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GrowGeneration
(NASDAQ:GRWG)
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Rating:59Neutral
Price Target:
$1.50
▼(-12.28% Downside)
Action:Reiterated
Date:08/18/26
The score balances improving but still-lossmaking financials (negative margins and negative TTM operating/free cash flow) against strong near-term technical momentum (price above major moving averages with positive MACD) and an upbeat earnings update (raised adjusted EBITDA outlook, margin expansion, cost reductions). Valuation remains constrained by the company’s ongoing losses (negative P/E) and lack of a dividend yield.
Positive Factors
Proprietary Brands and Margin
Rising proprietary-brand penetration can improve product economics and differentiate GrowGeneration from a pure reseller. Reaching the year-end target early, alongside higher gross margin, supports a more durable path toward better profitability as private-label sales scale.
Negative Factors
Persistent Unprofitability
The company has improved substantially from its 2024 loss level but remains unprofitable on a GAAP and operating basis. Continued losses weaken retained capital and show that the improved sales and cost structure have not yet produced sustainable earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Proprietary Brands and Margin
Rising proprietary-brand penetration can improve product economics and differentiate GrowGeneration from a pure reseller. Reaching the year-end target early, alongside higher gross margin, supports a more durable path toward better profitability as private-label sales scale.
Read all positive factors
GrowGeneration Key Performance Indicators (KPIs)
Any
Store Count
Shows the total number of retail locations, indicating the company's physical footprint and potential for reaching more customers and increasing sales.
Shows the total number of retail locations, indicating the company's physical footprint and potential for reaching more customers and increasing sales.
Data provided by:
The Fly
The FlyGrowGeneration (GRWG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$84.85M
Dividend YieldN/A
Average Volume (3M)254.83K
Price to Earnings (P/E)―
Beta (1Y)1.34
Revenue Growth1.57%
EPS Growth66.05%
CountryUS
Employees251
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.27
Shares Outstanding58,920,450
10 Day Avg. Volume250,578
30 Day Avg. Volume254,827
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.92
Price to Sales (P/S)0.55
P/FCF Ratio-8.97
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue0.44
Enterprise Value/Gross Profit1.97
Enterprise Value/Ebitda-8.69
Forecast
1Y Price Target
$2.50Price Target Upside46.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.14
Revenue Forecast (FY)$167.04M
GrowGeneration Business Overview & Revenue Model
Company Description
GrowGeneration Corp., through its subsidiaries, operates as a developer, marketer, retailer, and distributor of products for both indoor and outdoor hydroponic and organic gardening in the United States. It operates in two segments, Cultivation an...
How the Company Makes Money
GrowGeneration primarily makes money by selling hydroponic and indoor cultivation products to commercial and hobbyist customers through (1) retail store locations and (2) online/e-commerce channels, generating revenue at the point of sale for equi...
GrowGeneration Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call highlighted substantial operational progress: consecutive revenue growth, meaningful margin expansion, positive adjusted EBITDA, early achievement of proprietary brand penetration targets, significant expense reductions, a debt-free balance sheet with $41M cash, and an upgraded adjusted EBITDA outlook. Dampeners include some reliance on a >$2M tariff refund to boost full-year EBITDA, modest headwinds in Storage Solutions gross profit from project mix and transportation costs, a YoY increase in SG&A tied to growth investments, and ongoing GAAP losses. Overall the positives — stronger revenue quality, margin improvement, cost cuts, and balance sheet strength — materially outweigh the caveats.Positive Updates
Third Consecutive Quarter of Revenue Growth
Total revenue of $43.2M in Q2 2026, up 12.6% sequentially and up 5.5% year-over-year from $41.0M in Q2 2025.
Negative Updates
Reliance on One-Time Tariff Recognition
Management expects an IEPA tariff refund to be recognized in Q3 that exceeds $2M, which materially contributes to the upgraded full-year adjusted EBITDA range — indicating some reliance on non-recurring items to hit targets.
Read all updates
Q2-2026 Updates
Positive
Negative
Third Consecutive Quarter of Revenue Growth
Total revenue of $43.2M in Q2 2026, up 12.6% sequentially and up 5.5% year-over-year from $41.0M in Q2 2025.
