Financial Performance - Third Quarter 2024 revenue was $48.3 million, a decline of 7.3% sequentially from $52.1 million and a 22.0% decrease year-over-year from $61.8 million[4] - Net revenue for the three months ended September 30, 2024, was $48,280 thousand, down from $61,750 thousand in the same period of 2023, representing a decrease of about 22%[26] - Gross profit for the nine months ended September 30, 2024, was $83,405 thousand, compared to $104,797 thousand for the same period in 2023, a decline of approximately 20.4%[26] - Operating loss for the three months ended September 30, 2024, was $(6,746) thousand, compared to $(4,105) thousand in the same period of 2023, indicating a worsening of 64.3%[26] - Net loss attributable to common stockholders for the three months ended September 30, 2024, was $(1,510) thousand, compared to $(10,869) thousand in the same period of 2023, showing an improvement of approximately 86.1%[26] Margins and Expenses - Gross Margin for the quarter was 53.0%, down from 53.9% in the previous quarter and 53.8% in the same quarter last year[5] - Operating Expenses decreased to $32.3 million, a 7.6% reduction from $35.0 million in the second quarter of 2024 and a 13.4% decrease from $37.3 million in the third quarter of 2023[6] - The company reported an Adjusted EBITDA margin of (0.1)% for the nine months ended September 30, 2024, compared to (4.7)% for the same period in 2023, indicating an improvement[28] - The company incurred stock-based compensation expenses of $9,268 thousand for the nine months ended September 30, 2024, compared to $11,941 thousand for the same period in 2023, a decrease of approximately 22.3%[27] Cash Flow and Assets - Operating Cash Flow was positive at $0.8 million, marking the fourth consecutive quarter of positive operating cash flow[9] - Total current assets decreased from $124,196 thousand in December 2023 to $81,841 thousand in September 2024, a decline of approximately 34.1%[25] - Cash, cash equivalents, and restricted cash at the end of the period decreased to $55,589 thousand from $94,863 thousand at the beginning of the period, a reduction of about 41%[27] - Total liabilities decreased from $132,620 thousand in December 2023 to $78,831 thousand in September 2024, a decline of approximately 40.5%[25] Customer Metrics - Direct-to-Consumer (DTC) Total Orders were 0.7 million, down 3.3% from the previous quarter and 22.8% year-over-year[10] - DTC Active Customers totaled 0.7 million, a decrease of 4.8% quarter-over-quarter and 30.4% year-over-year[10] Strategic Changes - The company revised its full-year 2024 revenue guidance to a range of $200 million to $205 million, down from the previous guidance of $205 million to $215 million[17] - Grove Brands accounted for 38.5% of Net Revenue, down 260 basis points quarter-over-quarter and 630 basis points year-over-year[9] - The company plans to exit the brick-and-mortar retail channel, which has accounted for less than 4% of revenue and has been consistently unprofitable since its launch[14] - The company’s total stockholders' equity decreased from $8,122 thousand in December 2023 to $1,520 thousand in September 2024, a decline of approximately 81.3%[25]

Financial Performance - Revenue for Q2 2024 was $52.1 million, a decrease of 21.2% compared to $66.1 million in Q2 2023[11] - Gross profit for Q2 2024 was $28.1 million, down from $34.3 million in Q2 2023, reflecting a gross margin of 53.9%[11] - Operating loss for Q2 2024 was $6.9 million, an improvement from a loss of $9.6 million in Q2 2023[11] - Net loss attributable to common stockholders for Q2 2024 was $10.2 million, compared to a net loss of $10.9 million in Q2 2023[11] - The company experienced a net loss of $13.5 million for the six months ended June 30, 2024, compared to a net loss of $23.9 million for the same period in 2023, representing a 43.5% improvement[20] - Net loss for Q2 2024 was $10,061,000, a slight improvement from a net loss of $10,867,000 in Q2 2023[153] - Adjusted EBITDA for Q2 2024 was $1,058,000 compared to a loss of $2,610,000 in Q2 2023, indicating improved operating performance[153] - Adjusted EBITDA Margin improved to 2.0% in Q2 2024 from a loss of 3.9% in Q2 2023, reflecting better cost management[153] Assets and Liabilities - Total current assets decreased to $113.3 million as of June 30, 2024, down from $124.2 million at the end of 2023[8] - Total liabilities decreased to $121.1 million as of June 30, 2024, compared to $132.6 million at the end of 2023[9] - Cash and