GrowGeneration (NASDAQ:GRWG) Releases Quarterly Earnings Results, Misses Estimates By $0.05 EPS

GrowGeneration (NASDAQ:GRWG) issued its quarterly earnings data on Thursday. The company reported ($0.12) earnings per share 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 analyst estimates of $40.02 million. GrowGeneration had a negative net margin of 14.87% and a negative return on equity of 22.36%.

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 Up 6.4%

GrowGeneration stock opened at $1.16 on Friday. GrowGeneration has a 52-week low of $0.82 and a 52-week high of $2.40. The firm has a market cap of $69.41 million, a PE ratio of -2.90 and a beta of 2.42. The company’s 50 day moving average is $1.23 and its two-hundred day moving average is $1.50.

Analyst Ratings Changes

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

Institutional Trading of GrowGeneration

A number of large investors have recently modified their holdings of GRWG. Jane Street Group LLC boosted its position in shares of GrowGeneration by 1,193.2% during the 2nd quarter. Jane Street Group LLC now owns 792,229 shares of the company’s stock worth $741,000 after acquiring an additional 730,968 shares in the last quarter. AWM Investment Company Inc. raised its position in shares of GrowGeneration by 8.7% during the 4th quarter. AWM Investment Company Inc. now owns 3,380,784 shares of the company’s stock worth $5,071,000 after acquiring an additional 271,249 shares in the last quarter. Renaissance Technologies LLC lifted its stake in GrowGeneration by 36.0% during the fourth quarter. Renaissance Technologies LLC now owns 1,019,333 shares of the company’s stock worth $1,529,000 after purchasing an additional 270,023 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in GrowGeneration by 55.1% during the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 519,681 shares of the company’s stock worth $972,000 after purchasing an additional 184,626 shares during the last quarter. Finally, Two Sigma Investments LP acquired a new position in GrowGeneration in the third quarter valued at approximately $279,000. Hedge funds and other institutional investors own 36.02% of the company’s stock.

GrowGeneration Company Profile

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.