Grove Collaborative and Oceanic Preservation Society Launch The Unplastic Shop to Help Consumers Reduce Plastic Exposure at Home Mar 19, 2026 12:28 PM Eastern Daylight Time Grove Collaborative and Oceanic Preservation Society Launch The Unplastic Shop to Help Consumers Reduce Plastic Exposure at Home Share Launched March 16, the new collection features ~500 vetted products and education to support practical, everyday swaps. SAN FRANCISCO--(BUSINESS WIRE)--Grove Collaborative Holdings, Inc. (NYSE: GROV) ("Gr ...

Core Insights - Grove Collaborative reported a net loss of $1.6 million in the fourth quarter, a significant improvement from a net loss of $12.6 million in the same period last year, with adjusted EBITDA turning positive at $1.6 million compared to negative $1.6 million a year earlier, marking the first positive adjusted EBITDA quarter in six quarters [1][4][7] Financial Performance - The company generated revenue of $42.4 million in the fourth quarter, reflecting a 14.3% decline year-over-year, primarily due to fewer orders linked to reduced advertising investment and the impacts of a platform migration [2][6] - Direct-to-consumer (DTC) orders fell by 25% year-over-year, with active customers decreasing by 13% to 599,000, although net revenue per order increased by 4.1% to $69.50, and gross margin improved to 53.0% [6][8][9] Cost Management and Cash Flow - Advertising expenditure was reduced to $1 million in the fourth quarter, a 65.2% decrease year-over-year, as part of a strategic decision to preserve liquidity and enhance the core customer experience [10] - The company achieved break-even operating cash flow in the fourth quarter, marking the fifth quarter in the last eight with at least break-even or positive operating cash flow, ending the quarter with $11.8 million in cash equivalents [13] Customer Experience and Retention Strategies - Management emphasized the importance of restoring a reliable customer experience as a key driver for the 2026 plan, launching a loyalty program, Grove Green Rewards, aimed at enhancing customer engagement and retention [14] - A redesigned mobile app was launched in February, aimed at restoring functionality lost during the platform migration, with expectations for improved performance in the coming quarters [15] Future Outlook and Strategic Initiatives - For 2026, Grove expects net revenue between $140 million and $150 million, with adjusted EBITDA projected to be approximately break-even, anticipating sequential improvement as customer experience enhancements support retention [5][17] - The company is exploring strategic options, including potential acquisitions or partnerships, to maximize shareholder value while focusing on customer needs and capital efficiency [21]

Financial Data and Key Metrics Changes - For Q4 2025, revenue was $42.4 million, a decline of 14.3% year-over-year, primarily due to fewer orders and reduced advertising investment [28] - Full year revenue was $173.7 million, reflecting a 14.6% year-over-year decline, but within revised guidance [28] - Adjusted EBITDA for Q4 was $1.6 million, marking the first positive adjusted EBITDA in six quarters, compared to -$1.6 million in the prior year [33] - The net loss for Q4 was $1.6 million, improving from a net loss of $12.6 million in the prior year [33] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) total orders were 539,000, a decline of 25% year-over-year, with active customers at 599,000, down 13% from the previous year [29] - DTC net revenue per order increased by 4.1% year-over-year to $69.50, driven by targeted promotional strategies and a larger mix of higher-priced items [29] Market Data and Key Metrics Changes - The company ended 2025 with 599,000 active customers, down from 689,000 at the end of 2024, indicating challenges in customer retention due to e-commerce platform migration [12] - The company expects to stabilize active customers and reactivate lapsed ones as the e-commerce platform improves [14] Company Strategy and Development Direction - The company aims to drive long-term shareholder value by building a stronger, more resilient business focused on sustainable growth and consistent profitability [6] - Key pillars for the company include balance sheet strength, sustainable profitability, revenue growth, and environmental and human health [15] - The company plans to enhance customer experience through initiatives like the Grove Green Rewards loyalty program and a redesigned