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GrowGeneration
(NASDAQ:GRWG)
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Rating:54Neutral
Price Target:
$1.50
▲(33.93% Upside)
Action:Reiterated
Date:06/23/26
The score is held back mainly by weak financial performance—ongoing losses and negative cash flow—despite signs of stabilization. The latest earnings call improves the outlook with reaffirmed guidance and a near-term path to positive adjusted EBITDA, while technicals are neutral and valuation metrics are constrained by negative earnings and no indicated dividend yield.
Positive Factors
Proprietary brand penetration
Rising proprietary-brand mix increases control over margins and product differentiation, enabling higher gross margins long-term. Scaling private labels across channels (big-box, DTC, commercial) can boost recurring consumable sales, reduce supplier dependence, and improve margin stability over the next several quarters.
Negative Factors
Negative cash flow & ongoing losses
Persistent negative operating and free cash flow indicates the core business still consumes cash rather than generating it. Until cash conversion sustainably turns positive, the company risks exhausting reserves or needing dilutive capital, constraining investment in growth and brand expansion over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Proprietary brand penetration
Rising proprietary-brand mix increases control over margins and product differentiation, enabling higher gross margins long-term. Scaling private labels across channels (big-box, DTC, commercial) can boost recurring consumable sales, reduce supplier dependence, and improve margin stability over the next several quarters.
Read all positive factors
GrowGeneration Key Performance Indicators (KPIs)
Any
Store Count
Shows the total number of retail locations, indicating the company's physical footprint and potential for reaching more customers and increasing sales.
Shows the total number of retail locations, indicating the company's physical footprint and potential for reaching more customers and increasing sales.
Data provided by:
The Fly
The FlyGrowGeneration (GRWG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$90.14M
Dividend YieldN/A
Average Volume (3M)318.07K
Price to Earnings (P/E)―
Beta (1Y)1.53
Revenue Growth-6.93%
EPS Growth61.11%
CountryUS
Employees251
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.32
Shares Outstanding60,090,904
10 Day Avg. Volume235,197
30 Day Avg. Volume318,071
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.92
Price to Sales (P/S)0.55
P/FCF Ratio-8.97
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit2.91
Enterprise Value/Ebitda-9.80
Forecast
1Y Price Target
$2.00Price Target Upside78.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.2
Revenue Forecast (FY)$166.01M
GrowGeneration Business Overview & Revenue Model
Company Description
GrowGeneration Corp., through its subsidiaries, operates as a developer, marketer, retailer, and distributor of products for both indoor and outdoor hydroponic and organic gardening in the United States. It operates in two segments, Cultivation an...
How the Company Makes Money
GrowGeneration primarily makes money by selling cultivation equipment and consumable supplies used in hydroponic and indoor growing operations. Its core revenue stream is product sales to commercial cultivation customers and hobbyist/home growers ...
GrowGeneration Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed clear progress: revenue growth, stronger proprietary brand penetration, a robust Storage Solutions segment, significant expense reductions, improved GAAP and adjusted EBITDA performance, and a strong balance sheet with no debt. Management reaffirmed full-year guidance and articulated a path to breakeven adjusted EBITDA while highlighting regulatory tailwinds that could boost customer investment. Offsetting these positives were margin pressures from store-closure inventory charges, tariff impacts, product mix headwinds, and continued Q1 net losses and negative adjusted EBITDA (albeit improved). On balance, the operational and financial improvements, cash position, and near-term guidance for a return to positive adjusted EBITDA outweigh the remaining challenges.Positive Updates
Revenue Growth
Net sales of $38.4M in Q1 FY26, up 7.5% year-over-year from $35.7M, marking the second consecutive quarter of year-over-year growth.
Negative Updates
Gross Margin Compression
Total company gross margin declined to 25.4% in Q1 from 27.2% a year ago (down ~180 basis points), with gross profit dollars roughly flat at $9.7M despite revenue growth.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth
Net sales of $38.4M in Q1 FY26, up 7.5% year-over-year from $35.7M, marking the second consecutive quarter of year-over-year growth.
