urban-gro (UGRO) AI Stock Analysis

• Market Cap: $1.80M
• Dividend Yield: N/A
• Average Volume (3M): 8.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 130
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 751,622
• 10 Day Avg. Volume: 23,631,735
• 30 Day Avg. Volume: 8,137,475
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.53
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -4.46
• Enterprise Value/Market Cap: 3.12
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: -1.57
• Enterprise Value/Ebitda: -0.15
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: $0.15 ▼(-33.04% Downside)
• Action: Downgraded Date: 01/31/26
• Date: Action: Downgraded 01/31/26

UGRO scores poorly primarily due to sharply deteriorating financial performance (revenue contraction, widening losses, and negative equity) and a technically weak chart (below key moving averages with negative MACD). Corporate events add meaningful risk from Nasdaq compliance/delisting concerns, while valuation offers limited support given ongoing losses and no dividend.

Positive Factors

Integrated CEA services model

urban‑gro’s end‑to‑end offering (design, engineering, project delivery plus equipment) creates stickiness with operators and allows capture of both services and product margins. Structurally, an integrated model supports cross‑selling, higher lifetime customer value, and resilience when new facility builds scale over months.

Historical ability to scale revenue

Prior periods demonstrate the company can ramp project volume and revenue when demand returns, indicating operational capability to manage larger capital projects. This institutional know‑how and project execution track record are durable assets that support recovery and winning larger, complex CEA contracts over a multi‑month horizon.

Improving operating cash burn

The sizable year‑over‑year reduction in operating cash outflows reflects management cost controls and better cash management. Sustained lower cash burn materially extends runway and reduces near‑term financing pressure, improving the company's ability to execute turnaround plans and regain compliance over the coming months.

Negative Factors

Revenue and margin collapse

A dramatic revenue decline paired with severe gross margin compression signals loss of high‑margin project work or pricing pressure. Such structural erosion undermines operating leverage, makes fixed costs harder to cover, and lengthens the path to sustainable profitability absent a durable recovery in project demand or a change in business mix.

Negative equity and shrinking asset base

Negative shareholders' equity and a steep decline in assets indicate material write‑downs or losses that impair solvency and financial flexibility. This increases refinancing risk, may constrain credit and supplier terms, and can limit the company's ability to credibly bid and execute large CEA projects over the medium term.

Nasdaq listing and compliance risk

Ongoing Nasdaq compliance deadlines and prior filing lapses present a structural liquidity and financing threat. Delisting would impair access to capital, reduce trading liquidity, and could trigger contract defaults or partner exits—risks that materially constrain the company’s ability to fund operations and execute a multi‑month recovery plan.

urban-gro Business Overview & Revenue Model

Company Description

urban-gro, Inc. engages in the designing, engineering, building, and integrating complex environmental equipment systems for indoor controlled environment agriculture (CEA) cultivation and retail facilities in the United States, Canada, and Europe. The company provides architectural design, engineering, and construction services comprising pre-construction, cultivation space programming (CSP), architectural and interior design, engineering, integrated cultivation design, owner's representative/construction management, and general contracting services; and maintenance, training, and support services. It also offers facility and equipment commissioning services; gro-care crop and asset protection services, including training services, equipment maintenance services, asset protection program, and an interactive online operating support system for gro-care and client document delivery and project management; and property condition assessment services. In addition, the company provides integrated equipment systems solutions, such as design, source, and integration of complex environmental equipment systems comprising heating, ventilation, and air conditioning solutions, as well as environmental control, fertigation, irrigation distribution, water treatment, and wastewater reclamation systems; and commercial horticulture lighting solutions, rolling and automated container benching systems, specialty fans, microbial mitigation, and odor reduction systems. Further, it offers value-Added Reselling (VAR) of cultivation equipment systems; and strategic vendor relationships with premier manufacturers. It primarily markets and sells its solutions to clients in the CEA that includes operators and facilitators in the cannabis and produce markets; and commercial sectors comprising food and beverage consumer packaged goods companies, healthcare, higher education, and hospitality. urban-gro, Inc. was founded in 2014 and is based in Lafayette, Colorado.

How the Company Makes Money

urban-gro generates revenue through a combination of design and engineering services, systems integration, and equipment sales. The company provides architectural and engineering design services, which are customized to meet the specific needs of indoor cultivation facilities. In addition, urban-gro sells integrated cultivation systems, including lighting, fertigation, and environmental control systems, which are essential for optimizing indoor growing environments. The company also collaborates with various equipment manufacturers and technology providers to offer comprehensive solutions to its clients, thereby enhancing its revenue stream by bundling these services and products. Significant partnerships with industry-leading manufacturers and a focus on the rapidly growing cannabis and indoor agriculture markets are key factors contributing to urban-gro's earnings.

urban-gro Financial Statement Overview

Summary

Financial results weakened materially in 2024: revenue fell sharply, gross profit collapsed, operating and net losses widened, and stockholders’ equity turned negative—signaling elevated balance-sheet risk despite only moderate absolute debt. Operating cash burn improved versus 2023 but remained negative, and free cash flow stayed negative.

