Company: GROVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001841761-25-000048
Chunk: 277

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 277
---
 the Company’s stockholders. The ESPP went into effect on November 16, 2022. Subject to certain limitations contained therein, the ESPP allows eligible employees to contribute, through payroll deductions, up to 20% of their eligible compensation to purchase the Company’s Class A common stock at a discounted price per share. Stock-Based Compensation ExpenseThe Company recognized a total of $1.1 million and $2.8 million of stock-based compensation expense for the three months ended September 30, 2025 and 2024, respectively and $3.5 million and $9.3 million of stock-based compensation expense for the nine months ended September 30, 2025 and 2024, respectively, primarily related to RSUs granted to employees and non-employees and the ESPP. Stock-based compensation expense was predominately recorded in selling, general and administrative expenses in the condensed consolidated statements of operations for each period presented. As of September 30, 2025, the total unrecognized compensation expense related to unvested options and RSUs was $5.7 million, which the Company expects to recognize over an estimated weighted average period of 2.1 years.

11.    Segments

The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The Company has determined that it operates in one operating segment as it only reports operating results on an aggregate basis to the CODM. Segment revenues are described in Note 2, Significant Accounting Policies. All company assets are located within the United States and all revenues are generated within the United States. All business activities are managed on a consolidated basis.

26

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

The CODM uses net loss as reported in the consolidated statements of operations to evaluate the Company’s return on assets in deciding whether and how to invest into the Company’s consolidated operations, such as to expand its product offerings or increase advertising expenditures. The CODM reviews segment assets as presented on its consolidated balance sheets.The Company does not have intra-entity sales or transfers.The table below is segment information for the periods presented and a reconciliation of segment information, including significant expenses, to consolidated net loss (in thousands):Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024Segment Revenue, Significant Expenses and Net Loss:Total revenue, net$43,734 $48,280 $131,307 $153,924