The Scotts Miracle-Gro Company (SMG) Income Statement

30Y historyFree accessUpdated daily

Revenue contracted 3.9% in fiscal 2026 with Q3 gross margin improving to 31.2% from 29.5% a year earlier, yet operating leverage remains extreme as Q2 2026's 28.2% operating margin swung to -38.7% in Q4 2025.

Annual statement

SMG Income Statement

The Scotts Miracle-Gro Company (SMG) annual income statement — 30-year revenue, gross profit & net income history

Annual Quarterly

Metric	TTM	Sep'25	Sep'24	Sep'23	Sep'22	Sep'21	Sep'20	Sep'19	Sep'18	Sep'17	Sep'16	Sep'15	Sep'14	Sep'13	Sep'12	Sep'11	Sep'10	Sep'09	Sep'08	Sep'07	Sep'06	Sep'05	Sep'04	Sep'03	Sep'02	Sep'01	Sep'00	Sep'99	Sep'98	Sep'97	Sep'96

Sales/Revenue	3.37B	3.41B	3.55B	3.55B	3.92B	4.92B	4.13B	3.16B	2.66B	2.64B	2.84B	3.02B	2.84B	2.82B	2.83B	2.84B	3.14B	2.98B	2.98B	2.87B	2.7B	2.37B	2.04B	1.91B	1.76B	1.75B	1.76B	1.65B	1.11B	900.8M	751.9M
Revenue Growth %	-1.95%	-3.93%	0.04%	-9.5%	-20.32%	19.2%	30.91%	18.5%	0.81%	-6.84%	-5.98%	6.17%	0.88%	-0.34%	-0.34%	-9.69%	5.34%	-0.04%	3.83%	6.48%	13.84%	16.26%	6.69%	8.49%	0.74%	-0.94%	7.04%	48.1%	23.56%	19.8%	2.61%
Cost of Goods Sold	2.28B	2.37B	2.7B	2.89B	3.05B	3.46B	2.78B	2.14B	1.8B	1.67B	1.84B	1.95B	1.81B	1.83B	1.86B	1.83B	1.99B	1.92B	2.04B	1.87B	1.74B	1.51B	1.27B	1.21B	1.12B	1.09B	1.01B	954.3M	690.1M	553.4M	393.6M
COGS % of Revenue	-	69.41%	76.06%	81.49%	77.76%	70.17%	67.4%	67.69%	67.54%	63.19%	64.9%	64.7%	63.7%	65.12%	65.98%	64.63%	63.46%	64.52%	68.49%	65.02%	64.56%	63.7%	62.2%	63.36%	63.84%	62.31%	57.32%	57.9%	62%	61.43%	52.35%
Gross Profit	1.09B	1.04B	850.5M	657.3M	872.9M	1.47B	1.35B	1.02B	864.6M	972.6M	995.4M	1.06B	1.03B	982.4M	961.3M	1B	1.15B	1.06B	939.6M	1B	955.9M	860.1M	770.3M	699.9M	636.6M	658.7M	753M	694M	422.9M	347.4M	358.3M
Gross Margin %	32.27%	30.59%	23.94%	18.51%	22.24%	29.83%	32.6%	32.31%	32.46%	36.81%	35.1%	35.3%	36.3%	34.88%	34.02%	35.37%	36.54%	35.48%	31.51%	34.98%	35.44%	36.3%	37.8%	36.64%	36.16%	37.69%	42.68%	42.1%	38%	38.57%	47.65%
Gross Profit Growth %	-	22.77%	29.39%	-24.7%	-40.58%	9.06%	32.11%	17.93%	-11.1%	-2.29%	-6.53%	3.25%	4.99%	2.19%	-4.16%	-12.58%	8.48%	12.56%	-6.46%	5.08%	11.14%	11.66%	10.06%	9.94%	-3.36%	-12.52%	8.5%	64.11%	21.73%	-3.04%	-1.59%
Operating Expenses	673.8M	685.6M	641.7M	831.7M	1.31B	746M	761.8M	602.6M	540.1M	550.9M	597.1M	698.4M	680.5M	661.1M	713.5M	698.2M	744.2M	743.2M	841.6M	724.6M	694.1M	659.8M	507.2M	441.2M	387.6M	459.3M	578.1M	530.4M	309.4M	244.8M	310.3M
