Grove Collaborative (GROV) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $43.7 million, down 9.4% year-over-year and 0.7% sequentially, marking the smallest annual decline since 2021 as cost discipline and operational improvements took priority.

• Net loss was $3.0 million, compared to $1.3 million last year, reflecting ongoing cost controls and the absence of a prior non-cash derivative gain.

• Adjusted EBITDA loss was $1.2 million (-2.7% margin), down from breakeven last year, as cost structure improvements and workforce reductions were implemented.

• The company completed a migration of its e-commerce platform to third-party providers, causing temporary disruptions but expected to improve scalability and efficiency.

• Strategic focus included disciplined execution, efficient growth, sustainability leadership, and ongoing evaluation of M&A, partnerships, and strategic options to accelerate scale and value.

Financial highlights

• Gross margin improved to 53.3%, up 30 basis points year-over-year, driven by better promotional strategies and product mix.

• Operating expenses declined, with SG&A down 14% and total operating expenses down 19.5% year-over-year.

• Operating cash flow was negative $1.0 million, compared to positive $0.8 million last year.

• Cash, cash equivalents, and restricted cash totaled $12.3 million at quarter-end, down from $14.0 million in Q2 and $24.3 million at year-end.

• Outstanding debt was $7.5 million under the ABL/Siena Revolver as of September 30, 2025.

Outlook and guidance

• Full-year 2025 revenue expected at $172.5–$175 million, at the lower end of prior guidance.

• Q4 revenue anticipated to remain flat sequentially, with no year-over-year growth expected.

• Full-year Adjusted EBITDA guidance maintained at negative low single-digit millions to breakeven; Q4 Adjusted EBITDA expected to be positive.

• Management expects the exit from brick-and-mortar retail to be completed by end of 2025, with minimal revenue impact but improved profitability.

• Current cash and equivalents are believed sufficient to fund operations for at least one year, but additional capital may be needed for long-term growth.