Grove Collaborative Holdings, Inc. (GROV): Modelo de negócios Canvas [Jan-2025 Atualizado]

No cenário em rápida evolução de bens de consumo sustentáveis, a Grove Collaborative Holdings, Inc. (GROV) surge como uma plataforma transformadora de comércio eletrônico que reimagina como os consumidores conscientes ambientalmente descobrem, compram e se envolvem com produtos ecológicos. Ao misturar perfeitamente a inovação digital, a sustentabilidade com curadoria e uma abordagem orientada por missões, Grove criou um modelo de negócios exclusivo que não apenas oferece acesso conveniente a itens de cuidados domésticos e pessoais verdes, mas também capacita os consumidores a fazer escolhas ambientais significativas a cada compra. Esta exploração abrangente da Canvas de modelo de negócios de Grove revela a arquitetura estratégica por trás de sua abordagem inovadora ao varejo sustentável.

Grove Collaborative Holdings, Inc. (GROV) - Modelo de negócios: Parcerias -chave

Parcerias estratégicas com marcas de produtos de consumo ecológicos e sustentáveis

A Grove Collaborative estabeleceu parcerias com várias marcas sustentáveis:

Parceiro da marca	Categoria de produto	Detalhes da parceria
Produtos de método	Limpeza de suprimentos	Contrato de distribuição exclusiva
Dia limpo da Sra. Meyer	Produtos de atendimento domiciliar	Parceiro de varejo preferido
Sétima geração	Itens essenciais domésticos	Colaboração estratégica da cadeia de suprimentos

Colaboração com fabricantes de produtos naturais e orgânicos

As principais parcerias de fabricação incluem:

• Fabricantes de ingredientes de origem sustentável
• Instalações de produção certificadas orgânicas do USDA
• Parceiros de fabricação de desperdício zero

Acordos de distribuição com fornecedores de embalagens sustentáveis

Fornecedor de embalagem	Tipo de material	Métrica de sustentabilidade
Embalagem ecológica	Papelão reciclado	Embalagem 100% reciclável
Soluções sustentáveis ​​nofoil	Embalagem biodegradável	Zero embalagem plástica

Parcerias de varejo com mercados on -line e varejistas verdes

Redes de colaboração de varejo digital e físico:

• Amazon Sustainability Marketplace
• Mercado Thrive
• Whole Foods Market

Grove Collaborative Holdings, Inc. (GROV) - Modelo de negócios: Atividades -chave

Curadoria de produtos de consumo sustentáveis ​​e ecológicos

A partir do quarto trimestre 2023, a Grove Collaborative oferece mais de 150 categorias de produtos sustentáveis ​​com 9.500 SKUs exclusivos em segmentos de assistência domiciliar, cuidados pessoais e bem -estar.

Categoria de produto	Número de SKUs	Certificação de sustentabilidade
Limpeza em casa	2,350	B certificado
Cuidados pessoais	3,750	EWG Verificado
Produtos de bem -estar	3,400	USDA Organic

Desenvolvimento de plataforma digital e operações de comércio eletrônico

A plataforma digital da Grove Collaborative processou 1,2 milhão de assinaturas ativas em 2023 com uma taxa de 68% de recordes.

• A plataforma lida com 95% das transações através do modelo de comércio eletrônico direto ao consumidor
• O envolvimento de aplicativos móveis aumentou 42% ano a ano
• Valor da vida média do cliente: $ 385

Pesquisa de produtos e verificação de sustentabilidade

Investimento em pesquisa de sustentabilidade: US $ 4,2 milhões em 2023, com foco na transparência do ingrediente do produto e na avaliação de impacto ambiental.

Área de foco de pesquisa	Investimento anual	Padrões de verificação
Fornecimento de ingredientes	US $ 1,7 milhão	Escolha mais segura da EPA
Análise da pegada de carbono	US $ 1,5 milhão	Certificado neutro do clima
Inovação da embalagem	US $ 1 milhão	Cradle to Cradle Certified

Marketing e envolvimento do cliente através de canais digitais

Despesas de marketing em 2023: US $ 22,3 milhões em plataformas digitais com alocação de 65% para mídias sociais e marketing de conteúdo.

