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1. Company Snapshot

1.a. Company Description

GrowGeneration Corp., through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States.It engages in the marketing and distribution of nutrients, growing media, advanced indoor and greenhouse lighting, environmental control systems, vertical benching, and accessories for hydroponic gardening, as well as other indoor and outdoor growing products.The company serves commercial and urban cultivators growing specialty crops, including organics, greens, and plant-based medicines.


As of March 01, 2022, it operated a chain of 63 stores, which includes 23 in California, 8 in Colorado, 7 in Michigan, 5 in Maine, 6 in Oklahoma, 4 in Oregon, 3 in Washington, 2 in Nevada, 1 in Arizona, 1 in Rhode Island, 1 in Florida, 1 in Massachusetts, and 1 in New Mexico, as well as growgeneration.com, an online superstore for cultivators.The company was formerly known as Easylife Corp.GrowGeneration Corp.


was founded in 2008 and is based in Greenwood Village, Colorado.

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1.b. Last Insights on GRWG

GrowGeneration Corp.'s recent performance was negatively impacted by a quarterly loss of $0.16 per share, exceeding the Zacks Consensus Estimate of a loss of $0.14. The company's revenue and adjusted EBITDA missed expectations, although gross margin improved and operating expenses fell more than revenue. The outlook for GRWG has diminished, with lower revenue and adjusted EBITDA projections.

1.c. Company Highlights

2. GrowGeneration's Q3 2025 Earnings: A Step Towards Profitability

GrowGeneration reported net sales of $47.3 million for Q3 2025, exceeding guidance of $41 million and representing a 15.4% sequential growth. Gross profit increased to $12.9 million, up approximately $2 million from the prior year period, resulting in a gross margin expansion to 27.2%. The company's adjusted EBITDA returned to positive territory at $1.3 million, a $3.7 million improvement from the same quarter last year. However, the actual EPS came out at -$0.19, missing estimates of -$0.09.

Publication Date: Nov -23

📋 Highlights
  • Net Sales Growth: Achieved $47.3 million in Q3 2025, a 15.4% sequential increase, surpassing guidance of $41 million.
  • Adjusted EBITDA Improvement: Turned positive at $1.3 million, a $3.7 million improvement YoY, driven by higher gross margins and cost discipline.
  • Proprietary Brand Expansion: Contribution to cultivation/gardening revenue rose to 31.6% (up from 23.8% YoY), with Char Coir and Drip Hydro leading performance.
  • Gross Margin Expansion: Gross margin reached 27.2%, up $2 million in gross profit YoY, aided by proprietary brand mix and reduced restructuring costs.
  • Strategic Market Expansion: Announced a distribution partnership with Arett Sales, expanding B2B reach into 32 states and new retail channels beyond cannabis.

Operational Highlights

The company's proprietary brands continued to drive growth, increasing to 31.6% of cultivation and gardening revenue, up from 23.8% a year ago. Leading brands such as Char Coir and Drip Hydro demonstrated strong performance. As Darren Lampert noted, the company is well-positioned to continue investing in its proprietary brands and driving sustainable and profitable growth.

Strategic Expansion

GrowGeneration announced a distribution partnership with Arett Sales, expanding its wholesale and B2B reach into thousands of new retail stores across 32 states. This move is part of the company's strategy to expand its reach beyond cannabis into larger specialty agriculture and controlled environmental markets.

Valuation and Outlook

With a P/S Ratio of 0.55, the market is pricing in modest growth expectations. Analysts estimate next year's revenue growth at 4.0%. Given the company's current valuation metrics, including an EV/EBITDA of -3.25 and a ROE of -40.71%, it is essential to monitor the company's progress towards achieving profitability. The company's strong balance sheet, with $48.3 million in cash and no debt, provides a solid foundation for future growth.

Challenges Ahead

Greg Sanders mentioned that the company is expecting some compression in the fourth quarter due to a lower total sales volume and the execution of full end-of-year inventory accounts in December. Additionally, the company is still seeing some impact from tariffs, and they are working to pass on costs to end customers while maintaining competitiveness.

