Grove Collaborative Holdings, Inc.GROV

Grove Collaborative Holdings, Inc. Segments Disclosure

10-KFiled Mar 19, 20252 min read
Segments
The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. The Company has determined that it operates in one operating segment as it only reports operating results on an aggregate basis to the CODM. Segment revenues are described in Note 2, Significant Accounting Policies. All company assets are located within the United States and all revenues are generated within the United States. All business activities are managed on a consolidated basis.
The CODM uses net loss as reported in the consolidated statements of operations to evaluate the Company’s return on assets in deciding whether and how to invest into the Company’s consolidated operations, such as to expand its product offerings or increase advertising expenditures. The CODM reviews segment assets as presented on its consolidated balance sheets.
The Company does not have intra-entity sales or transfers.
The accounting policies of the segment is identical to those described in Note 2, Significant Accounting Policies.
Presented in the table below is segment information for the year ended December 31, 2024 (with retrospective presentation for comparative period) and a reconciliation of segment information, including significant expenses, to consolidated net loss (in thousands):

Year Ended December 31,
20242023
Segment Revenue, Significant Expenses and Net Loss:
Total revenue, net$203,425 $259,278 
Cost of goods sold
94,077 121,919 
Gross profit
109,348 137,359 
Less significant expenses:
Fulfillment costs45,195 58,777 
Advertising10,265 21,292 
Product development and other selling, general and administrative expenses(1)
54,619 71,216 
Less other segment items:
Interest income(3,056)(3,773)
Other segment items(2)
29,748 33,079 
Consolidated net loss
$(27,423)$(43,232)

(1)Includes all product development and selling, general and administrative expenses, excluding fulfillment costs, stock-based compensation and depreciation and amortization.

(2)Includes stock-based compensation, depreciation and amortization and all non-operating expenses, except interest income.

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesEarnings Per ShareFair ValuePP&ELeasesDebtCommitmentsNew Standards