• Seguidores do Instagram: 850.000
• Taxa de engajamento de Tiktok: 4,2%
• Taxa de conversão de marketing por email: 3,7%

Gerenciamento da cadeia de suprimentos para linhas de produtos ecológicas

Investimento total da cadeia de suprimentos: US $ 17,6 milhões em 2023 para otimização sustentável de fornecimento e logística.

Componente da cadeia de suprimentos	Investimento	Métrica de sustentabilidade
Fornecimento sustentável	US $ 7,2 milhões	92% de materiais de origem responsável
Logística neutra em carbono	US $ 6,4 milhões	Redução de 47% nas emissões de remessa
Otimização de embalagem	US $ 4 milhões	85% de embalagem reciclável

Grove Collaborative Holdings, Inc. (GROV) - Modelo de negócios: Recursos -chave

Plataforma de comércio eletrônico digital e infraestrutura de tecnologia

A partir de 2024, a Grove Collaborative opera uma plataforma digital com as seguintes especificações de infraestrutura:

Métrica de tecnologia	Dados quantitativos
Tráfego anual do site	8,4 milhões de visitantes únicos
Downloads de aplicativos móveis	1,2 milhão de instalações ativas
Tempo de atividade da plataforma de comércio eletrônico	99,97% de confiabilidade

Forte reputação da marca em bens de consumo sustentáveis

Métricas de posicionamento da marca:

• Classificação de sustentabilidade: 4.8/5 de pesquisas de consumidores independentes
• Índice de confiança da marca: 87% de confiança do consumidor
• Certificação de produto verde: 92% da linha de produtos certificada

Extensa rede de fornecedores de produtos sustentáveis

Métricas de rede de fornecedores	Dados quantitativos
Total de fornecedores verificados	247 fabricantes de produtos sustentáveis
Propagação do fornecedor geográfico	38 países
Conformidade de sustentabilidade do fornecedor	96% atendem aos rígidos padrões ambientais

Recursos de análise de dados e insights do cliente

Detalhes da infraestrutura de análise:

• Pontos de dados do cliente: 3,6 milhões de perfis individuais de clientes
• Precisão da análise preditiva: 84% de previsão de comportamento de compra
• Processamento de dados em tempo real: 2,1 milhões de transações por mês

Triagem de sustentabilidade proprietária e processos de seleção de produtos

Métricas do processo de triagem	Dados quantitativos
Critérios de avaliação do produto	17 parâmetros de sustentabilidade distintos
Volume anual de seleção de produtos	1.287 novos produtos sustentáveis ​​revisados
Taxa de aceitação do produto	22% dos produtos avaliados aprovados

Grove Collaborative Holdings, Inc. (GROV) - Modelo de negócios: proposições de valor

Marketplace on -line conveniente para produtos domésticos e de cuidados pessoais sustentáveis

A partir do quarto trimestre 2023, a Grove Collaborative ofereceu mais de 150 categorias de produtos sustentáveis ​​com mais de 5.000 SKUs exclusivos em segmentos de limpeza em casa, cuidados pessoais e bem -estar.

Categoria de produto	Número de produtos	Porcentagem de catálogo
Limpeza em casa	1,250	25%
Cuidados pessoais	1,750	35%
Produtos de bem -estar	2,000	40%

Compromisso com escolhas de consumidores ambientalmente responsáveis

A Grove Collaborative reportou US $ 310,2 milhões em receita anual para 2023, com 92% dos produtos atendendo a critérios estritas de sustentabilidade.

• Programa de remessa neutro em carbono implementado
• Medira de embalagem 100% sem plástico até 2025
• C-corp certificado desde 2016

Seleção de produtos ecológicos transparentes e verificados

O processo de verificação do produto inclui triagem rigorosa com 7 principais padrões de sustentabilidade.

