GRWG earnings analysis
What we found in GRWG's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.03
- Gross margin
- 28.5%
- Operating margin
- -5.4%
- Segment
- Cultivation and Gardening: $34.9 million of Q2 net sales, up from $32.9 million, or approximately 6.1%; gross margin was 25.8% versus 24.8%.
- Segment
- Storage Solutions: $8.3 million of Q2 net sales, up from $8.1 million, or approximately 2.5%; gross margin was 39.8% versus 42.3%.
What they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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