Grove Collaborative Reports 9% Revenue Decline in Q3 2025, Operating Loss Improves

Grove Collaborative Holdings, Inc. reported a decline in financial performance for the third quarter of 2025, with net revenue of $43.7 million, down 9% from $48.3 million in the same period last year. For the nine months ending September 30, 2025, revenue totaled $131.3 million, a 15% decrease from $153.9 million in 2024. The company attributed this decline primarily to a reduction in direct-to-consumer (DTC) orders, which fell significantly due to lower advertising expenditures and disruptions related to the migration of its e-commerce platform to third-party service providers.

The company's gross profit for the third quarter was $23.3 million, resulting in a gross margin of 53%, consistent with the prior year. However, operating expenses decreased to $26.1 million from $34.3 million year-over-year, driven by reductions in product development and selling, general, and administrative costs. Despite these reductions, Grove reported an operating loss of $2.7 million for the quarter, an improvement from a loss of $6.7 million in the same quarter of 2024. The net loss for the third quarter was $3.0 million, compared to a loss of $1.3 million in the previous year.

In terms of operational metrics, Grove reported 619,708 DTC total orders for the third quarter, a significant drop from 1.9 million in the same period last year. The number of active customers remained stable at approximately 660,710. The company has focused on enhancing its product offerings, launching new eco-friendly products, and transitioning its e-commerce operations to improve scalability and customer experience. Grove also completed two acquisitions in early 2025, acquiring assets from MaddieBrit Products, LLC and Tasty Greens, LLC, which are expected to contribute to its product portfolio.

Looking ahead, Grove Collaborative Holdings, Inc. anticipates that its exit from brick-and-mortar retail will enhance profitability without significantly impacting revenue. The company is also working to resolve issues stemming from its e-commerce platform migration, which it believes will ultimately lead to improved operational efficiency. However, Grove acknowledges the need for additional capital to support its operations and growth initiatives, as it continues to navigate a challenging market environment. The company had $8.9 million in cash and cash equivalents as of September 30, 2025, and plans to explore various financing options to bolster its liquidity.