Overview

* Grove Collaborative ( GROV ) Q3 revenue falls 9.4% yr/yr due to reduced advertising and platform issues

* Net loss widens to $3.0 mln from $1.3 mln in prior year

* Company executes reduction in force, expects $5 mln in annual savings

Outlook

* Company expects full-year 2025 revenue at $172.5 - $175 mln

* Company anticipates fourth-quarter revenue to remain roughly flat sequentially

* Company expects fourth-quarter Adjusted EBITDA to be positive

Result Drivers

* REDUCED ADVERTISING - Lower advertising spend in prior years led to fewer active subscribers and orders, impacting revenue

* ECOMMERCE PLATFORM ISSUES - Disruptions from eCommerce platform migration negatively affected revenue

* GROSS MARGIN IMPROVEMENT - Improved promotional efficiency and favorable product mix increased gross margin

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 EPS -$0.08

Q3 Net -$2.96

Income mln

Q3 Gross $23.32

Profit mln

Q3 -$2.73

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 $1.50, about 4.7% above its November 12 closing price of $1.43

Press Release:

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(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.)