GrowGeneration (NASDAQ:GRWG) Issues Earnings Results, Beats Estimates By $0.01 EPS

GrowGeneration (NASDAQ:GRWG) posted its quarterly earnings results on Tuesday. The company reported ($0.08) EPS for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.01, FiscalAI reports. GrowGeneration had a negative return on equity of 22.90% and a negative net margin of 14.87%.The company 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

NASDAQ:GRWG traded up $0.22 during trading hours on Wednesday, reaching $1.59. The stock had a trading volume of 933,669 shares, compared to its average volume of 432,917. GrowGeneration has a 52 week low of $0.87 and a 52 week high of $2.40. The company has a 50 day moving average price of $1.17 and a two-hundred day moving average price of $1.37. The stock has a market capitalization of $95.24 million, a PE ratio of -3.96 and a beta of 2.40.

Wall Street Analysts Forecast Growth

GRWG has been the topic of a number of research analyst reports. Alliance Global Partners reissued a “neutral” rating on shares of GrowGeneration in a report on Wednesday. Weiss Ratings raised GrowGeneration from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, April 24th. Finally, Zacks Research raised GrowGeneration to a “hold” rating in a research note on Thursday, March 26th. Two equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Reduce”.

Hedge Funds Weigh In On GrowGeneration

Large investors have recently modified their holdings of the stock. Scientech Research LLC bought a new position in shares of GrowGeneration during the 3rd quarter valued at approximately $37,000. AQR Capital Management LLC bought a new position in shares of GrowGeneration during the 1st quarter valued at approximately $27,000. Janney Montgomery Scott LLC purchased a new position in GrowGeneration during the 4th quarter valued at $42,000. Engineers Gate Manager LP purchased a new position in GrowGeneration during the 2nd quarter valued at $26,000. Finally, Virtu Financial LLC purchased a new position in GrowGeneration during the 4th quarter valued at $43,000. Institutional investors 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.