Read all positive updates
Company Guidance
Management reaffirmed full‑year 2026 guidance of net revenue $162–$168 million and approximately breakeven adjusted EBITDA, and guided Q2 revenue of $42–$44 million with a return to positive adjusted EBITDA; they expect proprietary brands to reach ~40% of cultivation & gardening revenue by year‑end (37% in Q1, up from 32% a year ago) and Q2 gross margins to normalize to roughly 27%–29%. In Q1 the company reported net sales of $38.4 million (up 7.5% y/y from $35.7M), with cultivation & gardening at $31.9M and Storage Solutions $6.5M (+35.5% y/y); total gross profit was $9.7M (total gross margin 25.4% vs 27.2% prior year), while Storage Solutions delivered a 39.6% gross margin (+200 bps) and a 42.7% increase in gross profit dollars. Management noted cost reductions that drove total operating expenses to $15.0M (‑23.4%), store & other operating expenses to $6.4M (‑27.2%), SG&A to $6.9M (‑2.6%), and depreciation & amortization to $1.6M (‑55.1%); GAAP net loss improved to $4.9M (‑$0.08/sh) from $9.4M (‑$0.16/sh), adjusted EBITDA loss improved to $1.6M from $4.0M, and the company ended the quarter with $41.1M in cash, cash equivalents and marketable securities, no debt, and a board‑authorized $10M share repurchase program.GrowGeneration Financial Statement Overview
Summary
Income Statement
26
Negative
Balance Sheet
58
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 164.43M | 161.74M | 188.87M | 225.88M | 278.17M | 422.49M |
| Gross Profit | 33.99M | 31.98M | 43.72M | 61.26M | 70.26M | 118.24M |
| EBITDA | -10.10M | -12.56M | -29.85M | -29.76M | -149.48M | 27.87M |
| Net Income | -19.59M | -24.05M | -49.51M | -46.50M | -163.75M | 12.79M |
Balance Sheet | ||||||
| Total Assets | 139.58M | 147.04M | 174.35M | 239.09M | 293.44M | 459.34M |
| Cash, Cash Equivalents and Short-Term Investments | 41.12M | 46.06M | 56.45M | 64.97M | 71.91M | 81.17M |
| Total Debt | 27.46M | 29.48M | 37.03M | 42.47M | 48.84M | 45.56M |
| Total Liabilities | 46.75M | 49.54M | 54.26M | 65.69M | 77.05M | 88.05M |
| Stockholders Equity | 92.83M | 97.50M | 120.09M | 173.40M | 216.40M | 371.29M |
Cash Flow | ||||||
| Free Cash Flow | -11.05M | -9.98M | -3.78M | -5.28M | -948.00K | -13.58M |
| Operating Cash Flow | -10.67M | -9.45M | -1.80M | 1.42M | 11.95M | 5.16M |
| Investing Cash Flow | -237.00K | 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
Positive
1.12
Price Trends
1.52
Positive
1.32
Positive
1.45
Positive
Market Momentum
-0.01
Negative
53.97
Neutral
85.73
Negative
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 1.12 is below the 20-day moving average (MA) of 1.48, below the 50-day MA of 1.52, and below the 200-day MA of 1.45, indicating a bullish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 53.97 is Neutral, neither overbought nor oversold. The STOCH value of 85.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRWG.
GrowGeneration Risk Analysis
GrowGeneration disclosed 39 risk factors in its most recent earnings report. GrowGeneration reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GrowGeneration Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $90.14M | -4.80 | -19.51% | ― | -6.93% | 61.11% | |
47 Neutral | $10.36M | >-0.01 | -58.14% | ― | -32.31% | 33.58% | |
46 Neutral | $48.03M | -0.97 | -61.91% | ― | -6.64% | 29.96% | |
43 Neutral | $19.26M | -8.54 | 16.54% | ― | 3.76% | -118.17% | |
43 Neutral | $15.78M | -18.24 | -3.23% | 25.20% | -10.54% | -332.20% |
* Consumer Cyclical Sector Average
GRWG
GrowGeneration
1.54
0.50
48.08%
TLF
Tandy Leather Factory
2.39
-0.10
-4.02%
PRTS
CarParts.com Inc
5.99
-1.84
-23.47%
NHTC
Natural Health Trends
1.87
-2.04
-52.17%
SBDS
Solo Brands
3.50
-11.87
-77.23%
GrowGeneration Corporate Events
Executive/Board ChangesShareholder Meetings
GrowGeneration shareholders approve directors and equity plan
Positive
Jun 22, 2026
On June 18, 2026, GrowGeneration held its 2026 Annual Meeting of Shareholders via remote communication, with 55.03% of outstanding common shares represented in person or by proxy, and shareholders elected five directors to serve until the 2027 ann...
Business Operations and StrategyFinancial Disclosures
GrowGeneration narrows losses and reaffirms 2026 outlook
Positive
May 12, 2026
On May 12, 2026, GrowGeneration reported first-quarter 2026 results showing net sales of $38.4 million, up 7.5% year over year, driven largely by growth in its commercial B2B and storage solutions businesses, and a rising mix of proprietary brands...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.