GrowGeneration (NASDAQ:GRWG) Announces Earnings Results, Beats Expectations By $0.01 EPS

GrowGeneration (NASDAQ:GRWG) posted its earnings results on Tuesday. The company reported ($0.08) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.01, FiscalAI reports. The firm had revenue of $38.39 million during the quarter, compared to the consensus estimate of $36.45 million. GrowGeneration had a negative net margin of 14.87% and a negative return on equity of 22.90%.

Here are the key takeaways from GrowGeneration’s conference call:

• GrowGeneration delivered its second consecutive quarter of year-over-year revenue growth, with Q1 net sales up 7.5% to $38.4 million, driven mainly by commercial B2B demand and storage solutions.
• Profitability improved meaningfully as adjusted EBITDA loss narrowed to $1.6 million from $4.0 million a year ago, and GAAP net loss improved to $4.9 million from $9.4 million, reflecting cost cuts and operating leverage.
• Proprietary brands are gaining traction, with sales rising to 37% of cultivation and gardening revenue from 32% last year, supporting the company’s goal of reaching roughly 40% by year-end.
• Management said Q1 gross margin was pressured by store closures, inventory liquidation, mix, and tariff-related costs, but expects margins to recover into the 27%–29% range later in the year as those headwinds ease.
• The company ended Q1 with $41.1 million in cash and no debt, authorized a $10 million share repurchase program, and reaffirmed full-year 2026 guidance of $162 million–$168 million in revenue and approximately break-even adjusted EBITDA.

GrowGeneration Trading Down 2.1%

NASDAQ:GRWG traded down $0.03 during trading hours on Tuesday, hitting $1.37. The stock had a trading volume of 407,874 shares, compared to its average volume of 427,953. GrowGeneration has a 1-year low of $0.87 and a 1-year high of $2.40. The business has a 50 day simple moving average of $1.16 and a two-hundred day simple moving average of $1.38. The company has a market cap of $82.32 million, a PE ratio of -3.43 and a beta of 2.40.

Analyst Ratings Changes

GRWG has been the subject of a number of research analyst reports. Weiss Ratings raised shares of GrowGeneration from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Friday, April 24th. Zacks Research raised shares of GrowGeneration to a “hold” rating in a research report on Thursday, March 26th. One analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Reduce”.

Institutional Trading of GrowGeneration

Several large investors have recently bought and sold shares of GRWG. Engineers Gate Manager LP acquired a new stake in shares of GrowGeneration during the second quarter worth approximately $26,000. AQR Capital Management LLC acquired a new stake in shares of GrowGeneration during the first quarter worth approximately $27,000. Scientech Research LLC acquired a new stake in shares of GrowGeneration during the third quarter worth approximately $37,000. Janney Montgomery Scott LLC acquired a new stake in shares of GrowGeneration during the fourth quarter worth approximately $42,000. Finally, Virtu Financial LLC acquired a new stake in shares of GrowGeneration during the fourth quarter worth approximately $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.