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Grove Collaborative Holdings (GROV)
NYSE:GROV
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Grove Collaborative Holdings (GROV) AI Stock Analysis

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GROV

Grove Collaborative Holdings

(NYSE:GROV)

Rating:48Neutral
Price Target:
$1.50
▼(-3.85% Downside)
Grove Collaborative Holdings faces significant financial challenges with declining revenues and high leverage, which heavily impact its overall score. While there is some technical strength, the negative valuation metrics and potential NYSE delisting risk further weigh down the score.
Positive Factors
Consumer Trends
Consumers increasingly seek out sustainable products, and Grove is one of the pioneers in helping people consume more consciously with their curated selection of products.
Leadership and Strategy
The new leadership team led by e-comm veteran Jeff Yurcisin is now focused on three key strategic priorities: scale the platform to win, grow product mix, and build customer love.
Negative Factors
Customer Metrics
Active customers declined -10.9% YOY to 664k, though it's an improvement from the previous quarter.
Sales Performance
Grove reported 2Q results with sales down -15.5% YOY to $44.0M, reflecting reduced advertising investment and eCommerce platform migration disruptions.

Grove Collaborative Holdings (GROV) vs. SPDR S&P 500 ETF (SPY)

Grove Collaborative Holdings Business Overview & Revenue Model

Company DescriptionGrove Collaborative Holdings, Inc. operates as a plastic neutral consumer products retailer in the United States. It provides household cleaning, personal care, laundry, clean beauty, baby, and pet care products for households. The company is based in San Francisco, California.
How the Company Makes MoneyGrove Collaborative makes money primarily through the direct sale of its eco-friendly products via its online platform. The company's revenue model is centered around e-commerce, where customers can purchase a subscription service or make one-time purchases. The subscription service offers customers the convenience of regular deliveries of their chosen products, ensuring a steady revenue stream for the company. Additionally, Grove Collaborative may generate revenue through strategic partnerships with brands that align with their sustainability goals, offering these complementary products on their platform. The company focuses on building strong customer loyalty through its commitment to quality and sustainability, which can contribute to repeat purchases and long-term customer relationships.

Grove Collaborative Holdings Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company in transition, with a focus on strategic growth areas and operational improvements. While there are positive developments in cash flow, gross margin, and product expansion, significant challenges remain, including declining revenue and customer base, platform migration issues, and compliance notices. The company is cautiously optimistic about sequential growth but needs to address these hurdles effectively.
Q2-2025 Updates
Positive Updates
Positive Cash Flow and Liquidity Management
The company delivered positive operating cash flow of $1 million and improved financial flexibility by extending the asset-based loan facility to 2028.
Increase in Gross Margin
The gross margin increased to 55.4%, up 150 basis points compared to the previous year, reflecting better vendor funding and promotional strategies.
Sequential Revenue Growth
Despite a year-over-year decline, revenue increased sequentially by 1.1%, indicating early momentum in stabilizing business operations.
Expansion in Product Assortment
The number of brands offered increased by 47% and individual products by 59% year-over-year, expanding into high-potential categories like clean beauty and wellness.
Advocacy and Environmental Leadership
Grove launched a survey on microplastics with the 5 Gyres Institute and supported the Bipartisan Microplastics Safety Act, highlighting its commitment to environmental and human health issues.
Negative Updates
Revenue Decline
Revenue for the second quarter was $44 million, down 15.5% year-over-year, impacted by reduced advertising spend and platform migration issues.
Decrease in Active Customers
Active customers declined by 10.9% compared to the prior year, driven by reduced advertising and platform migration challenges.
Negative Adjusted EBITDA
Adjusted EBITDA was negative $0.9 million, reflecting lower revenue despite cost structure improvements.
Platform Migration Challenges
The transition to a new eCommerce platform caused operational friction and revenue impact, taking longer to resolve than anticipated.
NYSE Compliance Notice
The company received a notice from the NYSE for falling below the $50 million market capitalization threshold, requiring a compliance plan to maintain listing.
Company Guidance
During Grove Collaborative Holdings, Inc.'s second quarter of 2025 earnings call, the company provided several key metrics and forward-looking statements. Revenue for the quarter was $44 million, a decrease of 15.5% compared to the previous year but an increase of 1.1% sequentially. The company reported an adjusted EBITDA of negative $0.9 million, or a negative 2.1% margin, due to challenges from their platform migration. Grove expects continued sequential revenue growth in the second half of 2025, with slight year-over-year growth projected for the fourth quarter. For the full year 2025, revenue is anticipated to decline by mid-single-digit to low double-digit percentages year-over-year, while adjusted EBITDA is expected to range from negative low single-digit millions to breakeven. The company also highlighted their strategic pillars, including sustained profitability, balance sheet strength, revenue growth, and a focus on environmental and human health, as they aim to strengthen their position in the market for clean and sustainable products.

