GrowGeneration (GRWG) AI Stock Analysis

• Market Cap: $90.36M
• Dividend Yield: N/A
• Average Volume (3M): 438.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: -19.68%
• EPS Growth: 23.40%
• Country: US
• Employees: 289
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.04
• Shares Outstanding: 59,843,445
• 10 Day Avg. Volume: 247,585
• 30 Day Avg. Volume: 438,381
• PEG Ratio: -0.26
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -26.93
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 2.37
• Enterprise Value/Ebitda: -4.01
• 1Y Price Target: $2.00
• Price Target Upside: 32.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.4
• Revenue Forecast (FY): $156.81M

• Rating: 46 Neutral
• Price Target: $1.50 ▼(-0.66% Downside)

GrowGeneration's overall stock score reflects significant financial challenges and valuation concerns, despite some positive signals from recent earnings improvements. The company's strategic focus on proprietary products and cost efficiency is promising, but current financial metrics and technical indicators suggest caution. Investors should monitor the company's ability to sustain recent operational improvements and navigate market dynamics.

Positive Factors

Proprietary Brands Growth

The growth in proprietary brands enhances margins and customer loyalty, positioning GrowGeneration for sustained profitability and competitive advantage.

Strategic Market Expansion

Entering new markets and expanding B2B reach can drive long-term revenue growth and diversify the company's customer base, reducing reliance on existing markets.

Launch of New Product

Introducing innovative products like the Dialed In Tri-Spec Light can enhance GrowGeneration's product offering, attract new customers, and improve market position.

Negative Factors

Declining Revenue

A decline in year-over-year revenue indicates challenges in maintaining sales momentum, which could impact long-term growth and market share.

Negative Profit Margins

Sustained negative profit margins highlight operational inefficiencies, which could hinder the company's ability to invest in growth and innovation.

Cash Flow Challenges

Negative cash flow ratios suggest difficulties in generating sufficient cash from operations, potentially limiting financial flexibility and investment capacity.

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 supplies, equipment, and gardening products. Its revenue model is centered on retail sales, both in physical stores and online, targeting both commercial growers and individual consumers. Key revenue streams include the sale of nutrients, growing mediums, lighting, and other cultivation equipment. Additionally, the company benefits from strategic partnerships with leading brands in the hydroponics industry, which enhances its product offerings and attracts a broader customer base. GrowGeneration also explores opportunities in private label products and e-commerce platforms, further diversifying its revenue streams.

GrowGeneration Financial Statement Overview

Summary

GrowGeneration faces significant financial challenges, with declining revenue and profitability issues. While the balance sheet shows moderate leverage, the negative return on equity and cash flow challenges highlight the need for strategic improvements. The company must focus on enhancing operational efficiency and stabilizing revenue to improve its financial health.

Income Statement

GrowGeneration's income statement reveals significant challenges. The company has experienced declining revenue over the past few years, with a negative revenue growth rate of -1.68% in the TTM. Profit margins are under pressure, with a negative net profit margin of -29.84% and EBIT margin of -30.10% in the TTM, indicating operational inefficiencies. Despite a relatively stable gross profit margin, the overall profitability is concerning.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.31 in the TTM, which is manageable. However, the return on equity is negative at -40.71%, reflecting poor profitability. The equity ratio is not explicitly calculated, but the company's equity position appears relatively stable compared to its assets.

Cash Flow

Cash flow analysis indicates some improvement in free cash flow growth, with a positive growth rate of 25.28% in the TTM. However, the operating cash flow to net income ratio is negative, suggesting cash flow challenges. The free cash flow to net income ratio is positive at 1.19, indicating some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	161.36M	188.87M	225.88M	278.17M	422.49M	193.37M
Gross Profit	40.28M	43.72M	61.26M	70.26M	118.24M	51.05M
EBITDA	-23.79M	-29.85M	-29.76M	-149.48M	27.87M	11.03M
Net Income	-39.97M	-49.51M	-46.50M	-163.75M	12.79M	5.33M
Balance Sheet
Total Assets	159.60M	174.35M	239.09M	293.44M	459.34M	354.73M
Cash, Cash Equivalents and Short-Term Investments	48.31M	56.45M	64.97M	71.91M	81.17M	177.91M
Total Debt	31.92M	37.03M	42.47M	48.84M	45.56M	12.72M
Total Liabilities	54.90M	54.26M	65.69M	77.05M	88.05M	37.74M
Stockholders Equity	104.70M	120.09M	173.40M	216.40M	371.29M	317.00M
Cash Flow
Free Cash Flow	-6.71M	-3.78M	-5.28M	-948.00K	-13.58M	-4.64M
Operating Cash Flow	-6.17M	-1.80M	1.42M	11.95M	5.16M	-213.00K
Investing Cash Flow	6.25M	5.73M	-11.40M	-11.57M	-139.32M	-45.83M
Financing Cash Flow	-160.00K	-6.21M	-313.00K	-1.69M	-2.38M	210.98M

