GrowGeneration Reports Fourth Quarter and Full Year 2025 Financial Results
Rhea-AI Summary
GrowGeneration (NASDAQ: GRWG) reported full year 2025 net sales of $161.7 million and a GAAP net loss of $24.0 million. Proprietary brand sales grew to 32.8% of Cultivation & Gardening revenue and gross margin improved to 26.8%.
The company ended 2025 with $46.1 million in cash and marketable securities, no debt, a Board-authorized $10 million share repurchase program, and 2026 guidance of $162–$168 million revenue with breakeven Adjusted EBITDA.
Positive
- Proprietary brand penetration rose to 32.8% of Cultivation & Gardening revenue
- Gross margin expanded to 26.8%, a 370 basis-point improvement
- Cash position of $46.1 million with no debt
- Adjusted EBITDA loss improved $8.5 million year-over-year
- Board-approved $10 million share repurchase program
Negative
- Full year revenue declined to $161.7 million from $188.9 million
- GAAP net loss remained $24.0 million for 2025
- Storage Solutions gross margin compressed to 40.3% from 45.6%
News Market Reaction – GRWG
In the Mar 20 session, GRWG gained 6.42%, reflecting a notable positive market reaction. Argus tracked a peak move of +14.4% during that session. Argus tracked a trough of -9.4% from its starting point during tracking. Our momentum scanner triggered 24 alerts that day, indicating elevated trading interest and price volatility. Trading volume was very high at 3.7x the daily average, suggesting strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Nov 06 | Q3 2025 earnings | Positive | +28.3% | Q3 2025 margin expansion, positive Adjusted EBITDA and lower operating costs. |
| Aug 11 | Q2 2025 earnings | Positive | +18.3% | Q2 2025 sales growth, higher gross margin and reduced net loss with strong cash. |
| May 08 | Q1 2025 earnings | Negative | -15.4% | Q1 2025 sales decline from store closures and wider net loss year over year. |
| Mar 13 | FY 2024 results | Neutral | +7.9% | Full-year 2024 loss with margin compression but detailed 2025 guidance and footprint cuts. |
| Feb 06 | 2024 prelim results | Positive | +12.2% | 2024 transformation update with strong cash, higher proprietary mix and cost savings. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings updates have often triggered sizable moves, with an average absolute move of 10.24%, and price generally moving in the same direction as the news tone.
Over the past year, GrowGeneration’s earnings releases have highlighted a shift from pure growth to efficiency and margin expansion. Prior quarters in 2025 showed improving gross profit margins, rising proprietary brand penetration, and declining operating expenses, with cash balances consistently above $48M and no debt. The latest full-year 2025 results and 2026 outlook continue this narrative, emphasizing higher-margin proprietary products, a leaner footprint, and a path toward breakeven Adjusted EBITDA.
Key Terms
adjusted EBITDA financial
gross profit margin financial
non-GAAP financial
rule 10b5-1 trading plan regulatory
rule 10b-18 regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Full Year Net Sales of
Full Year Proprietary Brand Penetration Increased to
Full Year GAAP Net Loss Improved by
Board Authorizes
2026 Outlook: Revenue of
DENVER, March 19, 2026 (GLOBE NEWSWIRE) -- GrowGeneration Corp. (NASDAQ: GRWG), (“GrowGeneration,” “GrowGen” or the “Company”), one of the nation’s largest suppliers of specialty products for controlled environment agriculture (CEA), commercial cultivation, and garden centers, today announced financial results for the fourth quarter and full year ended December 31, 2025.
Fourth Quarter 2025 Summary(1)
- Net sales of
$37.8 million , compared to prior year net sales of$37.4 million , an improvement of1.0% ; - Proprietary brand sales as a percentage of Cultivation and Gardening net sales increased to
35.8% , compared to30.4% in the prior year; - Gross profit margin of
24.1% , compared to16.4% in the prior year; - Store and other operating expenses declined approximately
26.8% to$6.8 million , compared to$9.3 million for the same period in the prior year; - Total operating expenses decreased
$13.3 million , or44.4% , to$16.7 million in the fourth quarter of 2025, compared to$30.1 million in the prior year; - Net loss improved to
$7.4 million , compared to a net loss of$23.3 million in the prior year which includes non-cash impairments; and - Adjusted EBITDA(3) loss of
$2.0 million compared to a loss of$8.1 million in the prior year.
