Company: GROVW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001841761-25-000048
Chunk: 291

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 291
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)78,351 90,834 (12,483)(14)Total revenue, net$43,734 $48,280 $(4,546)(9)%$131,307 $153,924 $(22,617)(15)%

Revenue decreased by $4.5 million, or 9%, and $22.6 million, or 15%, for the three and nine months ended September 30, 2025, respectively, as compared to the three and nine months ended September 30, 2024, respectively. This decline was primarily driven by a decrease in DTC Total Orders from lower advertising expenses in previous periods and temporary disruptions related to the migration from our internally developed legacy ecommerce platform to third party service providers for both the three and nine months ended September 30, 2025, respectively, compared to the prior year comparative periods.

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Cost of Goods Sold and Gross Profit

Three Months EndedSeptember 30,ChangeNine Months EndedSeptember 30,Change20252024Amount%20252024Amount%(in thousands, except percentages)Cost of goods sold$20,412$22,678$(2,266)(10)%$60,526$70,519$(9,993)(14)%Gross profit 23,32225,602(2,280)(9)%70,78183,405(12,624)(15)%Gross margin53 %53 %54 %54 %

Cost of goods sold decreased by $2.3 million, or 10%, and $10.0 million, or 14%, for the three and nine months ended September 30, 2025, respectively, as compared to the three and nine months ended September 30, 2024, primarily due to a decrease in DTC Total Orders.

Gross margin in the three months ended September 30, 2025 increased by 30 basis points, compared to the three months ended September 30, 2024, primarily due to improved promotional strategies resulting in reduced discounts offered to customers and a product sales mix favoring higher margin products.

Gross margin in the nine months ended September 30, 2025 decreased by 28 basis points, compared to the nine months ended September 30, 2024, due to the elimination of certain per order fees charged to our customers, partially offset by improved promotional strategies resulting in reduced discounts offered to customers.

Operating Expenses

Advertising Expenses

Three Months EndedSeptember 30,Change Nine