Grove Collaborative Reports Q1 2025 Financial Results

Grove Collaborative Holdings, Inc. ( (GROV) ) has released its Q1 earnings. Here is a breakdown of the information Grove Collaborative Holdings, Inc. presented to its investors.

Grove Collaborative Holdings, Inc., a sustainable consumer products company and certified B Corporation, is recognized as the world’s first plastic neutral retailer, offering a wide range of eco-friendly household and personal care products. In its first quarter of 2025, Grove reported a total revenue of $43.5 million, marking an 18.7% decline year-over-year, primarily due to disruptions from their eCommerce platform migration. The company also reported a net loss of $3.5 million, slightly higher than the previous year’s loss, and a negative adjusted EBITDA of $1.6 million, a significant drop from the positive $1.9 million in the same period last year. Despite these setbacks, Grove has amended its Asset-Based Loan Facility to increase availability and extend maturity to 2028, reflecting strategic financial adjustments.

The decline in revenue was attributed to lower repeat order volumes and disruptions from the eCommerce platform migration, which negatively impacted revenue by approximately $2 to $3 million. However, Grove saw improvements in advertising efficiency and new customer order economics, which allowed for increased advertising spend despite these challenges. Operating expenses decreased by 12.2% due to lower stock-based compensation and fulfillment costs, although this was partially offset by increased advertising expenses. The company’s gross margin fell to 53.0%, influenced by the elimination of certain customer fees and reduced inventory sell-through benefits.

Grove’s management remains optimistic about the future, citing evidence of consumer alignment with value-driven brands and internal progress such as improved first order conversion rates. The company anticipates revenue improvement in the second and third quarters, with expectations of slight year-over-year growth by the fourth quarter. For the full year 2025, Grove projects a revenue decline in the mid-single-digit to low double-digit percentage range and an adjusted EBITDA ranging from negative to positive low single-digit millions. The company is focused on optimizing its platform, enhancing advertising efficiency, and expanding its product assortment to drive long-term growth.

Looking ahead, Grove Collaborative is committed to executing its strategy to become a leading destination for natural and sustainable products. The company aims to leverage its foundational work to drive momentum in the latter half of the year, setting the stage for mission-aligned growth. Management’s outlook reflects a cautious yet optimistic approach, balancing current challenges with strategic initiatives to enhance shareholder value through sustainable, profitable revenue growth.