The firm's operational performance is severely impaired, evidenced by a negative 1.00% gross margin and an operating margin of -77.08% that highlights a failure to scale against fixed salary overhead.
| Sales/Revenue | 7.89M | 17.4M | 40.01M | 71.54M | 66.3M | 62.11M | 25.84M | 24.19M | 20.05M | 12.3M | 7.03M |
| Revenue Growth % | -76.79% | -56.51% | -44.08% | 7.91% | 6.74% | 140.4% | 6.81% | 20.64% | 63.04% | 74.85% | - |
| Cost of Goods Sold | 10.25M | 17.57M | 37.14M | 61.25M | 52.09M | 47.35M | 20.12M | 17.56M | 13.89M | 9.24M | 5.62M |
| COGS % of Revenue | - | 101% | 92.83% | 85.61% | 78.57% | 76.24% | 77.88% | 72.61% | 69.28% | 75.17% | 79.94% |
| Gross Profit | -2.36M | -174.81K | 2.87M | 10.29M | 14.21M | 14.76M | 5.72M | 6.63M | 6.16M | 3.05M | 1.41M |
| Gross Margin % | -29.97% | -1% | 7.17% | 14.39% | 21.43% | 23.76% | 22.12% | 27.39% | 30.72% | 24.83% | 20.06% |
| Gross Profit Growth % | - | -106.09% | -72.13% | -27.55% | -3.75% | 158.24% | -13.74% | 7.59% | 101.68% | 116.44% | - |
| Operating Expenses | 9.1M | 13.24M | 38.4M | 26.97M | 26.84M | 14.96M | 8.46M | 12.05M | 9.96M | 5.42M | 3.02M |
| OpEx % of Revenue | - | 76.07% | 95.97% | 37.7% | 40.49% | 24.09% | 32.75% | 49.83% | 49.67% | 44.05% | 42.94% |
| Selling, General & Admin | 17.27B | 17.27B | 25.74M | 25.91M | 22.48M | 14.96M | 8.46M | 12.05M | 9.96M | 5.42M | 3.02M |
| SG&A % of Revenue | - | 99259.86% | 64.34% | 36.22% | 33.91% | 24.09% | 32.75% | 49.83% | 49.67% | 44.05% | 42.94% |
| Research & Development | 0 | 0 | 0 | 0 | 3.3M | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | 4.98% | - | - | - | - | - | - |
| Other Operating Expenses | -1.47M | -17.26B | 12.66M | 1.06M | 1.06M | 0 | 0 | 0 | 24.67K | 0 | 0 |
| Operating Income | -11.46M | -13.41M | -35.53M | -16.68M | -12.64M | -204.74K | -2.75M | -5.43M | -3.8M | -2.36M | -1.61M |
| Operating Margin % | -145.35% | -77.08% | -88.81% | -23.31% | -19.06% | -0.33% | -10.63% | -22.44% | -18.95% | -19.22% | -22.88% |
| Operating Income Growth % | - | 62.25% | -113.04% | -31.97% | -6072.09% | 92.54% | 49.42% | -42.82% | -60.83% | -46.83% | - |
| EBITDA | -9.37M | -12.83M | -33.5M | -15.04M | -11.15M | 290.53K | -2.49M | -5.16M | -3.65M | -2.29M | -1.56M |
| EBITDA Margin % | -118.8% | -73.76% | -83.74% | -21.02% | -16.82% | 0.47% | -9.63% | -21.34% | -18.19% | -18.6% | -22.2% |
| EBITDA Growth % | 73.72% | 61.7% | -122.75% | -34.85% | -3939.14% | 111.68% | 51.81% | -41.55% | -59.41% | -46.48% | - |
| D&A (Non-Cash Add-back) | 2.09M | 577.95K | 2.03M | 1.64M | 1.48M | 495.28K | 258.44K | 266.48K | 154.14K | 75.61K | 47.76K |
| EBIT | -6.11M | -13.41M | -35.5M | -18.63M | -15.55M | 94.46K | -3.58M | -6.31M | -3.78M | -2.36M | -1.61M |
| Net Interest Income | -978.5K | -1.68M | -1.02M | -97.79K | 274.43K | -946.57K | -1.5M | -2.47M | -119.96K | 0 | 0 |
| Interest Income | 525.73K | 526 | 2.42K | 173.9K | 329.01K | 23.57K | 0 | 2.04M | 0 | 216.58K | 218.43K |
| Interest Expense | 717.97K | 1.68M | 1.02M | 271.69K | 54.58K | 970.13K | 1.5M | 2.04M | 119.96K | 0 | 0 |
| Other Income/Expense | -8.53M | -8.28M | -995.41K | -2.22M | -2.96M | -670.92K | -2.33M | -2.49M | -95.29K | -214.25K | -199.41K |
| Pretax Income | -19.99M | -21.69M | -36.53M | -18.9M | -15.6M | -875.67K | -5.07M | -8.35M | -3.9M | -2.58M | -1.81M |
| Pretax Margin % | -253.57% | -124.68% | -91.29% | -26.41% | -23.53% | -1.41% | -19.64% | -34.52% | -19.43% | -20.96% | -25.72% |
| Income Tax | -182.87K | -14.61K | -29.7K | -215.86K | -322.09K | 0 | 0 | 2.09M | 24.67K | -5 | 0 |
| Effective Tax Rate % | 0.91% | 0.07% | 0.08% | 1.14% | 2.06% | 0% | 0% | -25.04% | -0.63% | 0% | 0% |
| Net Income | -21.29M | -22.52M | -36.5M | -18.68M | -15.28M | -875.67K | -5.07M | -8.35M | -3.9M | -2.58M | -1.81M |
| Net Margin % | -270% | -129.45% | -91.22% | -26.11% | -23.04% | -1.41% | -19.64% | -34.52% | -19.43% | -20.96% | -25.72% |
| Net Income Growth % | 44.54% | 38.29% | -95.36% | -22.27% | -1644.72% | 82.74% | 39.24% | -114.34% | -51.16% | -42.49% | - |
| Net Income (Continuing) | -20.42M | -21.68M | -36.5M | -18.68M | -15.28M | -875.67K | -5.07M | 0 | -3.9M | -2.58M | -1.81M |
