Grove Collaborative Q4 revenue falls due to fewer orders

Overview

• Sustainable consumer products firm's Q4 revenue fell 14.3% yr/yr due to fewer orders

• Adjusted EBITDA turned positive at $1.6 mln, improving from a loss last year

• Net loss narrowed to $1.6 mln, down from $12.6 mln last year

Outlook

• Grove expects 2026 revenue between $140 mln and $150 mln

• Company forecasts breakeven Adjusted EBITDA for 2026

Result Drivers

• ECOMMERCE MIGRATION - Revenue decline attributed to fewer orders due to ecommerce platform migration disruptions and reduced advertising investment

• COST OPTIMIZATION - Operating expenses decreased 29.7% due to cost optimization initiatives, including a reduction in force and lower advertising expenses

• 8GREENS CONTRIBUTION - QVC revenue from 8Greens acquisition partially offset revenue decline

Company press release: ID:nBw159L0Da

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Grove Collaborative Holdings Inc is $2.00, about 51.5% above its March 4 closing price of $1.32

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