Grove Collaborative Holdings Inc., a sustainable consumer products company and certified B Corporation, reported its financial results for the first quarter of 2025. The company posted a total revenue of $43.5 million, marking an 18.7% decline from $53.5 million in the same period last year. This decrease was primarily due to lower repeat order volume and disruptions from the eCommerce platform migration, which negatively impacted revenue by an estimated $2 to $3 million. The net loss for the quarter was $3.5 million, slightly increasing from a $3.4 million net loss in the previous year's first quarter. Adjusted EBITDA was negative $1.6 million, compared to a positive $1.9 million in the same period last year. The gross margin dropped to 53.0%, down from 55.5%, mainly due to the elimination of certain customer fees. Operating cash flow was negative $6.9 million, influenced by increased working capital and acquisitions of Grab Green and 8Greens. Cash, cash equivalents, and restricted cash totaled $13.5 million as of March 31, 2025, down from $24.3 million at the end of 2024. Grove Collaborative also announced an amendment to its Asset-Based Loan Facility, extending its maturity to April 2028 and increasing availability by removing the minimum liquidity covenant. The company is focusing on optimizing its platform and enhancing advertising efficiency to drive future growth.
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