Company: GROVW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025541
Chunk: 360

Company: Grove Collaborative Holdings, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 2
Chunk 360
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 net$43,547 $53,545 $(9,998)(19)%

Revenue decreased by $10.0 million, or 19%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. 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. The decrease was partially offset by increases in DTC Net Revenue Per Order.

Cost of Goods Sold and Gross Profit

Three Months EndedMarch 31,Change20252024Amount%(in thousands, except percentages)Cost of goods sold$20,483$23,805$(3,322)(14)%Gross profit 23,06429,740(6,676)(22)%Gross margin53 %56 %

Cost of goods sold decreased by $3.3 million, or 14%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, due to a decrease in DTC Total Orders, partially offset by higher cost of goods per order.

Gross margin in the three months ended March 31, 2025 decreased by 258 basis points compared to the three months ended March 31, 2024, due to an increase in product costs as a percentage of revenue, the lower release of previously reserved inventory and the elimination of certain per order fees charged to our customers. 

36

Operating Expenses

Advertising Expenses

Three Months EndedMarch 31,Change 20252024Amount %(in thousands, except percentages)Advertising $2,807 $2,053 $754 37 %

Advertising expenses increased by $0.8 million, or 37%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 driven by increases in online advertising expenses.

Product Development Expenses

Three Months EndedMarch 31,Change 20252024Amount %(in thousands, except percentages)Product development$1,779 $3,626 $(1,847)(51)%

Product development expenses decreased by $1.8 million, or 51%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, primarily due to decreases in severance-related expenses and reduction in amortization expenses