OpEx % of Revenue	-	20.09%	18.06%	23.42%	33.3%	15.15%	18.44%	19.09%	20.28%	20.85%	21.05%	23.15%	23.95%	23.47%	25.25%	24.62%	23.7%	24.93%	28.22%	25.23%	25.74%	27.85%	24.89%	23.1%	22.02%	26.28%	32.77%	32.18%	27.8%	27.18%	41.27%
Selling, General & Admin	539.2M	556.9M	510.5M	493M	536.7M	669M	686.6M	528.8M	468.7M	489.1M	468.4M	698.4M	511.6M	661.1M	705.7M	699.9M	752.4M	742.9M	717.6M	700.9M	636.9M	633.8M	564.6M	470.1M	411.8M	468.2M	511.8M	470.2M	271.6M	214.4M	281M
SG&A % of Revenue	-	16.32%	14.37%	13.88%	13.68%	13.58%	16.62%	16.76%	17.6%	18.51%	16.52%	23.15%	18.01%	23.47%	24.97%	24.68%	23.96%	24.92%	24.07%	24.41%	23.61%	26.75%	27.71%	24.61%	23.39%	26.79%	29.01%	28.53%	24.4%	23.8%	37.37%
Research & Development	16.4M	34.8M	34.6M	35.7M	45.3M	45.4M	39.7M	39.6M	42.5M	39.9M	45.5M	36.5M	48.4M	53.7M	58.8M	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	1.02%	0.97%	1.01%	1.15%	0.92%	0.96%	1.25%	1.6%	1.51%	1.6%	1.21%	1.7%	1.91%	2.08%	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	4M	93.9M	96.6M	303M	724.9M	31.6M	35.5M	-38.3M	5M	3.2M	13.8M	6.1M	14.7M	10M	2.9M	0	-8.2M	-2.2M	124M	23.7M	57.2M	26M	-57.4M	-28.9M	-24.2M	-8.9M	66.3M	60.2M	37.8M	30.4M	29.3M
Operating Income	414.8M	358.6M	208.8M	-174.4M	-434M	723M	585.2M	690.8M	198.9M	433.4M	459.3M	294.6M	314.6M	313.2M	243.6M	247M	384.6M	297.6M	98M	277.2M	252.5M	200.9M	252.8M	232.5M	239.2M	116.4M	174.9M	163.6M	113.5M	102.6M	48M
Operating Margin %	12.3%	10.51%	5.88%	-4.91%	-11.06%	14.68%	14.16%	21.89%	7.47%	16.4%	16.19%	9.77%	11.07%	11.12%	8.62%	8.71%	12.25%	9.98%	3.29%	9.65%	9.36%	8.48%	12.4%	12.17%	13.59%	6.66%	9.91%	9.93%	10.2%	11.39%	6.38%
Operating Income Growth %	-	71.74%	219.72%	59.82%	-160.03%	23.55%	-15.29%	247.31%	-54.11%	-5.64%	55.91%	-6.36%	0.45%	28.57%	-1.38%	-35.78%	29.23%	203.67%	-64.65%	9.78%	25.68%	-20.53%	8.73%	-2.8%	105.5%	-33.45%	6.91%	44.14%	10.62%	113.75%	-28.14%
EBITDA	465.9M	433.6M	289.4M	-81.9M	-328.8M	816.8M	679.9M	780.1M	282.3M	513.5M	532.8M	363.6M	379M	379.3M	306M	308.7M	444M	358M	168.3M	344.7M	319.5M	268.1M	310.5M	284.7M	282.7M	180M	241.2M	223.8M	151.3M	133M	77.3M
EBITDA Margin %	13.81%	12.7%	8.15%	-2.31%	-8.38%	16.58%	16.46%	24.72%	10.6%	19.44%	18.79%	12.05%	13.34%	13.47%	10.83%	10.89%	14.14%	12.01%	5.64%	12%	11.85%	11.32%	15.24%	14.9%	16.06%	10.3%	13.67%	13.58%	13.59%	14.76%	10.28%
