GrowGeneration (GRWG) AI Stock Analysis

• Market Cap: $69.42M
• Dividend Yield: N/A
• Average Volume (3M): 296.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: -19.68%
• EPS Growth: 23.40%
• Country: US
• Employees: 289
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.12
• Shares Outstanding: 59,843,445
• 10 Day Avg. Volume: 214,570
• 30 Day Avg. Volume: 296,119
• PEG Ratio: 0.07
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.55
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 1.64
• Enterprise Value/Ebitda: -2.78
• 1Y Price Target: $1.25
• Price Target Upside: 19.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.17
• Revenue Forecast (FY): $170.50M

• Rating: 49 Neutral
• Price Target: $1.00 ▼(-4.76% Downside)
• Action: Reiterated Date: 03/21/26
• Date: Action: Reiterated 03/21/26

GRWG scores in the high-40s primarily due to weak financial performance (ongoing losses and 2025 cash burn) offset by a more encouraging forward outlook from the earnings call (margin expansion, cost reductions, and a breakeven adjusted EBITDA target for 2026). Technicals are neutral-to-weak (below key longer-term averages), and valuation support is limited given the negative P/E and no dividend.

Positive Factors

Proprietary Brand Momentum

Rising proprietary-brand penetration increases gross-margin control and recurring revenue mix. Owning ~33–36% of cultivation sales lets GrowGen capture supplier margin, reduce cost volatility, and build customer stickiness across B2B channels, supporting sustainable margin improvement.

Gross Margin Expansion & Cost Cuts

A 370 bp gross margin lift plus ~$27M annual OPEX reduction materially alters the profitability runway. Structural cost base shrinkage and clearer unit economics create a durable path to adjusted EBITDA breakeven, reducing execution risk as revenue stabilizes.

Strong Liquidity & Capital Flexibility

A cash-rich, debt-free balance sheet provides flexibility to fund working capital, absorb seasonality, and invest in proprietary brand scaling or distribution partnerships. The $10M buyback underscores board confidence and preserves optionality for strategic uses.

Negative Factors

Persistent Losses & Cash Burn

Despite progress, the company still consumes cash and reported multi-year negative net margins. Continued negative operating/free cash flow raises execution and liquidity risk if margin gains or revenue recovery stall, increasing reliance on discipline or external financing.

Shrinking Retail Footprint and Revenue

Aggressive store consolidation reduces fixed costs but shrinks physical market coverage and near-term top-line scale. Lower revenue from fewer locations pressures category buying power, raises per-store productivity expectations, and could limit growth if omnichannel gains lag.

Tariff & Market Headwinds

Persistent tariff costs and weak end-market demand are structural headwinds that compress margins and can delay recovery. Supply-cost shocks and a soft cannabis/hydro market may force sustained price or margin concessions, undermining EBITDA leverage from fixed-cost reductions.

GrowGeneration Business Overview & Revenue Model

Company Description

GrowGeneration Corp., through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. It engages in the marketing and distribution of nutrients, growing media, advanced indoor and greenhouse lighting, environmental control systems, vertical benching, and accessories for hydroponic gardening, as well as other indoor and outdoor growing products. The company serves commercial and urban cultivators growing specialty crops, including organics, greens, and plant-based medicines. As of March 01, 2022, it operated a chain of 63 stores, which includes 23 in California, 8 in Colorado, 7 in Michigan, 5 in Maine, 6 in Oklahoma, 4 in Oregon, 3 in Washington, 2 in Nevada, 1 in Arizona, 1 in Rhode Island, 1 in Florida, 1 in Massachusetts, and 1 in New Mexico, as well as growgeneration.com, an online superstore for cultivators. The company was formerly known as Easylife Corp. GrowGeneration Corp. was founded in 2008 and is based in Greenwood Village, Colorado.

How the Company Makes Money

GrowGeneration generates revenue primarily through the sale of hydroponic and gardening supplies in its retail stores and online platform. The company offers a diverse range of products, including equipment, nutrients, and growing mediums, targeting both commercial and residential customers. Additionally, GrowGeneration benefits from its relationships with leading manufacturers and suppliers in the industry, allowing it to provide exclusive products and competitive pricing. The company also engages in wholesale distribution, providing products to other retailers and growers, which serves as a significant revenue stream. Strategic partnerships with key players in the cannabis sector further enhance its market presence and profitability.

GrowGeneration Financial Statement Overview

Summary

Turnaround signals are present (2025 revenue improvement vs. 2024 and meaningfully narrower losses), and leverage appears manageable with declining debt and positive equity. However, the company remains unprofitable with multi-year negative net margins, and 2025 operating and free cash flow were negative, keeping execution and liquidity risk elevated.

Income Statement

Revenue has stabilized and improved in 2025 (annual revenue up ~24% vs. 2024), but profitability remains weak. The company is still operating at a loss, with negative net margins in each of the last four years (2022–2025), although losses narrowed meaningfully in 2025 versus 2024. Gross margin is relatively steady in the mid-to-high 20% range, but operating costs continue to outweigh gross profit, keeping earnings negative.

