Company: GROVW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025541
Chunk: 356

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 356
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; changes in fair values of derivative liabilities; interest income; interest expense; restructuring and severance related costs; transaction related costs related to certain strategic merger & acquisition projects; provision for income taxes and certain litigation and legal settlement expenses. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by net revenue. Because Adjusted EBITDA excludes these elements that are otherwise included in our GAAP financial results, this measure has limitations when compared to net loss determined in accordance with GAAP. Further, Adjusted EBITDA is not necessarily comparable to similarly titled measures used by other companies. For these reasons, investors should not consider Adjusted EBITDA in isolation from, or as a substitute for, net loss determined in accordance with GAAP.

The following table presents a reconciliation of net loss, the most directly comparable financial measure stated in accordance with GAAP, to Adjusted EBITDA, for each of the periods presented.

Three Months EndedMarch 31,20252024Reconciliation of Net Loss to Adjusted EBITDA(in thousands, except percentages)Net loss$(3,547)$(3,391)Stock-based compensation969 3,113 Depreciation and amortization378 2,201 Changes in fair value of derivative liabilities(144)(198)Interest income(172)(1,086)Interest expense346 4,129 Restructuring and severance related costs(1)— (2,885)Transaction related costs (2)563 — Provision for income taxes9 10 Total Adjusted EBITDA$(1,598)$1,893 Net loss margin(8.1)%(6.3)%Adjusted EBITDA margin (loss)(3.7)%3.5 %

(1)Restructuring expenses for the three months ended March 31, 2024 consisted of a $3.1 million gain from the modification of our lease at our San Francisco headquarters offset by $0.3 million in severance-related charges.

(2) Transaction related costs are costs and expenses primarily associated with the acquisition of Grab Green and the acquisition of 8Greens. These costs include costs of integrating the businesses and costs for third-party legal, accounting, consulting and other similar type professional services. These costs are considered incremental to our normal operating charges and were incurred solely as a result of the transactions.

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Components of Results of Operations

Revenue, Net

We generate revenue primarily from the sale of both third-party and our Grove Brands