0001841761-26-000010
SEC filingGrove Collaborative Holdings, Inc. reported a net loss of $11.7 million for fiscal year 2025, an improvement from a $27.4 million net loss in 2024. Net revenue declined 14.6% year-over-year to $173.7 million, primarily due to reductions in advertising spend, the impact of an ecommerce platform migration, and a strategic shift toward achieving Adjusted EBITDA profitability. Gross profit was $93.3 million, resulting in a gross margin of 53.7%. The company used $7.0 million in cash from operating activities and ended the year with $8.5 million in cash and cash equivalents. Grove completed the wind-down of its brick-and-mortar retail business in 2025 and continues to focus on its direct-to-consumer platform, where Grove Brands generated 41% of net revenue.
Grove Collaborative Holdings, Inc. reported fiscal year 2025 results showing a net loss of $11.7 million, a significant improvement from the $27.4 million net loss in 2024. Net revenue declined 14.6% year-over-year to $173.7 million from $203.4 million in 2024. The company attributes this revenue decline primarily to reductions in advertising spend, the impact of an ecommerce platform migration, and a strategic shift toward achieving Adjusted EBITDA profitability. Gross profit was $93.3 million, representing a gross margin of 53.7%, slightly down from 53.8% in the prior year. Operating loss improved to $11.3 million from $22.5 million in 2024. The company ended the year with $8.5 million in cash and cash equivalents and used $7.0 million in cash from operating activities.
Net revenue for fiscal year 2025 was $173.7 million, consisting of $71.9 million from Grove Brands and $101.8 million from third-party products. Grove Brands represented 41% of total net revenue, with 73% of Grove Brands revenue coming from home care products. The company noted declining revenues in recent years, with revenues for 2025 and 2024 approximately 15% and 22% lower than their respective previous years. Grove completed the wind-down of its brick-and-mortar retail business in 2025 and continues to focus on its direct-to-consumer platform and third-party ecommerce platforms. The company launched its Green Rewards customer loyalty program in December 2025 to enhance customer engagement.
Gross margin remained relatively stable at 53.7% in 2025 compared to 53.8% in 2024. Cost of goods sold was $80.4 million, representing 46.3% of revenue. Operating expenses totaled $104.6 million, including $9.7 million in advertising, $7.5 million in product development, and $87.4 million in selling, general and administrative expenses. The operating loss of $11.3 million represents an operating margin of -6.5%, an improvement from -11.1% in 2024. Non-operating expenses netted to $0.4 million, primarily consisting of $1.2 million in interest expense offset by $0.5 million in other income. The provision for income taxes was $33,000.
Cash flow from operating activities used $7.0 million, primarily driven by the net loss of $11.7 million, adjusted for $4.3 million in stock-based compensation and $1.7 million in depreciation and amortization. Investing activities used $4.0 million, including $2.8 million for acquisitions and $1.2 million for property and equipment purchases. Financing activities used $1.6 million. The company ended the year with $8.5 million in cash and cash equivalents, $2.3 million in restricted cash (current), and $1.0 million in restricted cash (noncurrent). Total assets were $53.1 million, with current assets of $34.7 million including $18.4 million in inventory. Total liabilities were $45.3 million, with current liabilities of $27.7 million. The company had $7.5 million in debt outstanding under the Siena Revolver with an additional $1.1 million in borrowing capacity available.
The company expects consumer behavior patterns, ongoing impact of ecommerce platform migration, and macro-economic factors to continue to adversely impact financial performance for at least the near to medium term. Grove continues to believe there are long-term growth trends in the reduced-plastic waste and personal health industries and expects to grow the business in the long run. The company is actively pursuing opportunities to develop and expand sales on third-party ecommerce platforms. Grove faces an investigation by the Consumer Protection Division of the Santa Clara County District Attorney's Office regarding automatic renewal practices, which could result in a material loss in future periods. The company believes its existing cash, cash equivalents, and borrowing capacity will be sufficient to fund operations for at least one year but will need to raise additional capital through debt or equity financing to fund future operations until it generates positive cash flows.