mobile app [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges 2025 was a challenging year due to e-commerce platform migration, which disrupted customer experience and led to increased churn [11] - For 2026, the company anticipates a year of rebuilding momentum, with expectations for sequential revenue growth and increased advertising investment as customer experience stabilizes [14][35] - The company is committed to maintaining financial discipline while optimizing the customer experience to lay the foundation for future profitable growth [36] Other Important Information - The company executed a reduction in force in November, expected to generate approximately $5 million in annualized savings [18] - The company expanded its ingredient standards to cover over 10,000 banned or restricted ingredients, enhancing its market differentiation [24][25] Q&A Session Summary Question: What are the drivers for sequential sales growth in 2026? - Management indicated that improvements in customer experience, including the mobile app and loyalty program, are primary drivers for expected sequential growth [41] Question: Will customer acquisition investment increase in 2026? - Management expects to increase marketing spend as customer experience improves, leading to better repeat rates and customer lifetime value [42][43] Question: What is the outlook for new product categories? - Management sees growth opportunities within core categories and plans to expand into adjacent categories, including wellness products and dropship capabilities [45][46] Question: What are the margin expectations for 2026? - Management did not provide specific guidance but indicated that gross margins are expected to remain stable, with operating expenses reset lower due to the reduction in force [49][50]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $42.4 million, a decline of 14.3% year-over-year, primarily due to fewer orders and reduced advertising investment [17] - Full year revenue was $173.7 million, reflecting a 14.6% year-over-year decline, but within revised guidance [17][18] - Positive adjusted EBITDA of $1.6 million was achieved in Q4, marking the first positive quarter in six quarters [5][22] - Net loss for Q4 was $1.6 million, improving from a net loss of $12.6 million in the prior year [22] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) total orders were 539,000, down 25% year-over-year [18] - Active customers at the end of Q4 were 599,000, a decrease of 13% from the previous year [8][18] - DTC net revenue per order increased by 4.1% year-over-year to $69.50, driven by targeted promotional strategies [18] Market Data and Key Metrics Changes - The decline in revenue was attributed to headwinds from the e-commerce platform migration and lower advertising spend, impacting new customer acquisition [18] - QVC revenue contributed $2.9 million in Q4, driven by the 8Greens Today's Special Value program [17] Company Strategy and Development Direction - The company aims to rebuild momentum in 2026 by stabilizing the e-commerce platform and enhancing customer experience [9][10] - Key pillars for the company include balance sheet strength, sustainable profitability, revenue growth, and environmental health [10][14] - The loyalty program, Grove Green Rewards, and a redesigned mobile app are foundational to the strategy for improving customer engagement and experience [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2026, focusing on improving customer experience and stabilizing active customers [9][16] - The first quarter of 2026 is expected to be the lowest point for revenue, with sequential improvement anticipated as customer experience enhancements take effect [24] - The company plans to increase advertising spend as customer experience improves, aiming for better repeat rates and customer acquisition [31][33] Other Important Information - A reduction in force was executed in November, expected to generate approximately $5 million in annualized savings [11] - The company expanded its ingredient standards to cover over 10,000 banned or restricted ingredients, enhancing its market differentiation [14][15] Q&A Session Summary Question: What are the drivers for sequential sales growth in 2026? - Management indicated that improvements in customer experience, including the mobile app and loyalty program, are primary drivers for expected sequential growth [31] Question: Will customer acquisition investment increase in 2026? - Management confirmed that marketing spend is expected to increase as customer experience improves, leading to better repeat rates and customer lifetime value [32][33] Question: What are the opportunities in current and new product categories? - Management highlighted growth potential within core categories and adjacent opportunities, including dropship capabilities for higher average order value products [36][37] Question: What are the expectations for margins in 2026? - Management stated that gross margins are not expected to fluctuate significantly, with a focus on tactical promotions through the loyalty program [41][42]

