GrowGeneration (GRWG) Q1 2026 earnings summary

Executive summary

• Achieved second consecutive quarter of year-over-year revenue growth, driven by commercial B2B business and proprietary brand expansion.

• Net sales increased 7.5% year-over-year to $38.4 million for Q1 2026, led by both Cultivation and Gardening and Storage Solutions segments.

• Net loss improved to $4.9 million from $9.4 million year-over-year, reflecting cost reductions and improved operating leverage.

• Proprietary brand penetration increased to 37% of cultivation and gardening revenue, up 500 basis points year-over-year.

• Maintained strong liquidity with $41.1 million in cash, cash equivalents, and marketable securities, and no debt.

Financial highlights

• Net sales for Q1 2026 were $38.4 million, up 7.5% year-over-year from $35.7 million.

• Gross profit was $9.7 million, flat year-over-year; gross margin declined to 25.4% from 27.2%.

• GAAP net loss improved to $4.9 million (-$0.08/share) from $9.4 million (-$0.16/share) in prior year.

• Adjusted EBITDA loss narrowed to $1.6 million from $4 million year-over-year.

• Ended quarter with $41.1 million in cash, cash equivalents, and marketable securities, and no debt.

Outlook and guidance

• Reaffirmed full-year 2026 guidance: net revenue of $162 million–$168 million and approximately break-even adjusted EBITDA.

• Q2 2026 revenue expected between $42 million–$44 million, with a return to positive adjusted EBITDA.

• Targeting proprietary brand penetration of approximately 40% by year-end.

• Gross margin expected to recover to 27%–29% for the remainder of the year as store closure impacts subside.

• Management believes liquidity is sufficient to fund operations for at least the next twelve months.