Company: GROVW
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0001628280-25-013839
Chunk: 108

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-03-19
Form: 10-K
Item: Item 7
Chunk 108
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6 Selling, general and administrative51 52 Operating loss(11)(13)Non-operating expenses:Interest expense 6 6 Loss on extinguishment of debt2 — Changes in fair value of derivative liabilities(5)— Other income, net (2)(3)Total non-operating expenses, net1 3 Loss before provision for income taxes(13)(17)Provision for income taxes— — Net loss(13)%(17)%

Comparisons of the Year Ended December 31, 2024 and December 31, 2023

Revenue, Net

 Year Ended December 31,Change 20242023Amount% (in thousands)Revenue, net:Grove Brands$82,942 $119,006 $(36,064)(30)%Third-party products120,483 140,272 $(19,789)(14)%Total revenue, net$203,425 $259,278 $(55,853)(22)%

Revenue decreased by $55.9 million, or 22%, for the year ended December 31, 2024 as compared to the year ended December 31, 2023, primarily driven by a decrease in DTC Total Orders, partially offset by increases in DTC Net Revenue Per Order.

54

Cost of Goods Sold and Gross Profit

 Year Ended December 31,Change 20242023Amount% (in thousands)Cost of goods sold$94,077 $121,919 $(27,842)(23)%Gross profit109,348 137,359 (28,011)(20)%Gross margin54 %53 %1 %

Cost of goods sold decreased by $27.8 million, or 23%, for the year ended December 31, 2024 as compared to the year ended December 31, 2023, primarily driven by a decrease in DTC Total Orders, partially offset by higher cost of goods per order.

Gross margin in the year ended December 31, 2024 increased by 78 basis points compared to the year ended December 31, 2023 due to the sale of previously reserved inventory and a decrease in lower-margin first-time orders.

Operating Expenses

Advertising Expenses

 Year Ended December 31,Change 20242023Amount% (in thousands)Advertising$10,265 $21,292 $(11,027)(52)%

Advertising expenses decreased by $11.0