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Grove Collaborative Q3 revenue falls 15.8% yr/yr

By Reuters News


Overview

  • US sustainable products retailer's fiscal Q3 revenue fell 15.8% yr/yr, but rose sequentially

  • Company posted positive adjusted EBITDA and net income, aided by $1.2 mln tariff refund

  • Revenue decline driven by smaller active customer base after lower advertising and 2025 platform disruptions


Outlook

  • Company narrows 2026 net revenue outlook to $144 mln-$146 mln from $142.5 mln-$152.5 mln

  • Grove expects 2026 adjusted EBITDA of $1 mln-$2 mln, tightening from prior breakeven to low single digits

  • Company expects Q4 net revenue to be modestly below Q3


Result Drivers

  • PROMOTIONAL SPEND EFFICIENCY - Improved promotional spend and new loyalty program increased DTC net revenue per order

  • OPERATING EXPENSE REDUCTIONS - Lower fulfillment, personnel, and advertising costs contributed to improved profitability


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Loss Per Share

$0.01

Q3 Net Income

$102,000

Q3 Gross Profit

$20.55 mln

Q3 Operating Income

$245,000


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 81.8% above its November 9 closing price of $1.10


Reuters Recommended Reads

  • Nov 9 - Dole Q3 revenue meets expectations on North America volumes

  • Nov 9 - Hain Celestial Q1 sales misses estimates

  • Nov 10 - Sally Beauty Q4 sales slightly beat estimates on e-commerce growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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