3. NewsRoom

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GrowGeneration Beats Earnings- Consolidation Could Be An Opportunity

Dec -02

Source: seekingalpha.com

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The 2 Marijuana Stocks Today Could Make You Money Today

Nov -22

Source: marijuanastocks.com

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GrowGeneration Q3 Earnings Beat Estimates, Revenues Dip 6% Y/Y

Nov -11

Source: zacks.com

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GrowGeneration Corp. (GRWG) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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GrowGeneration (GRWG) Reports Q3 Loss, Beats Revenue Estimates

Nov -07

Source: zacks.com

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Here Are A Few Ways Marijuana Stocks Can Make You Money

Oct -31

Source: marijuanastocks.com

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3 Marijuana Stocks To Watch For Strong Trading Before Next Month

Oct -27

Source: marijuanastocks.com

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GrowGeneration Announces Third Quarter 2025 Earnings Release Conference Call for November 6, 2025

Oct -23

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.33%)

6. Segments

Cultivation and Gardening

Expected Growth: 10.3%

Growing demand for indoor gardening, increasing popularity of hydroponics, and rising adoption of sustainable gardening practices drive the growth of the cultivation and gardening segment.

Storage Solutions

Expected Growth: 10.5%

Growing demand for hydroponic and organic gardening supplies, increasing adoption of indoor gardening, and rising popularity of vertical farming drive the growth of storage solutions market.

7. Detailed Products

Hydroponic Systems

GrowGeneration Corp. offers a wide range of hydroponic systems for indoor and outdoor gardening, providing a controlled environment for optimal plant growth.

Organic Fertilizers

The company provides a variety of organic fertilizers, including compost, manure, and worm castings, to promote healthy plant growth and soil development.

Grow Lights

GrowGeneration Corp. offers a selection of LED grow lights, HPS grow lights, and other lighting solutions for indoor gardening and horticulture.

Climate Control Systems

The company provides climate control systems, including heating, ventilation, and air conditioning (HVAC) solutions, to regulate temperature and humidity in grow facilities.

Pest Control and IPM Solutions

GrowGeneration Corp. offers integrated pest management (IPM) solutions, including beneficial insects and organic pest control products, to minimize crop damage and promote ecosystem balance.

Soil and Growing Media

The company provides a range of soil and growing media products, including peat moss, coco coir, and perlite, for optimal plant growth and root development.

Irrigation and Watering Systems

GrowGeneration Corp. offers irrigation and watering systems, including drip irrigation and hydroponic watering solutions, to optimize water efficiency and reduce waste.

8. GrowGeneration Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

GrowGeneration Corp. faces moderate threat from substitutes, as there are limited alternatives to its hydroponic and organic gardening products. However, the company's focus on sustainability and eco-friendliness may attract environmentally conscious customers, reducing the threat of substitutes.

Bargaining Power Of Customers

GrowGeneration Corp. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's focus on providing high-quality products and services reduces the likelihood of customers switching to competitors.

Bargaining Power Of Suppliers

GrowGeneration Corp. relies on a few key suppliers for its products, which gives them some bargaining power. However, the company's strong relationships with suppliers and its ability to negotiate prices mitigate this risk.

Threat Of New Entrants

The hydroponic and organic gardening industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This reduces the threat of new entrants and allows GrowGeneration Corp. to maintain its market position.

Intensity Of Rivalry

The hydroponic and organic gardening industry is highly competitive, with several established players competing for market share. GrowGeneration Corp. must focus on differentiating its products and services to maintain its competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 19.67%
Debt Cost 3.95%
Equity Weight 80.33%
Equity Cost 18.87%
WACC 15.93%
Leverage 24.49%

11. Quality Control: GrowGeneration Corp. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ThredUp

A-Score: 3.9/10

Value: 4.4

Growth: 4.9

Quality: 3.3

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Kirkland's

A-Score: 3.9/10

Value: 10.0

Growth: 2.1

Quality: 5.9

Yield: 0.0

Momentum: 3.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Olaplex

A-Score: 3.6/10

Value: 8.0

Growth: 4.6

Quality: 5.8

Yield: 0.0

Momentum: 1.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Conn's

A-Score: 3.6/10

Value: 10.0

Growth: 1.8

Quality: 4.4

Yield: 0.0

Momentum: 5.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
GrowGen

A-Score: 3.4/10

Value: 9.4

Growth: 2.1

Quality: 4.2

Yield: 0.0

Momentum: 3.5

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Solo Brands

A-Score: 3.4/10

Value: 10.0

Growth: 5.7

Quality: 3.7

Yield: 0.0

Momentum: 1.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.5$

Current Price

1.5$

Potential

-0.00%

Expected Cash-Flows