Income Statement

Revenue has contracted sharply in 2024 (down ~31% to ~$40.0M from ~$71.5M in 2023) after modest growth in 2022–2023. Profitability has deteriorated materially: gross profit fell to ~$1.5M in 2024 from ~$10.3M in 2023, while operating losses widened (EBIT about -$24.2M in 2024 vs. -$16.7M in 2023) and net loss nearly doubled (about -$36.5M in 2024 vs. -$18.7M in 2023). The main positive is the company has shown it can scale revenue historically (notably 2021), but the recent margin compression and escalating losses dominate the outlook.

Balance Sheet

Leverage in absolute terms is moderate (total debt ~$8.3M in 2024), but the balance sheet weakened significantly as equity flipped from positive in 2023 (~$20.1M) to negative in 2024 (~-$24.6M), which is a major financial risk signal. Total assets also fell steeply (to ~$19.5M in 2024 from ~$64.4M in 2023), indicating shrinking scale and/or write-downs. Earlier years (2021–2023) showed comparatively low debt versus equity, but the 2024 equity deficit meaningfully reduces financial flexibility.

Cash Flow

Cash generation remains pressured with negative operating cash flow across all shown years, though 2024 improved versus 2023 (about -$2.8M in 2024 vs. -$11.2M in 2023). Free cash flow is still negative and worsened year-over-year in 2024 (about -$3.0M, down ~48% from 2023). The trend suggests some near-term cash burn improvement on operations, but the business has not yet demonstrated sustained positive cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Mar 2021
Income Statement
Total Revenue	16.30M	40.01M	71.54M	66.30M	62.11M	25.84M
Gross Profit	-3.59M	2.87M	10.29M	14.21M	14.76M	5.72M
EBITDA	-37.72M	-33.47M	-16.99M	-14.06M	589.74K	-3.32M
Net Income	-42.71M	-36.50M	-18.68M	-15.28M	-875.67K	-5.07M
Balance Sheet
Total Assets	3.17M	19.49M	64.38M	60.29M	74.16M	8.16M
Cash, Cash Equivalents and Short-Term Investments	62.88K	819.05K	1.11M	11.75M	34.59M	184.47K
Total Debt	4.23M	8.34M	5.29M	6.48M	694.46K	8.24M
Total Liabilities	42.08M	44.14M	44.31M	28.97M	25.99M	15.57M
Stockholders Equity	-38.91M	-24.64M	20.07M	31.32M	48.17M	-7.41M
Cash Flow
Free Cash Flow	-1.75M	-2.95M	-11.81M	-13.19M	-1.86M	-3.81M
Operating Cash Flow	-1.60M	-2.82M	-11.19M	-12.61M	-1.56M	-3.63M
Investing Cash Flow	2.01M	-131.36K	1.71M	-4.45M	-8.34M	-175.97K
Financing Cash Flow	-1.48M	2.70M	-1.41M	-5.52M	44.31M	3.54M

urban-gro Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UGRO, the sentiment is Negative. The current price of 0.23 is below the 20-day moving average (MA) of 3.03, below the 50-day MA of 5.05, and below the 200-day MA of 8.32, indicating a bearish trend. The MACD of -0.70 indicates Negative momentum. The RSI at 29.43 is Positive, neither overbought nor oversold. The STOCH value of 40.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UGRO.

urban-gro Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ARTW	51 Neutral	$11.70M	11.11	15.99%	―	-4.37%	―
HYFM	44 Neutral	$5.88M	-0.09	-30.93%	―	-26.84%	-0.16%
UGRO	40 Underperform	$1.80M	-0.06	―	―	―	―

urban-gro Corporate Events

urban-gro Shareholders Approve Key Governance and Capital Measures

On January 30, 2026, urban-gro held its 2025 Annual Meeting of Stockholders, with a quorum representing about 55.9% of eligible shares. Shareholders elected all five director nominees to one-year terms, approved an amendment to the company’s equity plan, ratified the appointment of Sadler, Gibb & Associates, LLC as independent auditor for the year ending December 31, 2025, and gave non-binding advisory approval to the compensation of named executive officers. Investors also authorized the board to implement a reverse stock split at a ratio between 1-for-2 and 1-for-25, approved a charter amendment to increase authorized common stock to 200 million shares, and backed a proposal to allow adjournment of the meeting if additional proxies were needed—though adjournment ultimately proved unnecessary. Collectively, the outcomes strengthen the board’s flexibility over capital structure and corporate governance, potentially supporting future financing or strategic initiatives and signaling shareholder support for current leadership and compensation practices.

