📊 GROVW Key Takeaways
Is GROVW a Good Investment? Thesis Analysis
Grove Collaborative exhibits severe financial distress with negative stockholders' equity of -$17.0M and persistent annual cash burn of -$8.1M, while revenue declines 14.6% YoY. Although gross margins of 53.7% demonstrate product viability, the company lacks operational profitability and adequate liquidity to sustain operations, creating substantial bankruptcy risk.
Grove shows improving losses and a strong gross margin profile, but fundamentals remain weak with shrinking revenue, negative operating income, and negative free cash flow. Negative equity and tight liquidity raise solvency and dilution risk unless the company quickly achieves sustainable positive operating margin and cash generation.
Why Buy GROVW? Key Strengths
- Healthy gross margin of 53.7% indicates viable products and customer demand despite competitive environment
- Net losses narrowing with 11.3% YoY improvement and EPS losses improving 55.3% YoY suggests operational initiatives gaining traction
- Current ratio of 1.25x and cash position of $8.5M provide short-term runway for turnaround or restructuring efforts
- Healthy gross margin (53.7%) indicating attractive unit economics
- Net loss and EPS improving YoY, narrowing toward breakeven
- Low capex needs and modest long-term debt
GROVW Investment Risks to Consider
- Negative stockholders' equity of -$17.0M signals technical insolvency and creates material bankruptcy risk
- Negative free cash flow (-$8.1M) and operating cash flow (-$7.0M) indicate unsustainable cash burn rate
- Declining revenue (-14.6% YoY) combined with operating losses (-$11.3M) suggests fundamental business model viability concerns
- Quick ratio of 0.59x indicates insufficient liquid assets to meet short-term obligations without asset sales
- Negative interest coverage ratio (-2.7x) means company cannot service debt obligations from operating earnings
- Negative stockholders’ equity and inadequate interest coverage raise going-concern risk
- Double-digit revenue decline suggests demand erosion and execution challenges
- Weak liquidity (quick ratio 0.59x) alongside ongoing cash burn
Key Metrics to Watch
- Operating cash flow stabilization and timeline to positive cash generation
- Revenue growth trajectory and customer retention rates
- Path to operating profitability and margin trends
- Stockholders' equity recovery and debt restructuring progress
- Cash runway duration and potential refinancing or capital raise needs
- Free cash flow
- Operating margin
GROVW Financial Metrics
💡 AI Analyst Insight
Grove Collaborative Holdings, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
GROVW Profitability Ratios
GROVW vs Consumer Sector
How Grove Collaborative Holdings, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is GROVW Overvalued or Undervalued?
Based on fundamental analysis, Grove Collaborative Holdings, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
GROVW Balance Sheet & Liquidity
GROVW 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Grove Collaborative Holdings, Inc.'s revenue has declined by 47% over the 5-year period, indicating business contraction. The most recent EPS of $-0.76 indicates the company is currently unprofitable.
GROVW Growth Metrics (YoY)
GROVW Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $43.7M | -$1.3M | $-0.04 |
| Q2 2025 | $44.0M | -$3.4M | $-0.10 |
| Q1 2025 | $43.5M | -$3.4M | $-0.10 |
| Q3 2024 | $48.3M | -$1.3M | $-0.04 |
| Q2 2024 | $52.1M | -$10.1M | $-0.28 |
| Q1 2024 | $53.5M | -$3.4M | $-0.10 |
| Q3 2023 | $61.8M | $7.7M | $0.23 |
| Q2 2023 | $66.1M | -$10.9M | $-0.32 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
GROVW Capital Allocation
GROVW SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Grove Collaborative Holdings, Inc. (CIK: 0001841761)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GROVW
What is the AI rating for GROVW?
Grove Collaborative Holdings, Inc. (GROVW) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 82% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GROVW's key strengths?
Claude: Healthy gross margin of 53.7% indicates viable products and customer demand despite competitive environment. Net losses narrowing with 11.3% YoY improvement and EPS losses improving 55.3% YoY suggests operational initiatives gaining traction. ChatGPT: Healthy gross margin (53.7%) indicating attractive unit economics. Net loss and EPS improving YoY, narrowing toward breakeven.
What are the risks of investing in GROVW?
Claude: Negative stockholders' equity of -$17.0M signals technical insolvency and creates material bankruptcy risk. Negative free cash flow (-$8.1M) and operating cash flow (-$7.0M) indicate unsustainable cash burn rate. ChatGPT: Negative stockholders’ equity and inadequate interest coverage raise going-concern risk. Double-digit revenue decline suggests demand erosion and execution challenges.
What is GROVW's revenue and growth?
Grove Collaborative Holdings, Inc. reported revenue of $173.7M.
Does GROVW pay dividends?
Grove Collaborative Holdings, Inc. does not currently pay dividends.
Where can I find GROVW SEC filings?
Official SEC filings for Grove Collaborative Holdings, Inc. (CIK: 0001841761) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GROVW's EPS?
Grove Collaborative Holdings, Inc. has a diluted EPS of $-0.34.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GROVW a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Grove Collaborative Holdings, Inc. has a SELL rating with 82% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GROVW stock overvalued or undervalued?
Valuation metrics for GROVW: ROE of N/A (sector avg: 18%), net margin of -6.7% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy GROVW stock in 2026?
Our dual AI analysis gives Grove Collaborative Holdings, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GROVW's free cash flow?
Grove Collaborative Holdings, Inc.'s operating cash flow is $-7.0M, with capital expenditures of $1.2M. FCF margin is -4.7%.
How does GROVW compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -6.7% (avg: 8%), ROE N/A (avg: 18%), current ratio 1.25 (avg: 1.5).