Urban-Gro (UGRO) investor relations material

Executive summary

• Revenues for Q3 2025 were $2.3M, down 70% year-over-year, with a gross loss of $0.17M compared to a gross profit of $0.69M in Q3 2024, reflecting a sharp decline in both equipment and construction design-build revenues.

• Operating expenses decreased 47% to $2.1M, mainly due to lower general and administrative costs and reduced depreciation/amortization.

• Net loss from continuing operations for Q3 2025 was $5.0M, with a net loss per share of $9.14.

• The company completed the sale of non-CEA services subsidiaries in Q3 2025, resulting in a $0.18M net income from discontinued operations.

Financial highlights

• Nine-month 2025 revenues were $16.9M, down 53% year-over-year, with a gross loss of $0.15M versus a $3.6M profit in the prior year.

• Operating expenses for the nine months ended September 30, 2025, were $11.5M, down 9% from the prior year.

• Net loss for the nine months ended September 30, 2025, was $15.1M, compared to a $9.3M loss in the prior year.

• Cash at September 30, 2025, was $0.06M, down from $0.8M at year-end 2024.

• Negative working capital increased to $39.7M at September 30, 2025.

Outlook and guidance

• Management has taken steps to improve liquidity, including cost reductions and seeking new capital, and believes recent actions alleviate substantial doubt about the company's ability to continue as a going concern for the next 12 months.

• The company is focused on winding down non-core services and pursuing a merger with Flash Sports & Media, Inc.