Grove Collaborative Holdings (GROV) AI Stock Analysis

• Market Cap: $55.05M
• Dividend Yield: N/A
• Average Volume (3M): 94.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: -15.42%
• EPS Growth: 7.12%
• Country: US
• Employees: 339
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): -0.08
• Shares Outstanding: 41,387,653
• 10 Day Avg. Volume: 97,316
• 30 Day Avg. Volume: 94,821
• PEG Ratio: 0.05
• Price to Book (P/B): 3.17
• Price to Sales (P/S): 0.25
• P/FCF Ratio: -4.47
• Enterprise Value/Market Cap: 1.70
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 0.97
• Enterprise Value/Ebitda: -5.68
• 1Y Price Target: $2.00
• Price Target Upside: 55.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $1.00 ▼(-22.48% Downside)

Grove Collaborative Holdings' overall stock score is primarily impacted by its weak financial performance and valuation metrics. The company's high leverage, declining revenues, and ongoing losses pose significant risks. Technical analysis further indicates bearish momentum. While there are some positive developments in cost optimization and gross margin improvements, the cautious sentiment from the earnings call reflects ongoing operational challenges.

Positive Factors

Gross Margin Improvement

Improved gross margins indicate effective cost management and promotional strategies, enhancing profitability potential over time.

Product Assortment Expansion

Expanding product assortment can attract a broader customer base and drive revenue growth in high-potential categories.

New CFO Appointment

The appointment of an experienced CFO can strengthen financial leadership and strategic execution, potentially improving financial performance.

Negative Factors

Revenue Decline

Declining revenue reflects challenges in maintaining market share and customer engagement, impacting long-term growth prospects.

High Leverage

Significant leverage increases financial risk and limits flexibility, potentially hindering investment in growth opportunities.

Customer Experience Challenges

Poor customer experience can lead to decreased retention and lower order volumes, affecting long-term revenue and brand loyalty.

Grove Collaborative Holdings Business Overview & Revenue Model

Company Description

Grove Collaborative Holdings (GROV) is a socially responsible e-commerce company focused on providing a wide range of natural and sustainable household and personal care products. Founded in 2016, the company operates primarily in the consumer goods sector and is dedicated to offering eco-friendly alternatives to traditional products, including cleaning supplies, personal care items, and baby products. Grove Collaborative emphasizes transparency and sustainability in its product offerings, catering to consumers who prioritize environmentally conscious choices.

How the Company Makes Money

Grove 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 Financial Statement Overview

Summary

Grove Collaborative Holdings faces significant financial challenges, with declining revenues, high leverage, and ongoing losses. While there are some positive signs in cash flow management, the company needs to address its profitability and leverage issues to improve its financial health and stability.

Income Statement

Grove Collaborative Holdings has experienced declining revenue over recent periods, with a negative revenue growth rate of -2.45% TTM. The gross profit margin remains relatively stable at 53.41% TTM, indicating efficient cost management. However, the company is struggling with profitability, as evidenced by a negative net profit margin of -11.41% TTM and negative EBIT and EBITDA margins. These factors suggest challenges in achieving operational efficiency and profitability.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 2.01 TTM, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting ongoing losses and challenges in generating returns for shareholders. The equity ratio is low, suggesting limited equity financing relative to total assets. These metrics highlight financial instability and potential liquidity concerns.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 21.91% TTM, indicating some improvement in cash generation. However, both operating and free cash flows remain negative, and the operating cash flow to net income ratio is unfavorable. The free cash flow to net income ratio is positive, suggesting that despite losses, the company is managing to generate some cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	180.81M	203.43M	259.28M	321.53M	383.69M	364.27M
Gross Profit	96.72M	109.35M	137.36M	154.65M	188.50M	176.00M
EBITDA	-16.50M	-4.79M	-21.29M	-72.26M	-125.65M	-62.50M
Net Income	-22.77M	-27.42M	-43.23M	-87.72M	-135.90M	-72.26M
Balance Sheet
Total Assets	54.65M	65.01M	150.74M	174.04M	182.47M	269.72M
Cash, Cash Equivalents and Short-Term Investments	8.91M	19.63M	86.41M	81.08M	78.38M	176.52M
Total Debt	21.09M	22.09M	89.56M	81.09M	90.51M	58.23M
Total Liabilities	46.02M	48.79M	132.62M	147.51M	150.83M	121.44M
Stockholders Equity	8.62M	16.22M	18.12M	26.53M	31.64M	148.28M
Cash Flow
Free Cash Flow	-8.15M	-11.51M	-10.98M	-100.48M	-132.86M	-88.48M
Operating Cash Flow	-6.66M	-9.75M	-7.99M	-96.26M	-127.09M	-83.66M
Investing Cash Flow	-4.29M	-1.62M	-2.98M	-4.22M	-5.77M	-4.82M
Financing Cash Flow	-32.34M	-59.19M	9.86M	118.09M	34.71M	228.17M

Grove Collaborative Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1.29 is below the 20-day moving average (MA) of 1.34, below the 50-day MA of 1.40, and below the 200-day MA of 1.37, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.36 is Neutral, neither overbought nor oversold. The STOCH value of 49.72 is Neutral, 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	$27.66M	14.11	17.85%	9.95%	-18.29%	-43.76%
ACU	64 Neutral	$154.02M	16.63	9.02%	1.53%	2.35%	-50.52%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SKIN	51 Neutral	$175.02M	-4.90	-18.73%	―	-13.14%	57.98%
MTEX	50 Neutral	$18.44M	―	-19.54%	―	-9.17%	-4.64%
TKLF	48 Neutral	$13.84M	2.21	16.79%	―	7.75%	-21.61%
GROV	43 Neutral	$55.05M	-2.09	-130.15%	―	-15.42%	7.12%

Grove Collaborative Holdings Corporate Events

Grove Collaborative Reports Q3 2025 Financial Results

On November 13, 2025, Grove Collaborative Holdings announced its financial results for the third quarter of 2025, reporting a total revenue of $43.7 million, a 9.4% decrease year-over-year. The company experienced a net loss of $3.0 million, with disruptions from an eCommerce platform migration impacting results. Despite these challenges, Grove is focusing on rebuilding its core customer experience and expects full-year revenue at the lower end of its guidance range. The company is also executing cost-saving measures and evaluating strategic options to enhance shareholder value and strengthen its competitive position.

Grove Collaborative Appoints New CFO Tom Siragusa

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.

Grove Collaborative Amends Loan Agreement for Flexibility

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.