Grove Collaborative Holdings, Inc. reported second quarter 2025 revenue of $44.0 million, a 1.1% sequential increase from Q1 2025, signaling stabilization after Q1 was identified as the revenue trough. However, revenue was down 15.5% year-over-year.
The company achieved positive operating cash flow of $1 million and total cash flow of $0.4 million in Q2 2025, driven by working capital improvements and inventory optimization. Adjusted EBITDA was negative $0.9 million, or a negative 2.1% margin, below expectations primarily due to the e-commerce platform migration's revenue impact.
Grove's gross margin improved by 150 basis points year-over-year to 55.0%, attributed to improved promotional strategies and increased third-party vendor funding. The largest known issues related to the e-commerce platform migration were resolved by the end of Q2 2025, and the company expects sequential revenue growth through the second half of 2025, culminating in slight year-over-year growth in Q4 2025.
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