Company: GROVW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025541
Chunk: 141

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 141
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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 EndedMarch 31,20252024Revenue, net:Grove Brands $17,613 $23,046 Third-party products25,934 30,499 Total revenue, net$43,547 $53,545 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 $5.8 million and $6.3 million, respectively, as of March 31, 2025 and December 31, 2024. Contractual liabilities included in other current liabilities were immaterial as of March 31, 2025 and December 31, 2024. The contractual liabilities included in deferred revenue are generally recognized as revenue within twelve 

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

months from the end of each reporting period. Revenue recognized during the three months ended March 31, 2025 that was previously included in deferred revenue and other current liabilities as of December 31, 2024 was $2.7 million and $0.1 million, respectively. Revenue recognized during the three months ended March 31, 2024 that was previously included in deferred revenue and other current liabilities as of December 31, 2023 was $3.7 million and $0.1 million, respectively.Fulfillment CostsFulfillment costs represent those costs incurred in outbound shipping and handling expenses, packaging materials costs (“Shipping and Handling”), operating and staffing the Company’s fulfillment centers, including costs attributable to receiving, inspecting and warehousing inventories, picking, packaging, and preparing customer orders for shipment (“Fulfillment Labor”), and payment processing and related transaction costs (“Payment Processing”). These costs are included within selling, general and administrative expenses in the condensed consolidated statements of operations; therefore, the Company’s gross profit may not be comparable to other retailers or distributors. The Company’s fulfillment costs consist of the following (in thousands):Three Months EndedMarch 31