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Earnings analysis · 10-Q

GRWG earnings analysis

Filed August 11, 2026 · Our reading of the company's report

The latest report

GrowGeneration delivered Q2 revenue of $43.215 million, up 5.5% year over year, with gross margin improving to 28.5% and diluted EPS of negative $0.03. Lower operating expenses reduced the operating loss by $2.933…

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GrowGeneration delivered Q2 revenue of $43.215 million, up 5.5% year over year, with gross margin improving to 28.5% and diluted EPS of negative $0.03. Lower operating expenses reduced the operating loss by $2.933 million, and Adjusted EBITDA improved to positive $255,000, but the company remained GAAP-loss-making and generated negative operating cash flow of $4.1 million in the first half. Cultivation and Gardening drove growth and proprietary-brand mix expansion, while Storage Solutions faced pricing compression and a 250-basis-point gross-margin decline.

Read the original on SEC.gov

Gross and operating margin

How much of each revenue dollar the business keeps.

29% Gross margin Operating margin May 2023 Aug 2026

One point per quarterly or annual filing. Both margins are shares of that report's revenue.

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $71 Operating expenses $34 Left as operating profit $-5

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

Where revenue came from

The business segments reported by the company.

Cultivation and Gardening 80.8% Storage Solutions 19.2%

Shares of the segments disclosed in this filing, largest first.

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish Mar 2021 Aug 2026

Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.

Reported figures

Earnings per share
$-0.03

What stood out

  • Revenue and Gross Margin Improved

    Q2 net sales increased 5.5% year over year to $43.215 million from $40.963 million. Gross profit rose 6.3% to $12.320 million, and gross margin improved 20 basis points to 28.5% from 28.3%.

  • Operating Loss Narrowed

    Operating expenses fell 13.1% to $14.661 million from $16.868 million, reducing the operating loss to $2.341 million from $5.274 million and improving operating margin to negative 5.4% from negative 12.9%.

  • EPS and Net Loss Improved

    Net loss improved to $2.013 million, or 4.7% of sales, from $4.811 million, or 11.7% of sales. Diluted EPS was negative $0.03 versus negative $0.08 in the prior-year quarter.

  • Proprietary-Brand Mix Expanded

    Cultivation and Gardening sales increased to $34.9 million from $32.9 million, while proprietary-brand mix rose to 39.7% from 32.0%. Storage Solutions sales increased to $8.3 million from $8.1 million.

  • Adjusted EBITDA Turned Positive

    Adjusted EBITDA turned positive at $255,000 versus negative $1.302 million in the prior-year quarter, supported by lower operating costs and increased proprietary-brand sales.

  • Cash Burn Moderated

    Operating cash use improved to $4.1 million for the six months ended June 30, 2026 from $6.8 million in the prior-year period. Capital expenditures were $0.3 million, indicating low reported capex intensity relative to $81.606 million of six-month sales.

What to watch

  • Tariff and Supply-Chain Exposure

    The company sources products from India, Mexico, China, and other non-U.S. jurisdictions; affected imports represent less than 10% of total cost of goods sold. Management states future tariffs and replacement tariffs remain uncertain, although it received approximately $2.6 million of tariff refunds after June 30, 2026 that were not recognized in the quarter.

  • Continuing Losses and Cash Burn

    The company reported a $2.013 million Q2 net loss and used $4.1 million of operating cash during the first six months. Cash, cash equivalents, and marketable securities totaled $41.0 million at June 30, 2026, and management acknowledges it may need future equity or debt financing.

  • Pending Legal Contingencies

    The company had recorded cumulative loss contingencies of approximately $1.6 million for a California employment class action and a vendor contract dispute as of June 30, 2026; additional loss is reasonably possible, but no range was estimable.

Management's outlook

The 10-Q does not provide explicit numeric revenue or EPS guidance. Management states it believes liquidity is sufficient to fund operations and obligations for at least the next twelve months; prior-year outlook is not updated in the filing.

Earlier filings 4

10-Q · May 12, 2026

GrowGeneration Corp. reported a strong quarter with Q1 2026 revenue increasing 7.5% year-over-year to $38.4 million, exceeding estimates. Despite a matching diluted EPS of -$0.08, the company showed improvements in net…

10-K · March 20, 2026

GrowGeneration presents a consolidation-led strategy in the fragmented hydroponics market, operating two reportable segments (Cultivation & Gardening and Storage Solutions) and emphasizing growth of proprietary brands…

10-K · March 13, 2025

GrowGeneration describes a consolidation-led strategy in the fragmented hydroponics market, operating two reportable segments (Cultivation & Gardening and Storage Solutions) with 31 retail locations and 724,000 sq ft as…

10-Q · November 12, 2024

GrowGeneration reported net sales of $50,006 (thousands) for the three months ended September 30, 2024 and a GAAP net loss of $(11,435) (thousands), or $(0.19) per share. Year-over-year revenue declined from $55,678…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.