Consumer products company Grove's Q2 revenue falls on reduced ads, net loss narrows on cost cuts
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/Miss | Actual | Consensus Estimate |
Q2 EPS |
| -$0.1 |
|
Q2 Net Income |
| -$3.63 mln |
|
Q2 Gross Profit |
| $24.40 mln |
|
Q2 Operating Income |
| -$3.49 mln |
|
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 is $3.00, about 56% above its August 6 closing price of $1.32
Press Release: ID:nBw9ZjccZa
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