Grove Collaborative posts 18.7% decline in Q1 FY25 revenue
The revenue decline was primarily attributed to reduced repeat order volume, which resulted from lower advertising spending throughout 2024.
USA – Groove Collaborative, an American-based manufacturer of home and personal care products, has reported a decline in revenue for the first quarter of 2025, with earnings dropping by 18.7% to USD 43.5 million, down from USD 53.5 million recorded in the same period last year.
The company posted a net loss of USD 3.5 million for the first quarter of 2025, slightly higher than the USD 3.4 million loss recorded in the same period last year.
Adjusted EBITDA stood at USD 1.6 million, a decline from the USD 1.9 million reported in the previous year’s quarter.
The revenue decline was primarily attributed to reduced repeat order volume, which resulted from lower advertising spending throughout 2024.
In addition, temporary disruptions caused by the company’s transition of its e-commerce platform to third-party providers further impacted revenue.
The company reported a net loss of USD 3.5 million, representing an 8.1% net loss margin, compared to a net loss of USD 3.4 million and a 6.3% net loss margin in the same period last year.
Adjusted EBITDA dropped to negative USD 1.6 million with a (3.7%) margin, a sharp decline from a positive USD 1.9 million and a 3.5% margin in the same period last year.
Gross margin fell to 53.0%, a 260-basis-point drop from 55.5%, mainly due to the removal of certain customer fees in Q3 2024 and a diminished benefit from clearing previously reserved inventory.
Jeff Yurcisin, CEO of Grove Collaborative, “We are not satisfied with our first quarter performance and recognize that our turnaround is taking longer than anticipated.”
“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.”
Grove Collaborative Holdings, Inc. anticipates that the first quarter will be the lowest revenue period for 2025, with gradual improvements expected in the second and third quarters, ultimately leading to modest year-over-year growth in the fourth quarter.
For the full year of 2025, the company projects revenue to decline by a mid-single-digit to low double-digit percentage compared to the previous year.
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