Grove Collaborative Holdings (GROV) AI Stock Analysis

• Market Cap: $60.84M
• Dividend Yield: N/A
• Average Volume (3M): 94.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• 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: 1.20
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 0.75
• Enterprise Value/Ebitda: -4.43
• 1Y Price Target: $2.00
• Price Target Upside: 36.05% 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: $1.50 ▲(2.04% Upside)

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

Subscription-based recurring revenue

Grove's subscription-driven e-commerce model creates recurring revenue and higher customer lifetime value, giving predictable order cadence and lower relative acquisition needs. Over months this supports margin stability and planning for tech and CX investments to rebuild growth.

Improving gross margin

A sustained gross margin above 50%—improving via targeted promotions and reduced discounting—provides structural cushion for profitability efforts. If maintained, this margin strength allows SG&A optimization to translate more directly into positive adjusted EBITDA and free cash flow over the coming quarters.

Positive free cash flow growth trend

Double-digit FCF growth signals improving cash generation dynamics even if absolute operating cash flow remains negative. A durable upward FCF trend reduces reliance on external financing, improves liquidity optionality, and supports reinvestment in product, tech, and customer experience over the medium term.

Negative Factors

High financial leverage

A debt/equity ratio around 2x limits financial flexibility and raises refinancing and interest risks. High leverage can force prioritization of debt service over growth investments, constrain M&A or tech spend, and magnify downside if revenue or cash flow stabilization takes longer than planned.

Declining revenue and customer base

Sustained declines in revenue and active customers erode the subscription flywheel that underpins Grove's model. Fewer active customers reduce recurring order volume and LTV, making margin gains harder to monetize and raising the need for continued marketing or product investment to reverse structural churn.

Ongoing unprofitability

Persistently negative profitability metrics indicate structural cost or revenue mix issues. Continued net losses constrain equity returns, increase pressure to cut growth investments, and may necessitate further financing or dilution unless margins and customer trends sustainably improve.

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 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: Positive
• Last Price: 1.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.47 is above the 20-day moving average (MA) of 1.31, above the 50-day MA of 1.29, and above the 200-day MA of 1.34, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 67.05 is Neutral, neither overbought nor oversold. The STOCH value of 93.69 is Negative, 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	74 Outperform	$33.13M	16.90	17.85%	9.81%	-18.29%	-43.76%
ACU	66 Neutral	$159.08M	17.18	9.02%	1.48%	2.35%	-50.52%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
TKLF	55 Neutral	$13.42M	2.14	16.79%	―	7.75%	-21.61%
SKIN	51 Neutral	$191.25M	-6.79	-18.73%	―	-13.14%	57.98%
MTEX	46 Neutral	$14.16M	-8.65	-19.54%	―	-9.17%	-4.64%
GROV	43 Neutral	$60.84M	-2.31	-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.

The most recent analyst rating on (GROV) stock is a Buy with a $2.00 price target. To see the full list of analyst forecasts on Grove Collaborative Holdings stock, see the GROV Stock Forecast page.