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 ...

Financial Performance - Grove Collaborative Holdings reported a total of 619 DTC Total Orders for the three months ended September 30, 2025, a decrease from 708 in the same period of 2024, and 1,881 for the nine months ended September 30, 2025, down from 2,213 in 2024[162]. - For the three months ended September 30, 2025, the company reported a net revenue of $43.734 million, a decrease of 9% compared to $48.280 million in the same period of 2024[186]. - The cost of goods sold for the three months ended September 30, 2025, was $20.412 million, resulting in a gross profit of $23.322 million, with a gross margin of 53%[184][185]. - Operating loss for the three months ended September 30, 2025, was $2.731 million, an improvement from a loss of $6.746 million in the same period of 2024[184]. - The net loss for the three months ended September 30, 2025, was $2.960 million, compared to a net loss of $1.336 million in the same period of 2024, reflecting a worsening loss margin[184]. - Revenue from Grove Brands decreased by 6% to $17.518 million for the three months ended September 30, 2025, compared to $18.606 million in 2024[186]. - Total adjusted EBITDA for the three months ended September 30, 2025, was $(1.201) million, compared to $(32,000) in the same period of 2024[169]. - The company incurred net losses of $27.4 million and $43.2 million for the years ended December 31, 2024 and 2023, respectively, with an accumulated deficit of $658.6 million as of September 30, 2025[248]. Customer Metrics - The number of DTC Active Customers as of September 30, 2025, was 660, compared to 710 in the same period of 2024, indicating a decline in customer retention[162]. - Grove's recent reduction in advertising spend has contributed to the decline in both DTC Total Orders and Active Customers, highlighting the importance of effective marketing strategies[163][164]. Operational Changes - The company has transitioned its ecommerce platform to third-party service providers, which is expected to enhance scalability and user experience, although it has faced operational disruptions during the migration[159][160]. - The company has exited brick-and-mortar retail channels, which is not expected to significantly impact financial results[171]. - The company experienced a decline in DTC Total Orders attributed to lower advertising expenses and disruptions from migrating to third-party service providers[186]. - The recent reduction in workforce by approximately 30% may disrupt operations and not achieve intended cost-saving objectives[284]. Cost Management - Selling, general and administrative expenses decreased to $21.273 million for the three months ended September 30, 2025, from $24.726 million in 2024, due to cost management initiatives[177]. - Product development expenses decreased by $3.2 million, or 66%, for the three months ended September 30, 2025, and by $8.3 million, or 60%, for the nine months ended September 30, 2025, compared to the same periods in 2024[191]. - Selling, general and administrative expenses decreased by $3.5 million, or 14%, for the three months ended September 30, 2025, and by $10.2 million, or 13%, for the nine months ended September 30, 2025, compared to the same periods in 2024[194]. - Interest expense decreased by $2.7 million, or 90%, for the three months ended September 30, 2025, and by $10.2 million, or 92%, for the nine months ended September 30, 2025, compared to the same periods in 2024[196]. Financing and Capital - As of September 30, 2025, the company had $8.9 million in unrestricted cash and cash equivalents and incurred negative cash flows from operating activities of $6.9 million for the nine months ended September 30, 2025[200]. - The company may seek additional capital through various means, including the SEPA, public or private equity offerings, or new debt financings[206]. - The company has a Standby Equity Purchase Agreement (SEPA) allowing it to sell up to $100.0 million of common stock, with the term extended to August 1, 2027, but may only raise approximately $8.1 million under current market conditions[252]. Market and Competitive Landscape - The company faces intense competition in the natural and sustainable consumer products market, with many competitors having greater resources and established market positions[258]. - The company relies heavily on digital advertising for customer acquisition, which may be adversely affected by changes in social media platforms' policies or algorithms[261]. - The company must maintain substantial spending on advertising and marketing to build brand loyalty and awareness, which may be impacted by efforts to achieve profitability[265]. Regulatory and Compliance Risks - The company is subject to regulatory scrutiny from the FDA and FTC regarding product claims and labeling, which could result in enforcement actions[242]. - Compliance with various laws and regulations, including those related to subscription services, may increase operational costs and affect growth strategies[278]. - The company is subject to risks related to online payment methods, including potential increases in processing fees and compliance requirements[300]. Sustainability and Corporate Responsibility - The company is a public benefit corporation under Delaware law, balancing stockholder financial interests with stakeholder benefits[342]. - The company is designated as a "Certified B Corporation," indicating it meets specific social and environmental performance standards[345]. - Losing the Certified B Corporation status could harm the company's reputation and perception of its commitment to social values[345].

Nov 13, 2025 4:10 PM Eastern Standard Time Grove Announces Third Quarter 2025 Financial Results Share SAN FRANCISCO--(BUSINESS WIRE)--Grove Collaborative Holdings, Inc. (NYSE: GROV) ("Grove†or the "Company†), the world's first plastic neutral retailer and a leading sustainable consumer products company, certified B Corporation, and Public Benefit Corporation, today reported financial results for its fiscal third quarter ended September 30, 2025. Key Financial Highlights:(comparison vs prior year unless ot ...