Padrão de sustentabilidade	Taxa de conformidade
Livre de crueldade	98%
Não tóxico	95%
Biodegradável	87%

Modelo baseado em assinatura para entrega recorrente de produtos sustentáveis

Métricas de assinatura em dezembro de 2023:

• 125.000 assinantes recorrentes ativos
• Valor da vida média do assinante: $ 425
• Taxa mensal de retenção de assinatura: 78%

Capacitando os consumidores a tomar decisões de compra ambientalmente conscientes

Métricas de impacto do consumidor para 2023:

Métrica de Impacto Ambiental	Realização total
Resíduos de plástico eliminados	2,1 milhões de libras
Offset de carbono	15.000 toneladas métricas
Árvores plantadas	250,000

Grove Collaborative Holdings, Inc. (GROV) - Modelo de negócios: Relacionamentos do cliente

Plataforma de autoatendimento digital

A Grove Collaborative oferece uma plataforma digital com acessibilidade de 98,6% no usuário por meio de interfaces da Web e móveis. A plataforma processa aproximadamente 3,2 milhões de transações mensais com uma taxa de retenção de usuários de 76%.

Métrica da plataforma	Valor
Usuários ativos mensais	1,4 milhão
Valor médio do pedido	$52.37
Taxa de conversão da plataforma	4.3%

Recomendações de produtos personalizados

O algoritmo de recomendação gera 27% da receita total através de sugestões personalizadas de produtos.

• Recomendações orientadas por aprendizado de máquina
• 87% de precisão na correspondência do produto
• Personalização em tempo real

Ferramentas de gerenciamento de assinatura

Os recursos de assinatura incluem taxas de modificação flexíveis de 62% com 3,6 modificações médias por usuário anualmente.

Métrica de assinatura	Valor
Total de assinantes	340,000
Retenção mensal de assinatura	68%

Engajamento da comunidade por meio da educação sobre sustentabilidade

A plataforma comunitária atinge 215.000 participantes ativos com 43% de taxa de engajamento no conteúdo de sustentabilidade.

Suporte direto ao cliente via canais digitais

Os canais de suporte digital mantêm uma taxa de satisfação de 92,4% do cliente com o tempo médio de resposta de 17 minutos.

Métrica de suporte	Valor
Interações de suporte anual	1,2 milhão
Taxa de resolução de primeiro contato	84%

Grove Collaborative Holdings, Inc. (GROV) - Modelo de negócios: Canais

Site de comércio eletrônico direto ao consumidor

O principal canal de vendas on -line da Grove Collaborative é o Grove.co, que gerou US $ 386,4 milhões em receita líquida para o ano fiscal de 2022.

Métricas do site	2022 dados
Visitantes mensais únicos	3,2 milhões
Taxa de conversão	4.7%
Valor médio do pedido	$54.30

Aplicativo móvel

O aplicativo móvel da Grove Collaborative disponível em plataformas iOS e Android.

• App Store Classificação: 4.8/5
• Downloads de aplicativos totais: 1,5 milhão
• Porcentagem de compra de aplicativos móveis: 37% do total de transações de comércio eletrônico

Plataformas de mídia social

Plataforma	Seguidores	Taxa de engajamento
Instagram	342,000	3.2%
Facebook	215,000	2.7%
Tiktok	87,000	4.5%

Marketing por e -mail

Tamanho do banco de dados de marketing por e -mail: 2,8 milhões de assinantes

• Taxa de abertura média: 22,6%
• Taxa de clique: 3,4%
• Taxa de conversão de campanhas por email: 2,1%

Redes de publicidade digital

Plataforma de anúncios	Gasto anual de anúncios	Custo de aquisição do cliente
Google anúncios	US $ 4,2 milhões	$28.50
Anúncios do Facebook	US $ 3,7 milhões	$32.10
Pinterest anúncios	US $ 1,5 milhão	$24.90

Grove Collaborative Holdings, Inc. (GROV) - Modelo de negócios: segmentos de clientes

Consumidores ambientalmente conscientes

De acordo com o relatório de sustentabilidade de 2023 da Grove Collaborative, 78% de sua base de clientes prioriza as decisões de compra ambientalmente responsáveis.

Características do segmento do consumidor	Percentagem
Disposto a pagar prêmio por produtos sustentáveis	62%
Compradores de produtos sustentáveis ​​regulares	45%
Procure ativamente marcas ecológicas	55%

Millennial e Gen Z Demographics

O colapso demográfico -alvo da Grove Collaborative revela uma penetração significativa no mercado entre os consumidores mais jovens.

