Urban-Gro (UGRO) Q2 2025 earnings summary

Executive summary

• Revenues for Q2 2025 were $7.76M, down 57% year-over-year, with gross profit dropping to $0.04M (0.01% margin) from $2.4M (13% margin) in Q2 2024, driven by declines in all major revenue streams and continued negative market conditions in the CEA sector.

• Operating expenses rose 18% to $6.0M in Q2 2025, mainly due to higher general and administrative costs, particularly bad debt expense, despite a decrease in depreciation and amortization.

• Net loss for Q2 2025 was $6.2M, compared to $3.0M in Q2 2024; for the first half of 2025, net loss was $10.2M versus $5.5M in the prior year period.

Financial highlights

• Six-month 2025 revenues were $17.3M, down 48% year-over-year; gross profit was $0.65M (4% margin) versus $5.4M (16% margin) in 2024.

• Cash at June 30, 2025 was $0.7M, down from $0.8M at year-end 2024; negative working capital increased to $36.2M from $26.5M.

• Net cash provided by operating activities was $2.6M for the first half of 2025, offset by $2.7M used in financing activities.

• Stockholders' deficit widened to $34.2M at June 30, 2025 from $24.6M at December 31, 2024.

Outlook and guidance

• Management has taken steps to reduce headcount and operating expenses to expedite a return to cash flow positive results and may seek additional equity or debt financing if necessary.

• The company faces substantial doubt about its ability to continue as a going concern but recent actions are expected to alleviate this for the next twelve months.