Revenue Falls 18.7% for Grove Collaborative in Q1 2025

Revenue for Grove Collaborative Holdings, Inc. fell 18.7% to $43.5 million in Q1 2025 compared to $53.5 million the prior-year quarter.

This resulted in a net loss of $3.5 million, compared to a net loss of $3.4 million in the prior-year period.

Adjusted EBITDA was $1.6 million, compared to $1.9 million in the prior-year period.

The decline was driven by lower repeat order volume, reflecting lower advertising spend throughout 2024. Revenue was further impacted by temporary disruptions related to the company’s eCommerce platform migration to third-party providers. The company estimates that the migration negatively impacted first quarter revenue by approximately $2.0 to $3.0 million, based on a comparison of pre- and post-launch order volume and net revenue per order. These declines in repeat orders were partially offset by improved advertising efficiencies and stronger new customer order economics, which enabled increased advertising spend during the quarter, despite the platform-related challenges.

“We are not satisfied with our first quarter performance and recognize that our turnaround is taking longer than anticipated,” said Jeff Yurcisin, CEO of Grove Collaborative. “That said, we continue to make steady progress and remain committed to executing our strategy to become the leading destination for natural and sustainable products,” “Since joining Grove, my priority has been to first build a unique and differentiated customer experience — one that we believe is essential to unlocking long-term shareholder value through sustainable, profitable revenue growth.”

Financial Outlook

First quarter revenue is expected to be the lowest revenue quarter in 2025 and going forward.
Revenue is expected to improve through the second and third quarters, leading to slight year-over-year growth in the fourth quarter.

Full-year 2025 revenue is expected to decline approximately mid-single-digit to low double-digit percentage points year-over-year.