GrowGeneration (GRWG) AI Stock Analysis

• Market Cap: $90.26M
• Dividend Yield: N/A
• Average Volume (3M): 787.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.04
• Revenue Growth: -20.55%
• EPS Growth: -2.43%
• Country: US
• Employees: 289
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Specialty Retail
• EPS (TTM): -0.08
• Shares Outstanding: 59,771,717
• 10 Day Avg. Volume: 597,833
• 30 Day Avg. Volume: 787,740
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.45
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 1.05
• Enterprise Value/Ebitda: -1.29
• 1Y Price Target: $2.00
• Price Target Upside: 29.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 52 Neutral
• Price Target: $1.50 ▼(-3.23% Downside)

GrowGeneration's overall stock score is driven by significant financial challenges, despite positive strategic initiatives and a strong cash position. The technical indicators show bullish momentum, but valuation concerns and ongoing losses weigh heavily on the score. The acquisition of Viagrow and improvements in gross margins provide some optimism for future growth.

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 is facing significant financial challenges. The income statement shows declining revenue and profitability with negative margins. The balance sheet reflects poor returns despite manageable leverage, and cash flow statements indicate difficulties in generating positive cash flow. Overall, the financial health is concerning and needs improvement.

Income Statement

GrowGeneration's income statement reveals declining revenue and profitability. The TTM data shows a negative revenue growth rate of -7.12%, indicating a contraction in sales. Gross profit margin is relatively low at 23.30%, and net profit margin is deeply negative at -29.84%, reflecting significant losses. The EBIT and EBITDA margins are also negative, suggesting operational inefficiencies. Overall, the company is struggling with declining sales and profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.31, indicating manageable leverage. However, the return on equity is negative at -40.71%, reflecting poor profitability. The equity ratio is not provided, but the overall financial stability appears weak due to ongoing losses and declining equity.

Cash Flow

Cash flow analysis indicates challenges in cash generation. The operating cash flow is negative, and the free cash flow growth is positive at 40.43%, but this is from a negative base. The operating cash flow to net income ratio is negative, and the free cash flow to net income ratio is positive at 1.19, indicating some ability to cover losses with free cash flow. However, overall cash flow health is concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	164.11M	188.87M	225.88M	278.17M	422.49M	193.37M
Gross Profit	38.24M	43.72M	61.26M	70.26M	118.24M	51.05M
EBITDA	-31.05M	-30.30M	-29.76M	-149.48M	27.87M	11.03M
Net Income	-48.97M	-49.51M	-46.50M	-163.75M	12.79M	5.33M
Balance Sheet
Total Assets	160.61M	174.35M	239.09M	293.44M	459.34M	354.73M
Cash, Cash Equivalents and Short-Term Investments	48.71M	56.45M	64.97M	71.91M	81.17M	177.91M
Total Debt	33.19M	37.03M	42.47M	48.84M	45.56M	12.72M
Total Liabilities	53.89M	54.26M	65.69M	77.05M	88.05M	37.74M
Stockholders Equity	106.72M	120.09M	173.40M	216.40M	371.29M	317.00M
Cash Flow
Free Cash Flow	-5.35M	-3.78M	-5.28M	-948.00K	-13.58M	-4.64M
Operating Cash Flow	-4.50M	-1.80M	1.42M	11.95M	5.16M	-213.79K
Investing Cash Flow	2.24M	5.73M	-11.40M	-11.57M	-139.32M	-45.83M
Financing Cash Flow	-2.01M	-6.21M	-313.00K	-1.69M	-2.38M	210.98M

GrowGeneration Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRWG, the sentiment is Positive. The current price of 1.55 is below the 20-day moving average (MA) of 1.61, above the 50-day MA of 1.27, and above the 200-day MA of 1.31, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 54.39 is Neutral, neither overbought nor oversold. The STOCH value of 15.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRWG.

GrowGeneration Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TLF	62 Neutral	$24.39M	2.03	22.09%	―	-0.41%	290.83%
Sector *	61 Neutral	$18.02B	12.77	-0.74%	3.01%	1.30%	-13.03%
GRWG	52 Neutral	$90.26M	―	-37.31%	―	-20.55%	-2.43%
NHTC	50 Neutral	$52.62M	150.83	1.05%	17.02%	-2.07%	-61.05%
BGFV	49 Neutral	$32.77M	―	-51.44%	3.55%	-8.04%	-263.28%
PRTS	47 Neutral	$62.50M	―	-64.24%	―	-8.87%	-125.02%
SBDS	45 Neutral	$32.54M	―	-75.73%	―	-17.33%	-3.39%

GrowGeneration Corporate Events

GrowGeneration Reports Q2 2025 Financial Results

On August 11, 2025, GrowGeneration Corp. reported its financial results for the second quarter of 2025, highlighting a 14.7% sequential increase in net sales to $41.0 million and a rise in proprietary brand sales to 32.0% of cultivation and gardening revenue. The company achieved a gross profit margin improvement to 28.3% and reduced store operating expenses by 22.9% year-over-year. Despite a net loss of $4.8 million, GrowGeneration is focusing on a transformation and growth strategy, which includes expanding its proprietary brand sales, enhancing its online B2B portal, and establishing international distribution partnerships, positioning itself for long-term profitability and success.

GrowGeneration Holds Annual Shareholders Meeting, Elects Directors

On June 19, 2025, GrowGeneration Corp. held its Annual Meeting of Shareholders remotely, with 62.78% of outstanding shares present. During the meeting, five directors were elected to the board, executive compensation was approved, and Grant Thornton LLP was appointed as the independent auditor for the fiscal year ending December 31, 2025.

GrowGeneration Acquires Viagrow to Boost Market Reach

On June 9, 2025, GrowGeneration Corp. announced the acquisition of Viagrow, a domestic supplier of gardening and hydroponic equipment, to expand its presence in the home gardening and big box retail sectors. This strategic move aims to diversify GrowGen’s revenue streams and enhance its proprietary brand portfolio, strengthening its leadership in the controlled environment agriculture industry. The acquisition is expected to be accretive to gross margins in FY2025 and will enhance the company’s e-commerce performance and national retail partnerships, broadening its market reach and sales opportunities.