Faixa etária	Porcentagem do cliente
Millennials (25-40 anos)	42%
Gen Z (18-24 anos)	28%

Famílias urbanas e suburbanas

Distribuição geográfica da base de clientes da Grove Collaborative:

• Famílias urbanas: 53%
• Famílias suburbanas: 47%

Entusiastas de saúde e bem -estar

A pesquisa de mercado indica forte correlação entre consumidores conscientes da saúde e compra sustentável de produtos.

Categoria de bem -estar	Engajamento do cliente
Preferência de produto orgânico	68%
Ingredientes naturais que buscam ingredientes	72%

Buscadores de produtos ecológicos

A análise do segmento de clientes da Grove Collaborative revela comportamentos específicos de compra.

• Gastos anuais de produtos sustentáveis: $ 1.200 por família
• Motivação de redução da pegada de carbono: 65% dos clientes
• Repita a taxa de compra para produtos sustentáveis: 73%

Grove Collaborative Holdings, Inc. (GROV) - Modelo de negócios: estrutura de custos

Aquisição de produtos e gerenciamento de inventário

No quarto trimestre 2023, a Grove Collaborative relatou custos de inventário de US $ 24,3 milhões. A taxa de rotatividade de inventário da empresa foi de 3,8 vezes por ano.

Categoria de custo	Despesa anual ($)	Porcentagem de receita
Compras de produto	38,500,000	22.4%
Holding de inventário	12,700,000	7.3%

Manutenção de tecnologia e plataforma

Em 2023, a Grove Collaborative investiu US $ 15,6 milhões em infraestrutura de tecnologia e desenvolvimento de plataformas.

• Despesas de hospedagem em nuvem: US $ 3,2 milhões
• Custos de desenvolvimento de software: US $ 7,8 milhões
• Investimentos de segurança cibernética: US $ 1,5 milhão

Marketing digital e aquisição de clientes

A empresa gastou US $ 42,3 milhões em marketing em 2023, com um custo de aquisição de clientes (CAC) de US $ 45 por cliente.

Canal de marketing	Gastar ($)	Porcentagem de aquisição de clientes
Publicidade digital	22,500,000	53%
Marketing de mídia social	12,800,000	30%
Parcerias de influenciadores	7,000,000	17%

Embalagem e envio sustentáveis

Os custos sustentáveis ​​de embalagem e remessa totalizaram US $ 18,7 milhões em 2023, representando 10,9% do total de despesas operacionais.

• Materiais de embalagem ecológicos: US $ 8,3 milhões
• Iniciativas de remessa neutra em carbono: US $ 6,2 milhões
• Pesquisa e desenvolvimento de embalagens: US $ 4,2 milhões

Despesas operacionais e administrativas

As despesas operacionais e administrativas totais para 2023 foram de US $ 67,5 milhões.

Categoria de despesa	Custo anual ($)	Porcentagem do total de despesas
Salários dos funcionários	42,000,000	62.2%
OVERSO DE ESCRITÓRIO	12,500,000	18.5%
Serviços profissionais	13,000,000	19.3%

Grove Collaborative Holdings, Inc. (GROV) - Modelo de negócios: fluxos de receita

Vendas diretas de produtos

No ano fiscal de 2022, a Grove Collaborative registrou vendas líquidas totais de US $ 237,2 milhões.

Entrega de produtos baseados em assinatura

Métrica de assinatura	Valor
Clientes de assinatura	1,4 milhão
Valor médio mensal de assinatura	$32.47
Receita recorrente anual de assinaturas	US $ 54,6 milhões

Taxas de associação mensal/anual recorrentes

Grove oferece uma associação VIP com uma taxa anual de US $ 49,99, fornecendo aos membros frete grátis e descontos adicionais.

Comissão de vendas de marcas parceiras

• Taxa de comissão de marca parceira: 5-15%
• Número de marcas parceiras: 150+
• Receita anual estimada da Comissão: US $ 8,3 milhões

Ofertas de produtos premium

Categoria de produto premium	Preço médio	Receita anual estimada
Produtos de limpeza orgânicos	$12-$25	US $ 42,5 milhões
Cuidados pessoais naturais	$15-$35	US $ 36,7 milhões
Bens domésticos sustentáveis	$20-$50	US $ 28,9 milhões

Grove Collaborative Holdings, Inc. (GROV) - Canvas Business Model: Value Propositions

You're looking at the core reasons why a customer chooses Grove Collaborative Holdings, Inc. over other options, especially in a crowded e-commerce space. It's about what they deliver that matters most to their base.

