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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 42 (OpenAI - 4o)
Rating:42Neutral
Price Target:
$1.50
▲(12.78% Upside)
Grove Collaborative Holdings faces significant financial challenges, with declining revenues and profitability issues being the most impactful factors. Technical analysis indicates weak momentum, and valuation metrics are unattractive due to ongoing losses. While the earnings call highlights some strategic initiatives, the company's transition phase presents considerable risks.
Positive Factors
Subscription-Based Model
The subscription-based model fosters customer loyalty and ensures recurring revenue, providing a stable income stream and enhancing customer retention.
Product Expansion
Expanding product assortment into high-potential categories like clean beauty and wellness can drive revenue growth and capture a broader customer base.
Environmental Commitment
Commitment to environmental issues strengthens brand reputation and aligns with consumer trends favoring sustainability, potentially boosting market position.
Negative Factors
Revenue Decline
A significant decline in revenue indicates challenges in maintaining market share and could impact long-term growth and profitability.
High Leverage
High leverage can strain financial resources, limiting the company's ability to invest in growth opportunities and increasing financial risk.
Platform Migration Issues
Ongoing platform migration challenges can disrupt operations and customer experience, potentially affecting sales and customer retention.

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 generates revenue primarily through its subscription-based e-commerce model, where customers can sign up for regular deliveries of their favorite products. This model encourages customer loyalty and recurring revenue. Additionally, the company earns money through direct sales of individual products on its platform. Key revenue streams include sales from branded products, as well as partnerships with various brands to feature their eco-friendly products on the Grove platform. The company also benefits from strong customer retention rates and a growing customer base that is increasingly focused on sustainability, which contributes to its overall earnings.

Grove Collaborative Holdings Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 13, 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
Negative
Last Price1.33
Price Trends
50DMA
1.50
Negative
100DMA
1.42
Negative
200DMA
1.40
Negative
Market Momentum
MACD
-0.04
Positive
RSI
38.66
Neutral
STOCH
33.33
Neutral
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 1.33 is below the 20-day moving average (MA) of 1.48, below the 50-day MA of 1.50, and below the 200-day MA of 1.40, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 38.66 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
$32.94M12.8821.68%8.03%-11.81%-21.23%
$144.41M15.629.02%1.62%2.35%-50.52%
$20.33B14.63-3.31%3.23%1.93%-12.26%
$14.01M2.2416.79%7.75%-21.61%
$19.37M-4.98-55.19%-7.69%-220.31%
$63.98M-197.15%-18.44%37.92%
$176.29M-4.94-26.54%-15.33%75.52%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GROV
Grove Collaborative Holdings
1.36
0.08
6.25%
ACU
Acme United
38.32
-0.73
-1.87%
MTEX
Mannatech
8.70
0.81
10.27%
UG
United-Guardian
7.30
-4.78
-39.57%
SKIN
Beauty Health
1.43
-0.23
-13.86%
TKLF
Yoshitsu Co. Ltd. Sponsored ADR
3.30
-1.38
-29.49%

Grove Collaborative Holdings Corporate Events

Executive/Board Changes
Grove Collaborative Appoints New CFO Tom Siragusa
Neutral
Oct 27, 2025

On October 23, 2025, Grove Collaborative Holdings, Inc. announced the appointment of Tom Siragusa as Chief Financial Officer, effective October 1, 2025. Mr. Siragusa has been with the company in various finance roles since 2019 and previously worked at Ernst & Young LLP. His new compensation includes a base salary of $320,000 and a restricted stock unit award. The appointment includes a post-termination benefits agreement, providing financial security in case of employment termination under specific conditions.

The most recent analyst rating on (GROV) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Grove Collaborative Holdings stock, see the GROV Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Grove Collaborative Amends Loan Agreement for Flexibility
Neutral
Sep 30, 2025

On September 26, 2025, Grove Collaborative Holdings, Inc. and Grove Collaborative, Inc. amended their Loan and Security Agreement with Siena Lending Group LLC to include certain credit card receivables in the borrowing base, enhancing their financial flexibility. This amendment could potentially impact the company’s operational capabilities and financial strategy by allowing more diverse collateral options.

The most recent analyst rating on (GROV) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Grove Collaborative Holdings stock, see the GROV Stock Forecast page.

Executive/Board Changes
Grove Collaborative Appoints New Audit Committee Chair
Neutral
Aug 25, 2025

On August 22, 2025, Grove Collaborative Holdings announced the resignation of David Glazer from its Board of Directors, where he also served as the chair of the Audit Committee. The company clarified that there were no disagreements with Mr. Glazer regarding its operations or policies. Simultaneously, the company appointed Kathryn Anderson to the Board and as the new chairperson of the Audit Committee. Ms. Anderson, with extensive experience in finance and leadership roles at prominent retail and consumer brands, is expected to bring significant expertise to the company.

The most recent analyst rating on (GROV) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Grove Collaborative Holdings stock, see the GROV Stock Forecast page.

Grove Collaborative’s Mixed Earnings Call Highlights
Aug 13, 2025

Grove Collaborative Holdings, Inc. recently held its earnings call, revealing a mixed sentiment. While the company showcased achievements in sequential revenue growth, gross margin improvement, and positive cash flow, challenges persist with year-over-year revenue declines, negative adjusted EBITDA, and a decrease in active customers, reflecting ongoing headwinds.

Grove Collaborative Reports Q2 2025 Financial Results
Aug 8, 2025

Grove Collaborative Holdings, Inc. is a sustainable consumer products company that operates as the world’s first plastic neutral retailer, focusing on providing eco-friendly household and personal care products. In its second quarter of 2025, Grove reported a total revenue of $44.0 million, which marks a 15.5% decrease from the previous year but a slight increase from the first quarter. The company also reported a net loss of $3.6 million, a significant improvement from the $10.1 million net loss in the same period last year.

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.

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: Oct 29, 2025