Exhibit 99.1 Grove Announces Third Quarter 2025 Financial Results SAN FRANCISCO, CA — November 13, 2025 — Grove Collaborative Holdings, Inc. (NYSE: GROV) ("Grove" or the "Company"), the world's first plastic neutral retailer and a leading sustainable consumer products company, certified B Corporation, and Public Benefit Corporation, today reported financial results for its fiscal third quarter ended September 30, 2025. Key Financial Highlights: (comparison vs prior year unless otherwise noted) "Grove is exe ...

Core Insights - Grove has disclosed its AI-related carbon footprint and launched an open-source measurement formula in collaboration with Gravity, aiming to promote sustainable AI practices within the industry [1] Group 1 - The company emphasizes the importance of measuring and reducing the carbon footprint associated with AI technologies [1] - The open-source measurement formula is intended to encourage other companies in the industry to adopt similar sustainable practices [1] - Grove's initiative is positioned as a push for the industry to embrace AI in a more environmentally friendly manner [1]

Summary of Grove Collaborative Holdings Inc. Conference Call Company Overview - **Company Name**: Grove Collaborative Holdings Inc. (Ticker: GROV) - **Industry**: E-commerce for sustainable and healthy home products - **Business Model**: Online destination for everyday essentials focused on health, sustainability, and reducing plastic usage [1][3][5] Key Points and Arguments Business Strategy and Market Position - Grove aims to build a durable business in the direct-to-consumer (DTC) space by creating a strong value proposition centered on curation and high standards for health and sustainability [5][9] - The company has transitioned from a subscription-only model to an open marketplace, allowing all customers to shop without a subscription, which has expanded the total addressable market (TAM) to 57 million people [12][54] - Grove is positioned as a trusted retailer, with 89% of surveyed customers expressing trust in the company for health and wellness products [24][56] Financial Performance - Revenue decreased by 16% year-over-year but showed a 1% increase quarter-over-quarter [29] - The company has improved gross margins by over 800 basis points and has focused on profitability, achieving breakeven EBITDA over the last eight quarters [31][33] - Grove has reduced SG&A headcount by 70% and prioritized cleaning up its balance sheet, which has removed existential risks associated with its previous debt [36][37] Growth and Future Outlook - The company anticipates sequential growth in Q2, Q3, and Q4, with a goal of achieving year-over-year growth by Q4 [39][45] - Grove is exploring mergers and acquisitions (M&A) to enhance its product offerings and accelerate growth, with a focus on acquiring subscale brands that align with its mission [65][69] - The CEO expressed confidence in the company's ability to grow into a $300 million business with double-digit growth rates while remaining profitable [45][75] Market Trends and Consumer Behavior - There are secular tailwinds in sustainability and wellness, with increasing consumer awareness about the impact of plastics and a demand for healthier products [13][14] - Grove's strategy includes expanding into new categories such as vitamins, minerals, and supplements, which are seen as significant growth opportunities [56] Additional Important Insights - Grove was the first retailer to claim plastic neutrality and has a strong commitment to sustainability, which differentiates it from competitors like Amazon and Walmart [10][54] - The company has a unique box economics model that allows for efficient shipping and fulfillment, which is crucial for competing with larger marketplaces [20][21] - The leadership team, including the CEO's experience at Amazon, is focused on building a customer-centric business that prioritizes trust and education [3][18] This summary encapsulates the key points discussed during the conference call, highlighting Grove Collaborative's strategic direction, financial performance, growth potential, and market positioning within the sustainable product industry.

Summary of Conference Call Company Overview - The company is focused on providing thoughtfully vetted and curated products for environmentally conscious consumers, positioning itself as a "nontoxic Amazon" [4][3] - The leadership team has undergone significant changes, with a new CEO and CFO introduced in 2023, aiming to transform the business and improve shareholder returns [6][7] Financial Performance - The company has transitioned from losing $100 million annually to breakeven, with a focus on improving customer experience and operational efficiency [7][37] - Revenue has seen fluctuations, with a 15% year-over-year decline, but there is guidance for growth in Q4 [37][48] - Gross margins are improving, and the company is operating with positive cash flow [37][40] Market Position and Strategy - The company aims to serve a larger customer base, expanding from a previous limit of 5 million to potentially 57 million environmentally conscious consumers [15][16] - The focus is on building a scalable platform that emphasizes high standards for product curation, particularly in health and sustainability [11][20] - The company is moving away from a default subscription model to enhance customer experience and increase average order value [21][26] Product and Brand Development - The company has added over 100 brands in recent years, focusing on vitamins, minerals, and supplements (VMS) to drive customer loyalty and revenue [29][30] - There is a strong emphasis on developing proprietary brands with high gross margins, differentiating from typical private label strategies [31][32] - The company is exploring acquisition opportunities to integrate subscale brands that align with its mission [34][59] Environmental and Health Focus - The company is committed to addressing plastic pollution and promoting human health, recognizing that consumers are increasingly concerned about these issues [14][27][29] - The narrative around microplastics and their health impacts is being leveraged to connect with consumers [18][19] Future Outlook - The leadership is optimistic about achieving significant growth, targeting a company valuation of $300 million to $400 million in the medium term [58][70] - There is a strong commitment to maintaining a clean balance sheet and avoiding dilution unless absolutely necessary [71][72] - The company is actively seeking growth opportunities and is prepared to explore acquisitions that align with its strategic goals [76] Key Takeaways - The company is undergoing a significant transformation with a focus on sustainability, customer experience, and financial health [6][7][37] - There is a clear strategy to differentiate from larger competitors like Amazon by serving a specific customer segment with high-quality, curated products [55][22] - The leadership is confident in the company's ability to grow and deliver shareholder value while adhering to its mission of promoting environmental and human health [49][75]

