Full Year Net Sales of $161.7 million including Proprietary Brand Sales of $44.0 million
Full Year Proprietary Brand Penetration Increased to 32.8% up from 24.2% in the prior year
Full Year GAAP Net Loss Improved by $25.5 million; Adjusted EBITDA Improved by $8.5 million
$46.1 million of Cash and Marketable Securities and no debt
Board Authorizes $10 Million Share Repurchase Program
2026 Outlook: Revenue of $162 million to $168 million and Breakeven Adjusted EBITDA(1)
DENVER, March 19, 2026 (GLOBE NEWSWIRE) -- GrowGeneration Corp. (NASDAQ: GRWG), ("GrowGeneration," "GrowGen" or the "Company"), one of the nation's largest suppliers of specialty products for controlled environment agriculture $(CEA)$, commercial cultivation, and garden centers, today announced financial results for the fourth quarter and full year ended December 31, 2025.
Fourth Quarter 2025 Summary(1)
-- Net sales of $37.8 million, compared to prior year net sales of $37.4
million, an improvement of 1.0%;
-- Proprietary brand sales as a percentage of Cultivation and Gardening net
sales increased to 35.8%, compared to 30.4% in the prior year;
-- Gross profit margin of 24.1%, compared to 16.4% in the prior year;
-- Store and other operating expenses declined approximately 26.8% to $6.8
million, compared to $9.3 million for the same period in the prior year;
-- Total operating expenses decreased $13.3 million, or 44.4%, to $16.7
million in the fourth quarter of 2025, compared to $30.1 million in the
prior year;
-- Net loss improved to $7.4 million, compared to a net loss of $23.3
million in the prior year which includes non-cash impairments; and
-- Adjusted EBITDA(3) loss of $2.0 million compared to a loss of $8.1
million in the prior year.
Full Year 2025 Summary(2)
-- Net sales of $161.7 million, compared to $188.9 million in the prior year,
reflecting retail store consolidations in 2024 and 2025.
-- Proprietary brand sales as a percentage of Cultivation and Gardening net
sales increased to 32.8%, compared to 24.2% in the prior year;
-- Gross profit margin of 26.8%, a 370 basis point improvement compared to
23.1% in the prior year;
-- Store and other operating expenses decreased $9.5 million, or 23.5%;
-- Net loss of $24.0 million, compared to a net loss of $49.5 million in the
prior year;
-- Adjusted EBITDA(3) loss of $6.0 million, an $8.5 million improvement
compared to a loss of $14.5 million in the prior year; and
-- Cash, cash equivalents, and marketable securities of $46.1 million and no
debt.
Darren Lampert, GrowGen's Co-Founder and Chief Executive Officer, commented, "2025 was a transformational year for GrowGen. We further streamlined our operating footprint, expanded proprietary brand sales to 32.8% of Cultivation & Gardening revenue, and delivered a 370 basis-point improvement in gross margin to 26.8%. These structural improvements drove a 58.9% year-over-year improvement in Adjusted EBITDA and reduced our GAAP net loss by more than half, reflecting the strength of our operating discipline and strategic focus."
"As we enter 2026, GrowGen is operating with a significantly leaner cost structure, a growing portfolio of proprietary brands, and a strong balance sheet with $46 million in cash and no debt. With growing traction across our commercial channel, proprietary brands, and Storage Solutions segment, we believe GrowGen is positioned to deliver breakeven Adjusted EBITDA for the full year and continue building a scalable, multi-channel platform serving the controlled environment agriculture market," added Mr. Lampert.
Fourth Quarter 2025 Consolidated Results
Net sales increased $0.4 million to $37.8 million for the fourth quarter of 2025, compared to $37.4 million for the fourth quarter of 2024. Cultivation and Gardening net sales decreased $0.8 million, primarily due to the consolidation of eight and 19 retail locations during 2025 and 2024, respectively. However, the decrease in Cultivation and Gardening net sales from the store consolidations were partially offset by customer retention at the closed locations and redirecting those sales to other channels, such as our online platforms and dedicated sales representatives. Additionally, our Storage Solutions segment net sales increased $1.2 million in the fourth quarter of 2025 as compared to 2024.
Similar to what we have seen throughout 2025, fourth quarter proprietary brand sales continued to perform strongly, supporting the confidence we have in our ability to expand gross margin for the long-term. Proprietary brand sales as a percentage of Cultivation and Gardening net sales increased to 35.8%, compared to 30.4% in the prior year, largely driven by our strategic initiatives to increase sales volume with our expanded portfolio of proprietary brands and various proprietary product launches.
