GrowGeneration Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
GrowGeneration (NASDAQ: GRWG) reported second quarter 2026 net sales of $43.2 million, up 5.5% year-over-year and 12.6% sequentially. Cultivation and Gardening sales were $34.9 million and Storage Solutions $8.3 million. Gross margin in the quarter was 28.5%, slightly above 28.3% a year earlier.
Proprietary brands reached 39.7% of Cultivation and Gardening revenue, a 770 basis point increase year-over-year. Total operating expenses fell 13.1% to $14.7 million, with store and other operating expenses down 21.9%. Net loss narrowed to $2.0 million from $4.8 million, and Adjusted EBITDA turned positive at $0.3 million.
According to the company, it ended June 30, 2026 with $41.0 million in cash, cash equivalents, and marketable securities and no debt. GrowGeneration reaffirmed 2026 revenue guidance of $162–$168 million and raised full-year Adjusted EBITDA guidance to $2–$3 million, while guiding 2026 gross margin to 27–29% and targeting proprietary brands at about 40% of Cultivation and Gardening sales by year-end.
Positive
- Net sales $43.2M, up 5.5% YoY and 12.6% sequentially in Q2 2026
- Cultivation & Gardening net sales grew to $34.9M from $32.9M YoY
- Proprietary brand mix in Cultivation & Gardening rose to 39.7%, +770 bps YoY
- Total operating expenses fell 13.1% to $14.7M; store ops down 21.9%
- Net loss improved by $2.8M YoY to $2.0M in Q2 2026
- Adjusted EBITDA swung to a $0.3M gain from a $1.3M loss YoY
- Cash, cash equivalents, and marketable securities totaled $41.0M with no debt
- 2026 Adjusted EBITDA guidance raised to $2M–$3M; revenue outlook reaffirmed at $162M–$168M
Negative
- Company still reported a $2.0M GAAP net loss in Q2 2026
- Gross margin only improved 20 bps YoY to 28.5% in Q2 2026
- Selling, general, and administrative expenses increased 5.0% YoY to $6.5M
- Recorded an $0.2M impairment loss in Q2 2026
- Four retail locations closed in first half 2026 as part of network optimization
News Explained
GrowGeneration repurchased shares during the quarter; its June 30 balance sheet shows
Market Reaction – GRWG
Following this news, GRWG has gained 1.98%, reflecting a mild positive market reaction. Our momentum scanner has triggered 6 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $1.52. Trading volume is very high at 3.2x the average, suggesting strong buying interest.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 12 | First-quarter earnings | Positive | +17.5% | Revenue growth and narrowed loss accompanied a 17.52% 24-hour gain. |
| Mar 19 | Fourth-quarter earnings | Positive | +6.4% | Revenue guidance and no-debt balance-sheet update accompanied a 6.42% gain. |
| Nov 06 | Third-quarter earnings | Positive | +28.3% | Positive EBITDA and margin expansion accompanied a 28.26% gain. |
| Aug 11 | Second-quarter earnings | Positive | +18.3% | Revenue growth, margin improvement, and lower loss accompanied an 18.25% gain. |
| May 08 | First-quarter earnings | Negative | -15.4% | Revenue decline and withdrawn guidance accompanied a 15.45% decline. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Across five earnings-tagged events, reported sentiment aligned with 24-hour price direction; the provided average move was 11%.
Key Terms
adjusted ebitda financial
gaap financial
non-gaap financial
controlled environment agriculture technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
Company Reaffirms 2026 Revenue Outlook and Raises Full Year Adjusted EBITDA(1) guidance to
Net Loss Improved by
Net Sales of
Proprietary Brand Penetration Increased to
DENVER, Aug. 11, 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 second quarter of 2026.
Second Quarter 2026 Summary
- Net sales of
$43.2 million , up5.5% year-over-year; - Proprietary brand sales as a percentage of Cultivation and Gardening net sales increased to
39.7% , compared to32.0% in the second quarter of 2025; - Gross profit margin of
28.5% , compared to28.3% for the second quarter of 2025; - Store and other operating expenses declined approximately
21.9% to$6.1 million , compared to$7.9 million for the same period in the prior year; - Total operating expenses decreased
$2.2 million , or13.1% , to$14.7 million in the second quarter of 2026, compared to$16.9 million for the same period in the prior year; - Net loss was
$2.0 million compared to a net loss of$4.8 million for the same period in 2025; - Adjusted EBITDA(1) gain of
$0.3 million compared to a loss of$1.3 million for the comparable prior year period; and - Cash, cash equivalents, and marketable securities of
$41.0 million and no debt.
