GrowGeneration Corp. (GRWG) Q3 2025 Earnings Call Transcript
Net Sales $47.3 million, up 15.4% sequentially from Q2 2025 but lower than $50 million in Q3 2024 due to 19 fewer retail locations since July 2024. Growth in B2B and commercial channels partially offset the decline.
Gross Margin 27.2%, up from 21.6% in Q3 2024. The increase was driven by higher proprietary brand penetration and the absence of restructuring-related costs from the prior year.
Adjusted EBITDA $1.3 million, a $3.7 million improvement from a loss of $2.4 million in Q3 2024. This reflects improved sales mix from proprietary brands and cost reduction initiatives.
Proprietary Brand Sales 31.6% of cultivation and gardening revenue, up from 23.8% in Q3 2024. Driven by strong demand for Drip Hydro and Char Coir.
Store Operating Expenses $7.2 million, down 27.8% year-over-year from $10 million in Q3 2024. Reflects cost reduction initiatives.
Total Operating Expenses $15.7 million, down 31.5% year-over-year. Includes a 22.9% reduction in selling, general, and administrative expenses.
Depreciation and Amortization $2.6 million, down from $5 million in Q3 2024. Expected to remain stable through year-end.
GAAP Net Loss $2.4 million or negative $0.04 per share, compared to a net loss of $11.4 million or negative $0.19 per share in Q3 2024. Improvement driven by higher gross margins, lower operating expenses, and absence of restructuring-related charges.
Storage Solutions Segment Revenue $8.9 million, up from $8.6 million in Q3 2024. Reflects steady demand and diversification into new end markets.
Cash and Cash Equivalents $48.3 million with no debt, providing a strong balance sheet to support inventory needs, infrastructure projects, and proprietary brand expansion.
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Tuesday's Top Performers: Advertising, Home Furnishings, and Improvement Stocks
Home Furnishings Sector Performance: Home furnishings and improvement shares increased by approximately 1.5%, with GrowGeneration leading the rise at 12% and RH at 5.7% on Tuesday.
Market Highlights: The article highlights the performance of specific stocks within the home furnishings sector, indicating a positive trend in this market segment.
Video Content: A video segment is mentioned that discusses sector leaders, particularly in advertising and home furnishings.
Author's Perspective: The views expressed in the article are those of the author and do not necessarily represent the opinions of Nasdaq, Inc.
Rapidly Rising Momentum Stock GrowGeneration (GRWG) Remains a Great Value
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GRWG Stock Analysis: GrowGeneration Corp. (GRWG) is highlighted as a strong candidate for momentum investing, showing a 2% price increase over four weeks and a 2.7% gain over 12 weeks, with a high beta indicating significant price movement.
Valuation and Earnings Potential: GRWG has a favorable Momentum Score of B and a Zacks Rank #2 (Buy), supported by upward revisions in earnings estimates, suggesting strong investor interest and potential for price appreciation.
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