Company: GROVW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038957
Chunk: 372

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 372
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 a decrease in DTC Total Orders and lower cost of goods per order.

Cost of goods sold decreased by $7.7 million, or 16%, for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to a decrease in DTC Total Orders, partially offset by increase in cost of goods per order.

Gross margin in the three months ended June 30, 2025 increased by 155 basis points, compared to the three months ended June 30, 2024, primarily due to improved promotional strategies resulting in reduced discounts offered to customers and increases in third-party vendor funding, offset by the elimination of certain per order fees charged to our customers.

Gross margin in the six months ended June 30, 2025 decreased by 52 basis points, compared to the six months ended June 30, 2024, due to the elimination of certain per order fees charged to our customers, partially offset by improved promotional strategies resulting in reduced discounts offered to customers.

37

Operating Expenses

Advertising Expenses

Three Months EndedJune 30,Change Six Months EndedJune 30,Change20252024Amount %20252024Amount%(in thousands, except percentages)Advertising $2,722 $2,439 $283 12 %$5,529 $4,492 $1,037 23 %

Advertising expenses increased by $0.3 million, or 12%, and $1.0 million, or 23% for the three and six months ended June 30, 2025, respectively, compared to the three and six months ended June 30, 2024 driven by increases in online advertising and television advertising expenses, offset by decreases in performance partnerships and shopper marketing expenses.

Product Development Expenses

Three Months EndedJune 30,Change Six Months EndedJune 30,Change20252024Amount %20252024Amount%(in thousands, except percentages)Product development$2,207 $5,436 $(3,229)(59)%$3,986 $9,062 $(5,076)(56)%

Product development expenses decreased by $3.2 million, or 59%, for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024, primarily due to a $1.3 million decrease in amortization expenses related to certain internally developed software which was fully amortized at the end