Financial Data and Key Metrics Changes - For Q4 2025, revenue was $42.4 million, a decline of 14.3% year-over-year, primarily due to fewer orders and reduced advertising investment [18] - Full year revenue was $173.7 million, reflecting a 14.6% year-over-year decline, but within revised guidance [18][19] - Positive adjusted EBITDA of $1.6 million was achieved in Q4, marking the first positive quarter in six quarters [5][24] - Net loss for the year was $11.7 million, with adjusted EBITDA at -$2.2 million, aligning with revised guidance [24] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) total orders were 539,000, down 25% year-over-year, with active customers at 599,000, a 13% decrease [19] - DTC net revenue per order increased by 4.1% year-over-year to $69.50, driven by targeted promotions and a higher mix of premium items [19][20] - Subscription units accounted for 60% of revenue, with subscription orders making up 79% of total orders [13] Market Data and Key Metrics Changes - The decline in revenue was attributed to headwinds from the e-commerce platform migration and lower advertising spend, impacting new customer acquisition [19] - The company expects Q1 2026 to be the lowest point in revenue for the year, with sequential improvement anticipated thereafter [25] Company Strategy and Development Direction - The company aims to enhance customer experience through improvements in mobile and subscription services, focusing on rebuilding momentum in 2026 [10][27] - Grove is committed to maintaining financial discipline while optimizing the customer experience, with a focus on sustainable profitability and revenue growth [10][25] - The company is exploring strategic options, including acquisitions and partnerships, to maximize shareholder value [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2025 due to the e-commerce platform migration but expressed optimism about stabilizing the business and re-accelerating growth [10][17] - The company is focused on building a curated platform of clean and sustainable products, aiming to differentiate itself in a crowded marketplace [6][16] Other Important Information - A reduction in force was executed in November, expected to generate approximately $5 million in annualized savings [12] - The company launched the Grove Green Rewards loyalty program and a redesigned mobile app to enhance customer engagement and experience [12][13] Q&A Session Summary Question: What are the drivers for sequential sales growth in 2026? - Management indicated that improvements in customer experience, including the new mobile app and loyalty program, are key drivers for expected sequential growth [32] Question: Will customer acquisition investment increase in 2026? - Management confirmed that marketing spend is expected to increase as customer experience improves, leading to better repeat rates and customer lifetime value [33] Question: What are the opportunities in new product categories? - Management highlighted potential growth in core categories and adjacent opportunities, including wellness products and dropship capabilities [37] Question: What are the expectations for margins in 2026? - Management noted that gross margins are not expected to fluctuate significantly, with a focus on effective promotional strategies through the loyalty program [42]

Investor Presentation Q4 2025 As of March 5, 2026 Safe Harbor Statement/Non-GAAP Measures All information in this presentation is as of March, 5 2026. Non-GAAP Information Grove uses certain non-GAAP measures in this presentation including Adjusted EBITDA. Grove believes the presentation of its non-GAAP financial measures enhances investors' overall understanding of the company's historical financial performance. The presentation of the company's non-GAAP financial measures is not meant to be considered in ...