Core Insights - Grove Collaborative has partnered with Novi to enhance third-party claim validation in its e-commerce platform, aiming to set a higher industry standard for ingredient transparency and safety [1][4] - The partnership addresses consumer demand for verified product data amidst growing concerns about ingredient safety and environmental impact, allowing Grove to streamline claim verification across various product categories [2][4] - Grove's mission is to simplify the shopping experience for consumers by integrating verified claims into its offerings, thereby promoting trust and transparency in the marketplace [3][4] Company Overview - Grove Collaborative is an online platform focused on providing everyday essentials that promote a healthier home and planet, with a commitment to high standards in health, sustainability, and performance [5] - The company operates as a B Corp and Public Benefit Corporation, ensuring that every order is carbon neutral and supports environmental initiatives [5] Industry Context - The partnership signifies a shift in the retail industry towards prioritizing trust and transparency, with third-party verification becoming essential for meeting consumer expectations [4][6] - As retailers adapt to a landscape increasingly influenced by AI, the need for reliable data infrastructure to support consumer confidence and product discovery is becoming critical [4][6]

Financial Data and Key Metrics Changes - Revenue for the second quarter was $44 million, down 15.5% year over year but up 1.1% sequentially, indicating early momentum in revenue stabilization [13][21] - Adjusted EBITDA for the second quarter was negative $900,000, reflecting a negative 2.1% margin, which was below expectations due to the e-commerce platform migration [11][27] - Net loss was negative $3.6 million, an improvement from negative $10.1 million in the prior year, attributed to lower interest and operating expenses [27] Business Line Data and Key Metrics Changes - Total orders for the quarter were 640,000, a decline of 12.6% year over year but an increase of 3.4% compared to the first quarter [22] - Active customers ended the quarter at 664,000, down 10.9% year over year and 2.2% sequentially, reflecting the impact of reduced advertising spend [22] - DTC net revenue per order was $65.22, down 3.7% year over year, driven by a temporary increase in low-value shipments [23] Market Data and Key Metrics Changes - The company is focusing on expanding its third-party assortment, growing the number of brands offered by 47% and individual products by 59% year over year [13] - The company is shifting focus from cleaning products to personal care, vitamins, and clean beauty, responding to customer demand for high-standard products [46] Company Strategy and Development Direction - The company aims to build a curated marketplace for clean and sustainable products, emphasizing a differentiated value proposition from larger competitors like Amazon [6][8] - Strategic pillars include sustained profitability, balance sheet strength, revenue growth, and a focus on environmental and human health [10][14] - The company is committed to maintaining investment in customer acquisition despite short-term revenue challenges, reflecting confidence in long-term growth potential [11][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sequential revenue growth in the latter half of the year, expecting slight year-over-year growth in the fourth quarter [33] - The company is navigating short-term headwinds but is focused on stabilizing revenue, protecting gross margins, and managing cash efficiently [32] - Management highlighted the growing consumer demand for safer ingredients and transparency, positioning the company to meet these evolving market needs [34] Other Important Information - The company amended and extended its asset-based loan facility, improving financial flexibility and pushing maturity out to April 2028 [29] - The company received a continued listing standard notice from the NYSE due to market capitalization falling below $50 million but has since submitted a compliance plan that was accepted [29] Q&A Session Summary Question: Insights on lower revenue per order - Management indicated that the decline in revenue per order is primarily tied to the e-commerce platform migration, which affected average order value [37][38] Question: Returns on increased marketing spend - Management confirmed that the increased marketing spend is yielding positive returns, contributing to new customer acquisition and confidence in future revenue growth [39][40] Question: Opportunities for expanding product categories - Management noted a strategic shift away from cleaning products towards personal care and wellness categories, indicating strong customer interest in these areas [45][46]