Overview

* Grove Q2 revenue falls 15.5% yr/yr to $44.0 mln, sequentially up 1.1%

* Net loss improves to $3.6 mln from $10.1 mln last year

* Adjusted EBITDA negative $0.9 mln, down from $1.1 mln last year

Outlook

* Grove expects Q3 revenue to improve, Q4 revenue to grow year-over-year

* Full-year 2025 revenue expected to decline mid-single to low-double digits

* Company anticipates full-year 2025 Adjusted EBITDA to be negative to breakeven

* Grove to continue investing in advertising for topline growth

Result Drivers

* ADVERTISING IMPACT - Reduced advertising investment in previous years led to a smaller active subscriber base, affecting revenue

* ECOMMERCE DISRUPTION - Temporary disruptions from eCommerce platform migration impacted revenue

* PROMOTIONAL EFFICIENCY - Improved gross margin driven by reduced discounting and increased vendor funding

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS -$0.1

Q2 Net -$3.63

Income mln

Q2 Gross $24.40

Profit mln

Q2 -$3.49

Operatin mln

g Income

Analyst Coverage

* The one available analyst rating on the shares is "buy"

* The average consensus recommendation for the online services peer group is "buy"

* Wall Street's median 12-month price target for Grove Collaborative Holdings Inc ( GROV ) is $3.00, about 56% above its August 6 closing price of $1.32

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)