Financial Performance - Grove Collaborative reported a decline in DTC Total Orders to 2,420 in 2025 from 2,930 in 2024, primarily due to lower advertising spend and technology disruptions [288]. - The number of DTC Active Customers decreased to 599 in 2025 from 688 in 2024, attributed to reduced advertising efforts and technology issues [290]. - Total revenue decreased by $29.7 million, or 15%, to $173.7 million for the year ended December 31, 2025, compared to $203.4 million in 2024, primarily due to a decrease in DTC Total Orders [312]. - Gross profit for 2025 was $93.3 million, down from $109.3 million in 2024, reflecting a decrease of $16.1 million or 15% [311]. - The company recorded a net loss of $11.7 million in 2025, a decrease from a net loss of $27.4 million in 2024, indicating a reduction in operating losses [295]. - Adjusted EBITDA for 2025 was $(2.2) million, compared to $1.3 million in 2024, highlighting challenges in achieving profitability [295]. - Operating loss improved to $(11.3) million in 2025 from $(22.5) million in 2024, indicating a reduction in losses [311]. - Selling, general and administrative expenses decreased by $15.8 million, or 15%, to $87.4 million in 2025, primarily due to reductions in stock-based compensation and fulfillment costs [317]. - Interest expense significantly decreased by $11.6 million, or 90%, to $1.2 million in 2025, attributed to the extinguishment of the Structural Debt Facility [318]. - Product development expenses dropped by $11.0 million, or 59%, to $7.5 million in 2025, mainly due to a decrease in amortization expenses and reductions in headcount [316]. Cash Flow and Liquidity - As of December 31, 2025, the company had $8.5 million in unrestricted cash and cash equivalents, with negative cash flow from operating activities of $7.0 million [322]. - For the year ended December 31, 2025, net cash used in operating activities was $6.954 million, a decrease of 28.7% compared to the previous year [334]. - The company reported a net cash used in investing activities of $3.999 million for the year ended December 31, 2025, primarily due to strategic acquisitions and property purchases [337]. - Net cash used in financing activities for the year ended December 31, 2025, was $1.559 million, mainly from stock-based award activities [338]. - The company had $11.2 million in enforceable inventory purchase commitments as of December 31, 2025, predominantly due within one year [331]. Business Strategy and Operations - Grove Collaborative has an accumulated deficit of $660.2 million as of December 31, 2025, reflecting ongoing financial challenges since inception [277]. - The company implemented workforce restructurings and facility reductions, incurring charges of $1.9 million in 2025 and $2.0 million in 2024 [278]. - Grove exited brick-and-mortar retail channels in 2025, aiming to improve profitability with minimal impact on revenue [276]. - The transition to a new ecommerce platform began in March 2025, with expectations of enhanced scalability and improved customer experience, despite initial disruptions [284]. - In December 2025, Grove launched the Green Rewards customer loyalty program, allowing customers to earn rewards for future purchases [299]. Debt and Financing - The loss on extinguishment of debt was recorded at $5.0 million in 2025, following the repayment of the Structural Debt Facility in 2024 [319]. - On August 11, 2023, the company received gross proceeds of $10.0 million from the issuance of 10,000 shares of Series A Preferred Stock and warrants to purchase 1,579,778 shares of Class A common stock at an exercise price of $6.33 [323]. - On September 20, 2024, the company received gross proceeds of $15.0 million from the issuance of 15,000 shares of Series A' Preferred Stock, while canceling previous warrants and modifying redemption terms [324]. - As of December 31, 2025, the outstanding principal amount under the Siena Revolver was $7.5 million, with additional borrowing capacity of $1.1 million [332]. - The company may seek additional funds through various means, including the Standby Equity Purchase Agreement, public or private equity offerings, or new debt financings [329]. Stock and Equity - The company issued an aggregate of 2,799,696 Earn-Out Shares, with 197,292 shares surrendered and cancelled, leaving 2,602,404 shares subject to vesting based on specific share price thresholds [344]. - 1,301,202 Earn-Out Shares will vest if the Class A Common Stock price reaches $62.50 over any 20 trading days within a 30-day period, and another 1,301,202 shares will vest at $75.00 under the same conditions [344]. - The fair value of Earn-Out Shares is estimated using a Monte Carlo options pricing model, incorporating expected stock-price volatility, expected life, risk-free interest rate, and dividend yield [346]. - The expected dividend yield for the company's common stock is zero, as it has never paid dividends and has no plans to do so [353]. Compliance and Reporting - The company is classified as an "emerging growth company" and will maintain this status until December 31, 2026, unless certain revenue or market value thresholds are exceeded [356]. - The company is also classified as a "smaller reporting company," with a market value of stock held by non-affiliates below $250 million, allowing for reduced disclosure obligations [357]. - The company has not provided quantitative disclosures about market risk as it qualifies as a smaller reporting company [359]. - Changes in assumptions regarding expected volatility could materially affect the estimated fair value of stock-based compensation instruments [347].

