GrowGeneration (NASDAQ:GRWG) Issues Earnings Results

by · The Cerbat Gem

GrowGeneration (NASDAQ:GRWG – Get Free Report) announced its quarterly earnings data on Thursday. The company reported ($0.12) EPS for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.05), reports. The firm had revenue of $37.82 million during the quarter, compared to the consensus estimate of $40.02 million. GrowGeneration had a negative net margin of 24.77% and a negative return on equity of 29.82%.

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 Stock Performance

NASDAQ:GRWG traded up $0.04 during mid-day trading on Thursday, reaching $1.09. 1,257,428 shares of the company’s stock were exchanged, compared to its average volume of 332,471. The firm has a market capitalization of $65.23 million, a PE ratio of -1.63 and a beta of 2.42. GrowGeneration has a one year low of $0.82 and a one year high of $2.40. The business’s fifty day simple moving average is $1.25 and its two-hundred day simple moving average is $1.50.

Analysts Set New Price Targets

Separately, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of GrowGeneration in a report on Thursday, January 22nd. One investment analyst has rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $2.50.

Check Out Our Latest Report on GRWG

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in GRWG. Bank of America Corp DE boosted its stake in shares of GrowGeneration by 36.7% in the fourth quarter. Bank of America Corp DE now owns 60,104 shares of the company’s stock valued at $102,000 after buying an additional 16,132 shares during the period. Scientech Research LLC acquired a new stake in GrowGeneration during the third quarter worth approximately $37,000. AQR Capital Management LLC bought a new position in GrowGeneration during the 1st quarter worth $27,000. Janney Montgomery Scott LLC acquired a new position in GrowGeneration in the 4th quarter valued at $42,000. Finally, Engineers Gate Manager LP acquired a new position in GrowGeneration in the 2nd quarter valued at $26,000. 36.02% of the stock is owned by institutional investors.

GrowGeneration Company Profile

(Get Free Report)

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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