Grove Collaborative 2025 Q3 Earnings Net Loss Widens 121.6%

Grove Collaborative reported Q3 2025 earnings that fell short of revenue expectations and revised guidance downward. Revenue declined 9.4% year-over-year to $43.73 million, while the company adjusted full-year revenue targets to the lower end of its prior range.

Revenue

Q3 revenue totaled $43.73 million, reflecting a 9.4% year-over-year decline and 0.7% sequential dip. Grove Brands generated $17.52 million, while third-party products contributed $26.22 million. The company attributed the drop to challenges during its e-commerce platform migration, including mobile app and subscription issues.

Earnings/Net Income

Net losses deepened to $2.96 million, a 121.6% increase from $1.34 million in 2024 Q3, with EPS worsening to -$0.08 from -$0.04. The earnings decline underscores ongoing financial pressures despite cost-cutting measures. The EPS performance was notably weaker than expectations.

Post-Earnings Price Action Review

Following the earnings report, Grove’s stock surged 15.75% in a single trading day and 7.30% over the subsequent week, though it declined 5.16% month-to-date. The mixed price action reflects investor optimism about long-term strategic shifts but lingering concerns over near-term execution risks.

CEO Commentary

CEO Jeff Yurcisin emphasized progress in stabilizing revenue and optimizing customer experience post-platform migration. He highlighted AI-driven efficiency gains, disciplined advertising reductions, and a focus on profitability. Leadership remains confident in post-transformation growth, though short-term challenges persist.

Guidance

Grove revised full-year 2025 revenue guidance to $172.5–175 million, aligning with the lower end of its previous range. Adjusted EBITDA is expected to remain in the negative low single-digit millions to breakeven, with Q4 projecting a positive turnaround. CFO Tom Siragusa reiterated liquidity protection as a priority.

Additional News

Grove announced a reduction in force expected to save $5 million annually, aligning costs with current revenue levels. The company is exploring strategic acquisitions in wellness, baby, and beauty categories to accelerate growth. Additionally, Grove advanced its sustainability initiatives by disclosing AI-related carbon footprint data through a partnership with Gravity Climate.