cash equivalents were $78.8 million as of June 30, 2024, down from $86.4 million at the end of 2023[8] - The total stockholders' equity as of June 30, 2024, was $686,000, a decrease from $21.1 million as of June 30, 2023[18] - The total debt, net of discounts, increased to $73,404,000 as of June 30, 2024, compared to $71,662,000 as of December 31, 2023[68] Cash Flow - The company utilized $10.8 million in cash for operating activities during the first half of 2024, compared to $5.6 million in the same period of 2023, indicating increased cash outflow[20] - Cash and cash equivalents at the end of the period were $78.8 million, down from $81.1 million at the end of June 30, 2023[23] - The company incurred net cash used in operating activities of $10.8 million for the six months ended June 30, 2024, compared to $5.6 million for the same period in 2023[195] - Net cash used in operating activities increased by $5.2 million for the six months ended June 30, 2024, compared to the same period in 2023, primarily due to a $14.1 million increase in outflow related to changes in net operating assets and liabilities[196] Revenue Breakdown - Grove Brands revenue for the three months ended June 30, 2024, was $21.4 million, down 28.1% from $29.8 million in 2023[50] - Third-party products revenue for the three months ended June 30, 2024, was $30.7 million, a decrease of 15.6% from $36.3 million in 2023[50] - Grove Brands % Net Revenue decreased to 42% in Q2 2024 from 45% in Q2 2023, attributed to a decline in existing customer orders and new customer orders[144] Operating Expenses - Operating expenses decreased due to lower fulfillment costs and absence of charges related to becoming a publicly traded company[162] - Advertising expenses decreased by $2.2 million, or 48%, for the three months ended June 30, 2024, compared to the same period in 2023[173] - Selling, general and administrative expenses decreased by $8.0 million, or 23%, for the three months ended June 30, 2024, compared to the same period in 2023[176] Inventory and Purchases - Inventory, net was $27.8 million as of June 30, 2024, slightly down from $28.8 million at the end of 2023[8] - The Company’s top five suppliers represented approximately 40% of total inventory purchases for the six months ended June 30, 2024, down from 50% in the same period of 2023[42] - As of June 30, 2024, the company had merchandise purchase commitments of $10.3 million, down from $14.1 million as of December 31, 2023[77] Strategic Initiatives - The company anticipates continued focus on product development and market expansion strategies moving forward[5] - The company is pursuing partnerships with a variety of retailers to expand its distribution and increase the number of retail products offered[137] - The company plans to optimize customer acquisition costs while improving conversion rates on its DTC platform, with a strategy to increase advertising spend as conversion improves[138] Stock and Equity - The company issued 872 common shares upon settlement of restricted stock units, net of tax withholdings, during the first half of 2024[16] - The total shares of common stock reserved for future issuance amounted to 23,266,254 as of June 30, 2024[101] - The Company granted 2,460,954 Restricted Stock Units (RSUs) during the six months ended June 30, 2024[115] Debt and Financing - The Structural Debt Facility has an outstanding principal of $72,000,000 with an effective interest rate of 21.11%[72] - The Company must maintain a minimum of $57,000,000 in unrestricted cash to comply with the covenants of the Structural Debt Facility[70] - The company entered into a subscription agreement on August 11, 2023, raising gross proceeds of $10.0 million through the issuance of Series A Redeemable Convertible Preferred Stock[183] Accounting and Compliance - The company is currently evaluating the impact of recently issued accounting standards on its consolidated financial statements and disclosures[53] - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[201] - The company is classified as a "smaller reporting company," with a market value of stock held by non-affiliates below $250 million[202]

August 2024 Investor Presentation You're a force of nature. OO Updated Post Q2 2024 Earnings 255 255 255 3 59 76 Safe Harbor Statement/Non-GAAP Measures 247 243 228 0 0 0 247 243 228 102 163 157 3 59 76 0 114 88 130 186 128 172 196 200 120 159 144 NOTES START FROM HERE AND GROW UP 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 1995. Forwar ...

