Grove Collaborative (GROV) Q4 2025 earnings summary

Executive summary

• Achieved positive adjusted EBITDA of $1.6 million in Q4 2025, the first positive quarter in six, reflecting operational discipline and cost optimization, including workforce reduction and lower advertising.

• Q4 2025 revenue was $42.4 million, down 14.3% year-over-year, with full-year revenue at $173.7 million, impacted by reduced advertising and ecommerce platform migration disruptions.

• Launched Grove Green Rewards loyalty program and redesigned mobile app to restore engagement and improve customer experience.

• Expanded ingredient standards, banning or restricting over 10,000 ingredients, differentiating product curation.

• Strategic priorities for 2026 include stabilizing the customer base, reactivating lapsed customers, and measured increases in advertising spend.

Financial highlights

• Q4 2025 gross margin improved to 53.0%, up 60 basis points year-over-year, driven by lower promotional activity.

• Adjusted EBITDA for Q4 was $1.6 million (3.7% margin), compared to -$1.6 million (-3.3% margin) last year.

• Net loss for Q4 was $1.6 million (3.7% margin), a significant improvement from $12.6 million (25.5% margin) in the prior year.

• Operating cash flow was breakeven in Q4; cash, cash equivalents, and restricted cash totaled $11.8 million at year-end.

• Operating expenses in Q4 fell 29.7% year-over-year to $24.1 million.

Outlook and guidance

• 2026 net revenue expected to be $140–$150 million, with adjusted EBITDA approximately breakeven.

• Q1 2026 anticipated as the revenue trough, with sequential improvement expected as customer experience enhancements take effect.

• Management anticipates a measured re-acceleration of customer acquisition investment as ecommerce platform stabilizes.