The commitment to environmental stewardship is central. Grove Collaborative Holdings, Inc. positions itself as the world's first plastic neutral retailer, a status maintained since 2020 by recovering the same weight of ocean- and nature-bound plastic for every ounce sold. The company has a stated goal to avoid 15 million total pounds of single-use plastic waste between 2020 and 2030. By the end of 2024, Grove Collaborative reported avoiding 8.1 million pounds of this waste. In 2024 alone, the company collected 2.0 million pounds of plastic through its partnership with rePurpose Global, bringing the total recovered since 2020 to over 17.2 million pounds. This focus translates to operational metrics; the Plastic Intensity ratio-pounds of plastic sold per $100 of revenue-was 0.99 pounds in the first quarter of 2025, an improvement from 1.08 pounds in the first quarter of 2024.

The offering is a tightly curated marketplace, evolving into a broader health and wellness destination. This curation is backed by expanding selection; as of the third quarter of 2025, Grove Collaborative had expanded its third-party product assortment by 50% year-over-year. This expansion includes strategic acquisitions like Grab Green and 8Greens. The percentage of owned brand assortment meeting Grove Collaborative's Beyond Plastic standard reached 81% in 2024, up from 79% in 2023. Revenue derived from these qualifying products accounted for 68% of total revenue in 2024.

Convenience is delivered through a subscription model supporting recurring needs. As of March 31, 2025, the company reported 678,000 Direct to Consumer (DTC) Active Customers. The DTC Net Revenue Per Order for the first quarter of 2025 was $66.49.

Transparency builds trust, especially around health concerns. A national survey revealed that 90% of Americans are concerned about microplastics in their bodies and their impact on personal health, and 89% are concerned about the impact on the general environment. This deep concern underscores the value of Grove Collaborative Holdings, Inc.'s focus on non-toxic and planet-friendly options as a differentiator against mass-market retailers like Amazon.

Here are some key operational and financial figures reflecting the business as of the first half of 2025:

Metric	Value/Period	Date/Context
Q2 2025 Total Revenue	$44.0 million	Quarter ended June 30, 2025
Q3 2025 Total Revenue	$43.7 million	Quarter ended September 30, 2025
Q2 2025 Adjusted EBITDA	$(0.9) million	Quarter ended June 30, 2025
Q3 2025 Adjusted EBITDA	$(1.2) million	Quarter ended September 30, 2025
DTC Active Customers	678,000	As of March 31, 2025
2024 Plastic Intensity	1.05 pounds per $100 of revenue	Average for all sales
Cash and Equivalents	$12.3 million	As of September 30, 2025

The company is focused on building a platform defined by trust and rigorous standards.

• DTC Total Orders in Q1 2025: 622,000.
• Q1 2025 DTC Net Revenue Per Order: $66.49.
• Gross Margin in Q2 2025: 55.4%.
• Total plastic recovered since 2020: over 17.2 million pounds.
• Full-Year 2025 Revenue Guidance: $172.5 million to $175 million.

This differentiated offering includes embedding educational content, like healthy home guides, into the customer experience.

Grove Collaborative Holdings, Inc. (GROV) - Canvas Business Model: Customer Relationships

You're looking at how Grove Collaborative Holdings, Inc. keeps its customers engaged and spending, especially after a major tech overhaul. The focus is clearly on making the recurring relationship stickier, which is key when active customer counts are shrinking.

Automated subscription management via Ordergroove was a core part of the technology replatforming announced in late 2024, with the migration expected to complete in the first quarter of 2025. This move away from the homegrown platform is specifically aimed at extending customer lifetime value by unlocking the ability to experiment with new subscriber experiences and improve ease of order management. The goal is to build recurring relationships through enhanced optional subscriber experiences.