Read all positive updates
Company Guidance
GrowGeneration raised its full‑year 2026 adjusted EBITDA outlook to $2.0–$3.0 million while reaffirming net revenue guidance of $162–$168 million, and for Q3 expects $44–$46 million of revenue with positive adjusted EBITDA — helped by an anticipated IEPA tariff refund in Q3 that management says will exceed $2 million. In Q2 the company generated $43.2 million of revenue (up 12.6% sequentially and 5.5% year‑over‑year), $12.3 million of gross profit and a 28.5% gross margin, returned to positive adjusted EBITDA of $0.3 million, achieved proprietary brand penetration of ~39.7% of cultivation & gardening sales (versus 32% a year ago), recorded $8.3 million in Storage Solutions revenue, ended the quarter with $41 million of cash and no debt, repurchased 700,000 shares at an average $1.38 under a $10 million buyback (≈$9 million remaining), and highlighted ~22% year‑over‑year store expense reductions and a 13% decline in total operating expenses as drivers of the upgraded EBITDA outlook.GrowGeneration Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
58
Neutral
Cash Flow
28
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 166.68M | 161.74M | 188.87M | 225.88M | 278.17M | 422.49M |
| Gross Profit | 37.40M | 31.98M | 43.72M | 61.26M | 70.26M | 118.24M |
| EBITDA | -8.46M | -12.56M | -29.85M | -29.76M | -149.48M | 27.87M |
| Net Income | -16.79M | -24.05M | -49.51M | -46.50M | -163.75M | 12.79M |
Balance Sheet | ||||||
| Total Assets | 136.64M | 147.04M | 174.35M | 239.09M | 293.44M | 459.34M |
| Cash, Cash Equivalents and Short-Term Investments | 41.01M | 46.06M | 56.45M | 64.97M | 71.91M | 81.17M |
| Total Debt | 26.07M | 29.48M | 37.03M | 42.47M | 48.84M | 45.56M |
| Total Liabilities | 46.61M | 49.54M | 54.26M | 65.69M | 77.05M | 88.05M |
| Stockholders Equity | 90.03M | 97.50M | 120.09M | 173.40M | 216.40M | 371.29M |
Cash Flow | ||||||
| Free Cash Flow | -7.34M | -9.98M | -3.78M | -5.28M | -948.00K | -13.58M |
| Operating Cash Flow | -6.80M | -9.45M | -1.80M | 1.42M | 11.95M | 5.16M |
| Investing Cash Flow | 8.13M | 12.60M | 5.73M | -11.40M | -11.57M | -139.32M |
| Financing Cash Flow | -1.17M | -220.00K | -6.21M | -313.00K | -1.69M | -2.38M |
GrowGeneration Technical Analysis
Negative
1.71
Price Trends
1.57
Negative
1.53
Negative
1.41
Positive
Market Momentum
-0.04
Positive
40.81
Neutral
28.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRWG, the sentiment is Negative. The current price of 1.71 is above the 20-day moving average (MA) of 1.49, above the 50-day MA of 1.57, and above the 200-day MA of 1.41, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 40.81 is Neutral, neither overbought nor oversold. The STOCH value of 28.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GRWG.
GrowGeneration Risk Analysis
GrowGeneration disclosed 39 risk factors in its most recent earnings report. GrowGeneration reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GrowGeneration Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $52.79B | 24.01 | 48.28% | 1.03% | 15.18% | 7.28% | |
73 Outperform | $2.69T | 19.77 | 30.50% | ― | 15.77% | 88.63% | |
62 Neutral | $16.95B | 17.49 | 37.64% | 2.92% | 3.53% | -10.44% | |
62 Neutral | $15.48B | -46.00 | 11.48% | ― | 7.46% | -2.70% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $84.85M | -5.33 | -17.44% | ― | 1.57% | 66.05% | |
59 Neutral | $248.48B | 21.51 | 7.04% | 1.05% | 7.76% | -49.08% |
* Consumer Cyclical Sector Average
GRWG
GrowGeneration
1.44
-0.25
-14.79%
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GrowGeneration Corporate Events
Business Operations and StrategyFinancial Disclosures
GrowGeneration Reports Stronger Q2 Results, Raises Outlook
Positive
Aug 11, 2026
On August 11, 2026, GrowGeneration reported second quarter 2026 results showing net sales of $43.2 million, up 5.5% year over year, and a narrowed net loss of $2.0 million, alongside a swing to positive adjusted EBITDA of $0.3 million. Proprietary...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.