The company exhibits structural margin compression with operating margins at -13.7% in 2026Q1, reflecting a failure to offset declining revenue with sufficient cost controls.
| Sales/Revenue | 164.43M | 161.74M | 188.87M | 225.88M | 278.17M | 422.49M | 193.37M | 79.73M | 29M | 14.36M | 7.98M | 3.46M | 1.44M |
| Revenue Growth % | -6.93% | -14.36% | -16.39% | -18.8% | -34.16% | 118.49% | 142.51% | 174.94% | 101.9% | 79.99% | 130.97% | 139.47% | - |
| Cost of Goods Sold | 130.44M | 129.76M | 145.14M | 164.62M | 207.9M | 304.25M | 142.32M | 57.73M | 22.56M | 11.09M | 5.78M | 2.35M | 974.68K |
| COGS % of Revenue | - | 80.23% | 76.85% | 72.88% | 74.74% | 72.01% | 73.6% | 72.4% | 77.78% | 77.24% | 72.38% | 68.07% | 67.55% |
| Gross Profit | 33.99M | 31.98M | 43.72M | 61.26M | 70.26M | 118.24M | 51.05M | 22M | 6.44M | 3.27M | 2.2M | 1.1M | 468.16K |
| Gross Margin % | 20.67% | 19.77% | 23.15% | 27.12% | 25.26% | 27.99% | 26.4% | 27.6% | 22.22% | 22.76% | 27.62% | 31.93% | 32.45% |
| Gross Profit Growth % | - | -26.86% | -28.63% | -12.82% | -40.58% | 131.63% | 131.98% | 241.45% | 97.11% | 48.33% | 99.79% | 135.67% | - |
| Operating Expenses | 54.83M | 56.29M | 95.69M | 111.1M | 238.14M | 103.24M | 42.61M | 20.42M | 10.7M | 6.12M | 2.54M | 1.6M | 695.75K |
| OpEx % of Revenue | - | 34.8% | 50.67% | 49.19% | 85.61% | 24.44% | 22.04% | 25.61% | 36.9% | 42.61% | 31.81% | 46.31% | 48.22% |
| Selling, General & Admin | 54.83M | 56.29M | 68.34M | 29.8M | 36.76M | 40.9M | 20.87M | 9.28M | 5.15M | 3.01M | 2.18M | 1.44M | 688.71K |
| SG&A % of Revenue | - | 34.8% | 36.18% | 13.19% | 13.21% | 9.68% | 10.79% | 11.64% | 17.75% | 20.92% | 27.33% | 41.77% | 47.73% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 27.36M | 81.3M | 201.38M | 62.34M | 21.74M | 11.14M | 115.88K | 1.21K | 357.55K | -11.22K | 0 |
| Operating Income | -20.85M | -24.31M | -51.97M | -49.84M | -167.88M | 15M | 8.44M | 1.58M | -4.26M | -2.85M | -425.99K | -514.62K | -224.5K |
| Operating Margin % | -12.68% | -15.03% | -27.52% | -22.07% | -60.35% | 3.55% | 4.36% | 1.99% | -14.67% | -19.84% | -5.34% | -14.89% | -15.56% |
| Operating Income Growth % | - | 53.22% | -4.27% | 70.31% | -1219.02% | 77.81% | 432.98% | 137.2% | -49.29% | -569.15% | 17.22% | -129.23% | - |
| EBITDA | -11.53M | -13.02M | -32.54M | -33.24M | -150.74M | 27.6M | 10.87M | 2.63M | -3.9M | -2.7M | -373.03K | -498.18K | -220.22K |
| EBITDA Margin % | -7.01% | -8.05% | -17.23% | -14.71% | -54.19% | 6.53% | 5.62% | 3.3% | -13.46% | -18.79% | -4.67% | -14.42% | -15.26% |
| EBITDA Growth % | 63.98% | 59.99% | 2.11% | 77.95% | -646.13% | 153.86% | 313.74% | 167.31% | -44.67% | -623.52% | 25.12% | -126.22% | - |
| D&A (Non-Cash Add-back) | 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 |
| EBIT | -20.85M | -24.31M | -49.28M | -46.37M | -166.61M | 15.27M | 8.59M | 1.72M | -4.06M | -2.53M | -425.99K | -525.84K | -224.5K |
| Net Interest Income | 862K | 934K | 2.63M | 2.6M | 559K | 443K | 30K | -256K | -933.98K | -15.34K | -5.25K | 2.92K | 0 |
| Interest Income | 862K | 934K | 2.7M | 2.7M | 580K | 486K | 43.93K | 144.72K | 79.18K | 0 | 0 | 2.92K | 0 |
| Interest Expense | 0 | 0 | 70K | 97K | 21K | 43K | 14.05K | 401.5K | 1.01M | 15.34K | 5.25K | 0 | 0 |
| Other Income/Expense | 1.43M | 459K | 2.62M | 3.38M | 1.24M | 227K | 142K | -261K | -818.11K | 307.93K | -5.25K | -10.92K | -3.08K |
| Pretax Income | -19.42M | -23.86M | -49.35M | -46.46M | -166.63M | 15.23M | 8.58M | 1.32M | -5.07M | -2.54M | -431.24K | -528.76K | -227.59K |
| Pretax Margin % | -11.81% | -14.75% | -26.13% | -20.57% | -59.9% | 3.6% | 4.44% | 1.66% | -17.5% | -17.7% | -5.4% | -15.3% | -15.77% |
| Income Tax | 172K | 191K | 158K | 32K | -2.88M | 2.44M | 3.25M | 0 | 0 | 16.55K | 0 | 0 | 0 |
| Effective Tax Rate % | -0.89% | -0.8% | -0.32% | -0.07% | 1.73% | 16.04% | 37.89% | 0% | 0% | -0.65% | 0% | 0% | 0% |
| 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 |
| Net Margin % | -11.91% | -14.87% | -26.21% | -20.58% | -58.87% | 3.03% | 2.76% | 1.66% | -17.5% | -17.7% | -5.4% | -15.3% | -15.77% |
| Net Income Growth % | 60.86% | 51.43% | -6.48% | 71.6% | -1380.67% | 139.98% | 303.03% | 126.06% | -99.55% | -489.59% | 18.44% | -132.33% | - |
| Net Income (Continuing) | -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 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.33 | -0.40 | -0.82 | -0.76 | -2.69 | 0.21 | 0.11 | 0.04 | -0.22 | -0.18 | -0.05 | -0.04 | -0.04 |
