GrowGeneration Corp. (GRWG) Q3 2025 Earnings Call Transcript
Net Sales $47.3 million, up 15.4% sequentially from Q2 2025 but lower than $50 million in Q3 2024 due to 19 fewer retail locations since July 2024. Growth in B2B and commercial channels partially offset the decline.
Gross Margin 27.2%, up from 21.6% in Q3 2024. The increase was driven by higher proprietary brand penetration and the absence of restructuring-related costs from the prior year.
Adjusted EBITDA $1.3 million, a $3.7 million improvement from a loss of $2.4 million in Q3 2024. This reflects improved sales mix from proprietary brands and cost reduction initiatives.
Proprietary Brand Sales 31.6% of cultivation and gardening revenue, up from 23.8% in Q3 2024. Driven by strong demand for Drip Hydro and Char Coir.
Store Operating Expenses $7.2 million, down 27.8% year-over-year from $10 million in Q3 2024. Reflects cost reduction initiatives.
Total Operating Expenses $15.7 million, down 31.5% year-over-year. Includes a 22.9% reduction in selling, general, and administrative expenses.
Depreciation and Amortization $2.6 million, down from $5 million in Q3 2024. Expected to remain stable through year-end.
GAAP Net Loss $2.4 million or negative $0.04 per share, compared to a net loss of $11.4 million or negative $0.19 per share in Q3 2024. Improvement driven by higher gross margins, lower operating expenses, and absence of restructuring-related charges.
Storage Solutions Segment Revenue $8.9 million, up from $8.6 million in Q3 2024. Reflects steady demand and diversification into new end markets.
Cash and Cash Equivalents $48.3 million with no debt, providing a strong balance sheet to support inventory needs, infrastructure projects, and proprietary brand expansion.
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Tuesday's Top Performers: Advertising, Home Furnishings, and Improvement Stocks
Home Furnishings Sector Performance: Home furnishings and improvement shares increased by approximately 1.5%, with GrowGeneration leading the rise at 12% and RH at 5.7% on Tuesday.
Market Highlights: The article highlights the performance of specific stocks within the home furnishings sector, indicating a positive trend in this market segment.
Video Content: A video segment is mentioned that discusses sector leaders, particularly in advertising and home furnishings.
Author's Perspective: The views expressed in the article are those of the author and do not necessarily represent the opinions of Nasdaq, Inc.
Rapidly Rising Momentum Stock GrowGeneration (GRWG) Remains a Great Value
Momentum Investing Overview: Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high." This approach can be risky as stocks may lose momentum if their valuations become unjustified.
GRWG Stock Analysis: GrowGeneration Corp. (GRWG) is highlighted as a strong candidate for momentum investing, showing a 2% price increase over four weeks and a 2.7% gain over 12 weeks, with a high beta indicating significant price movement.
Valuation and Earnings Potential: GRWG has a favorable Momentum Score of B and a Zacks Rank #2 (Buy), supported by upward revisions in earnings estimates, suggesting strong investor interest and potential for price appreciation.
Investment Strategy Tools: Zacks offers various screening tools, including the 'Fast-Paced Momentum at a Bargain' screen, to help investors identify promising stocks, along with resources like the Zacks Research Wizard for backtesting stock-picking strategies.
GrowGeneration Reports Q3 Earnings Exceed Expectations, Revenues Decline 6% Year-Over-Year
GrowGeneration Corp. Q3 2025 Performance: GrowGeneration reported a narrower loss of 4 cents per share in Q3 2025, with revenues of $47 million, a 5.6% decline year-over-year, but exceeding estimates. The company improved its gross profit and reduced operating expenses significantly.
Bunge Global SA Earnings Report: Bunge Global reported adjusted earnings of $2.27 per share for Q3 2025, beating estimates despite a 1% year-over-year decline. However, its net revenues surged 71.6% to $22.16 billion but fell short of consensus expectations.
Upcoming Reports from Hydrofarm and BrightView: Hydrofarm is expected to report a revenue decline of 18.8% for Q3 2025, with an anticipated loss of $3.08 per share. BrightView is set to report a slight revenue decline for Q4 2025, with expected earnings of 32 cents per share.
Investment Insights: The article suggests that lesser-known AI firms may offer more lucrative investment opportunities compared to well-known stocks, highlighting the potential for significant profits in the evolving AI landscape.
Transcript of GrowGeneration (GRWG) Q3 2025 Earnings Call
- Author's Perspective: The views and opinions presented are solely those of the author.
- No Official Endorsement: The content does not necessarily reflect the views of Nasdaq, Inc.
Zacks Industry Outlook Spotlights The Andersons and GrowGeneration
Industry Challenges: The agriculture products industry is facing difficulties due to low commodity prices, high input costs, and labor shortages, but increasing consumer demand for healthier food options and innovative agricultural technologies like hydroponics and vertical farming may drive future growth.
