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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)

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Neutral 48 (OpenAI - 4o)
Rating:48Neutral
Price Target:
$1.50
▲(0.00% Upside)
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
Strategic Collaboration
The collaboration with HumanCo aims to enhance operational efficiency and shareholder value, providing a durable competitive advantage through strategic initiatives.
Gross Margin Improvement
Improved gross margins indicate better cost management and pricing strategies, which can lead to sustained profitability and competitive pricing.
Enhanced Liquidity
Extending the loan facility maturity improves financial flexibility, ensuring access to capital for future growth and stability.
Negative Factors
Declining Revenue
Year-over-year revenue decline indicates challenges in maintaining market share and customer retention, impacting long-term growth prospects.
Negative Profitability
Negative EBITDA reflects ongoing operational inefficiencies and profitability challenges, which can hinder sustainable financial performance.
NYSE Compliance Risk
NYSE compliance risk poses a threat to market confidence and could lead to delisting, affecting investor perception and access to capital.

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 experiencing financial difficulties with declining revenues, negative profitability, and high leverage. While there is some improvement in free cash flow, the company faces significant challenges in achieving sustainable growth and profitability.
Income Statement
35
Negative
Grove Collaborative Holdings has faced declining revenues with a negative revenue growth rate of -4.17% in the TTM. The gross profit margin remains relatively stable at 53.41%, but the net profit margin is negative at -11.41%, indicating ongoing profitability challenges. The company also reports negative EBIT and EBITDA margins, reflecting operational inefficiencies.
Balance Sheet
40
Negative
The company's balance sheet shows a high debt-to-equity ratio of 2.01, suggesting significant leverage. Return on equity is negative at -127.23%, indicating poor returns for shareholders. The equity ratio is low, highlighting potential financial instability.
Cash Flow
45
Neutral
Grove Collaborative Holdings has a positive free cash flow growth rate of 11.08% in the TTM, but both operating and free cash flows remain negative. The free cash flow to net income ratio is above 1, suggesting that cash flow generation is better than net income, yet overall cash flow health is weak.
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
Neutral
Last Price1.50
Price Trends
50DMA
1.48
Positive
100DMA
1.34
Positive
200DMA
1.40
Positive
Market Momentum
MACD
0.02
Positive
RSI
50.01
Neutral
STOCH
23.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GROV, the sentiment is Neutral. The current price of 1.5 is below the 20-day moving average (MA) of 1.52, above the 50-day MA of 1.48, and above the 200-day MA of 1.40, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 50.01 is Neutral, neither overbought nor oversold. The STOCH value of 23.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
587.04M5.9212.80%1.95%-11.79%0.00%
71
Outperform
36.71M14.360.00%7.57%-11.81%-21.23%
65
Neutral
225.85M20.5216.33%-5.04%-22.01%
55
Neutral
303.11M-8.42-56.17%-15.33%75.52%
48
Neutral
$61.93M-197.15%-18.44%37.92%
46
Neutral
18.08M-4.10-65.53%-7.69%-220.31%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GROV
Grove Collaborative Holdings
1.50
0.10
7.14%
MTEX
Mannatech
8.40
0.90
12.00%
NUS
Nu Skin
12.32
5.46
79.59%
UG
United-Guardian
7.93
-5.91
-42.70%
SKIN
Beauty Health
2.37
0.93
64.58%
EWCZ
European Wax Center
4.15
-2.89
-41.05%

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