Full Year 2025 Summary(2)
- Net sales of
$161.7 million , compared to$188.9 million in the prior year, reflecting retail store consolidations in 2024 and 2025. - Proprietary brand sales as a percentage of Cultivation and Gardening net sales increased to
32.8% , compared to24.2% in the prior year; - Gross profit margin of
26.8% , a 370 basis point improvement compared to23.1% in the prior year; - Store and other operating expenses decreased
$9.5 million , or23.5% ; - Net loss of
$24.0 million , compared to a net loss of$49.5 million in the prior year; - Adjusted EBITDA(3) loss of
$6.0 million , an$8.5 million improvement compared to a loss of$14.5 million in the prior year; and - Cash, cash equivalents, and marketable securities of
$46.1 million and no debt.
Darren Lampert, GrowGen’s Co-Founder and Chief Executive Officer, commented, “2025 was a transformational year for GrowGen. We further streamlined our operating footprint, expanded proprietary brand sales to
“As we enter 2026, GrowGen is operating with a significantly leaner cost structure, a growing portfolio of proprietary brands, and a strong balance sheet with
Fourth Quarter 2025 Consolidated Results
Net sales increased
Similar to what we have seen throughout 2025, fourth quarter proprietary brand sales continued to perform strongly, supporting the confidence we have in our ability to expand gross margin for the long-term. Proprietary brand sales as a percentage of Cultivation and Gardening net sales increased to
Gross profit was
GAAP net loss was
Non-GAAP Adjusted EBITDA(3) was a loss of
Full Year 2025 Consolidated Results
Net sales were
Net sales of commercial fixtures within our Storage Solutions segment increased to
Gross profit was
Gross profit margin was
Store and other operating expenses for the full year 2025 were
Selling, general, and administrative expenses for the full year 2025 were
GAAP net loss was
Non-GAAP Adjusted EBITDA(3) was a loss of
Cash, cash equivalents, and marketable securities as of December 31, 2025 were
Total current liabilities, including accounts payable, accrued payroll, and other liabilities as of December 31, 2025 were
Geographic Footprint
Our geographic footprint for our Cultivation and Gardening segment spans approximately 563,000 square feet of retail and warehouse space and includes 23 retail locations across 10 states. During 2025, we consolidated 8 retail stores where we generally expect to be able to serve the same customer base through a single location, thereby reducing redundancies in cost structure.
Share Repurchase Program
The Company also announced that its Board of Directors has authorized a share repurchase program for up to
2026 Outlook
For the full year 2026, the Company expects net revenue in the range of
The Company’s full year 2026 guidance assumes a softer first quarter for revenue and Adjusted EBITDA, given its usual seasonality, with profitable second and third quarters reflecting the outdoor cultivation and gardening season as well as continued improvements in gross margin and a lower operating expense base compared to 2025.
Footnotes
- All comparisons are for the fourth quarter ended December 31, 2025 versus the fourth quarter ended December 31, 2024
- All comparisons are for the year ended December 31, 2025 versus the year ended December 31, 2024
- Adjusted EBITDA represents earnings before interest, taxes, depreciation, and amortization as adjusted for certain items as set forth in the reconciliation table of U.S. GAAP to non-GAAP information and is a measure calculated and presented on the basis of methodologies other than in accordance with GAAP. Please refer to the Use of Non-GAAP Financial Information herein for further discussion and reconciliation of this measure to GAAP measures.
Conference Call
The Company will host a conference call today, March 19, 2026, at 4:30p.m. Eastern Time to discuss financial results for the fourth quarter and full year ended December 31, 2025. To participate in the call, please dial 1-(888)-699-1199 (domestic) or 1-(416)-945-7677 (international). The conference code is 21623. The call will also be webcast and can be accessed at https://app.webinar.net/bRq454Ojknp or on the Investor Relations section of the GrowGen website at https://ir.growgeneration.com. A replay of the webcast will be available approximately two hours after the conclusion of the call and remain available for approximately 90 calendar days.
About GrowGeneration Corp.
GrowGen is one of the nation’s largest suppliers of specialty products for controlled environment agriculture (CEA), commercial cultivation, and garden centers. GrowGen carries and sells thousands of products, such as nutrients, additives, growing media, lighting, environmental control systems, and benching and racking, including proprietary brands such as CharCoir, Drip Hydro, Power Si, Ion lights, The Harvest Company, Viagrow, and more. The Company also operates an online superstore for cultivators at growgeneration.com, as well as a wholesale business for resellers, and a benching, racking, and storage solutions business, or MMI Storage Solutions.
To be added to the GrowGeneration email distribution list, please email GrowGen@kcsa.com with GRWG in the subject line.
