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

GrowGeneration (NASDAQ:GRWG) announced its earnings results on Tuesday. The company reported ($0.03) earnings per share for the quarter, topping the consensus estimate of ($0.04) by $0.01, FiscalAI reports. GrowGeneration had a negative return on equity of 19.50% and a negative net margin of 11.91%.The business had revenue of $43.22 million during the quarter, compared to the consensus estimate 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 Trading Up 4.2%

NASDAQ:GRWG opened at $1.49 on Wednesday. The company has a market cap of $89.54 million, a P/E ratio of -4.66 and a beta of 2.51. GrowGeneration has a twelve month low of $1.00 and a twelve month high of $2.40. The company’s 50-day moving average price is $1.48 and its 200-day moving average price is $1.34.

Insider Transactions at GrowGeneration

In other GrowGeneration news, CEO Darren Lampert acquired 64,098 shares of the company’s stock in a transaction that occurred on Monday, May 18th. The stock was bought at an average price of $1.55 per share, with a total value of $99,351.90. Following the purchase, the chief executive officer owned 1,765,800 shares in the company, valued at approximately $2,736,990. The trade was a 3.77% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 8.06% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. AWM Investment Company Inc. grew 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 valued at $5,071,000 after buying an additional 271,249 shares in the last quarter. Renaissance Technologies LLC grew its holdings in shares of GrowGeneration by 36.0% in the fourth 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 period. Jane Street Group LLC grew its holdings in shares of GrowGeneration by 1,193.2% in the second 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 period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in GrowGeneration by 55.1% during the third 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 during the last quarter. Finally, Prentice Capital Management LP increased its position in GrowGeneration by 65.7% during 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. 36.02% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about GrowGeneration

Here are the key news stories impacting GrowGeneration this week:

• Positive Sentiment: GrowGeneration reported second-quarter revenue of $43.2 million, up 5.5% year over year and above the $42.75 million analyst estimate. The company’s adjusted EBITDA improved to a $0.3 million profit from a $1.3 million loss a year earlier, while its net loss narrowed to $2.0 million from $4.8 million. GrowGeneration Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Adjusted EPS of -$0.03 beat the consensus estimate of -$0.04. Gross margin edged up to 28.5%, proprietary-brand penetration increased to 39.7% of cultivation and gardening revenue, and operating expenses declined significantly. GrowGeneration Reports Q2 Loss, Beats Revenue Estimates
• Positive Sentiment: Management raised full-year 2026 adjusted EBITDA guidance to $2 million-$3 million, reaffirmed revenue guidance of $162 million-$168 million, and ended the quarter with $41 million in cash and marketable securities and no debt. GrowGeneration Expects 2026 Adjusted EBITDA
• Neutral Sentiment: Analysts are comparing GrowGeneration with Winmark, highlighting differences in business models, valuation, growth prospects and risk. The comparison does not represent a new company-specific catalyst. Analyzing GrowGeneration and Winmark
• Negative Sentiment: Third-quarter revenue guidance of $44 million-$46 million is below the $46.9 million consensus estimate. GrowGeneration also remains unprofitable, with a negative net margin and negative return on equity, keeping execution and demand concerns in focus. GrowGeneration Q3 Guidance

Analyst Upgrades and Downgrades

Several brokerages recently commented on GRWG. Alliance Global Partners reissued a “neutral” rating on shares of GrowGeneration in a report on Wednesday, May 13th. Weiss Ratings downgraded shares of GrowGeneration from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday. Two equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce”.

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.