Grove Collaborative Holdings (GROV) AI Stock Analysis

• Market Cap: $46.29M
• Dividend Yield: N/A
• Average Volume (3M): 99.09K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.01
• Revenue Growth: -19.83%
• EPS Growth: 22.76%
• Country: US
• Employees: 339
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Household & Personal Products
• EPS (TTM): -0.10
• Shares Outstanding: 40,254,745
• 10 Day Avg. Volume: 75,886
• 30 Day Avg. Volume: 99,086
• PEG Ratio: 6.83
• Price to Book (P/B): 3.50K
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.29
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 0.53
• Enterprise Value/Ebitda: -2.12
• 1Y Price Target: $2.10
• Price Target Upside: 82.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 39 Underperform
• Price Target: $1.00 ▼(-13.04%Downside)

Grove Collaborative Holdings faces significant financial headwinds, with declining revenues and profitability issues being the most impactful factors. The technical analysis and valuation reflect market skepticism, compounded by regulatory risks from the NYSE non-compliance notice. The company is undertaking strategic initiatives, but these have yet to translate into improved financial performance.

Positive Factors

Acquisitions

The acquisition of Grab Green is seen as a positive move for Grove's financial performance, signaling an improving balance sheet as they reduce debt and aim for consistent profitability.

Platform Transition

Grove's transition to the Shopify platform should help reduce GROV's cost structure and drive increased flexibility and quickly update to the newest e-commerce tech stacks.

Product Assortment Expansion

Management is expecting to increase its assortment by 40% in 2025 and add over 100 new brands, providing a longer-term tailwind for GROV.

Negative Factors

Gross Margin

Gross margins in 1Q deleveraged -258 bps to 53.0% of sales due to the elimination of certain customer fees and a reduced benefit from the sell-through of previously reserved inventory.

Sales Performance

Grove reported 1Q results with sales down -18.7% YOY, missing analyst/Street estimate of -12.7%/-12.2%.

Grove Collaborative Holdings Business Overview & Revenue Model

Company Description

Grove Collaborative Holdings (GROV) is a leading e-commerce company that specializes in providing sustainable, eco-friendly household and personal care products. The company operates within the consumer goods sector, focusing on offering a wide range of environmentally friendly products, including cleaning supplies, personal care items, and wellness products. Grove Collaborative is committed to sustainability, ensuring that all of its products are ethically sourced and packaged in recyclable or reusable materials.

How the Company Makes Money

Grove Collaborative makes money primarily through direct-to-consumer sales via its online platform. The company generates revenue by selling its own line of branded products, as well as products from other eco-friendly brands. A significant portion of its income is derived from subscription services, where customers can sign up for regular deliveries of their preferred products, ensuring a steady and predictable revenue stream. Additionally, Grove Collaborative benefits from partnerships with various environmentally conscious brands, expanding its product offerings and attracting a wider customer base. The company's focus on sustainability and eco-friendly products aligns with increasing consumer demand for environmentally responsible choices, further driving its revenue growth.

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

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

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

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
193.43M	203.43M	259.28M	321.53M	383.69M	364.27M
	Gross Profit
102.67M	109.35M	137.36M	154.65M	188.50M	176.00M
	EBIT
-18.98M	-12.28M	-31.45M	-140.98M	-128.85M	-66.49M
	EBITDA
-8.44M	-4.79M	-21.29M	-72.26M	-125.65M	-62.50M
	Net Income Common Stockholders
-27.58M	-27.42M	-43.23M	-87.72M	-135.90M	-72.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.42M	19.63M	86.41M	81.08M	78.38M	176.52M
	Total Assets
352.67M	65.01M	150.74M	174.04M	182.47M	269.72M
	Total Debt
0.00	22.09M	89.56M	81.09M	90.51M	58.23M
	Net Debt
-1.42M	2.46M	3.14M	8.00K	12.14M	-118.29M
	Total Liabilities
31.50M	48.79M	132.62M	147.51M	150.83M	121.44M
	Stockholders Equity
321.17M	16.22M	18.12M	26.53M	31.64M	148.28M
Cash Flow		Free Cash Flow
-6.02M	-11.51M	-10.98M	-100.48M	-132.86M	-88.48M
	Operating Cash Flow
-4.24M	-9.75M	-7.99M	-96.26M	-127.09M	-83.66M
	Investing Cash Flow
-4.49M	-1.62M	-2.98M	-4.22M	-5.77M	-4.82M
	Financing Cash Flow
-59.34M	-59.19M	9.86M	118.09M	34.71M	228.17M

Grove Collaborative Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GROV, the sentiment is Negative. The current price of 1.15 is below the 20-day moving average (MA) of 1.26, below the 50-day MA of 1.18, and below the 200-day MA of 1.38, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.30 is Neutral, neither overbought nor oversold. The STOCH value of 14.98 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GROV.

Grove Collaborative Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UG	71 Outperform	$38.18M	13.23	26.24%	8.61%	11.91%	25.93%
EWCZ	66 Neutral	$316.88M	28.11	11.85%	―	-2.93%	-17.72%
Sector *	62 Neutral	$6.88B	11.07	2.77%	4.28%	2.67%	-24.94%
NUS	62 Neutral	$373.56M	―	-4.93%	3.17%	-11.85%	-1080.00%
SKIN	54 Neutral	$192.80M	―	-70.44%	―	-17.97%	49.13%
MTEX	44 Neutral	$17.87M	8.92	-2.44%	―	-9.59%	87.78%
GROV	39 Underperform	$46.29M	―	-180.03%	―	-19.83%	22.76%

Grove Collaborative Holdings Corporate Events

Grove Collaborative Faces NYSE Non-Compliance Notice

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.

Grove Collaborative Reports Q1 2025 Financial Results

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.

Grove Collaborative Amends Loan Agreement with Siena

On May 8, 2025, Grove Collaborative Holdings, Inc. and Grove Collaborative, Inc. amended their Loan and Security Agreement with Siena Lending Group LLC. The amendment extends the loan maturity date to April 10, 2028, eliminates the minimum liquidity financial covenant, and sets a fixed applicable margin for loans, potentially impacting the company’s financial flexibility and operational strategy.