Grove Collaborative Holdings Financial Statement Overview

Summary
Grove Collaborative Holdings is facing significant financial challenges, with declining revenues and persistent losses affecting its overall performance. The high leverage and negative cash flow metrics indicate financial instability. While there is some efficiency in cost management, the company needs to address its high debt levels and improve cash flow generation to ensure long-term sustainability.
Income Statement
40
Negative
The company shows a declining revenue trend with negative growth over the past few years. The gross profit margin for the TTM (Trailing-Twelve-Months) is approximately 53.1%, which indicates some efficiency in cost management. However, the net profit margin remains negative at -14.3%, highlighting ongoing challenges in achieving profitability. The negative EBIT and EBITDA margins further reflect operational inefficiencies and the lack of profitability.
Balance Sheet
35
Negative
The company has a high debt-to-equity ratio of 1.09 in TTM, indicating a high level of leverage, which poses a financial risk. The return on equity (ROE) is negative due to sustained net losses, and the equity ratio is low at 21.9%, suggesting limited financial stability and a potential risk if financial conditions worsen.
Cash Flow
30
Negative
The company struggles with cash flow generation, reflected in a negative operating cash flow and free cash flow for TTM. The free cash flow growth rate is negative, showing a continuous decline in cash flow generation capacity. The operating cash flow to net income ratio is negative, indicating cash flow inefficiency relative to the net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue185.35M203.43M259.28M321.53M383.69M364.27M
Gross Profit99.00M109.35M137.36M154.65M188.50M176.00M
EBITDA-9.86M-4.79M-21.29M-72.26M-125.65M-62.50M
Net Income-21.14M-27.42M-43.23M-87.72M-135.90M-72.26M
Balance Sheet
Total Assets57.83M65.01M150.74M174.04M182.47M269.72M
Cash, Cash Equivalents and Short-Term Investments10.05M19.63M86.41M81.08M78.38M176.52M
Total Debt21.68M22.09M89.56M81.09M90.51M58.23M
Total Liabilities47.06M48.79M132.62M147.51M150.83M121.44M
Stockholders Equity10.76M16.22M18.12M26.53M31.64M148.28M
Cash Flow
Free Cash Flow-6.69M-11.51M-10.98M-100.48M-132.86M-88.48M
Operating Cash Flow-4.87M-9.75M-7.99M-96.26M-127.09M-83.66M
Investing Cash Flow-4.54M-1.62M-2.98M-4.22M-5.77M-4.82M
Financing Cash Flow-59.28M-59.19M9.86M118.09M34.71M228.17M

Grove Collaborative Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.56
Price Trends
50DMA
1.38
Positive
100DMA
1.28
Positive
200DMA
1.39
Positive
Market Momentum
MACD
0.04
Negative
RSI
60.88
Neutral
STOCH
74.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GROV, the sentiment is Positive. The current price of 1.56 is above the 20-day moving average (MA) of 1.45, above the 50-day MA of 1.38, and above the 200-day MA of 1.39, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 60.88 is Neutral, neither overbought nor oversold. The STOCH value of 74.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GROV.

