98% / unavailable |
| GIFTGiftify, Inc. | 21.1 m | — | -36.2% | -8.8% | −6.5% | −47% / −85% |
| CHWYChewy, Inc. | 2.3 k | 35.3 | 72.0% | 2.1% | +6.2% | −33% / +34% |
| QVCGQVC Group, Inc. | 8 | — | -6.3% | -0.2% | −7.8% | unavailable / unavailable |
| CPNGCoupang, Inc. | — | — | -36.0% | -3.8% | +14.1% | −39% / +12% |
| BWMXBetterware De Mexico, S.a.p.i. De C.v | — | — | 54.1% | 5.0% | +8.4% | +19% / +22% |
| DDLDingdong (Cayman) Limited | — | — | 25.7% | 1.0% | +10.2% | +10% / −11% |
| HEPSD-MARKET Electronic Services & Trading | — | — | -39.7% | -2.8% | +11.1% | +19% / +100% |
| VIPSVipshop Holdings Limited | — | 1.4 | 18.3% | 6.8% | +2.0% | −30% / −14% |
1- and 3-year price returns: for GROV from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Grove Collaborative is a sustainability and health-focused consumer products company that sells mainly through its own direct-to-consumer online platform, offering both its own brands and third-party brands. The company has exited physical retail and is working through a period of declining revenue while reaching slightly positive adjusted EBITDA; its 2026 guidance could suggest stabilization, but whether this holds remains to be seen, with full-year net revenue guided to roughly 142.5 to 152.5 million USD 3.
SWOT
Strengths
- Proprietary brand recognition on its direct platform, especially Grove Co., and a clear positioning in sustainability and health, supported by B Corporation certification and public benefit corporation status 1.
- A direct relationship with customers that provides data on preferences and allows new products to be tested quickly before development 1.
- Recent improvement in operating results, with positive adjusted EBITDA for several consecutive quarters and positive operating cash flow 3.
Weaknesses
- Revenue has declined for several consecutive years, driven by lower advertising and disruptions to the ecommerce platform 1.
- Large accumulated losses over time and limited liquidity, which make future financing an important consideration 13.
- A shrinking active customer base and fewer orders, which increases dependence on existing customers 3.
Opportunities
- Expansion into health, beauty and personal care categories could increase the share of higher-margin products 1.
- Growth through partners and third-party channels, such as those that recently expanded, could offset declines on the company's own platform 3.
- The loyalty program and a better subscription experience could raise retention and revenue per order if results hold 3.
Threats
- Discretionary consumer spending may fall in difficult economic periods, directly hurting demand for non-essential products 1.
- Rising online advertising costs and privacy changes could make acquiring new customers more expensive 1.
- Regulatory and labeling risks around environmental and health claims could lead to litigation or product recalls 1.
Risks
- Continued revenue declinehigh
Revenue has fallen in recent years, and the decline in the second quarter of 2026 shows that a recovery is not yet assured. If the decline continues, profitability goals could be harder to reach 3.
- Accumulated losses and need for financinghigh
The company has accumulated large losses and could need additional capital, which may not be available on acceptable terms 1.
- Ecommerce platform disruptionsmedium
The migration to third-party providers caused disruptions in customer experience, inventory and payment processing, and their effects on customers could persist 12.
- Consumer confidence and brand reputationmedium
Allegations of misleading advertising or product mislabeling could lead to lawsuits, product recalls and lower demand 1.
- Dependence on advertising for growthmedium
Cutting advertising spend helped move toward profitability but also reduced new customer acquisition, which could slow growth if investment is not resumed 13.
Investment thesis
What would need to be true (bull case)
- If the positive adjusted EBITDA results are sustained and 2026 guidance is met, the company could show its model can become profitable at a smaller scale 3.
- The consumer shift toward sustainable and healthy products could support long-term demand for brands that already have credibility in this area 1.
- Rising net revenue per order and the loyalty program could show that the retained customer base is becoming more valuable, even as its size shrinks 3.
What would break the thesis
- A continued fall in orders and active customers could indicate that reduced advertising has badly hurt the customer base, and recovery could be slow 3.
- Accumulated losses and limited liquidity leave little room for error, and the need for additional financing could dilute or constrain the company 13.
- Discretionary consumer spending is sensitive to the economy, and a weaker environment could reduce demand for the company's products faster than management expects 1.
What to watch
- Quarterly net revenue trajectory against the full-year 2026 guidanceQ3 2026
- Number of active DTC customers and orders compared with prior quartersQ3 2026
- Whether adjusted EBITDA stays positive and meets the 2026 guidancenext 10-K
- Level of advertising investment and its effect on acquiring new customers2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Grove was incorporated in 2012 as ePantry, an online retailer of natural household, beauty and personal care brands, and has grown into a consumer products company that builds and curates its own brands. According to the annual report, approximately 41% of net revenue in fiscal 2025 came from Grove Brands, most of it from home care products 1. The company is a public benefit corporation and a Certified B Corporation, which requires it to weigh the interests of consumers, employees and the environment, not only shareholders 1. Its main activity runs through the DTC platform, and its brick-and-mortar retail distribution was wound down in 2025 1.
