Free cash flow remains deeply negative at -13.4% of revenue in 2026Q1, highlighting a structural inability to align capital expenditures with a shrinking revenue base.
| Cash from Operations | -10.67M | -9.45M | -1.8M | 1.42M | 11.95M | 5.16M | -213K | -3.34M | -1.54M | -3.41M | -1.47M | -1.14M | -53.29K |
| Operating CF Margin % | - | -5.84% | -0.95% | 0.63% | 4.3% | 1.22% | -0.11% | -4.19% | -5.31% | -23.71% | -18.43% | -32.87% | -3.69% |
| Operating CF Growth % | -1172.85% | -425.13% | -226.6% | -88.11% | 131.6% | 2522.07% | 93.62% | -116.74% | 54.76% | -131.57% | -29.52% | -2030.93% | - |
| Net Income | -19.59M | -24.05M | -49.51M | -46.5M | -163.75M | 12.79M | 5.33M | 1.32M | -5.07M | -2.54M | -431.24K | -528.76K | -227.59K |
| Depreciation & Amortization | 9.32M | 11.29M | 19.44M | 16.61M | 17.13M | 12.6M | 2.44M | 1.04M | 351.07K | 151.56K | 52.96K | 16.44K | 4.28K |
| Stock-Based Compensation | 1.01M | 1.51M | 2.42M | 3.17M | 4.97M | 6.58M | 7.86M | 2.49M | 1.9M | 1.08M | 184.33K | 229.95K | 103.6K |
| Deferred Taxes | 0 | 0 | 0 | 0 | -2.36M | 1.61M | 750K | 0 | 188.86K | 50K | 35.53K | 9.79K | 0 |
| Other Non-Cash Items | 239K | 544K | 6.18M | 15.39M | 130.14M | 1.63M | 453K | 461K | 989.6K | 73.65K | 35K | 38.5K | 161.73K |
| Working Capital Changes | -1.65M | 1.25M | 19.68M | 12.74M | 25.82M | -30.05M | -17.04M | -8.66M | 107.98K | -2.22M | -1.35M | -901.56K | -95.32K |
| Change in Receivables | -6.91M | -3.19M | 835K | -300K | -3.11M | -1.9M | -3.84M | -3.77M | -244.29K | -312.33K | -395.21K | -38.65K | -7.56K |
| Change in Inventory | 7.01M | 199K | 24.56M | 13.77M | 32.89M | -34.69M | -19.19M | -9.5M | -792.58K | -2.08M | -1.26M | -1M | -104.14K |
| Change in Payables | 1.22M | 1.51M | -3.71M | -3.04M | -3.36M | 3.29M | 9.99M | 4.17M | 514.15K | 494.09K | 243.84K | 124.31K | 0 |
| Cash from Investing | -237K | 12.6M | 5.73M | -11.4M | -11.57M | -139.32M | -45.83M | -11.81M | -6.37M | -1.18M | -331.58K | -253.72K | -603K |
| Capital Expenditures | -387K | -536K | -1.98M | -6.7M | -12.9M | -18.74M | -3.4M | -2.23M | -686.9K | -1.18M | -331.58K | -253.72K | -3.03K |
| CapEx % of Revenue | 0.24% | 0.33% | 1.05% | 2.97% | 4.64% | 4.44% | 1.76% | 2.8% | 2.37% | 8.21% | 4.15% | 7.34% | 0.21% |
| Acquisitions | -1.97M | -1.01M | 150K | -3.05M | -7.23M | -80.78M | -41.4M | -9.46M | -5.68M | -403.91K | 0 | 0 | -599.97K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 1.03M | 29K | 0 | 265K | 612K | 0 | -1.03M | -119K | -6.37B | -1.18B | -331.58M | 0 | 0 |
| Cash from Financing | -160K | -220K | -6.21M | -313K | -1.69M | -2.38M | 210.98M | 13.49M | 21.33M | 5.19M | 1.71M | 1.98M | 788.96K |
| Debt Issued (Net) | 0 | 0 | 0 | -50K | -108K | -83K | -111K | -460K | 8.46M | -56.26K | -26.27K | 72.71K | 0 |
| Equity Issued (Net) | -272K | -220K | -6.04M | -263K | -1.58M | 2.09M | 211.21M | 13.95M | 12.88M | 5.25M | 1.62M | 1.91M | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -272K | -220K | -6.04M | -263K | -1.62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 112K | 0 | -176K | 0 | 0 | -4.39M | -119K | 0 | 0 | 0 | 0 | 0 | 788.96K |
| Net Change in Cash | -11.06M | 2.94M | -2.29M | -10.3M | -1.32M | -136.54M | 164.93M | -1.66M | 13.42M | 608.62K | -92.77K | 588.86K | 132.67K |
| Free Cash Flow | -11.05M | -9.98M | -3.78M | -5.28M | -948K | -13.58M | -4.64M | -5.69M | -2.23M | -4.59M | -1.8M | -1.39M | -56.32K |
| FCF Margin % | -6.72% | -6.17% | -2% | -2.34% | -0.34% | -3.21% | -2.4% | -7.14% | -7.68% | -31.92% | -22.59% | -40.21% | -3.9% |
| FCF Growth % | -189.95% | -164.31% | 28.43% | -456.65% | 93.02% | -192.63% | 18.46% | -155.48% | 51.41% | -154.38% | -29.74% | -2366.81% | - |
