Grove Collaborative Holdings, Inc.

Grove Collaborative is a sustainability-focused DTC retailer with strong gross margins but three years of revenue declines, persistent losses, and limited cash.

Strengths

• Gross margin 53.7% (81.8th pct) and narrowing losses from aggressive cost cuts
• Differentiated mission/B-Corp brand with curated natural-products assortment

Risks

• Revenue down 14.6% (10th pct), net and operating losses, negative FCF, and only ~4.2 quarters cash runway
• Disruptive ecommerce platform migration plus $660M accumulated deficit; ROE is a negative-equity artifact

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Negative equityNegative book equity (debt/equity -0.44)
• Net lossNet loss (net margin -6.7%)
• Cash burnNegative free cash flow (-8.1M)
• Chronic dilutionShare count +90%/yr over 3y (dilution, book value/share -109%)
• Revenue declineRevenue -14.6% YoY