Company: GROVW
Filing Date: 2025-03-19
Form Type: 10-K
Source: 0001628280-25-013839
Chunk: 104

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-03-19
Form: 10-K
Item: Item 7
Chunk 104
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 for each of the periods presented. 

 Year Ended December 31,  20242023Reconciliation of Net Loss to Adjusted EBITDA(in thousands) Net loss$(27,423)$(43,232)Stock-based compensation11,995 15,513 Depreciation and amortization9,821 5,824 Changes in fair value of derivative liabilities(9,888)(216)Reduction of transaction costs allocated to derivative liabilities upon Business Combination— (3,745)Interest income(3,057)(3,773)Interest expense 12,777 16,077 Restructuring expenses (1)2,032 3,811 Loss on extinguishment of debt5,004 — Provision for income taxes40 38 Litigation and legal settlement expenses— 520 Total Adjusted EBITDA$1,301 $(9,183)Net loss margin(13.5)%(16.7)%Adjusted EBITDA margin0.6 %(3.5)%

(1) Restructuring expenses for the year ended December 31, 2024 consisted of $3.1 million gain from our modification of the lease at our San Francisco headquarters offset by $1.3 million of costs related to our move to a new distribution facility in Nevada, $2.5 million in severance-related charges, and $1.3 million related to impairment of operating lease right-of-use assets. For the year ended December 31, 2023 restructuring expenses consisted of $2.5 million related to operating lease right-of-use and fixed asset impairment charges and $1.3 million in severance-related charges.

Components of Results of Operations

Revenue, Net

We generate revenue primarily from the sale of both third-party and our Grove Brands products through our DTC platform. Customers purchase products through the website or mobile application through a combination of directly selecting items from the catalog, items that are suggested by our recommendation engine, and featured products that appear in marketing on-site, in emails and on our mobile application. Most customers purchase a combination of products recommended by us based on previous purchases and new products discovered through marketing or catalog browsing. Customers can opt to subscribe and have orders auto-shipped to them on a specified date or shipped immediately through an option available on the website and mobile application. We recognize revenue from the sale of our products through our DTC platform net of discounts, sales tax, customer service credits and estimated refunds. Sales tax collected from