Financial Data and Key Metrics Changes - Revenue in Q2 2024 was $52.1 million, down 2.7% from Q1 2024 and 21.2% year-over-year, attributed to a decline in orders partially offset by an increase in net revenue per order [10] - Total orders decreased by 5.4% quarter-over-quarter and 24.9% year-over-year to 0.7 million, while active customers fell by 7.8% quarter-over-quarter and 34.3% year-over-year to 0.7 million [10] - Adjusted EBITDA for Q2 was $1.1 million, compared to $1.9 million in Q1 2024 and a loss of $2.6 million in Q2 2023, with an adjusted EBITDA margin of 2% [15] Business Line Data and Key Metrics Changes - DTC net revenue per order increased by 2.2% quarter-over-quarter and 4.5% year-over-year to $67.73, driven by an increase in units per order and sales of higher-priced products [11] - Grove brand products as a percentage of net revenue decreased by 190 basis points quarter-over-quarter and 390 basis points year-over-year to 41.1%, largely due to the expansion of third-party product offerings [12] Market Data and Key Metrics Changes - Advertising expense increased by 18.8% quarter-over-quarter but decreased by 47.6% year-over-year to $2.4 million, reflecting a focus on efficiency in advertising spend [13] - Product development expense rose by 49.9% quarter-over-quarter and 34.2% year-over-year to $5.4 million, primarily due to severance and accelerated depreciation costs related to the transition to Shopify [14] Company Strategy and Development Direction - The company is focused on profitability and balance sheet strength, with a commitment to delivering positive adjusted EBITDA for four consecutive quarters [4][15] - A major transition to Shopify's platform is underway, expected to be completed in Q1 2025, aimed at optimizing customer experience and fueling future growth [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver sequential revenue growth in Q4 2024, indicating a stabilization in revenue from repeat customers [10][20] - The company revised its 12-month revenue guidance to $205 million to $215 million, down from $215 million to $225 million, while increasing adjusted EBITDA margin guidance to 0.5% to 1.5% [17] Other Important Information - The company repaid $42 million of term debt and delayed principal payments until January 2026, which is expected to save at least $6.3 million in interest expense over the next 12 months [16] - Grove's sustainability efforts were highlighted, including a B Corporation recertification with an improved score from 80.3 to 100.9, marking over 10 years of certification [8] Q&A Session Summary Question: How to think about the top line relative to the second half? - Management believes they are nearing the bottom of unusual comps from heavy marketing spend in 2022, expecting sequential growth in Q4 [22] Question: Is there any white space beyond wellness to help increase basket sizes? - Management sees growth opportunities in personal care and beauty, emphasizing customer trust in their brand [24] Question: Contribution of third-party vendor support to gross margin leverage? - Management highlighted strong partnerships with third-party brands, contributing positively to customer experience and gross margin [26]

