Grove Collaborative 2025 Q3 Earnings Wider Losses Amid Revenue Decline

Grove Collaborative (GROV) reported Q3 2025 results marked by a 9.4% revenue decline and a 121.6% increase in net losses, with guidance revised downward due to platform migration challenges and reduced advertising.

Revenue

Total revenue fell to $43.73 million, with Grove Brands contributing $17.52 million and third-party products $26.22 million. The sequential 0.7% drop in revenue contrasted with the 9.4% year-over-year decline, signaling stabilization in a challenging environment.

Earnings/Net Income

Net losses widened to $2.96 million ($0.08 per share), a 121.6% increase from $1.34 million ($0.04 per share) in 2024 Q3. The deepening losses reflect ongoing operational challenges, with the CEO citing platform disruptions and reduced advertising as key factors.

Post-Earnings Price Action Review

The strategy of buying shares on earnings days showed mixed results over three years: a 20.6% gain in 2023, a 25.8% loss in 2024, and a modest 5.3% gain in 2025. While the S&P 500 outperformed with 31.7% returns, the strategy’s volatility—peaking at a 34.2% drawdown in 2024—highlights risks tied to market sentiment. Timing and growth expectations proved critical, as 2024’s disappointment underscored the unpredictability of post-earnings performance.

CEO Commentary

CEO Jeff Yurcisin attributed Q3’s struggles to platform migration disruptions, reduced advertising, and workforce cuts. He emphasized cost discipline, including $5 million in annualized savings, and a pivot to health and wellness categories to drive long-term growth.

Guidance

Grove revised full-year 2025 revenue to $172.5–$175 million, below prior mid-single-digit decline forecasts, with Q4 revenue expected to remain flat. Adjusted EBITDA is projected to turn positive in Q4, supported by cost reductions and platform optimization.

Additional News

Grove announced a strategic shift toward health and wellness products, expanding third-party vendor offerings by 50% YoY. The company also disclosed a reduction in force to align costs with revenue, with $5 million in annual savings. Platform migration to Shopify aims to enhance personalization, while AI-driven efficiency initiatives target operational improvements.

Revenue

Grove’s Q3 revenue of $43.7 million reflected a 9.4% year-over-year decline, driven by reduced advertising and platform migration disruptions. The 0.7% sequential drop, however, indicated stabilization compared to prior quarters. Grove Brands revenue stood at $17.52 million, while third-party products accounted for $26.22 million, maintaining their role as a core revenue driver.

Earnings/Net Income

Net losses widened to $2.96 million ($0.08 per share), representing a 121.6% increase in losses year-over-year. The CEO cited intentional cost-cutting and platform-related challenges as contributing factors, underscoring the need for disciplined liquidity management.

Price Action

GROV shares fell 1.37% in the latest trading day but gained 5.88% over the past week. Month-to-date, the stock declined 7.10%, reflecting mixed investor sentiment around the earnings report.

Post-Earnings Price Action Review

The 30-day post-earnings strategy yielded uneven returns, with 2023’s 20.6% gain contrasting 2024’s 25.8% loss. While 2025 saw a modest recovery, the S&P 500’s 31.7% return highlighted the strategy’s underperformance. Volatility, particularly the 34.2% drawdown in 2024, emphasized risks tied to market timing and growth expectations.

CEO Commentary

Jeff Yurcisin prioritized platform stability and cost discipline, announcing a November workforce reduction to achieve $5 million in savings. He emphasized long-term growth in health and wellness categories, leveraging AI and strategic partnerships to enhance customer experience.

Guidance

Full-year 2025 revenue is now projected at $172.5–$175 million, with Q4 expected to remain flat sequentially. Adjusted EBITDA is anticipated to turn positive in Q4, supported by reduced advertising spend and operational efficiencies.

Additional News

Grove expanded its third-party product offerings by 50% YoY, focusing on clean beauty and wellness. The company also announced a migration to Shopify to improve personalization and announced AI-driven efficiency initiatives. A reduction in force was executed to align costs with revenue, with $5 million in annualized savings.