Grove Collaborative Holdings Risk Analysis

Grove Collaborative Holdings disclosed 57 risk factors in its most recent earnings report. Grove Collaborative Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Grove Collaborative Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$604.37M6.0913.68%2.01%-11.79%
71
Outperform
$37.61M14.7121.68%7.47%-11.81%-21.23%
65
Neutral
$250.70M22.8010.98%-5.04%-22.01%
63
Neutral
$20.42B14.38-3.63%3.17%2.07%-6.17%
60
Neutral
$257.46M-26.54%-15.33%75.52%
49
Neutral
$17.45M8.92-55.19%-7.69%-220.31%
48
Neutral
$62.75M-197.15%-18.44%37.92%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GROV
Grove Collaborative Holdings
1.56
0.27
20.93%
MTEX
Mannatech
9.10
1.55
20.53%
NUS
Nu Skin
11.94
3.21
36.77%
UG
United-Guardian
8.03
-5.42
-40.30%
SKIN
Beauty Health
2.04
0.25
13.97%
EWCZ
European Wax Center
4.41
-2.49
-36.09%

Grove Collaborative Holdings Corporate Events

Business Operations and StrategyFinancial Disclosures
Grove Collaborative Reports Q2 2025 Financial Results
Neutral
Aug 7, 2025

On August 7, 2025, Grove Collaborative Holdings reported its financial results for the second quarter of 2025, showing a total revenue of $44.0 million, a 15.5% decrease year-over-year, but a 1.1% increase from the previous quarter. Despite a net loss of $3.6 million, the company showed signs of recovery with positive operating cash flow and improvements in gross margin and operating expenses. CEO Jeff Yurcisin highlighted the company’s focus on sustainability and customer engagement, with expectations of returning to year-over-year revenue growth in the fourth quarter of 2025. The company continues to invest in advertising to drive growth while maintaining financial discipline, aiming for long-term shareholder value.

The most recent analyst rating on (GROV) stock is a Hold with a $1.20 price target. To see the full list of analyst forecasts on Grove Collaborative Holdings stock, see the GROV Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Grove Collaborative Amends Equity Purchase Agreement
Neutral
Jul 8, 2025

On July 18, 2022, Grove Collaborative Holdings, Inc. entered into a Standby Equity Purchase Agreement with YA II PN, Ltd., allowing the company to sell up to $100 million of its Class A common stock over 36 months. On July 8, 2025, the agreement was amended to modify the market price definition and extend the commitment period to August 1, 2027, potentially impacting the company’s financial strategy and market positioning.

The most recent analyst rating on (GROV) stock is a Hold with a $1.20 price target. To see the full list of analyst forecasts on Grove Collaborative Holdings stock, see the GROV Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Grove Collaborative Holds 2025 Annual Stockholder Meeting
Neutral
Jun 23, 2025

At the 2025 annual meeting of stockholders held on June 19, 2025, Grove Collaborative Holdings, Inc. presented two proposals. The stockholders elected two Class III directors to serve until the 2028 annual meeting and ratified the appointment of Moss Adams LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Approximately 68% of the total voting power was represented at the meeting, ensuring a quorum.

The most recent analyst rating on (GROV) stock is a Hold with a $1.20 price target. To see the full list of analyst forecasts on Grove Collaborative Holdings stock, see the GROV Stock Forecast page.

Delistings and Listing ChangesRegulatory Filings and Compliance
Grove Collaborative Faces NYSE Non-Compliance Notice
Negative
May 16, 2025

On May 15, 2025, Grove Collaborative Holdings, Inc. received a notice of non-compliance from the New York Stock Exchange due to not meeting the required market capitalization and stockholders’ equity standards. The company must submit a business plan within 45 days to demonstrate how it will regain compliance within 18 months. This notice does not immediately affect the listing of Grove’s securities, but failure to comply could lead to delisting proceedings.

The most recent analyst rating on (GROV) stock is a Hold with a $1.20 price target. To see the full list of analyst forecasts on Grove Collaborative Holdings stock, see the GROV Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Grove Collaborative Reports Q1 2025 Financial Results
Negative
May 14, 2025

On May 14, 2025, Grove Collaborative Holdings reported its financial results for the first quarter of 2025, ending March 31. The company experienced an 18.7% decline in revenue to $43.5 million, attributed to lower repeat order volume and disruptions from an eCommerce platform migration. Despite a net loss of $3.5 million, Grove is optimistic about future growth, citing improvements in customer order economics and advertising efficiencies. The company anticipates revenue growth in the latter half of 2025, supported by strategic initiatives to enhance customer experience and expand product offerings.

The most recent analyst rating on (GROV) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on Grove Collaborative Holdings stock, see the GROV Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 14, 2025