Darren Lampert, GrowGen’s Co-Founder and Chief Executive Officer, commented, “GrowGeneration delivered a strong second quarter, representing our third consecutive quarter of year-over-year revenue growth driven by our commercial B2B business. Simultaneously, we expanded proprietary brand penetration to nearly
“Moving forward, we are committed to executing our strategy and continuing our transformation into a commercial, proprietary-brand-driven business. We remain focused on driving continued revenue growth, while improving our revenue mix, expanding margins, and driving greater profitability as we continue to advance toward our year-end goal of proprietary brands representing
Second Quarter 2026 Consolidated Results
Net sales were
Once again, our quarterly proprietary brand sales exceeded our internal expectations, giving us additional confidence 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
Total operating expenses, which include store operations and other operational expenses, selling, general, and administrative, estimated credit losses, depreciation and amortization, and impairment expense decreased in the second quarter of 2026 by
Store and other operating expenses in the second quarter of 2026 declined by approximately
Selling, general, and administrative expenses in the second quarter of 2026 were
GAAP net loss narrowed to
Non-GAAP Adjusted EBITDA(1) was a gain of
Cash, cash equivalents, and marketable securities as of June 30, 2026 were
Total current liabilities, including accounts payable, accrued payroll, and other liabilities, as of June 30, 2026 were
Geographic Footprint
Our geographic footprint for our Cultivation and Gardening segment spans 492,000 square feet of retail and warehouse space and includes 19 retail locations across 9 states as of June 30, 2026. We closed four retail locations during the six months ended June 30, 2026 as part of our ongoing network optimization strategy. We continue to serve our customers through our other retail locations and our online platforms, such as growgeneration.com, where customers can make direct purchases and access our GrowGen Pro Program, which provides dedicated services and solutions for multi-state operators, controlled environment agriculture and greenhouse customers, wholesale partners, and independent commercial cultivators.
2026 Outlook
For the full year 2026, the Company reaffirmed that it expects net revenue in the range of
The Company’s full year 2026 guidance assumes profitability will build progressively throughout the year, with profitable third and fourth 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.
For the third quarter of 2026, the Company expects total consolidated net sales in the range of
Footnotes
| (1) | 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, August 11, 2026, at 4:30 p.m. Eastern Time to discuss financial results for the second quarter ended June 30, 2026. To participate in the call, please dial 1-(888)-699-1199 (domestic) or 1-(416)-945-7677 (international). The conference code is 76956. The call will also be webcast and can be accessed at https://app.webinar.net/Yp8aeqaewRr 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 Char Coir, Drip Hydro, Power Si, Ion lights, The Harvest Company, 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, 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 contains predictions, estimates or other information that are considered forward-looking statements, including without limitation, statements regarding the Company’s financial outlook, guidance, and strategic expectations, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. When used herein, words such as “look forward,” “expect,” “believe,” “anticipate,” “estimate,” “guidance,” “outlook,” “projected,” “intend,” “may,” or variations of such words and similar expressions are intended to identify forward-looking statements. These forward-looking statements represent management’s current expectations and are based on assumptions and estimates that management believes are reasonable as of the date of this press release. You are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those anticipated due to a number of risks and uncertainties, including but not limited to those 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. The Company does not undertake any obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by applicable securities laws, whether as a result of new information, future events, or otherwise.
Contact:
KCSA Strategic Communications
Philip Carlson
Managing Director
T: 212-896-1233
E: GrowGen@kcsa.com
| GROWGENERATION CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands, except share and per share amounts) | |||||||
| June 30, 2026 | December 31, 2025 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 23,460 | $ | 30,406 | |||
