Growgeneration Stock Earnings Reports

GrowGeneration reported second consecutive quarter of year-over-year revenue growth (Q1 net sales $38.4M, +7.5% YoY) driven by momentum in its commercial B2B business and strong performance in its Storage Solutions segment (Storage Solutions revenue +35.5% YoY). Proprietary brand sales represented 37% of cultivation & gardening revenue (up from 32% a year ago) as management focuses on shifting toward higher-margin, recurring consumables. Cost-reduction initiatives materially lowered operating expenses (total operating expenses down 23.4% YoY) and improved profitability: GAAP net loss improved to $4.9M and adjusted EBITDA loss narrowed to $1.6M (vs. -$4.0M prior year). The company finished the quarter with a strong balance sheet ($41.1M cash & marketable securities, no debt) and a $10M authorized share repurchase program. Management reaffirmed full-year 2026 guidance: net revenue $162M–$168M and approximately breakeven adjusted EBITDA, with Q2 revenue guidance of $42M–$44M and a return to positive adjusted EBITDA. Near-term margin pressure came from store consolidation, inventory charges from closed locations and some tariff impacts, but management expects these to be short-term and to see margin recovery and increased durable-equipment demand as customers benefit from recent federal rescheduling/280E changes.