| FCF per Share | -0.18 | -0.17 | -0.06 | -0.09 | -0.02 | -0.22 | -0.10 | -0.17 | -0.09 | -0.32 | -0.20 | -0.12 | -0.01 |
| FCF Conversion (FCF/Net Income) | 0.56x | 0.39x | 0.04x | -0.03x | -0.07x | 0.40x | -0.04x | -2.53x | 0.30x | 1.34x | 3.41x | 2.15x | 0.23x |
| Interest Paid | 0 | 0 | 70K | 98K | 0 | 43K | 14K | 45K | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 157K | 0 | 125K | 93K | 0 | 6.07M | 3.16M | 0 | 0 | 0 | 0 | 0 | 0 |
Persistent Operating Cash Burn
According to quarterly financial data, GrowGeneration consistently reports net losses that exceed operating cash outflows, with the OCF/NI ratio frequently fluctuating, suggesting that non-cash charges like depreciation and amortization are masking the underlying severity of the company's cash-generative challenges in a contracting retail environment.
The persistent gap between net income and operating cash flow indicates that the company's accounting losses are heavily influenced by non-cash items, yet the core business remains unable to generate positive cash flow from operations. Investors should monitor this divergence, as it suggests that the company's reported earnings are not currently reflective of its actual ability to sustain operations through internal cash generation.
As reported in recent financial statements, GrowGeneration's free cash flow trajectory remains deeply negative, with FCF margins reaching -13.4% in 2026Q1, highlighting a structural inability to align capital expenditures with the company's shrinking revenue base during this period of intense industry-wide retail consolidation.
The consistent negative free cash flow suggests that the company is consuming its liquidity reserves to fund ongoing operations rather than investing in growth. This trajectory warrants further investigation into how long the current cash position can support the business before external financing or further asset rationalization becomes necessary.
Based on the provided cash flow statements, working capital changes have been highly erratic, swinging from a $10.2M inflow in 2024Q4 to a $1.9M outflow in 2026Q1, which implies that the company is struggling to manage inventory levels effectively amidst declining demand from commercial cultivators.
The volatility in working capital suggests that the company may be experiencing difficulty in balancing inventory procurement with the reality of slowing sales. This instability in cash conversion cycles appears to be a primary driver of the company's inconsistent operating cash flow performance.
As indicated by the company's reported figures, capital expenditures have remained low relative to revenue, with CapEx/Rev ratios consistently below 1%, suggesting that management has aggressively curtailed investment in physical infrastructure to preserve cash as the core retail business faces significant structural headwinds.
While the reduction in capital intensity is a logical response to declining revenue, it may also indicate a lack of investment in the store fleet or technology upgrades necessary to remain competitive. Analysts should consider whether this austerity is sustainable or if it risks further eroding the company's long-term operational capabilities.
Quick answers to the most common questions about buying GRWG stock.
GrowGeneration Corp. (GRWG) generated $-9.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
GrowGeneration Corp. (GRWG) reported negative free cash flow of $10.0M in 2025, indicating capital requirements exceeded cash from operations.
GrowGeneration Corp. (GRWG) spent $0.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, GrowGeneration Corp. (GRWG) spent $0.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.