GrowGeneration Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 1.51 is below the 20-day moving average (MA) of 1.58, below the 50-day MA of 1.65, and above the 200-day MA of 1.30, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 40.51 is Neutral, neither overbought nor oversold. The STOCH value of 27.81 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	61 Neutral	$24.28M	2.04	20.64%	―	-0.28%	363.27%
NHTC	48 Neutral	$50.43M	144.55	-0.38%	26.67%	-5.07%	-115.50%
GRWG	46 Neutral	$90.36M	―	-32.25%	―	-19.68%	23.40%
BGFV	46 Neutral	―	―	―	―	-8.04%	-263.28%
PRTS	44 Neutral	$35.90M	―	-67.30%	―	-8.35%	-74.31%
SBDS	44 Neutral	$21.78M	―	-58.14%	―	-23.15%	62.52%

GrowGeneration Corporate Events

GrowGeneration’s Earnings Call Highlights Strategic Growth

GrowGeneration’s recent earnings call highlighted a positive sentiment, driven by strong sequential revenue growth and improved profitability metrics. The company has successfully expanded its proprietary brands and implemented cost reduction initiatives, despite facing a decline in year-over-year sales due to store closures. This strategic approach has allowed GrowGeneration to maintain a robust financial position while exploring new market opportunities.

GrowGeneration Reports Strong Q3 2025 Financial Results

GrowGeneration Corp. is a leading supplier of specialty products for controlled environment agriculture, commercial cultivation, and retail garden centers, offering a wide range of products including proprietary brands. In its third-quarter 2025 financial results, GrowGeneration reported a significant improvement in net loss, which decreased by $9 million year-over-year, and achieved a positive Adjusted EBITDA of $1.3 million. The company also experienced a 15.4% sequential growth in net sales, surpassing its guidance with $47.3 million in sales. Proprietary brand sales contributed significantly to margin expansion, increasing to 31.6% of cultivation and gardening revenue compared to 23.8% the previous year. Key financial highlights include a gross profit margin increase to 27.2% from 21.6% in the prior year, and a substantial reduction in store operating expenses by 27.8% year-over-year. Total operating expenses also saw a notable decrease of 31.5%. The company’s strategic focus on proprietary brands and cost optimization has driven these improvements. Looking ahead, GrowGeneration anticipates continued positive revenue growth and profitability in 2026, supported by its strong balance sheet, no debt, and a growing multi-channel brand strategy.

GrowGeneration Reports Strong Q3 2025 Financial Results

On November 6, 2025, GrowGeneration Corp. reported its financial results for the third quarter of 2025, highlighting a significant improvement in its financial performance. The company achieved a net sales increase of 15.4% sequentially to $47.3 million, surpassing guidance, and turned its adjusted EBITDA positive to $1.3 million. GrowGeneration also reported a reduction in net loss by $9.0 million year-over-year, driven by increased proprietary brand sales and cost-reduction initiatives. The company’s strategic focus on proprietary brands and operational efficiency has strengthened its profitability and market position, with expectations for continued growth and margin expansion in the coming years.

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.

GrowGeneration’s Earnings Call: Mixed Sentiments and Strategic Growth

The recent earnings call for GrowGeneration presented a mixed sentiment, highlighting both positive strides and ongoing challenges. The company showcased growth in proprietary brand sales and improved gross margins, alongside international expansion efforts. However, these developments were tempered by a decline in net revenue and persistent adjusted EBITDA losses. Despite these hurdles, GrowGeneration’s strategic initiatives and robust cash position offer a solid foundation for future growth, though current financial performance remains under pressure from past downturns and external challenges.