EBITDA Growth %	26.23%	49.83%	453.36%	75.09%	-140.25%	20.14%	-12.84%	176.34%	-45.02%	-3.62%	46.53%	-4.06%	-0.08%	23.95%	-0.87%	-30.47%	24.02%	112.72%	-51.17%	7.89%	19.17%	-13.66%	9.06%	0.71%	57.06%	-25.37%	7.77%	47.92%	13.76%	72.06%	-16.43%
D&A (Non-Cash Add-back)	51.1M	75M	80.6M	92.5M	105.2M	93.8M	94.7M	89.3M	83.4M	80.1M	73.5M	69M	64.4M	66.1M	62.4M	61.7M	59.4M	60.4M	70.3M	67.5M	67M	67.2M	57.7M	52.2M	43.5M	63.6M	66.3M	60.2M	37.8M	30.4M	29.3M
EBIT	352.3M	350.5M	135.2M	-275.2M	-440M	756M	590.2M	683.4M	202.1M	391M	446.6M	253.8M	273M	310.5M	241.2M	273.6M	363.1M	297.6M	98M	279.9M	261.8M	200.3M	254M	249.8M	249M	199.4M	210.2M	163.6M	113.5M	101.1M	43.4M
Net Interest Income	-113.3M	-128.8M	-158.8M	-178.1M	-118.1M	-78.9M	-80.5M	-101.8M	-76.4M	-64.4M	-54M	-48.8M	-47.3M	-59.2M	-61.8M	-52.2M	-43.2M	-56.4M	-82.2M	0	0	0	0	0	0	0	0	0	0	0	0
Interest Income	0	0	0	0	0	0	7.6M	0	10M	10M	3.9M	0	0	0	0	-1.2M	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Interest Expense	113.3M	128.8M	158.8M	178.1M	118.1M	78.9M	88.1M	101.8M	86.4M	74.4M	57.9M	48.8M	47.3M	59.2M	61.8M	51M	46.8M	56.4M	82.2M	0	0	0	0	0	0	0	0	0	0	0	0
Other Income/Expense	-148.6M	-136.9M	-232.4M	-278.9M	-124.1M	-45.9M	-74.6M	172M	-83.2M	-118.5M	-63.9M	-48.8M	-27.1M	-59.2M	-61.8M	-80M	-43.2M	-56.4M	-82.2M	-115.5M	-106.2M	-42.8M	-93.8M	-69.2M	-76.3M	-87.7M	-93.9M	-46.6M	-51.6M	-31.5M	-42.1M
Pretax Income	266.2M	221.7M	-23.6M	-453.3M	-558.1M	677.1M	510.6M	581.6M	115.7M	314.9M	392.7M	244.1M	256.6M	254M	181.8M	194.8M	337.8M	241.2M	15.8M	188.1M	212.9M	158.1M	158.5M	16.3M	162.9M	28.7M	116.3M	117M	61.9M	69.6M	1.3M
Pretax Margin %	7.89%	6.5%	-0.66%	-12.76%	-14.22%	13.75%	12.36%	18.43%	4.34%	11.92%	13.85%	8.09%	9.03%	9.02%	6.43%	6.87%	10.76%	8.09%	0.53%	6.55%	7.89%	6.67%	7.78%	0.85%	9.25%	1.64%	6.59%	7.1%	5.56%	7.73%	0.17%
Income Tax	98.9M	76.5M	11.3M	-73.2M	-120.6M	159.8M	123.7M	144.9M	-11.9M	116.6M	139.4M	85.4M	91.2M	92.8M	68.6M	72.9M	125.4M	86.6M	26.7M	74.7M	80.2M	57.7M	58M	59.5M	61.9M	13.2M	43.2M	47.9M	24.9M	30.1M	3.8M
Effective Tax Rate %	37.15%	34.51%	-47.88%	16.15%	21.61%	23.6%	24.23%	24.91%	-10.29%	37.03%	35.5%	34.99%	35.54%	36.54%	37.73%	37.42%	37.12%	35.9%	168.99%	39.71%	37.67%	36.5%	36.59%	365.03%	38%	45.99%	37.15%	40.94%	40.23%	43.25%	292.31%