Forward Looking Statements
This press release may include predictions, estimates or other information that might be considered forward-looking within the meaning of applicable securities laws. While these forward-looking statements represent current judgments, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect opinions only as of the date of this release. Please keep in mind that the Company does not have an obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. When used herein, words such as “look forward,” “expect,” “believe,” “anticipate,” “estimate,” or variations of such words and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are often discussed in filings made with the United States Securities and Exchange Commission, available at: www.sec.gov, and on the Company’s website, at: www.growgeneration.com.
Contacts:
KCSA Strategic Communications
Philip Carlson
Managing Director
T: 212-896-1233
E: GrowGen@kcsa.com
| GROWGENERATION CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) | |||||||
| December 31, 2025 | December 31, 2024 | ||||||
| ASSETS | (Unaudited) | ||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 30,406 | $ | 27,471 | |||
| Marketable securities | 15,658 | 28,984 | |||||
| Accounts receivable, net of allowance for credit losses of | 10,668 | 7,361 | |||||
| Notes receivable, current, net of allowance for credit losses of | 507 | 1,056 | |||||
| Inventory | 38,776 | 40,295 | |||||
| Prepaid income taxes | 60 | 145 | |||||
| Prepaid and other current assets | 7,672 | 7,896 | |||||
| Total current assets | 103,747 | 113,208 | |||||
| Property and equipment, net | 9,795 | 15,493 | |||||
| Operating leases right-of-use assets, net | 27,050 | 34,453 | |||||
| Intangible assets, net | 3,326 | 8,779 | |||||
| Goodwill | 2,080 | 1,605 | |||||
| Other assets | 1,042 | 814 | |||||
| TOTAL ASSETS | $ | 147,040 | $ | 174,352 | |||
| LIABILITIES & STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 8,775 | $ | 8,146 | |||
| Accrued liabilities | 3,269 | 2,358 | |||||
| Payroll and payroll tax liabilities | 2,589 | 2,655 | |||||
| Customer deposits | 4,015 | 2,404 | |||||
| Sales tax payable | 872 | 1,313 | |||||
| Current maturities of lease liability | 6,455 | 7,398 | |||||
| Total current liabilities | 25,975 | 24,274 | |||||
| Operating lease liability, net of current maturities | 23,022 | 29,633 | |||||
| Other long-term liabilities | 544 | 352 | |||||
| Total liabilities | 49,541 | 54,259 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ Equity: | |||||||
| Common stock; $.001 par value; 100,000,000 shares authorized; 60,090,905 and 59,402,628 shares issued and outstanding as of December 31, 2025 and 2024, respectively | 60 | 59 | |||||
| Additional paid-in capital | 377,128 | 375,677 | |||||
| Accumulated deficit | (279,689 | ) | (255,643 | ) | |||
| Total stockholders’ equity | 97,499 | 120,093 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 147,040 | $ | 174,352 | |||
| GROWGENERATION CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) | |||||||||||||||
| Three Months Ended December 31, | Year ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Net sales | $ | 37,821 | $ | 37,436 | $ | 161,741 | $ | 188,866 | |||||||
| Cost of sales (exclusive of depreciation and amortization shown below) | 28,703 | 31,309 | 118,466 | 145,144 | |||||||||||
| Gross profit | 9,118 | 6,127 | 43,275 | 43,722 | |||||||||||
| Operating expenses: | |||||||||||||||
| Store operations and other operational expenses | 6,828 | 9,322 | 30,732 | 40,198 | |||||||||||
| Selling, general, and administrative | 7,297 | 6,826 | 26,266 | 29,243 | |||||||||||
| Estimated credit losses (recoveries) | 84 | 152 | 437 | (58 | ) | ||||||||||
| Depreciation and amortization | 2,374 | 7,107 | 11,295 | 19,436 | |||||||||||
| Impairment loss | 130 | 6,655 | 130 | 6,875 | |||||||||||
| Total operating expenses | 16,713 | 30,062 | 68,860 | 95,694 | |||||||||||
| Loss from operations | (7,595 | ) | (23,935 | ) | (25,585 | ) | (51,972 | ) | |||||||
| Other income (expense): | |||||||||||||||
| Other (expense) income | — | — | — | (13 | ) | ||||||||||
| Interest income | 363 | 701 | 1,730 | 2,703 | |||||||||||
| Interest expense | — | — | — | (70 | ) | ||||||||||
| Total other income | 363 | 701 | 1,730 | 2,620 | |||||||||||
| Net loss before taxes | (7,232 | ) | (23,234 | ) | (23,855 | ) | (49,352 | ) | |||||||
| Provision for income taxes | (189 | ) | (108 | ) | (191 | ) | (158 | ) | |||||||
