Operational liquidity is under severe pressure, as evidenced by a negative $977.0K free cash flow in 2026Q1 and a reliance on $806.0K in stock-based compensation to mask cash burn.
| Cash from Operations | -765K | -6.95M | -9.75M | -7.99M | -96.26M | -127.09M | -83.66M | -124.81M |
| Operating CF Margin % | - | -4% | -4.79% | -3.08% | -29.94% | -33.12% | -22.97% | -53.54% |
| Operating CF Growth % | -298.08% | 28.67% | -21.97% | 91.7% | 24.26% | -51.92% | 32.97% | - |
| Net Income | -9.18M | -11.72M | -27.42M | -43.23M | -87.72M | -135.9M | -72.26M | -161.47M |
| Depreciation & Amortization | 1.69M | 1.68M | 9.82M | 5.82M | 5.72M | 4.99M | 4.12M | 2.36M |
| Stock-Based Compensation | 4.12M | 4.28M | 11.99M | 15.51M | 45.66M | 14.61M | 7.76M | 11.96M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 6.99M | 2.78M | 779K |
| Other Non-Cash Items | 577K | 511K | -6.58M | 2.87M | -48.42M | 1.98M | 1.32M | -1.61M |
| Working Capital Changes | 2.02M | -1.71M | 2.44M | 11.03M | -11.51M | -19.76M | -27.38M | 23.17M |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | -4.88M | 5.11M | 944K |
| Change in Inventory | 781K | 3.3M | 12.49M | 14.98M | 3.29M | -12.6M | -18.61M | -1.66M |
| Change in Payables | 297K | -376K | -1.27M | -2.57M | -10.52M | -2.49M | -16.25M | 19.29M |
| Cash from Investing | -904K | -4M | -1.62M | -2.98M | -4.22M | -5.77M | -4.82M | -12.31M |
| Capital Expenditures | -919K | -1.17M | -1.76M | -2.98M | -4.22M | -5.77M | -4.82M | -11.62M |
| CapEx % of Revenue | 0.55% | 0.67% | 0.86% | 1.15% | 1.31% | 1.5% | 1.32% | 4.98% |
| Acquisitions | -2.83M | 0 | 0 | 0 | 0 | 0 | 0 | -750K |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 2.85M | -2.83M | 136K | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -1.41M | -1.56M | -59.19M | 9.86M | 118.09M | 34.71M | 228.17M | 107.45M |
| Debt Issued (Net) | 0 | 0 | -72.35M | 6.92M | 65.64M | 38.07M | 10.39M | 11.14M |
| Equity Issued (Net) | 220K | 205K | 15M | 10M | 129.52M | 912K | 215M | 96.53M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | -297K | 0 | 0 |
| Other Financing | -1.63M | -1.76M | -1.84M | -7.07M | -77.07M | -4.27M | 2.77M | -225K |
| Net Change in Cash | -3.08M | -12.51M | -70.56M | -1.12M | 17.61M | -98.15M | 139.69M | -29.66M |
| Free Cash Flow | -1.68M | -8.12M | -11.51M | -10.98M | -100.48M | -132.86M | -88.48M | -136.42M |
| FCF Margin % | -1.01% | -4.67% | -5.66% | -4.23% | -31.25% | -34.63% | -24.29% | -58.52% |
| FCF Growth % | 72.03% | 29.43% | -4.81% | 89.07% | 24.37% | -50.16% | 35.15% | - |
| FCF per Share | -0.04 | -0.21 | -0.31 | -0.32 | -3.04 | -7.75 | -8.23 | -11.57 |
| FCF Conversion (FCF/Net Income) | 0.18x | 0.59x | 0.36x | 0.18x | 1.10x | 0.94x | 1.16x | 0.77x |
| Interest Paid | 226K | 0 | 9.42M | 12.14M | 10.14M | 4.47M | 3.89M | 1.15M |
| Taxes Paid | 4K | 0 | 49K | 43K | 67K | 52K | 4K | 1K |
Liquidity and operational insolvency
As reported in recent financial filings, the relationship between net income and operating cash flow is highly inconsistent, with the company recording a 0.68 OCF/NI ratio in 2026Q1, suggesting that reported losses are not being consistently offset by meaningful cash generation from core operations.
The wide variance between net income and operating cash flow suggests that accruals and non-cash items, such as stock-based compensation, are masking the true cash-burn profile of the business. Investors should monitor whether the company can achieve a sustained positive conversion ratio, as current figures indicate that accounting losses are closely tracking actual cash outflows.
Based on the provided cash flow statements, Grove's free cash flow trajectory is characterized by persistent volatility, with the company reporting a negative $977.0K in 2026Q1, highlighting the ongoing difficulty in achieving self-sustaining cash generation amidst a broader revenue contraction and high operating overhead.
The inability to maintain positive free cash flow suggests that the company's pivot to an omnichannel model has yet to yield the expected efficiency gains. This trend warrants further investigation into whether the current cost structure is fundamentally incompatible with the company's reduced revenue scale.
According to historical data, working capital changes have been a primary driver of cash flow fluctuations, with a significant $825.0K outflow in 2026Q1, indicating that the company's ability to manage inventory and payables is currently insufficient to provide a reliable buffer for its operations.
The erratic nature of working capital movements suggests that the company may be struggling to optimize its supply chain during the transition to retail distribution. This instability appears to exacerbate the company's liquidity constraints, as cash is frequently tied up in operational cycles rather than being available for debt service or growth.
As evidenced by the provided financial data, stock-based compensation remains a significant non-cash add-back, with $806.0K recorded in 2026Q1, which effectively serves to inflate operating cash flow figures while failing to address the underlying cash-burn reality of the business model.
The reliance on stock-based compensation as a mechanism to preserve cash may be masking the true cost of talent and operational maintenance. Analysts should be wary of these adjustments, as they do not represent actual cash inflows and may lead to an overestimation of the company's operational health.
Quick answers to the most common questions about buying GROV stock.
Grove Collaborative Holdings, Inc. (GROV) generated $-7.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Grove Collaborative Holdings, Inc. (GROV) reported negative free cash flow of $8.1M in 2025, indicating capital requirements exceeded cash from operations.
Grove Collaborative Holdings, Inc. (GROV) spent $1.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.