Grove Collaborative Logs $42.4M Q4 Revenue Down 14.3%, Positive $1.6M Adjusted EBITDA
Grove Collaborative delivered Q4 revenue of $42.4 million, down 14.3% year-over-year, with net loss narrowing to $1.6 million from $12.6 million and achieving positive adjusted EBITDA of $1.6 million. Active customers declined 13% to 599,000 as advertising spend fell 65% and platform migration headwinds weighed on repeat orders.
1. Q4 Financial Results
Grove Collaborative reported Q4 revenue of $42.4 million, down 14.3% year-over-year, with a net loss of $1.6 million compared to $12.6 million a year earlier and achieved positive adjusted EBITDA of $1.6 million.
2. Cost and Cash Flow Improvements
Advertising spend fell 65.2% to $1.0 million and product development costs declined 59.2% to $1.9 million, while SG&A expenses decreased 20.8% to $21.2 million. The company delivered break-even operating cash flow, the fifth positive or break-even quarter in the last eight, supported by headcount reductions and lower interest expense.
3. Customer Base and Platform Migration Effects
Active customers dropped 13% to 599,000 and direct-to-consumer orders fell 25% to 539,000 as platform migration disruptions and reduced advertising investment weighed on acquisition and repeat orders. Subscriptions drove 60% of revenue and 79% of orders, while a new loyalty program and rebuilt mobile app aim to stabilize the customer experience.
4. 2026 Outlook and Strategic Priorities
For full-year 2026, the company targets $140 million to $150 million in net revenue and break-even adjusted EBITDA, prioritizing platform stabilization, customer reactivation, and loyalty and subscription enhancements.