| Net loss | $ | (7,421 | ) | (23,342 | ) | $ | (24,046 | ) | $ | (49,510 | ) | ||||
| Net loss per share, basic | $ | (0.12 | ) | $ | (0.39 | ) | $ | (0.40 | ) | $ | (0.82 | ) | |||
| Net loss per share, diluted | $ | (0.12 | ) | $ | (0.39 | ) | $ | (0.40 | ) | $ | (0.82 | ) | |||
| Weighted average shares outstanding, basic | 59,900 | 59,274 | 59,671 | 60,176 | |||||||||||
| Weighted average shares outstanding, diluted | 59,900 | 59,274 | 59,671 | 60,176 | |||||||||||
Use of Non-GAAP Financial Information
The following non-GAAP financial measures of EBITDA and Adjusted EBITDA are not in accordance with, or an alternative for, generally accepted accounting principles ("GAAP") and should be considered in addition to, and not as a substitute for, the most directly comparable GAAP financial measures. We believe these non-GAAP financial measures, when used in conjunction with their most directly comparable GAAP financial measures, net income (loss), provide meaningful supplemental information to both management and investors, facilitating the evaluation of performance across reporting periods, identify trends affecting our business, and project future performance. Management uses these non-GAAP financial measures for internal planning and reporting purposes, and we believe that these non-GAAP financial measures may be useful to investors in their assessment of our operating performance, our ability to generate cash, and valuation. In addition, these non-GAAP financial measures address questions routinely received from analysts and investors and, in order to ensure that all investors have access to the same data, we have determined that it is appropriate to make this data available to all investors. These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.
EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA are non-GAAP financial measures commonly used in our industry and should not be construed in isolation as substitutions to net income (loss) as indicators of operating performance or as alternatives to cash flow provided by operating activities as a measure of liquidity (each as determined in accordance with GAAP). GrowGeneration defines EBITDA as net income (loss) before interest income, interest expense, income tax expense, depreciation and amortization, and Adjusted EBITDA as further adjusted to exclude certain items such as stock-based compensation, impairment losses, restructuring and corporate rationalization costs, and other non-core or non-recurring expenses and to include income from our marketable securities as these investments are part of our operational business strategy and increase the cash available to us.
Set forth below is a reconciliation of EBITDA and Adjusted EBITDA to net loss (in thousands):
| Three months ended December 31, | Year ended December 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net loss | $ | (7,421 | ) | $ | (23,342 | ) | $ | (24,046 | ) | $ | (49,510 | ) | |||
| Provision for income taxes | 189 | 108 | 191 | 158 | |||||||||||
| Interest income | (363 | ) | (701 | ) | (1,730 | ) | (2,703 | ) | |||||||
| Interest expense | — | — | — | 70 | |||||||||||
| Depreciation and amortization | 2,374 | 7,107 | 11,295 | 19,436 | |||||||||||
| EBITDA | $ | (5,221 | ) | $ | (16,828 | ) | $ | (14,290 | ) | $ | (32,549 | ) | |||
| Share-based compensation | 274 | 318 | 1,513 | 2,422 | |||||||||||
| Investment income | 362 | 661 | 1,741 | 2,582 | |||||||||||
| Acquisition transaction costs | 10 | — | 69 | — | |||||||||||
| Impairment loss | 130 | 6,655 | 130 | 6,875 | |||||||||||
| Restructuring plan(1) | — | 310 | 1,141 | 3,009 | |||||||||||
| Consolidation and other charges(2) | 2,485 | 785 | 3,742 | 3,160 | |||||||||||
| Adjusted EBITDA | $ | (1,960 | ) | $ | (8,099 | ) | $ | (5,954 | ) | $ | (14,501 | ) | |||
| (1) Charges were related to the strategic restructuring plan announced in July 2024 and consisted of inventory disposal costs, retail location closure costs including related contract termination costs and fixed asset disposals, employee termination benefits, asset impairments including the impairment of operating lease right-of-use assets, and other associated costs. 2024 results also includes an estimated additional | |||||||||||||||
| (2) Consists primarily of expenditures related to legal settlements and contingencies, the activity of store and distribution consolidation and one-time severances outside of the restructuring plan announced July 2024, and other non-core or non-recurring expenses. | |||||||||||||||
