Company: GROVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001841761-25-000048
Chunk: 257

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 257
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 the customers VIP membership period. Due to these factors, the Company typically recognizes VIP membership revenue ratably over the VIP membership period. The Company deducts discounts, sales tax, customer service credits and estimated refunds to arrive at net revenue. Sales tax collected from customers is not considered revenue and is included in accrued liabilities until remitted to the taxing authorities. The Company has made the policy election to account for shipping and handling as activities to fulfill the promise to transfer the good. Outbound shipping, handling and packaging expenses are recognized upon shipment and classified within selling, general and administrative expenses. Discounts are recorded as a reduction to revenue when revenue is recognized. The Company records a refund reserve based on historical refund patterns. As of September 30, 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