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- **Revenue Resilience**: Q3 revenue flat sequentially despite 9.4% YoY decline, driven by customer experience challenges and reduced ad spend.
- **Cost Efficiency**: $5M annual SG&A savings from headcount reduction, gross margin up 30bps to 53.3%.
- **Customer Fix Focus**: Mobile app and subscription issues to be resolved within 1-2 quarters, with engineering team confident in turnaround.
- **Strategic Growth**: Exploring M&A in wellness and baby categories, with 2026 focus on profitable growth post-customer experience optimization.

**【CEO Opening Remarks】**
- Grove's Q3 2025 revenue was $43.7 million, down 9.4% year-over-year but flat sequentially, marking the smallest YoY decline since Q4 2021.
- Key challenges included customer experience disruptions (mobile app payments, subscriptions) and reduced advertising spend.
- Management prioritized liquidity and profitability, with a $5 million annualized SG&A reduction through headcount cuts.
- Focus on AI-driven efficiency, sustainable growth, and a differentiated clean products platform.

**【CFO Financial Commentary】**
- Gross margin improved to 53.3% (up 30bps YoY) due to targeted promotions.
- Advertising spend was $3.2 million (11.8% YoY increase), with strategic pullback in Q3 to preserve cash.
- SG&A expenses decreased 14% YoY to $21.3 million, driven by cost optimization.
- Adjusted EBITDA was -$1.2 million (negative 2.7% margin), with Q4 expected to turn positive.
- Cash balance of $12.3 million at quarter-end, down from $14 million in Q2.
- Full-year 2025 revenue guidance revised to $172.5-$175 million (down mid-single to low double digits YoY).

**【Q&A Highlights】**
- **Customer Experience Timeline**: Mobile app and subscription fixes expected within 1-2 quarters, with engineering team confident in roadmap.
- **Cohort Performance**: New customer retention flattening as expected, with payback acceleration contingent on core experience resolution.
- **M&A Strategy**: Exploring acquisitions in wellness/supplements and baby categories, prioritizing accretive opportunities aligned with platform scale.
- **SKU Expansion**: Shifting focus from adding new brands to enhancing discovery experience, with select launches planned for Q4 2025.


Grove Collaborative Holdings, Inc. (GROV) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

GROV

GROV fundamentals

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