Revenue Performance - Revenue for Q2 2024 was $52.1 million, down 2.7% from Q1 2024 and down 21.2% year-over-year[2]. - For the three months ended June 30, 2024, Grove reported net revenue of $52.1 million, a decrease of 21.2% compared to $66.1 million for the same period in 2023[26]. Profitability Metrics - Adjusted EBITDA was positive $1.1 million, representing a 2.0% margin, compared to positive $1.9 million (3.5% margin) in Q1 2024[5]. - Operating loss for the three months ended June 30, 2024, was $6.9 million, an improvement from a loss of $9.6 million in the prior year[26]. - Net loss was $10.1 million, a margin of (19.3%), compared to a loss of $3.4 million (6.3% margin) in Q1 2024[4]. - Net loss attributable to common stockholders for the three months ended June 30, 2024, was $10.2 million, compared to a loss of $10.9 million in the same period last year[26]. - Total Adjusted EBITDA for the six months ended June 30 was $2,951 thousand, a significant improvement from a loss of $9,476 thousand in the prior year[28]. - Adjusted EBITDA margin for the three months ended June 30 was 2.0%, recovering from a loss margin of (3.9)% in the prior year[28]. Customer Metrics - DTC Total Orders were 0.7 million, down 5.4% quarter-over-quarter and 24.9% year-over-year[7]. - DTC Active Customers totaled 0.7 million, down 7.8% from Q1 2024 and 34.3% from Q2 2023[7]. Operating Expenses - Operating Expenses were $35.0 million, up 15.6% from Q1 2024 but down 20.2% year-over-year[4]. - Stock-based compensation for the three months ended June 30 amounted to $3,397 thousand, up from $4,948 thousand in the same period last year[28]. - Restructuring and severance related costs for the three months ended June 30 were $2,170 thousand, compared to $553 thousand in the same period last year[28]. Financial Position - Total current assets decreased to $113.3 million as of June 30, 2024, from $124.2 million at the end of 2023, reflecting a reduction in cash and cash equivalents[24]. - Total liabilities decreased to $121.1 million as of June 30, 2024, from $132.6 million at the end of 2023, indicating improved financial health[24]. - Cash and cash equivalents at the end of the period were $78.8 million, down from $86.4 million at the end of 2023[24]. - Grove's accumulated deficit increased to $634.5 million as of June 30, 2024, from $621.1 million at the end of 2023, highlighting ongoing challenges in profitability[24]. Interest and Expenses - The company incurred $4.1 million in interest expense for the three months ended June 30, 2024, slightly up from $4.0 million in the same period last year[26]. - Interest expense for the six months ended June 30 was $8,246 thousand, compared to $7,773 thousand in the prior year[28]. - Interest income for the six months ended June 30 was $2,079 thousand, compared to $1,445 thousand in the same period last year[28]. Future Outlook - The company plans to increase advertising spend in Q4 2024 to drive sequential revenue growth[3]. - Revised FY24 guidance includes net revenue of $205 to $215 million, down from $215 million to $225 million[15]. Sustainability Achievement - Grove achieved a B Corp recertification score of 100.9 points, significantly higher than its previous score of 80.3 points[14].

