GrowGeneration (GRWG)
NASDAQ:GRWG
Top Page
GrowGeneration
(NASDAQ:GRWG)
Select Model
Select Model
Rating:49Neutral
Price Target:
$1.00
▼(-9.09% Downside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
GrowGeneration (GRWG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$66.10M
Dividend YieldN/A
Average Volume (3M)363.74K
Price to Earnings (P/E)―
Beta (1Y)1.55
Revenue Growth-19.68%
EPS Growth23.40%
CountryUS
Employees289
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.12
Shares Outstanding60,090,904
10 Day Avg. Volume575,714
30 Day Avg. Volume363,741
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 Cap0.99
Enterprise Value/Revenue0.40
Enterprise Value/Gross Profit2.04
Enterprise Value/Ebitda-5.01
Forecast
1Y Price Target
$1.88Price Target Upside70.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.19
Revenue Forecast (FY)$164.79M
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 lightin...
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, targeti...
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 Earnings Call Summary
Earnings Call Date:Mar 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call emphasized meaningful structural improvements in 2025—material margin expansion, strong proprietary brand momentum, substantial reductions in operating expenses, improved adjusted EBITDA trajectory, a healthy cash position, and clear 2026 targets (including breakeven adjusted EBITDA). These positives were balanced against the ongoing revenue decline from store consolidations, a remaining GAAP net loss and negative adjusted EBITDA in 2025, continued market headwinds (including tariff impacts), and further retail footprint reductions. Management provided constructive guidance and concrete execution items (brand expansion, B2B/digital channels, distribution partnerships, MMI growth, and a $10M buyback), indicating confidence in near-term recovery toward profitability.Positive Updates
Gross Margin Expansion
Full-year gross margin expanded 370 basis points to 26.8% (from 23.1%) in 2025; fourth-quarter gross margin improved to 24.1% from 16.4% year over year (+770 bps), driven by higher proprietary brand penetration and absence of prior restructuring costs.
Negative Updates
Full-Year Revenue Decline
Net sales for full-year 2025 declined to $161.7 million from $188.9 million in 2024, a decrease of $27.2 million (≈14.4%), primarily due to store consolidations and lower retail volume.
Read all updates
Q4-2025 Updates
Positive
Negative
Gross Margin Expansion
Full-year gross margin expanded 370 basis points to 26.8% (from 23.1%) in 2025; fourth-quarter gross margin improved to 24.1% from 16.4% year over year (+770 bps), driven by higher proprietary brand penetration and absence of prior restructuring costs.
Read all positive updates
Company Guidance
GrowGeneration guided to modest full‑year 2026 revenue growth with net sales of $162–$168 million (vs. $161.7M in FY2025), targeting proprietary/private‑label penetration of ~40% of cultivation & gardening revenue by year‑end (up from 32.8% in FY2025 and 35.8% in Q4), gross margins of 27–29% (vs. 26.8% in FY2025, a 370‑bp improvement year‑over‑year), and approximately breakeven adjusted EBITDA for the full year (vs. an adjusted EBITDA loss of $6.0M in 2025, an $8.5M improvement from 2024). Management expects a softer Q1 with profitability building in Q2/Q3, continued operating‑expense improvements after removing nearly $27M of OPEX in 2025, a strong balance sheet with $46.1M cash and no debt, a Board‑authorized $10M share repurchase program, and a continued right‑sizing of the retail footprint (23 stores at 12/31/25, ~20 currently, ~19 by end‑Q1 and roughly mid‑teens by year‑end).GrowGeneration Financial Statement Overview
Summary
Income Statement
33
Negative
Balance Sheet
58
Neutral
Cash Flow
36
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 161.74M | 188.87M | 225.88M | 278.17M | 422.49M |
| Gross Profit | 31.98M | 43.72M | 61.26M | 70.26M | 118.24M |
| EBITDA | -13.02M | -29.85M | -29.76M | -149.48M | 27.87M |
| Net Income | -24.05M | -49.51M | -46.50M | -163.75M | 12.79M |
Balance Sheet | |||||
| Total Assets | 147.04M | 174.35M | 239.09M | 293.44M | 459.34M |
| Cash, Cash Equivalents and Short-Term Investments | 46.06M | 56.45M | 64.97M | 71.91M | 81.17M |
| Total Debt | 29.48M | 37.03M | 42.47M | 48.84M | 45.56M |
| Total Liabilities | 49.54M | 54.26M | 65.69M | 77.05M | 88.05M |
| Stockholders Equity | 97.50M | 120.09M | 173.40M | 216.40M | 371.29M |
Cash Flow | |||||
| Free Cash Flow | -9.98M | -3.78M | -5.28M | -948.00K | -13.58M |
| Operating Cash Flow | -9.45M | -1.80M | 1.42M | 11.95M | 5.16M |
| Investing Cash Flow | 12.60M | 5.73M | -11.40M | -11.57M | -139.32M |
| Financing Cash Flow | -220.00K | -6.21M | -313.00K | -1.69M | -2.38M |
GrowGeneration Technical Analysis
Negative
1.10
Price Trends
1.18
Negative
1.39
Negative
1.40
Negative
Market Momentum
-0.02
Negative
46.04
Neutral
30.50
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 1.1 is below the 20-day moving average (MA) of 1.10, below the 50-day MA of 1.18, and below the 200-day MA of 1.40, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 46.04 is Neutral, neither overbought nor oversold. The STOCH value of 30.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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% | |
60 Neutral | $18.65M | -2.79 | 16.54% | ― | -0.28% | 363.27% | |
51 Neutral | $23.93M | -15.12 | -3.23% | 25.20% | -5.07% | -115.50% | |
50 Neutral | $55.38M | -0.61 | -67.30% | ― | -8.35% | -74.31% | |
49 Neutral | $66.10M | -3.72 | -22.90% | ― | -19.68% | 23.40% | |
43 Neutral | $12.17M | -0.07 | -58.14% | ― | -23.15% | 62.52% |
* Consumer Cyclical Sector Average
GRWG
GrowGeneration
1.10
0.05
4.76%
TLF
Tandy Leather Factory
2.31
0.17
8.04%
PRTS
CarParts.com Inc
0.79
-0.21
-20.95%
NHTC
Natural Health Trends
2.79
-1.54
-35.58%
SBDS
Solo Brands
3.76
-3.32
-46.89%
GrowGeneration Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
GrowGeneration Reports 2025 Results, Shifts Focus to Profitability
Positive
Mar 19, 2026
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 ...
Executive/Board Changes
GrowGeneration Announces New One-Year CFO Employment Agreement
Positive
Dec 30, 2025
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. ...
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.