GRWG · GrowGeneration Corp.

GrowGeneration Corp. reported first quarter 2026 results that showed continued progress in its turnaround. Revenue of $38.4 million grew 7.5% year-over-year, marking the second consecutive quarter of YoY growth, driven by strength in the commercial B2B division and Storage Solutions segment. The company's cost-reduction initiatives are gaining traction: total operating expenses declined 23.4% to $15.0 million, with store and other operating expenses down 27.2%. This operating leverage helped narrow GAAP net loss by $4.5 million to $4.9 million and improve Adjusted EBITDA loss by $2.4 million to $1.6 million. Proprietary brand penetration reached 37.0% of Cultivation & Gardening revenue, up 500 basis points YoY, supporting the company's margin expansion strategy. Management reaffirmed full-year 2026 guidance: revenue of $162-$168 million, gross margin of 27%-29%, and approximately breakeven Adjusted EBITDA. For Q2 2026, the company expects sequential revenue growth to $42-$44 million. With $41.1 million in cash and no debt, GrowGeneration maintains a solid liquidity position to execute its strategic initiatives.