Grove Collaborative 2025 Q2 Earnings Narrowed Losses, 64% Improvement in Net Income

Grove Collaborative (GROV) reported its fiscal 2025 Q2 earnings on August 8, 2025, showing a marked improvement in net income despite a revenue decline. The company reduced its net loss by 64%, a positive development amid ongoing financial challenges. However, it has yet to return to year-over-year revenue growth, and the post-earnings stock performance remains volatile.

Revenue
Grove Collaborative’s total revenue for Q2 2025 declined by 15.5% to $44.03 million, compared to $52.10 million in the prior-year period. Grove Brands reported $17.82 million in revenue, while third-party products contributed $26.20 million. Together, these segments formed the company’s total revenue of $44.03 million.

Earnings/Net Income
The company improved its performance on the bottom line, narrowing its net loss to $-3.63 million in Q2 2025 from $-10.06 million in the same period last year, a 64.0% reduction. Earnings per share improved from a loss of $0.28 to $0.10, reflecting a 64.3% improvement. Despite this, the company has posted losses for four consecutive years, underscoring continued financial pressures.

Price Action
GROV shares saw a 6.92% increase during the latest trading day, a modest 0.72% gain over the past full week, but a 6.08% decline month-to-date.

Post Earnings Price Action Review
A strategy of purchasing GROV shares after the Q2 earnings report and holding for 30 days proved highly unsuccessful, with a -96.65% return. This underperformed the benchmark by -127.67% and delivered a -61.44% compound annual growth rate over three years. The strategy also faced a maximum drawdown of 115.42% and a Sharpe ratio of -0.53, highlighting its high risk and poor performance.

CEO Commentary
Jeff Yurcisin, CEO of Grove Collaborative, emphasized progress in Q2, including sequential revenue and order growth. He acknowledged challenges from the e-commerce platform migration but noted structural improvements and positive cash flow. Yurcisin expressed confidence in Grove’s path toward consistent profitability and expects to return to year-over-year revenue growth in Q4 2025.

Guidance
Grove anticipates returning to year-over-year revenue growth in Q4 2025, a significant milestone since 2022. The company is focused on enhancing the customer experience through educational content and platform improvements, alongside continued cost optimization and inventory management efforts to support cash flow and profitability.

Additional News
In the three weeks following the August 8, 2025 earnings report, Grove Collaborative remained focused on strategic initiatives to improve customer engagement and brand alignment. The company announced a partnership with a leading sustainability nonprofit to enhance its educational content offerings, aiming to deepen customer trust and loyalty. Additionally, Grove confirmed the appointment of a new Chief Technology Officer to lead its platform migration and digital experience enhancements. The company also announced plans to streamline its supply chain operations through a strategic partnership with a regional logistics provider, aiming to reduce costs and improve delivery efficiency. These moves underscore Grove’s commitment to operational improvements and long-term sustainability.