GrowGeneration (NASDAQ:GRWG) Issues Earnings Results

GrowGeneration (NASDAQ:GRWG) announced its quarterly earnings data on Tuesday. The company reported ($0.03) EPS for the quarter, beating the consensus estimate of ($0.04) by $0.01, FiscalAI reports. GrowGeneration had a negative return on equity of 17.08% and a negative net margin of 10.07%.The business had revenue of $43.22 million during the quarter, compared to analyst estimates of $42.75 million.

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

• Revenue increased 5.5% year over year to $43.2 million, marking GrowGeneration’s third consecutive quarter of annual growth, driven primarily by commercial B2B activity and proprietary brands.
• Proprietary brands reached 39.7% of cultivation and gardening revenue, up from 32% a year earlier and already meeting the company’s 40% year-end target; management expects further expansion across commercial, cannabis, lawn-and-garden, and agricultural channels.
• Adjusted EBITDA was positive at $0.3 million versus a $1.3 million loss last year, while gross margin improved to 28.5% and operating expenses declined 13.1% year over year.
• Management raised full-year 2026 adjusted EBITDA guidance to $2 million-$3 million while maintaining revenue guidance of $162 million-$168 million; third-quarter revenue is expected at $44 million-$46 million with positive adjusted EBITDA.
• The company ended the quarter with $41 million in cash and no debt, repurchased 700,000 shares, and has approximately $9 million remaining under its buyback authorization, while noting that more than $2 million of expected IEEPA tariff refunds will benefit third-quarter results and that Q3 revenue may decline year over year due to an unusually strong comparable period.

GrowGeneration Price Performance

Shares of NASDAQ:GRWG opened at $1.78 on Thursday. The business has a fifty day moving average price of $1.48 and a 200-day moving average price of $1.34. The company has a market capitalization of $106.96 million, a PE ratio of -6.59 and a beta of 2.51. GrowGeneration has a 1-year low of $1.00 and a 1-year high of $2.40.

Insider Transactions at GrowGeneration

In other news, CEO Darren Lampert acquired 64,098 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The shares were bought at an average cost of $1.55 per share, with a total value of $99,351.90. Following the transaction, the chief executive officer owned 1,765,800 shares of the company’s stock, valued at $2,736,990. This trade represents a 3.77% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. 8.06% of the stock is currently owned by insiders.

Institutional Investors Weigh In On GrowGeneration

Institutional investors have recently made changes to their positions in the company. AWM Investment Company Inc. raised its holdings in GrowGeneration by 8.7% in the 4th quarter. AWM Investment Company Inc. now owns 3,380,784 shares of the company’s stock worth $5,071,000 after acquiring an additional 271,249 shares during the last quarter. Renaissance Technologies LLC boosted its stake in GrowGeneration by 36.0% during the 4th quarter. Renaissance Technologies LLC now owns 1,019,333 shares of the company’s stock valued at $1,529,000 after purchasing an additional 270,023 shares during the last quarter. Jane Street Group LLC boosted its stake in GrowGeneration by 1,193.2% during the 2nd quarter. Jane Street Group LLC now owns 792,229 shares of the company’s stock valued at $741,000 after purchasing an additional 730,968 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of GrowGeneration by 55.1% in the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 519,681 shares of the company’s stock worth $972,000 after purchasing an additional 184,626 shares in the last quarter. Finally, Prentice Capital Management LP raised its stake in shares of 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 last quarter. Hedge funds and other institutional investors own 36.02% of the company’s stock.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on GRWG shares. Alliance Global Partners upgraded shares of GrowGeneration from a “neutral” rating to a “buy” rating and set a $2.50 price target for the company in a research note on Wednesday. Weiss Ratings lowered shares of GrowGeneration from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, August 7th. One analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $2.50.

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.