Grove Collaborative (GROV) Q2 2025 earnings summary

Executive summary

• Revenue declined 15.5% year-over-year to $44.0 million in Q2 2025 but grew 1.1% sequentially, reflecting recovery after eCommerce platform migration disruptions.

• Net loss narrowed to $3.6 million from $10.1 million year-over-year, with positive operating cash flow of $1.0 million.

• Gross margin improved to 55.4%, up 150 basis points year-over-year, driven by better promotional efficiency and vendor funding.

• Operating expenses fell 15–20.3% year-over-year, mainly due to lower fulfillment costs, reduced headcount, and lower stock-based compensation.

• Strategic collaboration and platform migration initiatives are expected to unlock shareholder value and drive long-term efficiency.

Financial highlights

• Q2 2025 revenue was $44.0 million, down 15.5% year-over-year but up 1.1% sequentially.

• Adjusted EBITDA for Q2 2025 was -$0.9 million (-2.1% margin), down from +$1.1 million (2.0% margin) last year.

• Net loss improved to -$3.6 million from -$10.1 million year-over-year.

• Gross margin increased to 55.4%, up 150 basis points year-over-year.

• Cash, cash equivalents, and restricted cash totaled $14.0 million at quarter end.

Outlook and guidance

• Sequential revenue growth expected through H2 2025, with slight year-over-year growth in Q4.

• Full-year 2025 revenue projected to decline mid-single-digit to low double-digit percent year-over-year.

• Adjusted EBITDA for 2025 expected to be negative low single-digit millions to break even.

• Q1 2025 anticipated as the lowest revenue quarter going forward.

• Company will continue investing in advertising to drive topline growth, accepting modest Adjusted EBITDA losses.