Company Highlights: The Andersons and GrowGeneration are positioned to benefit from strong market demand and strategic initiatives; GrowGeneration is expanding its product offerings and international reach, while The Andersons is enhancing its ethanol production capabilities and grain operations.
GrowGeneration (GRWG) Remains a Good Value Amid Rapid Momentum
Momentum Investing Overview: Momentum investing involves buying high and selling higher, contrasting with the traditional strategy of buying low and selling high. This approach can be risky as stocks may lose momentum if their valuations exceed future growth potential.
GrowGeneration (GRWG) Stock Analysis: GRWG has shown significant price momentum, with a 57.7% increase over four weeks and a 22.4% gain over 12 weeks. It has a favorable Momentum Score of A and is trading at a reasonable valuation, making it a strong candidate for investment.
Tuesday's Top Performers: Advertising, Home Furnishings, and Improvement Stocks
Home Furnishings Sector Performance: Home furnishings and improvement shares increased by approximately 1.5%, with GrowGeneration leading the rise at 12% and RH at 5.7% on Tuesday.
Market Highlights: The article highlights the performance of specific stocks within the home furnishings sector, indicating a positive trend in this market segment.
Video Content: A video segment is mentioned that discusses sector leaders, particularly in advertising and home furnishings.
Author's Perspective: The views expressed in the article are those of the author and do not necessarily represent the opinions of Nasdaq, Inc.
Rapidly Rising Momentum Stock GrowGeneration (GRWG) Remains a Great Value
Momentum Investing Overview: Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high." This approach can be risky as stocks may lose momentum if their valuations become unjustified.
GRWG Stock Analysis: GrowGeneration Corp. (GRWG) is highlighted as a strong candidate for momentum investing, showing a 2% price increase over four weeks and a 2.7% gain over 12 weeks, with a high beta indicating significant price movement.
Valuation and Earnings Potential: GRWG has a favorable Momentum Score of B and a Zacks Rank #2 (Buy), supported by upward revisions in earnings estimates, suggesting strong investor interest and potential for price appreciation.
Investment Strategy Tools: Zacks offers various screening tools, including the 'Fast-Paced Momentum at a Bargain' screen, to help investors identify promising stocks, along with resources like the Zacks Research Wizard for backtesting stock-picking strategies.
GrowGeneration Reports Q3 Earnings Exceed Expectations, Revenues Decline 6% Year-Over-Year
GrowGeneration Corp. Q3 2025 Performance: GrowGeneration reported a narrower loss of 4 cents per share in Q3 2025, with revenues of $47 million, a 5.6% decline year-over-year, but exceeding estimates. The company improved its gross profit and reduced operating expenses significantly.
Bunge Global SA Earnings Report: Bunge Global reported adjusted earnings of $2.27 per share for Q3 2025, beating estimates despite a 1% year-over-year decline. However, its net revenues surged 71.6% to $22.16 billion but fell short of consensus expectations.
Upcoming Reports from Hydrofarm and BrightView: Hydrofarm is expected to report a revenue decline of 18.8% for Q3 2025, with an anticipated loss of $3.08 per share. BrightView is set to report a slight revenue decline for Q4 2025, with expected earnings of 32 cents per share.
Investment Insights: The article suggests that lesser-known AI firms may offer more lucrative investment opportunities compared to well-known stocks, highlighting the potential for significant profits in the evolving AI landscape.
Transcript of GrowGeneration (GRWG) Q3 2025 Earnings Call
- Author's Perspective: The views and opinions presented are solely those of the author.
- No Official Endorsement: The content does not necessarily reflect the views of Nasdaq, Inc.
Zacks Industry Outlook Spotlights The Andersons and GrowGeneration
Industry Challenges: The agriculture products industry is facing difficulties due to low commodity prices, high input costs, and labor shortages, but increasing consumer demand for healthier food options and innovative agricultural technologies like hydroponics and vertical farming may drive future growth.
Company Highlights: The Andersons and GrowGeneration are positioned to benefit from strong market demand and strategic initiatives; GrowGeneration is expanding its product offerings and international reach, while The Andersons is enhancing its ethanol production capabilities and grain operations.
GrowGeneration (GRWG) Remains a Good Value Amid Rapid Momentum
Momentum Investing Overview: Momentum investing involves buying high and selling higher, contrasting with the traditional strategy of buying low and selling high. This approach can be risky as stocks may lose momentum if their valuations exceed future growth potential.
GrowGeneration (GRWG) Stock Analysis: GRWG has shown significant price momentum, with a 57.7% increase over four weeks and a 22.4% gain over 12 weeks. It has a favorable Momentum Score of A and is trading at a reasonable valuation, making it a strong candidate for investment.
