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Mar 31
GrowGeneration Q1 2025 Earnings Report
Reported first quarter 2025 financial results, with net sales of $35.7 million and a net loss of $9.4 million.
Key Takeaways
GrowGeneration reported a challenging first quarter in 2025 with net sales below expectations due to soft durable goods spending and market uncertainties. Despite a net loss, the company saw improvements in gross profit margin and increased proprietary brand sales as a percentage of cultivation and gardening net sales. The company ended the quarter with a strong cash position and no debt, while withdrawing its full-year guidance due to macroeconomic uncertainty.
Net sales for Q1 2025 were $35.7 million, a decrease from $47.9 million in Q1 2024.
Proprietary brand sales increased to 32.0% of Cultivation and Gardening net sales, up from 22.6% in the prior year.
Gross profit margin improved to 27.2% in Q1 2025 compared to 25.8% in Q1 2024.
Net loss for Q1 2025 was $9.4 million, compared to a net loss of $8.8 million in Q1 2024.
GrowGeneration
GrowGeneration
GrowGeneration Revenue by Segment
Revenue by Segment
Cultivation and Gardening Revenue
CapyFin.com Forward Guidance
GrowGeneration withdrew its full-year 2025 financial outlook due to macroeconomic uncertainty but provided guidance for the second quarter of 2025.
Positive Outlook
- Expect total consolidated net sales to be greater than $40 million for the second quarter of 2025.
Challenges Ahead
- Withdrawal of full-year 2025 financial outlook due to macroeconomic uncertainty.
- Uncertainty stemming from global trade policies.
- Potential changes in consumer demand.
- Potential retail pricing pressure.
- Actively monitoring developments and exploring strategies to mitigate risks.