GrowGeneration Q1 revenue beats estimates on strength in B2B division

GrowGeneration

12/05/2026 21:20

Overview

US cultivation supply firm's Q1 revenue rose 7.5% yr/yr, beating analyst expectations

Net loss narrowed to $4.9 mln from $9.4 mln, reflecting cost reduction efforts

Company reaffirmed 2026 outlook for revenue and breakeven adjusted EBITDA

Outlook

GrowGeneration reaffirms 2026 revenue outlook of $162 mln to $168 mln

Company expects breakeven Adjusted EBITDA for full-year 2026

GrowGeneration sees Q2 2026 net sales between $42 mln and $44 mln

Result Drivers

COMMERCIAL B2B SALES - Co said revenue growth was driven by continued strength in its commercial B2B division and a more focused operating footprint

PROPRIETARY BRAND PENETRATION - Higher proprietary brand sales contributed to margin expansion and long-term value strategy

COST REDUCTION INITIATIVES - Lower operating expenses and narrower net loss reflected cost-reduction actions and retail footprint optimization

Company press release: ID:nGNX3NbMwZ

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$38.4 mln
$36.45 mln (3 Analysts)
Q1 EPS
-$0.08
Q1 Net Income
-$4.9 mln
Q1 Basic EPS
-$0.08
Q1 Gross Profit
$9.7 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the home improvement products & services retailers peer group is "buy."

Wall Street's median 12-month price target for GrowGeneration Corp is $1.25, about 10.7% below its May 11 closing price of $1.40

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)