Balance Sheet

Leverage looks manageable: total debt declined from 2022 to 2025 (about $48.8M down to ~$29.5M), and equity remains positive (~$97.5M in 2025). However, the balance sheet has been shrinking alongside multi-year losses, with equity down materially from 2021 levels, and returns on equity have been negative for several consecutive years—signaling ongoing value erosion despite moderate debt levels.

Cash Flow

Cash generation is currently a concern. Operating cash flow and free cash flow were negative in 2025, following mixed performance in prior years (positive operating cash flow in 2022 and 2023, but negative in 2024 and 2025). While free cash flow loss improved versus 2024, the business is still consuming cash, which increases dependence on liquidity and careful cost control until profitability returns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	161.36M	161.74M	188.87M	225.88M	278.17M	422.49M
Gross Profit	40.28M	43.27M	43.72M	61.26M	70.26M	118.24M
EBITDA	-23.79M	-14.16M	-29.85M	-29.76M	-149.48M	27.87M
Net Income	-39.97M	-24.05M	-49.51M	-46.50M	-163.75M	12.79M
Balance Sheet
Total Assets	159.60M	147.04M	174.35M	239.09M	293.44M	459.34M
Cash, Cash Equivalents and Short-Term Investments	48.31M	46.06M	56.45M	64.97M	71.91M	81.17M
Total Debt	31.92M	29.48M	37.03M	42.47M	48.84M	45.56M
Total Liabilities	54.90M	49.54M	54.26M	65.69M	77.05M	88.05M
Stockholders Equity	104.70M	97.50M	120.09M	173.40M	216.40M	371.29M
Cash Flow
Free Cash Flow	-6.71M	-9.98M	-3.78M	-5.28M	-948.00K	-13.58M
Operating Cash Flow	-6.17M	-9.45M	-1.80M	1.42M	11.95M	5.16M
Investing Cash Flow	6.25M	12.60M	5.73M	-11.40M	-11.57M	-139.32M
Financing Cash Flow	-160.00K	-220.00K	-6.21M	-313.00K	-1.69M	-2.38M

GrowGeneration Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRWG, the sentiment is Negative. The current price of 1.05 is below the 20-day moving average (MA) of 1.10, below the 50-day MA of 1.25, and below the 200-day MA of 1.41, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 42.11 is Neutral, neither overbought nor oversold. The STOCH value of 26.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GRWG.

GrowGeneration Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TLF	60 Neutral	$18.24M	-2.79	16.54%	―	-0.28%	363.27%
NHTC	51 Neutral	$24.10M	-15.12	-3.23%	25.20%	-5.07%	-115.50%
GRWG	49 Neutral	$69.42M	-3.72	-22.90%	―	-19.68%	23.40%
PRTS	47 Neutral	$55.59M	-0.61	-67.30%	―	-8.35%	-74.31%
SBDS	47 Neutral	$9.38M	-0.07	-58.14%	―	-23.15%	62.52%

GrowGeneration Corporate Events

GrowGeneration Reports 2025 Results, Shifts Focus to Profitability

On March 19, 2026, GrowGeneration reported fourth-quarter and full-year 2025 results showing modest fourth-quarter sales growth to $37.8 million and full-year revenue of $161.7 million, down from 2024 due to retail store consolidations and softer first-half demand. The company sharply improved profitability metrics, with gross margin rising to 24.1% in the quarter and 26.8% for the year, GAAP net loss narrowing to $7.4 million in the quarter and $24.0 million for 2025, and adjusted EBITDA losses shrinking, supported by higher proprietary brand penetration and cost reductions.

Management highlighted 2025 as a transformational year, citing a leaner cost structure, proprietary brands reaching 32.8% of cultivation and gardening sales, and continued strength in the Storage Solutions business despite pricing pressure. With $46.1 million in cash, no debt and a newly authorized $10 million share repurchase program, the company signaled confidence in its balance sheet and positioning, while issuing a 2026 outlook that targets roughly flat revenue of $162 million to $168 million and breakeven adjusted EBITDA, underscoring a strategic pivot from growth to disciplined, margin-focused operations.

The most recent analyst rating on (GRWG) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on GrowGeneration stock, see the GRWG Stock Forecast page.

GrowGeneration Announces New One-Year CFO Employment Agreement

On December 29, 2025, GrowGeneration Corp. entered into a new one-year employment agreement with its Chief Financial Officer, Gregory Sanders, effective January 1, 2026, replacing his prior contract and setting his annual base salary at $450,000. The agreement includes a performance-based annual cash bonus targeted at 50% of base salary, with a maximum of 100%, and grants 80,000 restricted stock units vesting in two equal tranches in June and December 2026; it also provides for six months of base salary, target bonus, and health benefit contributions if Sanders is terminated without cause before the end of the term, underscoring the company’s efforts to retain key financial leadership and align executive incentives with shareholder interests.

The most recent analyst rating on (GRWG) stock is a Buy with a $2.50 price target. To see the full list of analyst forecasts on GrowGeneration stock, see the GRWG Stock Forecast page.