GrowGeneration Reports Third Quarter 2026 Financial Results
Key Highlights
- ➤GrowGeneration (GRWG) Q3 sales $44.8M, down from $47.3M year-over-year
- ➤GAAP net income $0.2M versus $2.4M loss; Adjusted EBITDA $2.3M
- ➤Gross margin expands 520 basis points to 32.4%
- ➤Proprietary-brand sales rise 19.3% to $14.4M, reaching 40.6% of cultivation revenue
- ➤Full-year revenue guidance narrowed to $163M-$165M; Adjusted EBITDA guidance withdrawn
- ➤GrowGeneration plans four to five additional store closures in Q4
Expert Statements
Darren Lampert, Co-Founder and Chief Executive Officer of GrowGeneration
“Our third-quarter results reflect the continued progress of GrowGeneration's transformation into a national commercial cultivation supply and proprietary-brand platform.”
Darren Lampert, Co-Founder and Chief Executive Officer of GrowGeneration
“We delivered $44.8 million in revenue, expanded gross margin to 32.4%, and generated $2.3 million in Adjusted EBITDA.”
Darren Lampert, Co-Founder and Chief Executive Officer of GrowGeneration
“Proprietary-brand sales increased approximately 19% year-over-year and represented more than 40% of Cultivation and Gardening revenue, demonstrating the progress we are making in shifting our business toward higher-margin products and commercial customers.”
Darren Lampert, Co-Founder and Chief Executive Officer of GrowGeneration
“We are also continuing to take meaningful actions to improve our cost structure, including a strategic restructuring plan initiated in the fourth quarter.”
Darren Lampert, Co-Founder and Chief Executive Officer of GrowGeneration
“Store and other operating expenses declined approximately 12% year-over-year, and we are moving forward with four to five store closures in the fourth quarter, along with additional restructuring initiatives designed to further reduce fixed costs and improve operating efficiency.”
Darren Lampert, Co-Founder and Chief Executive Officer of GrowGeneration
“While these actions may impact near-term profitability, we believe they will position GrowGeneration to operate more efficiently and achieve higher levels of profitability in 2027.”
Darren Lampert, Co-Founder and Chief Executive Officer of GrowGeneration
“We are pleased with our progress through the first nine months of 2026 and remain focused on building a stronger, more profitable business.”
Darren Lampert, Co-Founder and Chief Executive Officer of GrowGeneration
“With $41.8 million in cash, cash equivalents and marketable securities and no debt, we have the financial flexibility to execute our strategic initiatives while maintaining a disciplined approach to capital allocation.”
Darren Lampert, Co-Founder and Chief Executive Officer of GrowGeneration
“Our priorities remain consistent, expanding our commercial business, increasing proprietary-brand penetration, and leveraging our distribution infrastructure and technology investments to support profitable growth.”
Delivers Positive GAAP Net Income and $2.3 million of Adjusted EBITDA
Proprietary Brand Sales Increase 19.3% Year-Over-Year, Reaching 40.6% of Cultivation and Gardening Revenue
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