Financial Data and Key Metrics Changes - Net revenue in Q1 2024 was $53.5 million, down 10.5% from Q4 2023 and 25.2% year-over-year [6] - Adjusted EBITDA for Q1 2024 was $1.9 million, compared to $0.1 million in Q4 2023 and a loss of $6.9 million in Q1 2023 [42] - The net loss for the quarter was $3.4 million, an improvement from a net loss of $9.5 million in Q4 2023 and $13.1 million in Q1 2023 [42] Business Line Data and Key Metrics Changes - Grove Brands products as a percentage of net revenue decreased by 150 basis points quarter-over-quarter and 580 basis points year-over-year to 43% [7] - DTC net revenue per order was down 0.8% quarter-over-quarter but up 7.5% year-over-year to $66.27 [15] - Total orders were down 10.5% quarter-over-quarter and 29.5% year-over-year to 0.8 million [40] Market Data and Key Metrics Changes - Active customers decreased by 12.3% quarter-over-quarter and 35% year-over-year to 0.8 million [40] - Advertising expense decreased by 47.4% quarter-over-quarter and 36.3% year-over-year to $2.1 million [41] Company Strategy and Development Direction - The company is focused on three pillars: customer, sustainability, and profitability, aiming to transform into a household name for sustainable products [3][11] - The company plans to scale advertising spend in the coming quarters to support revenue growth while improving first order conversion rates [6][19] - The expansion of third-party product offerings increased by 34% year-over-year, with 41% of third-party products enrolled in the subscribe and save program [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sequential revenue growth by the end of the year and profitability on an adjusted EBITDA basis for the full year [19][43] - The company anticipates improvements in first order conversion rates and plans to increase advertising spend as efficiency improves [41][55] - Management highlighted the importance of sustainability as a differentiator and committed to building a sustainable business [3][38] Other Important Information - The company ended the quarter with $81.6 million in cash, a decrease of $13.3 million from the previous quarter [8] - The company has not drawn on its asset-based loan facility since taking a minimum draw of $7.5 million in Q1 2023 [17] Q&A Session Summary Question: Sales cadence throughout the year - Management indicated they are guiding towards sequential growth this year, believing they are near a bottoming out of unusual comps from heavy marketing spend in 2022 [22] Question: Initial reads on new products and customer acquisition - Management expressed excitement about the new product launches and noted early success, including sold-out items at retail [24] Question: Gross margin expectations for the next few quarters - Management stated that Q1 had one-off factors and emphasized ongoing efforts to improve gross margin without providing specific guidance [26] Question: Future advertising spend - Management confirmed plans to increase advertising spend in the back half of the year, focusing on efficiency and strong paybacks [27] Question: Performance of third-party brands and Grove brand mix - Management noted that third-party brands are growing faster and emphasized that the focus is on customer needs rather than an ideal percentage mix [30]

Financial Performance - Revenue for Q1 2024 was $53.545 million, a decrease of 25.2% compared to $71.565 million in Q1 2023[16] - Gross profit for Q1 2024 was $29.740 million, down from $37.255 million in Q1 2023, reflecting a gross margin decline[16] - Operating loss for Q1 2024 was $0.533 million, significantly improved from a loss of $13.655 million in Q1 2023[16] - Net loss attributable to common stockholders for Q1 2024 was $3.541 million, compared to a net loss of $13.069 million in Q1 2023[16] - Adjusted EBITDA for Q1 2024 was $1.893 million, compared to an Adjusted EBITDA loss of $6.820 million in Q1 2023[170] - Net loss for Q1 2024 was $3.391 million, significantly improved from a net loss of $13.069 million in Q1 2023[170] - The net loss margin improved to (6.3)% in Q1 2024 from (18.3)% in Q1 2023, indicating better operational efficiency[170] Cash and Assets - Total current assets decreased to $115.955 million as of March 31, 2024, down from $124.196 million at December 31, 2023[14] - Cash and cash equivalents at the end of Q1 2024 were $77.757 million, down from $86.411 million at the end of Q4 2023[14] - As of March 31, 2024, the company reported cash and cash equivalents of $77.8 million, down from $81.7 million in the same period of 2023, representing a decrease of approximately 3.5%[24] - The total cash, cash equivalents, and restricted cash amounted to $81.6 million as of March 31, 2024, compared to $90.5 million in 2023, indicating a decline of about 9.8%[24] - As of