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Grove Collaborative Holdings Inc. Class A (GROV+1.47%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing reports a net revenue of $203.4 million, a decrease from $259.3 million in the previous year. The decline is attributed primarily to a reduction in direct-to-consumer total orders.
Cost of goods sold was $94.1 million, representing 46% of net revenue, compared to 47% in the previous year. The company reported a gross profit of $109.3 million, with a gross margin increase to 54% from 53% in the prior year.
Advertising expenses were reduced by 52% to $10.3 million as the company implemented a lower-spend strategy to optimize customer acquisition costs.
Product development expenses increased by 13% to $18.5 million, primarily due to severance-related expenses and accelerated amortization of internally developed software.
Selling, general, and administrative expenses decreased by 24% to $103.2 million, driven by reductions in fulfillment costs and corporate compensation.
Net loss for the year was $27.4 million, an improvement from a net loss of $43.2 million in the previous year. This was aided by a decrease in interest expense and changes in the fair value of derivative liabilities.
Grove Collaborative Holdings Inc. Class A has a working capital of $44.9 million as of December 31, 2024. The company continues to focus on cost management and strategic initiatives to achieve profitability.
The filing also details the company's exit from brick-and-mortar retail channels, a strategic decision expected to enhance profitability with minimal impact on revenue.
Grove Collaborative Holdings Inc. Class A remains committed to sustainability and innovation, with a focus on expanding its product offerings and improving its direct-to-consumer platform.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Grove Collaborative Holdings Inc. Class A annual 10-K report dated March 19, 2025. To report an error, please email earnings@qz.com.