GrowGeneration Q3 revenue declines, narrows FY guidance
Overview
U.S. cultivation supplies seller's Q3 revenue declined yr/yr
Company returned to positive net income and adjusted EBITDA, aided by higher gross margin and cost cuts
GrowGeneration narrowed 2026 revenue guidance and announced further cost-reduction initiatives, including store closures
Outlook
GrowGeneration narrows 2026 net revenue guidance to $163 mln–$165 mln
Company withdraws 2026 Adjusted EBITDA guidance due to restructuring and store closures
GrowGeneration expects cost reductions to support improved profitability in 2027
Result Drivers
PROPRIETARY BRANDS - Higher sales of proprietary-brand products, which rose 19% yr/yr and made up 40.6% of cultivation and gardening revenue, contributed to improved gross margin
TARIFF REFUNDS - Gross profit benefited from a $2.6 mln reduction in cost of sales due to IEEPA tariff refunds
COST REDUCTION - Operating expenses fell 7.1% yr/yr, reflecting store closures and other cost-reduction initiatives
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Miss | $44.78 mln | $45.55 mln (2 Analysts) |
Q3 EPS | $0 | ||
Q3 Net Income | $237,000 | ||
Q3 Basic EPS | $0 | ||
Q3 Gross Profit | $14.53 mln | ||
Q3 Pretax Profit | $237,000 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "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 $2.50, about 59.2% above its November 9 closing price of $1.57
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(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.)