Grove Collaborative (GROV) investor relations material

Strategic transformation and business model evolution

• Transitioned from a subscription-only, home cleaning essentials company to an open marketplace for sustainable, healthy products, expanding the total addressable market and customer base.

• Focused on curation, high ingredient standards, and plastic reduction, positioning as a trusted destination for health, wellness, and sustainability.

• Implemented operational efficiencies, including streamlined fulfillment centers and improved box economics, to compete with larger marketplaces.

• Expanded product assortment into new categories such as vitamins, supplements, beauty, and baby, responding to customer demand and increasing average order value.

• Built a strong brand reputation, with 89% of surveyed customers trusting the company for health and wellness more than any other retailer.

Financial performance and turnaround

• Achieved significant EBITDA improvement, moving from large quarterly losses to breakeven over the past eight quarters.

• Expanded gross margin by over 800 basis points through disciplined cost management and renegotiation of contracts.

• Paid down term debt, resulting in a clean balance sheet and removal of existential risk, with a focus on profitability and cash flow discipline.

• Revenue declined 16% year over year but showed sequential quarterly growth, with guidance for year-over-year growth in Q4 and breakeven to low single-digit million adjusted EBITDA for the full year.

• Addressed the overhang from previous heavy marketing spend, with customer cohorts now stabilizing and contributing to a more predictable revenue base.

Growth strategy and forward-looking statements

• Projecting sequential revenue growth in Q2, Q3, and Q4, with Q4 expected to show year-over-year growth.

• Pursuing M&A opportunities, recently acquiring Eight Greens and Grab Green to strengthen the product portfolio and drive higher gross margins.

• Collaborating with HumanCo to assess further M&A targets and accelerate growth, with one to four potential targets reaching out monthly.

• Emphasizing content, education, and storytelling to build trust and differentiate from larger marketplaces.

• Leadership and board members are personally invested, signaling confidence in the company’s upside potential and long-term vision.