Net Income	74M	145.2M	-34.9M	-380.1M	-437.5M	512.5M	387.4M	460.7M	63.7M	218.3M	320.3M	159.8M	166.5M	161.1M	106.5M	167.9M	204.1M	153.3M	-10.9M	113.4M	132.7M	100.6M	100.9M	103.8M	82.5M	15.5M	73.1M	63.2M	36.3M	39.5M	-2.5M
Net Margin %	2.19%	4.25%	-0.98%	-10.7%	-11.15%	10.41%	9.38%	14.6%	2.39%	8.26%	11.29%	5.3%	5.86%	5.72%	3.77%	5.92%	6.5%	5.14%	-0.37%	3.95%	4.92%	4.25%	4.95%	5.43%	4.69%	0.89%	4.14%	3.83%	3.26%	4.38%	-0.33%
Net Income Growth %	39.36%	516.05%	90.82%	13.12%	-185.37%	32.29%	-15.91%	623.23%	-70.82%	-31.85%	100.44%	-4.02%	3.35%	51.27%	-36.57%	-17.74%	33.14%	1506.42%	-109.61%	-14.54%	31.91%	-0.3%	-2.79%	25.82%	432.26%	-78.8%	15.66%	74.1%	-8.1%	1680%	-109.96%
Net Income (Continuing)	167.3M	145.2M	-34.9M	-380.1M	-437.5M	517.3M	386.9M	436.7M	127.6M	198.3M	246.1M	137.8M	145.5M	159.4M	113.2M	121.9M	212.4M	154.6M	-10.9M	113.4M	132.7M	100.4M	100.5M	103.2M	101M	15.5M	73.1M	69.1M	37M	39.5M	-2.5M
Discontinued Operations	-1000K	0	0	0	0	-3.9M	1.7M	23.5M	0	20.5M	68.7M	30M	20.7M	1.7M	0	46M	-8.3M	0	0	0	0	200K	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	5.7M	4.5M	5M	12.9M	19.1M	12.4M	13.5M	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)	1.25	2.47	-0.61	-6.79	-7.88	8.96	6.81	8.18	1.12	3.63	5.09	2.57	2.65	2.57	1.71	2.54	3.02	2.32	-0.17	1.69	1.91	1.47	1.52	1.62	1.31	0.25	1.13	1.04	0.60	0.68	-0.07
EPS Growth %	51.32%	504.92%	91.02%	13.83%	-187.95%	31.57%	-16.75%	630.36%	-69.15%	-28.68%	98.05%	-3.02%	3.11%	50.29%	-32.68%	-15.89%	30.17%	1464.71%	-110.06%	-11.52%	29.93%	-3.29%	-6.17%	23.66%	424%	-77.88%	8.65%	73.33%	-11.76%	1128.74%	-111.8%
EPS (Basic)	-	2.52	-0.61	-6.79	-7.88	9.20	6.96	8.30	1.13	3.68	5.16	2.62	2.70	2.61	1.75	2.60	3.08	2.36	-0.17	1.74	1.97	1.51	1.56	1.68	1.41	0.27	1.20	1.47	0.71	0.80	-0.07
Diluted Shares Outstanding	59.1M	58.7M	56.8M	56M	55.5M	57.2M	56.9M	56.3M	57.1M	60.2M	62M	62.2M	62.7M	62.6M	62.1M	66.2M	67.6M	66.08M	64.5M	67.1M	69.48M	68.44M	66.38M	64.07M	63.4M	62M	59.2M	61M	60.6M	53.9M	53.9M
Basic Shares Outstanding	58.1M	57.6M	56.8M	56M	55.5M	55.7M	55.7M	55.5M	56.2M	59.4M	61.1M	61.1M	61.6M	61.7M	61M	64.7M	66.3M	64.96M	64.5M	65.2M	67.36M	66.62M	64.68M	61.79M	58.6M	57.41M	55.8M	36.6M	37.4M	37.13M	37.85M
Dividend Payout Ratio	-	106.27%	-	-	-	27.9%	106.14%	27.02%	188.38%	55.11%	36.4%	69.65%	138.62%	54.5%	70.8%	40.44%	20.87%	21.79%	-	479.37%	25.24%	8.55%	-	-	-	-	8.76%	19.15%	20.11%	24.81%	-