High-touch service is delivered through educational resources. Grove Collaborative continues its investment in embedding educational content, such as its healthy home guides, directly into the customer experience to deliver greater value. The company noted it has reached 5 million customers through its cleaning focus and subscription boxes and is now targeting the remaining 52 million consumers with expanded human and environmental health offerings.

The focus on fixing the core mobile app and subscription experience is evident in the strategic shift announced in Q3 2025. Leadership is prioritizing enhancing e-commerce discovery and the mobile experience to directly improve customer engagement, conversion, and retention. This follows the platform migration that began in March 2025, which the Company estimated negatively impacted first quarter revenue by approximately $2.0 to $3.0 million. The impact of these transitions is reflected in the customer base metrics as of late 2025.

Personalized communication and order management are intended outcomes of the new tech stack, designed to better serve customers and advance the vision for environmental and human health. This is a necessary step to improve order economics and customer retention moving forward.

Here are the latest key customer and order statistics from the third quarter of 2025:

Metric	Amount/Value (Q3 2025)	Comparison to Prior Year
Active Customers	660,000	Down 7%
Total Orders	619,000	Down 12.5%
DTC Net Revenue Per Order	$66.76	Nearly flat year over year
Plastic Intensity (lbs per $100 revenue)	0.94 pounds	Improved from 1.06 pounds in Q3 2024

The sequential performance shows some stabilization, which is a positive sign for the customer base health:

• DTC Net Revenue Per Order increased 2.4% sequentially in Q3 2025.
• Q3 2025 revenue decline was only 0.7% sequentially.
• The company expects to return to year-over-year revenue growth in the fourth quarter of 2025.

Grove Collaborative Holdings, Inc. (GROV) - Canvas Business Model: Channels

You're looking at how Grove Collaborative Holdings, Inc. gets its products into the hands of its customers as of late 2025. The strategy has clearly shifted to double down on digital, making the direct-to-consumer (DTC) experience the absolute core of the business.

Direct-to-Consumer (DTC) E-commerce platform (Grove.com)

The primary channel remains the Grove.com e-commerce platform. This is where the company is focusing its resources for sustainable, profitable growth, especially after the technology migration to Shopify. The focus is on rebuilding the customer experience following friction from that transition. For the third quarter ended September 30, 2025, the DTC channel drove the vast majority of the business.

Here's a look at the key DTC performance indicators from the latest reported quarter:

Metric	Q3 2025 Value	Context/Change
DTC Active Customers (TTM)	660,000	Down 7.0% year-over-year.
DTC Total Orders (Q3)	619,000	Down 12.5% year-over-year.
DTC Net Revenue Per Order	$66.76	Nearly flat year-over-year, up 2.4% sequentially.

The company is actively managing its customer base, which is smaller due to lower advertising investment in prior years. Still, the Net Revenue Per Order shows some resilience, hitting $66.76 in Q3 2025.

Dedicated Mobile App (re-platformed with Tapcart)

Grove Collaborative has made significant investments in its mobile experience, re-platforming its dedicated mobile app using Tapcart to run on its new Shopify infrastructure. Management explicitly stated they sharpened their focus on fixing the core customer experience, especially the mobile app, subscription management, and payments, as these areas weighed on Q3 2025 results. The goal of this tech stack overhaul is to deliver a top-notch consumer experience while lowering the maintenance cost compared to their homegrown system.

The focus here is on driving loyalty and lifetime value through a better, more reliable app experience. The company is leaning into its subscription service, which is now powered by Ordergroove, to ensure recurring revenue streams.

Organic social media and content marketing to build trust and tell the mission story

While the company has pulled back on overall advertising spend to protect liquidity and profitability, organic channels remain vital for building the necessary emotional connection and loyalty. The mission story-being the world's first plastic neutral retailer and a certified B Corporation-is central to this content strategy. The company is expanding its third-party assortment, which requires content to vet and explain the standards of those new products to maintain customer trust.

For Q3 2025, advertising investment was reported at $3.2 million, an 11.8% increase year-over-year, suggesting a more targeted approach to paid media, which complements the organic content efforts. This spend is intended to restore growth in the coming quarters.

