GrowGeneration (NASDAQ:GRWG – Get Free Report) posted its quarterly earnings results on Thursday. The company reported ($0.12) EPS for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.05), reports. GrowGeneration had a negative net margin of 24.77% and a negative return on equity of 29.82%. The company had revenue of $37.82 million during the quarter, compared to analyst estimates of $40.02 million.
Here are the key takeaways from GrowGeneration’s conference call:
- Company executed a structural turnaround in 2025 with private‑label penetration rising to 32.8% (35.8% in Q4), gross margin up 370 bps to 26.8%, and adjusted EBITDA improving by $8.5M to -$6M; management guides to roughly break‑even adjusted EBITDA and 27%–29% gross margins for 2026.
- GrowGen cut operating expenses by about $27M (28%) in 2025 and says these are permanent structural savings, underpinning the path to profitability even with modest revenue growth.
- Balance sheet strength supports capital returns and optionality: the company ended 2025 with $46.1M cash, no debt, and a board‑authorized repurchase program for up to 10 million shares (management plans to execute gradually).
- Strategic shift toward a B2B, brand‑led model: expansion of proprietary brands across Viagrow/major retailers, distribution deals (Arid Sales, V1 Solutions), GrowGen Build projects, and MMI Storage Solutions (FY revenue $27.5M) aim to diversify channels and geographies but will take time to scale.
- Top‑line and legacy retail risk remain: FY 2025 revenue fell to $161.7M from $188.9M due to store consolidations, GAAP net loss was $24M and adjusted EBITDA is still negative, and management expects further store exits (targeting ~15 by year‑end), so execution risk persists.
GrowGeneration Trading Up 3.8%
NASDAQ GRWG traded up $0.04 on Thursday, hitting $1.09. 1,257,428 shares of the company’s stock were exchanged, compared to its average volume of 332,471. The stock has a 50-day moving average of $1.25 and a 200-day moving average of $1.50. The stock has a market cap of $65.23 million, a price-to-earnings ratio of -1.63 and a beta of 2.42. GrowGeneration has a 52 week low of $0.82 and a 52 week high of $2.40.
Wall Street Analyst Weigh In
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Hedge Funds Weigh In On GrowGeneration
A number of institutional investors have recently modified their holdings of the business. Scientech Research LLC bought a new stake in shares of GrowGeneration during the 3rd quarter worth $37,000. AQR Capital Management LLC bought a new position in GrowGeneration in the first quarter valued at about $27,000. Janney Montgomery Scott LLC bought a new position in GrowGeneration in the fourth quarter valued at about $42,000. Engineers Gate Manager LP acquired a new position in GrowGeneration during the second quarter worth about $26,000. Finally, Virtu Financial LLC acquired a new position in GrowGeneration during the fourth quarter worth about $43,000. Institutional investors and hedge funds own 36.02% of the company’s stock.
About GrowGeneration
GrowGeneration Corp. is the largest chain of specialty hydroponic and organic garden centers in the United States, serving commercial and home growers of all experience levels. The company offers a broad assortment of cultivation supplies, including high-efficiency LED lighting, climate control systems, irrigation and fertigation equipment, growing media and nutrients. Through its retail outlets and e-commerce platform, GrowGeneration caters to indoor and outdoor horticultural operations, with a particular focus on the rapidly expanding legal cannabis market.
In addition to its product offerings, GrowGeneration provides design, consulting and project management services for turnkey cultivation facilities.
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