Key Metrics

Growth RegimeMixed

ProfitabilityStable

Balance SheetStrained

Cash FlowMixed

Top Statement Risk

Hawthorne segment volatility and leverage

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q3)

Revenue Contraction Amidst Seasonal Peaks

SMG's revenue declined 3.9% year-over-year in fiscal 2026, with Q2 showing a 2.7% uptick but Q1 down 15.0%, indicating uneven demand and persistent Hawthorne weakness.

The top line remains under pressure, with the most recent quarter (Q3 2026) showing a 1.3% decline, suggesting that the core U.S. Consumer segment is stabilizing but not yet growing. The Hawthorne segment continues to drag, as wholesale cannabis oversupply reduces demand for high-end equipment. Investors should monitor whether the SMG 2.0 strategy can translate into durable revenue growth, especially given the seasonal concentration in Q2 and Q3.

Gross Margin Recovery but Structural Ceiling

Gross margin improved to 31.2% in Q3 2026 from 29.5% a year earlier, but remains below the 41.8% peak in Q2 2026, reflecting commodity cost pressures and retail pricing dynamics.

The sequential improvement from Q1's 25.0% to Q2's 41.8% highlights the seasonal leverage, but the year-over-year comparison shows only modest gains. The structural ceiling is evident when comparing to peers like Spectrum Brands (36.7%) and Central Garden & Pet (31.1%), suggesting limited pricing power. Commodity input costs (urea, resin, diesel) and the bargaining power of big-box retailers likely cap margin expansion.

Operating Leverage Amplifies Seasonal Swings

Operating margin swung from -38.7% in Q4 2025 to 28.2% in Q2 2026, demonstrating extreme operating leverage tied to fixed SG&A and seasonal revenue, with Q3 2026 at 14.5%.

The fixed cost base, particularly SG&A, does not scale down proportionally with revenue, causing deep losses in off-peak quarters. In Q3 2026, SG&A of $145.6M was only slightly below the prior year's $141.4M, while revenue declined, compressing operating margin from 18.1% to 14.5%. This suggests that cost discipline is not fully offsetting revenue softness, and any sustained demand weakness could further pressure margins.

EPS Beat Masks Underlying Revenue Weakness

Q3 2026 EPS of $1.90 beat consensus by a wide margin, but net income rose only 1.9% year-over-year, and stock-based compensation of $38.3M in the quarter raises questions about earnings quality.

The massive beat versus consensus (which expected a loss) appears driven by cost controls and possibly one-time items, not top-line strength. SBC of $38.3M in Q3 2026 is the highest in the ten quarters shown, representing about 34% of net income, which may indicate dilution pressure. Investors should scrutinize the sustainability of these earnings, especially given the persistent revenue decline and the Hawthorne segment's drag.

COGS and SG&A Discipline Under Scrutiny

COGS as a percentage of revenue improved to 68.8% in Q3 2026 from 70.5% a year earlier, but SG&A rose 3.0% year-over-year, indicating limited expense discipline despite revenue declines.

The gross margin improvement suggests some commodity cost relief or pricing actions, but SG&A growth in a declining revenue environment is concerning. In Q3 2026, SG&A increased to $145.6M from $141.4M, while revenue fell, implying that overhead is not being rightsized. This may reflect investments in the SMG 2.0 strategy, but investors should monitor whether these costs translate into future growth or simply erode margins.

Q2 2026: A Temporary Peak or New Baseline?

Q2 2026 delivered the strongest operating margin (28.2%) and EPS ($4.04) in the ten-quarter window, but the subsequent Q3 decline suggests this may be a seasonal peak rather than a sustainable trend.

The Q2 performance benefited from favorable spring weather and channel restocking, but the sharp drop to 14.5% operating margin in Q3 indicates that the company cannot sustain that level of profitability. The year-over-year revenue growth of 2.7% in Q2 was the only positive quarter in the last five, suggesting that the underlying demand environment remains weak. This inflection point highlights the cyclicality of the business and the challenges of achieving consistent growth.

What Could Invalidate the Recovery Narrative

Despite the Q3 EPS beat, revenue is still contracting, and the Hawthorne segment remains a drag; if cost discipline fades or cannabis oversupply persists, margins could compress further.

Short-sellers would point to the persistent revenue decline (-3.9% YoY) and the fact that the EPS beat was driven by cost cuts, not demand. The Hawthorne segment's fixed-cost footprint may not be fully rightsized, and any further deterioration in wholesale cannabis prices could lead to additional write-downs. Additionally, the high leverage and rising interest expenses could pressure net income if rates stay elevated. Investors should monitor whether the SMG 2.0 strategy can generate organic growth, or if the company is merely managing its way through a cyclical downturn.

SMG — Frequently Asked Questions

Quick answers to the most common questions about buying SMG stock.

What was The Scotts Miracle-Gro Company's (SMG) revenue in 2025?

For fiscal year 2025, The Scotts Miracle-Gro Company (SMG) reported total revenue of $3.41B. This represents a 353.9% increase compared to $751.9M in 1996.

Is The Scotts Miracle-Gro Company (SMG) profitable?

The Scotts Miracle-Gro Company (SMG) is profitable, generating $145.2M in net income for the fiscal year ending 2025 with a net profit margin of 4.3%.

What is The Scotts Miracle-Gro Company's operating profit margin?

The Scotts Miracle-Gro Company (SMG) reported an operating income of $358.6M, resulting in an operating profit margin of 10.5%. This margin reflects the operational efficiency of the business before interest and taxes.

What is The Scotts Miracle-Gro Company's gross profit and gross margin?

The Scotts Miracle-Gro Company (SMG) generated $1.04B in gross profit for the year, representing a gross profit margin of 30.6%. This demonstrates the company's core pricing power and production efficiency.