GrowGeneration Corp. (GRWG)

GrowGeneration Corp. reported a sequential net sales increase of 15.4% to $47.3 million and a return to positive Adjusted EBITDA of $1.3 million in Q3 2025, but the stock declined by 6.12% following the earnings release. The company also noted a $1.8 million stock repurchase during Q3 2024. Earlier, in Q2 2025, net sales were $41.0 million, with proprietary brand sales rising to 32.0% of cultivation and gardening revenue, while the share price declined by 4.41% between February 3, 2025, and February 2, 2026. Throughout 2024, GrowGeneration closed 19 retail locations to focus on profitability, leading to a 31.5% decrease in total operating expenses in Q3 2025.

GrowGeneration's products and services experience some demand seasonality, and the company has invested in proprietary products in anticipation of this. The market has seen a slowdown in demand, particularly in March, attributed to a softer market environment and pressures within the cannabis industry. Commercial growers have exhibited cautious spending, although demand for consumable products has remained relatively stable. Broader industry trends and economic factors significantly influence demand for GrowGeneration's offerings.

GrowGeneration Corp. is the largest specialized retailer of hydroponic and organic gardening supplies in the United States, focusing on the cannabis cultivation industry and traditional gardening markets. The company markets and distributes products for both commercial and home growers, including nutrients, growing media, lighting, environmental control systems, and hydroponic equipment. GrowGeneration also emphasizes its proprietary brands, such as Charcoir, Drip Hydro, Power Si, Ion lights, The Harvest Company, and Viagrow, and offers benching, racking, and storage solutions through its Mobile Media (MMI) brand.

GrowGeneration operates through a multi-channel approach, combining physical retail with an online e-commerce platform. As of Q2 2025, the company operated 29 retail and distribution centers across 11 states. Previously, it had over 60 hydroponic garden centers across 14 states and runs an online superstore and a wholesale distribution business. A partnership with Arett Sales in August 2025 expanded its B2B distribution network to 32 states and Washington D.C.

GrowGeneration's brand reputation has been shaped by its strategic pivot towards profitability, proprietary brand growth, and operational efficiency. The company has focused on enhancing its product offerings, with positive customer feedback for brands like The Harvest Company, Drip Hydro, and Charcoir. GrowGeneration has also actively participated in industry events and expos to increase its visibility. However, a historical negative event from August 2020 involving allegations against top executives remains a past challenge. Despite positive Q3 2025 earnings, the stock experienced a modest decline, suggesting cautious market sentiment.

GrowGeneration Corp. is a publicly traded company with ownership distributed among institutional investors, company insiders, and the general public. The company has 136 institutional owners holding a total of 19,780,568 shares. Major institutional shareholders include AWM Investment Company, Inc., Vanguard Group Inc, Millennium Management Llc, BlackRock, Inc., Dimensional Fund Advisors Lp, Toroso Investments, LLC, Renaissance Technologies Llc, and Monaco Asset Management SAM. Significant individual and insider owners include Gotham Green Partners LLC, Michael Salaman, Darren Lampert, Merida Capital Partners LP, Stephen Aiello, and Sean Stiefel.