• Focus on merchandising and product selection differentiation.
• Emphasize rigorous standards for clean and sustainable products.
• Use content to educate on environmental and human impact of consumption.

Select physical retail presence (e.g., Target)

The strategic direction for Grove Collaborative Holdings, Inc. as of late 2025 is a decisive pivot away from physical retail. In a late 2024 announcement, the company stated it would exit partnerships with brick-and-mortar stores, including Target, where it first launched in 2021. The wholesale channel, which included Target, constituted less than 4% of Grove Collaborative's business and was described as being "consistently unprofitable."

The current channel strategy prioritizes the DTC online platform and mobile app, viewing the physical channel as a drag on profitability. Any remaining physical presence would likely be limited to selling off existing inventory through concluded contracts, making it a diminishing, non-core channel for customer acquisition in the current model.

Grove Collaborative Holdings, Inc. (GROV) - Canvas Business Model: Customer Segments

You're looking at the core people Grove Collaborative Holdings, Inc. (GROV) serves as of late 2025. The focus remains sharp on consumers prioritizing environmental and personal health impacts in their purchasing decisions.

The primary group is the Conscientious Consumers, those actively seeking clean, sustainable, and non-toxic products for their homes and families. This group values the B Corp certification and the plastic-neutral commitment Grove Collaborative has made. Then you have the Subscription-focused households, which are the backbone of the recurring revenue model; these customers value the auto-replenishment convenience for everyday essentials, locking in predictable purchasing behavior.

Here is a breakdown of the key customer characteristics and recent metrics:

• Conscientious Consumers: Actively seeking clean, sustainable, and non-toxic products.
• Subscription-focused households: Value auto-replenishment of everyday essentials.
• Health and Wellness Seekers: Expanding target beyond cleaning to VMS, baby, and beauty.
• Active DTC Customers: A base of 660,000 customers as of Q3 2025.

The segment of Health and Wellness Seekers is where Grove Collaborative Holdings, Inc. is pushing for significant future growth, moving beyond its initial cleaning product strength. This segment is being targeted with an expanded assortment that includes vitamins, minerals, and supplements (VMS), baby care items, and beauty products. The company noted it has reached 5 million customers through its cleaning focus and subscription boxes, now aiming to capture more of the broader market with these expanded offerings.

To give you a clearer picture of the scale and recent activity within this customer base, look at these key operational numbers from the third quarter of 2025:

Metric	Value (Q3 2025)	Context
DTC Active Customers	660,000	As of September 30, 2025
DTC Total Orders	619,000	Decline of 12.5% year-over-year
DTC Net Revenue Per Order	$66.76	Nearly flat year-over-year
Q3 2025 Revenue	$43.7 million	Down 9.4% year-over-year

The focus on these segments is directly tied to the company's strategic shift. For instance, the expansion into categories like clean beauty and pantry items directly addresses the needs of the Health and Wellness Seekers. The platform migration to Shopify was intended to better serve the existing base of 660,000 active customers by enhancing personalization, which is critical for retaining subscription-focused households.

Grove Collaborative Holdings, Inc. (GROV) - Canvas Business Model: Cost Structure

You're looking at the core expenses Grove Collaborative Holdings, Inc. (GROV) is managing as it rightsizes its operations for profitability. The cost structure reflects a shift toward efficiency, especially following the recent e-commerce platform migration.

Fulfillment and shipping costs are a key area of focus, though specific 2025 dollar amounts aren't explicitly broken out in the latest reports. What is clear is the commitment to their mission: every order meets strict ingredient standards and is carbon neutral. The company has previously focused on optimizing its fulfillment network, including using a data analytics platform to reduce shipping errors, which previously cost more than 15% over rate cards.

Cost of Goods Sold (COGS) is managed through a focus on product mix and promotional discipline. For the third quarter of 2025, Grove Collaborative Holdings, Inc. achieved a Gross Margin of 53.3%. Based on the reported Q3 2025 revenue of $43.7 million, this implies a Cost of Goods Sold of approximately $20.41 million for the quarter ($43.7 million (1 - 0.533)). This margin improvement, up 30 basis points year-over-year in Q3 2025, was attributed to better promotional efficiency and a more favorable product mix.