March 31, 2024, the company had $77.8 million in unrestricted cash and incurred negative cash flows from operating activities of $12.4 million[195] Liabilities and Debt - Total liabilities decreased to $120.349 million as of March 31, 2024, compared to $132.620 million at December 31, 2023[14] - The company's total debt increased slightly to $72.533 million as of March 31, 2024, compared to $71.662 million at the end of 2023[75] - The Company had obligations to purchase $10.7 million of merchandise as of March 31, 2024[87] - The Company entered into a Loan and Security Agreement (Siena Revolver) with an initial commitment of $35.0 million, with an additional borrowing capacity of $9.1 million as of March 31, 2024[82] - The outstanding principal balance under the Siena Revolver was $7.5 million as of March 31, 2024, with an interest rate of 9.18%[86] - The company has a total outstanding indebtedness of $72.5 million as of March 31, 2024[195] Operational Efficiency - The company anticipates continued focus on cost management and operational efficiency to improve financial performance in future quarters[10] - Selling, general and administrative expenses have declined from 2023 due to cost management initiatives and reduced fulfillment costs[178] - Fulfillment costs for Q1 2024 were $12.1 million, a reduction of 28.8% compared to $17.0 million in Q1 2023[57] - Advertising expenses significantly reduced by $6.6 million, or 76%, totaling $2.1 million, due to a lower-spend strategy[189] Customer Metrics - DTC Total Orders fell to 773 in Q1 2024, down from 1,097 in Q1 2023, primarily due to reduced advertising spend[160][163] - DTC Active Customers decreased to 807 in Q1 2024 from 1,241 in Q1 2023, reflecting fewer new customers due to reduced advertising efforts[160][164] - DTC Net Revenue Per Order increased to $66 in Q1 2024 from $62 in Q1 2023, driven by a higher number of products sold per order[160][165] Product and Revenue Sources - Revenue from Grove Brands was $23.046 million, down 34.1% from $34.976 million year-over-year[55] - Third-party products revenue decreased to $30.499 million, down 16.6% from $36.589 million in the prior year[55] - The company’s top five suppliers accounted for approximately 40% of total inventory purchases for the three months ended March 31, 2024, down from 50% in the same period of 2023[46] Future Outlook - The company believes its existing cash and cash equivalents will be sufficient to fund operations for at least one year from the report date, but additional capital will be needed for long-term sustainability[33] - The company anticipates continued operating losses and negative cash flows as it invests in advertising and strategic initiatives for future growth[199] - The company plans to increase advertising expenses in fiscal year 2024 to optimize customer acquisition costs[176] Stock and Equity - The Company issued a total of 990,000 shares of Class A common stock related to the Structural Debt Facility, recording a debt discount of $1.1 million[79] - The Company entered into a Standby Equity Purchase Agreement with Yorkville to purchase up to $100 million of common stock over 36 months, with a limit of 6,511,532 shares unless stockholder approval is obtained[111] - The Company issued 10,000 shares of Series A Redeemable Convertible Preferred Stock for gross proceeds of $10 million, along with warrants to purchase 1,579,778 shares of Class A common stock at an exercise price of $6.33[119] - The Company has 24,028,019 shares of common stock reserved for future issuance as of March 31, 2024[117]

Exhibit 99.1 Net Loss was $3.4 million, (6.3%) margin, compared to $9.5 million, (15.8%) margin in the fourth quarter of 2023, and $13.1 million, (18.3%) margin in the first quarter of 2023. Adjusted EBITDA was positive $1.9 million, 3.5% margin, compared to positive $0.1 million, 0.2% margin in the fourth quarter of 2023, and negative $6.9 million, (9.6%) margin in the first quarter of 2023. 2 Grove Announces First Quarter 2024 Financial Results SAN FRANCISCO, CA — May 14, 2024 — Grove Collaborative Holdin ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF (Exact name of registrant as specified in its charter) Delaware 88-2840659 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1301 San ...

Grove Collaborative Holdings, Inc. (NYSE:GROV) Q4 2023 Earnings Conference Call March 6, 2024 5:00 PM ET Company Participants Jeff Yurcisin - Chief Executive Officer Sergio Cervantes - Chief Financial Officer Conference Call Participants Susan Anderson - Canaccord Genuity Operator Good afternoon and thank you for standing by. Welcome to Grove Collaborative Holdings Inc.’s Fourth Quarter and Full Year 2023 Earnings Conference Call. [Operator Instructions] Hosting today’s call are Grove’s CEO, Jeff Yurcisin a ...