Exhibit 99.1 (All comparisons are versus the quarter ended December 31, 2024 except where otherwise noted) Revenue was $42.4 million, a decline of 14.3% year-over-year primarily reflecting fewer orders due to reduced advertising investment and lagging effects from disruptions associated with the Company's ecommerce platform migration earlier in the year. The revenue decline was partially offset by $2.9 million in QVC revenue from an 8Greens Today's Special Value program. QVC was an existing 8Greens channel ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $43.7 million, down 0.7% sequentially and 9.4% year over year, marking the smallest year-over-year decline since Q4 2021 [15][16] - Total orders for the quarter were 619,000, a decline of 12.5% year over year, while active customers ended the quarter at 660,000, down 7% versus the prior year [16] - Gross margin improved to 53.3%, up 30 basis points compared to 53% in the same quarter last year [17] - Adjusted EBITDA was negative $1.2 million, or a negative 2.7% margin, compared to breakeven in Q3 2024 [18] - Net loss was negative $3 million, compared to negative $1.3 million in the prior year [18] Business Line Data and Key Metrics Changes - DTC net revenue per order was $66.76, nearly flat year over year but increased 2.4% sequentially [16] - Product development expense was $1.6 million, down 66.1% year over year due to streamlining efforts [18] - SG&A expense was $21.3 million, a 14% decrease versus the prior year, driven by lower stock-based compensation and fulfillment costs [18] Market Data and Key Metrics Changes - The company expanded its third-party assortment significantly, with the number of brands up 50% year over year and individual products up 61% [9] - The baby category showed encouraging early growth as the company broadened its offering [9] Company Strategy and Development Direction - The company aims to drive long-term shareholder value by building a stronger, more resilient business focused on consistent profitability and sustainable growth [4] - The migration to a new e-commerce platform is seen as necessary for delivering a differentiated customer experience and achieving profitable scale [4][6] - The company is prioritizing liquidity and profitability while optimizing the customer experience, with a focus on cash flow over short-term revenue growth [20] Management's Comments on Operating Environment and Future Outlook - Management noted that the revision to the near-term outlook is primarily due to intentional pullback in advertising and customer experience issues, rather than macroeconomic factors [26] - The company expects to see improvements in customer experience over the next one to two quarters, which will drive future revenue growth [28][30] - For the full year ending December 31, 2025, the company expects revenue to be between $172.5 million and $175 million, with fourth-quarter revenue anticipated to remain roughly flat sequentially [19][20] Other Important Information - The company has appointed Tom Siragusa as the permanent CFO, effective October [12] - The company is assessing strategic options, including potential acquisitions or partnerships, to accelerate growth and strengthen competitive position [11] Q&A Session Summary Question: Changes in sales expectations - Management indicated that the revision to the outlook is due to the pullback in advertising and customer experience issues, not macroeconomic trends [26] Question: Status of customer disruption resolution - Management stated that they are focused on fixing the core customer experience and are making progress, with expectations to resolve issues in the next three months [28] Question: Stability of customer cohorts - Management noted that cohort behaviors are as expected, and they anticipate improvements once the core experience is optimized [30] Question: Potential acquisitions and funding - Management emphasized a focus on building a durable, profitable company while exploring acquisition opportunities in wellness, baby, and beauty categories, with funding potentially coming from cash or raising capital [31][32] Question: SKU expansion plan - Management highlighted ongoing discussions with wellness brands and plans for significant launches in the coming months, while currently prioritizing fixing the core experience [34]

Investor Presentation Q3 2025 As of November 13, 2025 Safe Harbor Statement/Non-GAAP Measures All information in this presentation is as of November 13, 2025. Forward-Looking Statements Certain statements included in this presentation are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1996, as amended. Forward-looking statements are statements other than statements about historical fact. The forward looking statements ...