Grove Collaborative Reports 15% Revenue Decline in Q2 2025, Net Loss Improves

Grove Collaborative Holdings, Inc. reported a decline in financial performance for the second quarter of 2025, with net revenue of $44.0 million, a decrease of 15% from $52.1 million in the same period last year. For the first half of 2025, revenue totaled $87.6 million, down 17% from $105.6 million in the prior year. The company's gross profit also fell to $24.4 million for the quarter, compared to $28.1 million in Q2 2024, reflecting a gross margin of 55%, slightly up from 54% year-over-year. The net loss for the quarter was $3.6 million, a significant improvement from a loss of $10.1 million in Q2 2024.

The company attributed the revenue decline primarily to a decrease in direct-to-consumer (DTC) total orders, which were impacted by reduced advertising spending and temporary disruptions related to the migration of its e-commerce platform to third-party service providers. The number of DTC total orders fell to 640,732 in Q2 2025, down from 1.3 million in the same quarter last year. Additionally, the DTC net revenue per order decreased to $65 from $68, influenced by an increase in lower-value recurring orders and the elimination of certain customer fees.

Strategically, Grove Collaborative made significant moves in the first half of 2025, including the acquisition of eco-friendly brands Grab Green and 8Greens, which were completed in February and March, respectively. These acquisitions are expected to enhance the company's product offerings and align with its sustainability mission. The company also continued to focus on reducing operating expenses, with selling, general, and administrative expenses decreasing by 15% year-over-year to $23.0 million in Q2 2025, driven by lower fulfillment costs and reductions in headcount.

As of June 30, 2025, Grove Collaborative reported an accumulated deficit of $655.7 million and cash and cash equivalents of $10.0 million. The company has a revolving credit facility with Siena Lending Group, with an outstanding balance of $7.5 million and additional borrowing capacity of $0.4 million. Looking ahead, Grove Collaborative aims to improve profitability and cash flow while navigating the challenges posed by its recent platform migration and market conditions. The company believes its existing cash will be sufficient to fund operations for at least the next year, but acknowledges the need for additional capital to support future growth initiatives.