The most recent analyst rating on (UGRO) stock is a Sell with a $0.18 price target. To see the full list of analyst forecasts on urban-gro stock, see the UGRO Stock Forecast page.

urban-gro Raises Capital Through Unregistered Equity Offering

On January 23 and January 28, 2026, urban-gro, Inc. entered into purchase and subscription agreements with accredited investors to sell 2,000,000 unregistered shares of common stock at $0.10 per share, raising gross proceeds of $200,000. The capital raise, which is expected to close within two business days of each agreement subject to customary conditions, includes registration rights for investors if the company registers other common stock in the future, potentially enhancing liquidity for shareholders and modestly strengthening the company’s funding position.

The most recent analyst rating on (UGRO) stock is a Hold with a $0.18 price target. To see the full list of analyst forecasts on urban-gro stock, see the UGRO Stock Forecast page.

urban-gro Granted Nasdaq Extension Amid Ongoing Compliance Risks

urban-gro, Inc. faced multiple Nasdaq compliance issues in 2025 and early 2026, including a sub-$1.00 share price for at least 30 consecutive business days, delayed filings of its 2024 annual report and 2025 quarterly reports, failing to maintain the required $2.5 million minimum stockholders’ equity, and not holding an annual meeting of stockholders within 12 months of its prior fiscal year end. After a hearing before a Nasdaq Hearings Panel on October 14, 2025, the company was granted continued listing on October 30, 2025, subject to regaining compliance with filing, equity, and bid-price rules by deadlines initially set for December 31, 2025 and January 28, 2026, and subsequently extended on January 13, 2026 to February 17, 2026 for the reporting, equity, and annual meeting requirements and February 24, 2026 for the bid-price requirement; failure to meet these deadlines could lead to delisting, making trading in the stock more difficult, pressuring the share price, constraining the company’s access to capital, potentially triggering defaults or termination rights under existing agreements—including a binding letter of intent with Flash Sports & Media, Inc.—and, in a worst-case scenario, forcing the company to cease operations.

The most recent analyst rating on (UGRO) stock is a Sell with a $0.22 price target. To see the full list of analyst forecasts on urban-gro stock, see the UGRO Stock Forecast page.

urban-gro Faces New Nasdaq Delisting Risk After Meeting Lapse

urban-gro, Inc. has been facing multiple Nasdaq compliance challenges since 2025, including a prolonged share price below $1, delayed SEC filings for its 2024 annual report and several 2025 quarterly reports, and failure to maintain the required minimum stockholders’ equity of $2.5 million. Following an October 14, 2025 hearing, a Nasdaq Hearings Panel allowed the company to remain listed provided it met specific deadlines to cure these issues by December 31, 2025 for filing and equity requirements and January 28, 2026 for its share price, but subsequent delays in filing its September 30, 2025 quarterly report added another delisting risk. On January 6, 2026, Nasdaq further notified urban-gro that its failure to hold an annual shareholder meeting within twelve months of its prior fiscal year-end constituted an additional basis for delisting, and the company must respond in writing by January 9, 2026 as it seeks more time to regain compliance. The potential delisting could significantly hinder trading liquidity, depress the stock price, restrict access to capital, and may trigger adverse consequences under existing agreements, including a binding letter of intent with Flash Sports & Media, Inc., creating a material risk that the company’s business and ability to continue operations could be severely impacted.

The most recent analyst rating on (UGRO) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on urban-gro stock, see the UGRO Stock Forecast page.

urban-gro Faces Nasdaq Delisting Due to Filing Issues

On October 14, 2025, urban-gro, Inc. attended a Nasdaq hearing due to non-compliance with several Nasdaq Listing Rules, including maintaining a minimum bid price, timely filing of financial reports, and stockholders’ equity requirements. On November 18, 2025, the company received a determination letter from Nasdaq indicating an additional basis for delisting due to a filing delinquency. Despite being granted an exception period to regain compliance, urban-gro faces uncertainty in meeting the requirements by the specified deadlines, impacting its continued listing on the Nasdaq Capital Market.

The most recent analyst rating on (UGRO) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on urban-gro stock, see the UGRO Stock Forecast page.

urban-gro Sells Customer Lists in New Agreement

On November 5, 2025, urban-gro, Inc. subsidiaries entered into a Purchase Agreement with 2WR of Georgia, Inc., selling certain customer lists for $143,000 in cash. This agreement includes non-competition and non-solicitation restrictions for the Seller Parties and indemnification provisions for the Buyer, impacting urban-gro’s operational strategies and stakeholder relations.

The most recent analyst rating on (UGRO) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on urban-gro stock, see the UGRO Stock Forecast page.

urban-gro Granted Conditional Nasdaq Listing Extension

On October 30, 2025, urban-gro, Inc. received a notice from Nasdaq stating that the company has been granted a conditional extension to continue its listing on The Nasdaq Capital Market. This extension is contingent on urban-gro regaining compliance with specific Nasdaq rules, including filing timely financial reports and meeting stockholder equity requirements by December 31, 2025, and achieving a minimum bid price by January 28, 2026. The company must notify the Nasdaq Panel of any significant events affecting compliance, and there is no guarantee that urban-gro will meet these conditions.

The most recent analyst rating on (UGRO) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on urban-gro stock, see the UGRO Stock Forecast page.