The business model combines the flagship Grove Co. brand, the largest brand by revenue on the DTC platform, with a curated portfolio of third-party brands available to customers. The company says its sustainability commitment, including plastic neutrality on every order, is its main point of differentiation 1. The business depends on advertising levels and on its ability to attract and retain customers, factors that have directly shaped recent revenue trends 2.
Operationally, Grove uses two fulfillment centers dedicated to its DTC platform, with an approximate average delivery time of two days, and migrated its ecommerce platform to third-party providers in 2025, a change that caused disruptions in operations 1. The company reports quarterly figures on orders, active customers and net revenue per order, which show the direction of its direct channel 3.
Segments
Grove Brands
Grove-owned brands, especially Grove Co., generated approximately 41% of net revenue in fiscal 2025, and home care accounts for 73% of that segment 1. The company says expanding into health, beauty and personal care could increase their share over time 1.
DTC platform and third-party brands
The DTC platform sells both Grove products and a portfolio of over 400 third-party brands, with access to nearly 600,000 customers who shopped in 2025 1. Sales on this platform declined year over year in the second quarter of 2026, but net revenue per order rose 3.
Non-DTC channels
In the second quarter of 2026, the sequential revenue increase was driven mainly by non-DTC channels, notably QVC and Amazon, while DTC revenue declined slightly 3. This channel is smaller, but it shows that partner distribution could partly offset the decline on the company's own platform 3.
Market context
Grove operates in the market for natural and sustainable household and personal care products, where consumers increasingly seek products that support a healthier home and reduce environmental impact 1. The company notes that although there are long-term growth trends in reduced plastic waste and personal health, consumer behavior and macroeconomic factors remain risks 1. Discretionary consumer spending, which is central to this category, typically declines during recessions or periods of economic uncertainty 1.
The market also faces pressure on the cost of acquiring new customers, following changes in online advertising and privacy and tracking rules, which makes efficient growth harder 1. For Grove, this pressure combines with reduced advertising spend, which contributed to fewer active customers in 2026 3.
Trends
- Plastic reduction and sustainabilitytailwind
Consumers increasingly seek products with less plastic packaging and lower impact, and Grove believes this will support its business over the long term 1. If demand for such products strengthens, brands with credible sustainability claims could benefit.
- Rising cost of online advertisingheadwind
Changes in advertising algorithms and privacy rules have made online marketing more expensive, affecting the company's ability to attract new customers cost-efficiently 1. This trend could limit growth unless offset by better retention.
- Pressure on discretionary spendingheadwind
Consumers may cut discretionary spending during periods of economic uncertainty, inflation or fluctuating interest rates, which directly affects revenue in this category 1. The company also flags tariffs and price volatility as additional risk factors 1.
- Customer retention and promotional efficiencymixed
The Green Rewards loyalty program, launched in December 2025, and more targeted promotions have helped lift net revenue per order and gross margin 3. This could support profitability if it continues, although the active customer base remains smaller 3.
Competitive position
Grove competes with other natural and sustainable product companies, as well as large consumer brands expanding their eco-friendly lines. The company notes it must keep pace with customer expectations and new market entrants, and its differentiation strategy rests on sustainability and its direct customer relationship 1. The company also says it does not see itself as a winner-take-all player, but as part of a broader shift toward healthier products 1.
On online channels, competition for consumer attention and advertising is intense, and the large marketplaces on which Grove sells are part of that competitive pressure 2. Quarterly results suggest the company's position on these channels needs to be strengthened to restore growth 3.
- AmazonAMZN
Ecommerce marketplace on which Grove sells products, and which contributed to non-DTC revenue growth in the second quarter of 2026 3.
- QVC
Television and online sales channel that contributed to non-DTC revenue growth in the second quarter of 2026 3.
- Natural and sustainable household brands
Clean and natural product companies, some of which are also third-party partners on Grove's platform, competing for the same customers 1.
- Large consumer brands with eco-friendly lines
Major household and personal care companies expanding sustainable product offerings that may compete for the same customers 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- The Grove hotel named among the world best in new listSurge — GDELT DOC · 25 Oct 2026 · RO
- In a Tokyo suburb, a bamboo grove no one dares to enterThe Japan Times · 28 Aug 2026 · EN
- Larry Page’s Family Office Discreetly Grows in Coconut GroveBloomberg Markets · 27 Aug 2026 · EN
- Banks take different views on Melrose after Garden Grove claims programmeYahoo Finance — News · 26 Aug 2026 · EN
- Melrose shares climb on Garden Grove plant reopening timelineYahoo Finance — News · 25 Aug 2026 · EN
- Chemistry behind the Garden Grove chemical tankHacker News · 26 May 2026 · EN
SEC filings
- Current report02 Oct 2026Departure or appointment of officers · Financial statements and exhibits
- Current report31 Aug 2026Departure or appointment of officers · Financial statements and exhibits
- Current report11 Aug 2026Delisting notice · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report06 Aug 2026Results of operations · Regulation FD disclosure · Other events · Financial statements and exhibits
- Current report24 Jun 2026Departure or appointment of officers · Shareholder vote
- Quarterly report07 May 2026
- Current report07 May 2026Results of operations · Regulation FD disclosure · Other events · Financial statements and exhibits
- Proxy statement28 Apr 2026
- Current report19 Mar 2026Other events · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Grove Collaborative Holdings, Inc. · 05 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Grove Collaborative Holdings, Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Grove Collaborative Holdings, Inc. · 06 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.