Company: GROVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001841761-25-000048
Chunk: 128

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 128
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2025 and December 31, 2024, the refund reserve, which is included in accrued liabilities in the condensed consolidated balance sheets, was nominal.Disaggregation of RevenueThe following table sets forth revenue by product type (in thousands):Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024Revenue, net:Grove Brands $17,518 $18,606 $52,956 $63,090 Third-party products26,216 29,674 78,351 90,834 Total revenue, net$43,734 $48,280 $131,307 $153,924 

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Table of ContentsGrove Collaborative Holdings, Inc.Notes to Condensed Consolidated Financial Statements (continued)(Unaudited)

Contractual LiabilitiesThe Company has two types of contractual liabilities from transactions with customers: (i) cash collections of VIP membership fees, which are included in deferred revenue and (ii) customer service credits, which are recognized in other current liabilities and as a reduction in revenue when provided to the customer. Contractual liabilities included in deferred revenue were $5.1 million and $6.3 million as of September 30, 2025 and December 31, 2024, respectively. Contractual liabilities included in other current liabilities were $0.1 million and immaterial as of September 30, 2025 and December 31, 2024, respectively. The contractual liabilities included in deferred revenue are generally recognized as revenue within twelve months from the end of each reporting period. Revenue recognized during the nine months ended September 30, 2025 that was previously included in deferred revenue and other current liabilities as of December 31, 2024 was $5.9 million and $0.1 million, respectively. Revenue recognized during the nine months ended September 30, 2024 that was previously included in deferred revenue and other current liabilities as of December 31, 2023 was $6.8 million and $0.1 million, respectively.Fulfillment CostsFulfillment costs represent those costs incurred in fulfilling customer orders and include the following:•Shipping and Handling includes outbound shipping costs and packaging materials costs;•Fulfillment Labor includes costs of operating and staffing the Company’s fulfillment centers, including costs attributable to receiving, inspecting and warehousing inventories, picking, and preparing customer orders for shipment; and•Payment Processing includes costs related to collecting customer payments and other transaction costs