The quarterly results for Grove Collaborative Holdings, Inc. (NYSE:GROV) were released last week, making it a good time to revisit its performance. It looks like the results were pretty good overall. While revenues of US$37m were in line with analyst predictions, statutory losses were much smaller than expected, with Grove Collaborative Holdings losing US$0.03 per share. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Grove Collaborative Holdings after the latest results.

Following the recent earnings report, the consensus from sole analyst covering Grove Collaborative Holdings is for revenues of US$148.6m in 2026. This implies a noticeable 6.5% decline in revenue compared to the last 12 months. Losses are expected to be contained, narrowing 16% from last year to US$0.16. Yet prior to the latest earnings, the analyst had been forecasting revenues of US$148.8m and losses of US$0.15 per share in 2026. Overall it looks as though the analyst were a bit mixed on the latest consensus updates. Although revenue forecasts held steady, the consensus also made a pronounced increase to its losses per share forecasts.

Despite expectations of heavier losses next year,the analyst has lifted their price target 33% to US$2.00, perhaps implying these losses are not expected to be recurring over the long term.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2026 compared to the historical decline of 20% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 6.0% per year. So it's pretty clear that, while it does have declining revenues, the analyst also expect Grove Collaborative Holdings to suffer worse than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Grove Collaborative Holdings. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Grove Collaborative Holdings' revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Grove Collaborative Holdings. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Grove Collaborative Holdings going out as far as 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Grove Collaborative Holdings , and understanding them should be part of your investment process.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.