Grove Collaborative 2025 Q1 Earnings Net Loss Widens 4.6%
Daily EarningsThursday, May 15, 2025 3:51 am ET

Grove Collaborative (GROV) reported its fiscal 2025 Q1 earnings on May 14th, 2025. The company announced a decline in revenue, with total revenue decreasing by 18.7% to $43.55 million compared to the previous year. Despite this, the company's net loss widened by 4.6%, reaching $-3.55 million. Grove Collaborative's guidance suggests a potential improvement in revenue for the subsequent quarters, although the full-year revenue is expected to decline by mid-single-digit to low double-digit percentage points. The company remains focused on executing its strategy to transform into a leading destination for natural and sustainable products.
Revenue
Grove Collaborative's revenue for fiscal Q1 2025 dropped by 18.7% to $43.55 million, down from $53.55 million in the same quarter last year. The company's segment revenue was led by Grove Brands, which generated $17.61 million, while third-party products contributed $25.93 million. The decline in revenue primarily stemmed from lower repeat order volume and temporary disruptions from the eCommerce platform migration.
Earnings/Net Income
Grove Collaborative's EPS remained stable at $-0.10 for 2025 Q1, mirroring the previous year's performance. The net loss increased to $-3.55 million, representing a 4.6% rise from the $-3.39 million loss recorded in 2024 Q1. The EPS reflects ongoing financial challenges for the company.
Post Earnings Price Action Review
The strategy of purchasing Grove Collaborative Holdings (GROV) on revenue beats and holding for 30 days appears speculative and risky. The company reported an 18.7% year-over-year revenue decline in the fiscal first quarter of 2025, signaling persistent challenges. Market sentiment remains neutral to negative, with the stock price experiencing a 30% drop over the last month, reflecting poor market confidence. The increased net loss to $3.5 million suggests continued struggles with profitability. While Grove Collaborative is undertaking marketing campaigns and product expansions, these may require time to yield results, potentially misaligning with a 30-day holding strategy. Additionally, the shift to a Shopify e-commerce platform by March 2025 poses risks such as technical issues and operational disruptions, potentially affecting short-term stock prices. Comparatively, the company's low price-to-sales ratio of 0.2x, against the industry median of 0.3x, suggests a low current valuation, but not guaranteed short-term recovery. In conclusion, the strategy is speculative, with significant risks due to the company's lackluster financial performance and negative market sentiment, requiring investor caution.
CEO Commentary
Jeff Yurcisin, CEO of Grove Collaborative Holdings, emphasized the ongoing transformation of the company, stating, "we are still in the middle of our transformation" and expressed disappointment with Q1 results while highlighting improved first-order conversion rates and order economics. He outlined four strategic pillars: sustained profitability, balance sheet strength, revenue growth, and environmental health, asserting that these priorities guide their decisions. Yurcisin noted the migration to a new eCommerce platform, which impacted revenue but is expected to enhance customer engagement, and conveyed optimism about the future, declaring, "we are seeing green shoots across the business."
Guidance
Grove Collaborative expects Q1 to be the lowest revenue quarter of 2025, with revenue anticipated to improve in the second and third quarters, leading to slight year-over-year growth in Q4. The company now forecasts full-year 2025 revenue to decline approximately mid-single-digit to low double-digit percentage points year-over-year, with adjusted EBITDA projected to be negative low single-digit to positive low single-digit millions. This outlook incorporates the full-year impact of the eCommerce transition and known tariff-related impacts, with confidence in mitigation strategies to offset most of the tariff effects.
Additional News
Grove Collaborative Holdings, Inc. released its sixth annual Sustainability Report for 2024-2025 on May 8, 2025. The report highlights the company's significant progress in environmental and human health initiatives, including the approval of its Science-Based Targets by the Science Based Targets initiative (SBTi). These targets align with the latest climate science and underscore Grove Collaborative's dedication to reducing its carbon footprint and promoting sustainability across its operations and supply chain. The company aims to inspire industry-wide accountability and transparency in environmental practices. Additionally, Grove Collaborative continues to focus on its Beyond Plastic™ initiatives, aiming to significantly reduce single-use plastic waste and enhance product offerings to meet higher sustainability standards.
Revenue
Grove Collaborative's revenue for fiscal Q1 2025 dropped by 18.7% to $43.55 million, down from $53.55 million in the same quarter last year. The company's segment revenue was led by Grove Brands, which generated $17.61 million, while third-party products contributed $25.93 million. The decline in revenue primarily stemmed from lower repeat order volume and temporary disruptions from the eCommerce platform migration.
Earnings/Net Income
Grove Collaborative's EPS remained stable at $-0.10 for 2025 Q1, mirroring the previous year's performance. The net loss increased to $-3.55 million, representing a 4.6% rise from the $-3.39 million loss recorded in 2024 Q1. The EPS reflects ongoing financial challenges for the company.
Post Earnings Price Action Review
The strategy of purchasing Grove Collaborative Holdings (GROV) on revenue beats and holding for 30 days appears speculative and risky. The company reported an 18.7% year-over-year revenue decline in the fiscal first quarter of 2025, signaling persistent challenges. Market sentiment remains neutral to negative, with the stock price experiencing a 30% drop over the last month, reflecting poor market confidence. The increased net loss to $3.5 million suggests continued struggles with profitability. While Grove Collaborative is undertaking marketing campaigns and product expansions, these may require time to yield results, potentially misaligning with a 30-day holding strategy. Additionally, the shift to a Shopify e-commerce platform by March 2025 poses risks such as technical issues and operational disruptions, potentially affecting short-term stock prices. Comparatively, the company's low price-to-sales ratio of 0.2x, against the industry median of 0.3x, suggests a low current valuation, but not guaranteed short-term recovery. In conclusion, the strategy is speculative, with significant risks due to the company's lackluster financial performance and negative market sentiment, requiring investor caution.
CEO Commentary
Jeff Yurcisin, CEO of Grove Collaborative Holdings, emphasized the ongoing transformation of the company, stating, "we are still in the middle of our transformation" and expressed disappointment with Q1 results while highlighting improved first-order conversion rates and order economics. He outlined four strategic pillars: sustained profitability, balance sheet strength, revenue growth, and environmental health, asserting that these priorities guide their decisions. Yurcisin noted the migration to a new eCommerce platform, which impacted revenue but is expected to enhance customer engagement, and conveyed optimism about the future, declaring, "we are seeing green shoots across the business."
Guidance
Grove Collaborative expects Q1 to be the lowest revenue quarter of 2025, with revenue anticipated to improve in the second and third quarters, leading to slight year-over-year growth in Q4. The company now forecasts full-year 2025 revenue to decline approximately mid-single-digit to low double-digit percentage points year-over-year, with adjusted EBITDA projected to be negative low single-digit to positive low single-digit millions. This outlook incorporates the full-year impact of the eCommerce transition and known tariff-related impacts, with confidence in mitigation strategies to offset most of the tariff effects.
Additional News
Grove Collaborative Holdings, Inc. released its sixth annual Sustainability Report for 2024-2025 on May 8, 2025. The report highlights the company's significant progress in environmental and human health initiatives, including the approval of its Science-Based Targets by the Science Based Targets initiative (SBTi). These targets align with the latest climate science and underscore Grove Collaborative's dedication to reducing its carbon footprint and promoting sustainability across its operations and supply chain. The company aims to inspire industry-wide accountability and transparency in environmental practices. Additionally, Grove Collaborative continues to focus on its Beyond Plastic™ initiatives, aiming to significantly reduce single-use plastic waste and enhance product offerings to meet higher sustainability standards.

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