| EPS Growth % | 61.68% | 51.22% | -7.89% | 71.75% | -1380.95% | 90.91% | 151.72% | 119.86% | -22.22% | -282.17% | -5.84% | -17.41% | - |
| EPS (Basic) | - | -0.40 | -0.82 | -0.76 | -2.69 | 0.22 | 0.12 | 0.05 | -0.22 | -0.18 | -0.05 | -0.04 | -0.04 |
| Diluted Shares Outstanding | 60.09M | 59.67M | 60.18M | 61.18M | 60.81M | 60.46M | 46.46M | 33.91M | 23.49M | 14.51M | 9.15M | 11.89M | 6M |
| Basic Shares Outstanding | 60.09M | 59.67M | 60.18M | 61.18M | 60.81M | 59.22M | 43.94M | 32.83M | 23.06M | 14.13M | 9.15M | 11.89M | 6M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - |
Structural Revenue Contraction
As reported in recent financial filings, GrowGeneration's revenue has faced significant headwinds, culminating in a 14.36% year-over-year decline, which suggests that the company's core hydroponic retail model is struggling to maintain its footprint amidst a broader downturn in commercial cultivation capital expenditure cycles.
The revenue trajectory reflects a clear shift from the high-growth environment of previous years to a period of sustained contraction. This decline appears to be driven by reduced purchasing power among commercial cultivators, who are currently navigating an oversupplied cannabis market that limits their ability to invest in new equipment.
Based on the company's reported figures, gross margins have fluctuated significantly, recently hovering around 19.77%, which indicates that the firm's reliance on third-party distribution lacks the pricing power necessary to offset the commoditized nature of its primary hydroponic consumables and equipment inventory.
The inability to consistently expand gross margins suggests that the company's private-label strategy has yet to achieve the scale required to improve profitability. Investors should monitor whether the current margin profile is a permanent feature of the business model or if it can be improved through better inventory management.
According to the income statement data, GrowGeneration continues to exhibit negative operating leverage, with operating margins currently at -15.03%, suggesting that the company's fixed cost base remains too high to be supported by the current, diminished level of quarterly revenue generation.
The failure to scale SG&A expenses in proportion to declining sales highlights the difficulty of managing a sprawling physical retail footprint during a sector-specific downturn. This structural imbalance warrants further investigation into whether management can successfully rationalize the store fleet to align costs with current demand.
Based on the provided quarterly data, the quality of reported net income appears compromised by significant non-operating items and periodic impairment charges, which have led to persistent net losses and a lack of positive earnings per share throughout the observed ten-quarter period.
The presence of stock-based compensation alongside recurring operating losses suggests that shareholders are experiencing dilution without the benefit of bottom-line growth. The lack of a clear path to profitability makes traditional earnings-based valuation metrics unreliable for assessing the company's intrinsic value at this stage.
While some market participants view the company as a proxy for cannabis legalization, the income statement suggests a distressed specialty retailer, as evidenced by the consistent operating losses and the potential for larger, more efficient competitors to erode the company's niche market position.
Short-term optimism regarding federal regulatory shifts may be masking the fundamental reality that the company's current business model is not generating sufficient cash flow to sustain its operations. Investors should consider the risk that the company's role as a middleman could be structurally compromised by direct-to-grower sales.
Quick answers to the most common questions about buying GRWG stock.
For fiscal year 2025, GrowGeneration Corp. (GRWG) reported total revenue of $161.7M. This represents a 11109.9% increase compared to $1.4M in 2014.
GrowGeneration Corp. (GRWG) reported a net loss of $24.0M for the fiscal year ending 2025.
GrowGeneration Corp. (GRWG) reported an operating income of $-24.3M, resulting in an operating profit margin of -15.0%. This margin reflects the operational efficiency of the business before interest and taxes.
GrowGeneration Corp. (GRWG) generated $32.0M in gross profit for the year, representing a gross profit margin of 19.8%. This demonstrates the company's core pricing power and production efficiency.