Gross profit was $9.1 million for the fourth quarter of 2025, an increase of $3.0 million compared to gross profit of $6.1 million for the fourth quarter of 2024. Gross profit margin was 24.1% for the fourth quarter 2025, compared to 16.4% for the fourth quarter of 2024. Both the gross profit and gross profit margin improvements were driven by the higher proprietary brand penetration within our Cultivation and Gardening segment in the fourth quarter of 2025 as well as the comparison to the effects of the strategic restructuring plan in the fourth quarter of 2024, which resulted in an estimated $0.9 million in inventory sales discounts, an additional $1.0 million of inventory disposal costs, and other costs associated to the strategic rationalization of our product offerings.
GAAP net loss was $7.4 million in the fourth quarter of 2025, a $15.9 million improvement compared to a net loss of $23.3 million in the fourth quarter of 2024. The improvement in GAAP net loss was primarily due to a $13.3 million reduction of operating expenses, including non-cash impairment losses of $0.1 million and $6.7 million in 2025 and 2024, respectively, and reduced store operating expenses aligned to the retail store consolidations and efforts connected to our restructuring plan completed in March 2025. The improvement in GAAP net loss was also partially attributable to the $3.0 million increase in gross profit, discussed above.
Non-GAAP Adjusted EBITDA(3) was a loss of $2.0 million in the fourth quarter of 2025, compared to a loss of $8.1 million in the fourth quarter of 2024, reflecting gross margin expansion from higher proprietary brand penetration, the absence of certain costs associated to the strategic rationalization of our product offerings that were included in the fourth quarter of 2024, and the continued realization of operational cost-reduction initiatives.
Full Year 2025 Consolidated Results
Net sales were $161.7 million for the full year of 2025, compared to $188.9 million for 2024. Our Cultivation and Gardening segment net sales were $134.2 million for the year ended December 31, 2025 and $163.5 million for the year ended December 31, 2024. This decrease was primarily due to the closure of eight and 19 retail locations during 2025 and 2024, respectively. Additionally, the Cultivation and Gardening segment experienced slowness in the first half of 2025 related to declines in consumer confidence and uncertainty surrounding the potential macroeconomic and market impacts of tariffs. However, this was partially offset by the retention of customers associated to closed retail stores through redirecting those sales to other sales channels, such as our online platforms and dedicated sales representatives, as well as improvements in durable product sales driven by increased demand for capital investments by our customers in the second half of 2025. Proprietary brand sales as a percentage of Cultivation and Gardening net sales increased to 32.8% for the year ended December 31, 2025 as compared to 24.2% for the year ended December 31, 2024, largely driven by our strategic initiatives to increase sales volume with our expanded portfolio of proprietary brands and various product launches.
Net sales of commercial fixtures within our Storage Solutions segment increased to $27.5 million in 2025 compared to $25.4 million in 2024.
Gross profit was $43.3 million for the full year 2025 compared to $43.7 million in 2024. The decrease in gross profit was primarily related to the Storage Solutions segment, which decreased $0.5 million, or 4.1%, in 2025 compared to 2024, primarily due to industry pricing compression. The Cultivation and Gardening segment gross profit remained consistent at $32.2 million in 2025 and 2024 despite the reduction in sales volume caused by the store consolidations discussed above, largely because of our strategic initiatives to improve proprietary brand sales mix and our ability to retain customers who were previously associated to closed retail stores. Additionally, the effects of the strategic restructuring plan in 2024 included an estimated additional $1.9 million in inventory sales discounts and disposal costs as well as other costs related to the strategic rationalization of our product offerings as discussed above.
Gross profit margin was 26.8% for the full year 2025, an increase of 370 basis points from a gross profit margin of 23.1% in 2024. The increase in gross profit margin was largely driven by the Cultivation and Gardening segment, which had a gross profit margin of 24.0% in 2025 as compared to 19.7% in 2024. The Storage Solutions segment gross profit margin decreased to 40.3% in 2025 from 45.6% in 2024.
Store and other operating expenses for the full year 2025 were $30.7 million compared to $40.2 million in 2024, a decrease of 23.5% primarily due to the closure of eight and 19 retail locations during 2025 and 2024, respectively.
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