Grove Collaborative Holdings (GROV) AI Stock Analysis

• Market Cap: $58.63M
• Dividend Yield: N/A
• Average Volume (3M): 384.16K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.10
• Revenue Growth: -19.83%
• EPS Growth: 22.76%
• Country: US
• Employees: 339
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Household & Personal Products
• EPS (TTM): -0.10
• Shares Outstanding: 41,002,440
• 10 Day Avg. Volume: 995,134
• 30 Day Avg. Volume: 384,159
• PEG Ratio: <0.01
• Price to Book (P/B): 4.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.49
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 0.61
• Enterprise Value/Ebitda: -2.42
• 1Y Price Target: $2.10
• Price Target Upside: 46.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 41 Neutral
• Price Target: $1.00 ▼(-30.07%Downside)

Grove Collaborative Holdings faces significant financial and operational challenges, as reflected by its poor financial performance and valuation metrics. The non-compliance notice from the NYSE and overbought technical indicators further contribute to the stock's risk profile. While there are strategic initiatives for growth, these have yet to mitigate existing financial pressures.

Positive Factors

Acquisitions

Recent acquisitions of Grab Green and 8Greens should help incrementally add sales.

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

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 Margins

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.

Promotional Activity

Gross margins in the quarter deleveraged primarily from increased promotional activity.

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, 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 Money

Grove 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 Financial Statement Overview

Summary

Grove Collaborative Holdings faces significant financial challenges with declining revenues and persistent losses. The company has high leverage and negative cash flow metrics, indicating financial instability. Though there is some efficiency in cost management, the high debt levels and poor cash flow generation need addressing for 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	203.43M	259.28M	321.53M	383.69M	364.27M
Gross Profit	109.35M	137.36M	154.65M	188.50M	176.00M
EBITDA	-4.79M	-21.29M	-72.26M	-125.65M	-62.50M
Net Income	-27.42M	-43.23M	-87.72M	-135.90M	-72.26M
Balance Sheet
Total Assets	65.01M	150.74M	174.04M	182.47M	269.72M
Cash, Cash Equivalents and Short-Term Investments	19.63M	86.41M	81.08M	78.38M	176.52M
Total Debt	22.09M	89.56M	81.09M	90.51M	58.23M
Total Liabilities	48.79M	132.62M	147.51M	150.83M	121.44M
Stockholders Equity	16.22M	18.12M	26.53M	31.64M	148.28M
Cash Flow
Free Cash Flow	-11.51M	-10.98M	-100.48M	-132.86M	-88.48M
Operating Cash Flow	-9.75M	-7.99M	-96.26M	-127.09M	-83.66M
Investing Cash Flow	-1.62M	-2.98M	-4.22M	-5.77M	-4.82M
Financing Cash Flow	-59.19M	9.86M	118.09M	34.71M	228.17M

Grove Collaborative Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1.43 is above the 20-day moving average (MA) of 1.24, above the 50-day MA of 1.23, and above the 200-day MA of 1.37, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 66.49 is Neutral, neither overbought nor oversold. The STOCH value of 47.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$37.26M	12.91	26.24%	8.63%	11.91%	25.93%
EWCZ	65 Neutral	$284.31M	24.58	11.85%	―	-2.93%	-17.72%
Sector *	62 Neutral	$16.79B	10.79	-7.01%	3.04%	1.73%	-25.15%
NUS	61 Neutral	$416.55M	―	-4.93%	2.85%	-11.85%	-1080.00%
SKIN	54 Neutral	$206.66M	―	-70.44%	―	-17.97%	49.13%
MTEX	44 Neutral	$15.60M	8.92	-2.44%	―	-9.59%	87.78%
GROV	41 Neutral	$58.63M	―	-180.03%	―	-19.83%	22.76%

Grove Collaborative Holdings Corporate Events

Grove Collaborative Amends Equity Purchase Agreement

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.

Grove Collaborative Holds 2025 Annual Stockholder Meeting

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.

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.