| Marketable securities | 17,553 | 15,658 | |||||
| Accounts receivable, net of allowance for credit losses of | 15,264 | 10,668 | |||||
| Notes receivable, current, net of allowance for credit losses of | 283 | 507 | |||||
| Inventory | 35,295 | 38,776 | |||||
| Prepaid and other current assets | 7,750 | 7,732 | |||||
| Total current assets | 99,605 | 103,747 | |||||
| Property and equipment, net | 6,423 | 9,795 | |||||
| Property and equipment held for sale | 1,574 | — | |||||
| Operating leases right-of-use assets, net | 23,880 | 27,050 | |||||
| Intangible assets, net | 2,012 | 3,326 | |||||
| Goodwill | 2,080 | 2,080 | |||||
| Other assets | 1,067 | 1,042 | |||||
| TOTAL ASSETS | $ | 136,641 | $ | 147,040 | |||
| LIABILITIES & STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 10,761 | $ | 8,775 | |||
| Accrued liabilities | 3,934 | 3,269 | |||||
| Payroll and payroll tax liabilities | 2,204 | 2,589 | |||||
| Customer deposits | 2,260 | 4,015 | |||||
| Sales tax payable | 884 | 872 | |||||
| Current maturities of operating lease liabilities | 5,568 | 6,455 | |||||
| Total current liabilities | 25,611 | 25,975 | |||||
| Operating lease liabilities, net of current maturities | 20,499 | 23,022 | |||||
| Other long-term liabilities | 503 | 544 | |||||
| Total liabilities | 46,613 | 49,541 | |||||
| Commitments and contingencies | |||||||
| Stockholders' equity: | |||||||
| Common stock; | 60 | 60 | |||||
| Treasury stock, at cost; 724,927 and zero shares, respectively | (1,010 | ) | — | ||||
| Additional paid-in capital | 377,602 | 377,128 | |||||
| Accumulated deficit | (286,624 | ) | (279,689 | ) | |||
| Total stockholders' equity | 90,028 | 97,499 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 136,641 | $ | 147,040 | |||
| GROWGENERATION CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands, except share and per share amounts) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net sales | $ | 43,215 | $ | 40,963 | $ | 81,606 | $ | 76,666 | |||||||
| Cost of sales (exclusive of depreciation and amortization shown below) | 30,895 | 29,369 | 59,546 | 55,365 | |||||||||||
| Gross profit | 12,320 | 11,594 | 22,060 | 21,301 | |||||||||||
| Operating expenses: | |||||||||||||||
| Store operations and other operational expenses | 6,143 | 7,867 | 12,544 | 16,659 | |||||||||||
| Selling, general, and administrative | 6,458 | 6,151 | 13,384 | 13,263 | |||||||||||
| Estimated credit losses | 336 | 163 | 403 | 255 | |||||||||||
| Depreciation and amortization | 1,504 | 2,687 | 3,115 | 6,272 | |||||||||||
| Impairment loss | 220 | — | 220 | — | |||||||||||
| Total operating expenses | 14,661 | 16,868 | 29,666 | 36,449 | |||||||||||
| Loss from operations | (2,341 | ) | (5,274 | ) | (7,606 | ) | (15,148 | ) | |||||||
| Other income (expense): | |||||||||||||||
| Interest income | 347 | 463 | 671 | 960 | |||||||||||
| Total other income | 347 | 463 | 671 | 960 | |||||||||||
| Net loss before income taxes | (1,994 | ) | (4,811 | ) | (6,935 | ) | (14,188 | ) | |||||||
| Provision for income taxes | (19 | ) | — | — | — | ||||||||||
| Net loss | $ | (2,013 | ) | $ | (4,811 | ) | $ | (6,935 | ) | $ | (14,188 | ) | |||
| Net loss per share, basic | $ | (0.03 | ) | $ | (0.08 | ) | $ | (0.12 | ) | $ | (0.24 | ) | |||
| Net loss per share, diluted | $ | (0.03 | ) | $ | (0.08 | ) | $ | (0.12 | ) | $ | (0.24 | ) | |||
| Weighted average shares outstanding, basic | 59,805,494 | 59,551,783 | 59,947,411 | 59,496,861 | |||||||||||
| Weighted average shares outstanding, diluted | 59,805,494 | 59,551,783 | 59,947,411 | 59,496,861 | |||||||||||
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 June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net loss | $ | (2,013 | ) | $ | (4,811 | ) | $ | (6,935 | ) | $ | (14,188 | ) | |||
| Provision for income taxes | 19 | — | — | — | |||||||||||
| Interest income | (347 | ) | (463 | ) | (671 | ) | (960 | ) | |||||||
| Depreciation and amortization | 1,504 | 2,687 | 3,115 | 6,272 | |||||||||||
| EBITDA | $ | (837 | ) | $ | (2,587 | ) | $ | (4,491 | ) | $ | (8,876 | ) | |||
| Share-based compensation | 270 | 315 | 525 | 818 | |||||||||||
| Investment income | 293 | 453 | 593 | 972 | |||||||||||
| Acquisition transaction costs | — | 50 | — | 50 | |||||||||||
| Impairment loss | 220 | — | 220 | — | |||||||||||
| Restructuring plan | — | — | — | 1,141 | |||||||||||
| Consolidation and other charges(1) | 309 | 467 | 1,824 | 563 | |||||||||||
| Adjusted EBITDA | $ | 255 | $ | (1,302 | ) | $ | (1,329 | ) | $ | (5,332 | ) | ||||
| (1)Consists primarily of expenditures related to legal settlements and contingencies, the activity of store and distribution consolidation, one-time severances outside of the restructuring plan announced July 2024, and other non-core or non-recurring expenses | |||||||||||||||
