GrowGeneration (NASDAQ:GRWG) Releases Earnings Results

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

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 Stock Performance

Shares of NASDAQ GRWG traded down $0.03 during midday trading on Tuesday, hitting $1.37. 407,874 shares of the company traded hands, compared to its average volume of 427,953. GrowGeneration has a 12-month low of $0.87 and a 12-month high of $2.40. The stock has a 50-day moving average price of $1.16 and a 200 day moving average price of $1.38. The firm has a market cap of $82.32 million, a P/E ratio of -3.43 and a beta of 2.40.

Institutional Investors Weigh In On GrowGeneration

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Virtu Financial LLC purchased a new stake in GrowGeneration in the fourth quarter worth $43,000. Prentice Capital Management LP grew its stake in GrowGeneration by 65.7% in the fourth quarter. Prentice Capital Management LP now owns 274,097 shares of the company’s stock worth $411,000 after purchasing an additional 108,711 shares during the period. Quadrature Capital Ltd grew its stake in GrowGeneration by 354.4% in the fourth quarter. Quadrature Capital Ltd now owns 71,034 shares of the company’s stock worth $107,000 after purchasing an additional 55,401 shares during the period. Bridgeway Capital Management LLC grew its holdings in GrowGeneration by 274.6% in the fourth quarter. Bridgeway Capital Management LLC now owns 69,298 shares of the company’s stock worth $104,000 after purchasing an additional 50,801 shares during the period. Finally, Squarepoint Ops LLC grew its holdings in GrowGeneration by 18.0% in the fourth quarter. Squarepoint Ops LLC now owns 189,484 shares of the company’s stock worth $284,000 after purchasing an additional 28,872 shares during the period. 36.02% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

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

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.