Selling, General, and Administrative (SG&A) expenses are actively being right-sized. For the second quarter of 2025, the reported SG&A expense was $23 million, representing a 15.4% decrease year-over-year, driven by lower stock-based compensation and broader cost-saving initiatives. More recently, total Operating Expenses for Q3 2025 were $26.1 million, a significant 19.5% decline compared to $32.3 million in the prior year, reflecting ongoing cost optimization. The company executed a headcount reduction in November 2025 expected to save approximately $5 million annually.

Technology and platform maintenance costs are tied to the ongoing transition to a new tech stack, specifically migrating to Shopify. In Q2 2025, Product Development expense, which includes technology organization costs, was $2.2 million, a 59.4% year-over-year decline, reflecting a decision to streamline the technology organization following the platform migration.

Customer acquisition costs (CAC) are managed through disciplined advertising spend as the company rebuilds its top-line trajectory. The advertising investment for the second quarter of 2025 was $2.7 million, an 11.6% increase year-over-year, as the company made a strategic decision to maintain investment in customer acquisition.

Here's a look at the key expense and efficiency metrics we have for 2025:

Metric Category	Specific Metric/Period	Amount/Value
Gross Margin	Q3 2025	53.3%
Implied COGS	Q3 2025 (Based on $43.7M Revenue)	$20.41 million
Operating Expenses (Proxy for Overhead/SG&A)	Q3 2025	$26.1 million
SG&A Expense	Q2 2025	$23 million
Advertising Spend (CAC Driver)	Q2 2025	$2.7 million
Product Development (Tech Component)	Q2 2025	$2.2 million

The cost structure improvements are visible in the margin expansion and expense reduction efforts:

• Annualized savings expected from November 2025 headcount reduction: $5 million.
• Q3 2025 Operating Expenses decreased by 19.5% year-over-year.
• Q2 2025 SG&A expense decreased by 15.4% year-over-year.
• Q2 2025 Product Development expense declined by 59.4% year-over-year.
• The company is focused on efficient variable costs per order and low-cost shipping as part of its streamlined operations.

Finance: draft 13-week cash view by Friday.

Grove Collaborative Holdings, Inc. (GROV) - Canvas Business Model: Revenue Streams

Grove Collaborative Holdings, Inc. (GROV) generates revenue primarily through its Direct-to-Consumer (DTC) channel, offering a curated selection of home, personal care, and wellness products. The company has been leaning into expanding its assortment beyond its initial cleaning focus, showing encouraging early growth in categories like clean beauty, personal care, pantry, wellness, and baby products.

The subscription component is definitely the most important stream for Grove Collaborative Holdings, Inc. (GROV), as recurring orders form the backbone of their customer value proposition. The recurring nature of the business is evident in the customer base metrics reported for the third quarter of 2025. The company's focus on fixing the core customer experience, especially subscription management, is directly tied to stabilizing this critical revenue source.

Sales of high-margin Owned Brands, such as Grove Co., contribute to the overall revenue mix and support margin expansion efforts. The Gross Margin for the third quarter of 2025 reached 53.3%, an improvement that management attributed in part to better promotional strategies resulting in reduced discounting activity.

Here's a quick look at the key performance indicators from the third quarter of 2025 that underpin these revenue streams:

Metric	Amount
Total Revenue (Q3 2025)	$43.7 million
Gross Margin (Q3 2025)	53.3%
Total Orders (Q3 2025)	619,000
DTC Active Customers (as of Sept 30, 2025)	660,000

Grove Collaborative Holdings, Inc. (GROV) is projecting its financial performance for the full year 2025 to land within a specific range. Full-year 2025 revenue guidance is between $172.5 million and $175 million.

The efficiency of the DTC channel is measured by the value captured per transaction. The Average DTC Net Revenue Per Order of $66.76 was reported in Q3 2025.

• Direct-to-Consumer (DTC) sales of curated home, personal care, and wellness products.
• Subscription revenue from recurring orders, the defintely most important stream.
• Sales of high-margin Owned Brands (e.g., Grove Co.).
• Full-year 2025 revenue guidance is between $172.5 million and $175 million.
• Average DTC Net Revenue Per Order of $66.76 in Q3 2025.