Grove Collaborative Reports Mixed Q2 Earnings, Highlighting Challenges Amid Growth

Grove Collaborative Holdings reported Q2 revenue of $44mln, a 1.1% sequential increase, but a 15.5% YoY decline. Gross margin improved to 55.4%, and the company achieved positive operating and total cash flow. However, adjusted EBITDA was negative $0.9mln, and active customers decreased 10.9% YoY. The company is collaborating with HumanCo to enhance shareholder value and has amended its loan facility to improve liquidity.

Title: Grove Collaborative Holdings Reports Q2 2025 Financial Results

Grove Collaborative Holdings, Inc. (NYSE: GROV), the leading sustainable consumer products company and certified B Corporation, announced its financial results for the second quarter of 2025. The company reported a total revenue of $44.0 million, a 1.1% sequential increase compared to the first quarter but a 15.5% year-over-year decline. Gross margin improved to 55.4%, up from 53.9% in the second quarter of 2024. The company achieved positive operating and total cash flow, with operating cash flow at $1.0 million and total cash flow at $0.4 million. However, adjusted EBITDA was negative $0.9 million, and active customers decreased by 10.9% year-over-year to 664,000.

The company's revenue decline was primarily attributed to reduced advertising investment and temporary operational disruptions from the eCommerce platform migration. Gross margin improvement was driven by enhanced promotional efficiency and increased third-party vendor funding. Operating expenses were reduced by 20.3% to $27.9 million, mainly due to lower stock-based compensation, reduced depreciation, and amortization, as well as lower fulfillment costs and ongoing cost optimization initiatives.

Grove Collaborative expects to return to year-over-year revenue growth in the fourth quarter of 2025 and is maintaining its full-year revenue guidance, with a slight year-over-year decline of approximately mid-single-digit to low-double-digit percentage points. The company is also narrowing its Adjusted EBITDA outlook to the lower end of the previously provided range, expecting it to be negative low single-digit millions to breakeven.

The company has collaborated with HumanCo to enhance shareholder value and has amended its loan facility to improve liquidity. Grove continues to invest in advertising to drive topline growth, accepting modest Adjusted EBITDA losses to build long-term shareholder value.

Grove Collaborative will host an investor conference call and webcast on July 02, 2025, to review these financial results. The webcast can be accessed at https://investors.grove.co/.

# References
[1] https://www.businesswire.com/news/home/20250807185338/en/Grove-Announces-Second-Quarter-2025-Financial-Results