| Discontinued Operations | -948.3K | -843.76K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 66.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -25.89 | -42.64 | -65.50 | -41.50 | -36.00 | -2.19 | -26.50 | -59.50 | -20.75 | -14.50 | -10.00 |
| EPS Growth % | 46.5% | 34.9% | -57.83% | -15.28% | -1547.6% | 91.75% | 55.46% | -186.75% | -43.1% | -45% | - |
| EPS (Basic) | - | -42.64 | -65.50 | -41.50 | -36.00 | -2.19 | -26.50 | -59.50 | -21.75 | -14.50 | -10.00 |
| Diluted Shares Outstanding | 822.22K | 528.27K | 557.08K | 450.58K | 424.43K | 400.81K | 190.65K | 175.45K | 188.06K | 179.13K | 179.13K |
| Basic Shares Outstanding | 822.22K | 528.27K | 557.08K | 450.58K | 424.43K | 400.81K | 190.65K | 175.45K | 179.13K | 179.13K | 179.13K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Capital intensive project dependency
As reported in recent financial filings, urban-gro experienced a severe 56.51% year-over-year revenue decline, underscoring the company's extreme sensitivity to the ongoing capital expenditure freeze within the Controlled Environment Agriculture sector and the broader volatility inherent in its project-based, transactional business model across North American markets.
The precipitous drop in top-line performance suggests that the company's reliance on large-scale facility builds is currently a significant liability. Investors should monitor whether the pivot toward non-cannabis sectors can provide a sufficient revenue floor to offset the persistent weakness in its core agricultural machinery and engineering segments.
Based on the most recent quarterly data, the company reported a negative 1.00% gross margin, which suggests that urban-gro is currently failing to recover its direct project costs, a concerning trend that highlights the erosion of pricing power amidst intense competition and reduced industry-wide demand for facility integration.
This margin compression implies that the company's integrated service model is not currently generating the expected efficiencies or premium pricing. The inability to maintain positive gross margins suggests that the firm may be aggressively underpricing contracts simply to maintain operational activity, which is likely unsustainable over the long term.
According to the income statement, the company's operating margin of -77.08% reveals a profound disconnect between its fixed cost structure and current revenue generation, indicating that the firm has yet to achieve the necessary scale to absorb its professional architectural and engineering salary overhead during this downturn.
The persistence of high SG&A expenses relative to a shrinking revenue base suggests that management has struggled to right-size the organization in response to the current funding winter. This operating leverage profile warrants further investigation into whether the company can achieve profitability without a substantial and immediate recovery in project volume.
While management pursues diversification into food and beverage sectors, the company's current cash position of $10.6M appears insufficient to support its ongoing operating burn rate, raising significant questions regarding the firm's ability to navigate the current industry-wide liquidity trap without resorting to further dilutive financing.
Short-term observers may focus on the potential for further accounts receivable write-downs, given the financial instability of many cannabis-sector clients. The reliance on percentage-of-completion accounting also introduces the risk of future negative earnings surprises if project milestones are delayed or if cost estimates for ongoing builds prove to be overly optimistic.
Quick answers to the most common questions about buying UGRO stock.
For fiscal year 2025, urban-gro, Inc. (UGRO) reported total revenue of $17.4M. This represents a 147.4% increase compared to $7.0M in 2016.
urban-gro, Inc. (UGRO) reported a net loss of $22.5M for the fiscal year ending 2025.
urban-gro, Inc. (UGRO) reported an operating income of $-13.4M, resulting in an operating profit margin of -77.1%. This margin reflects the operational efficiency of the business before interest and taxes.
urban-gro, Inc. (UGRO) generated $-0.2M in gross profit for the year, representing a gross profit margin of -1.0%. This demonstrates the company's core pricing power and production efficiency.