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Jun 30
GrowGeneration Q2 2025 Earnings Report
GrowGeneration reported its second quarter 2025 financial results, showing sequential improvements in revenue, gross margin, and operating expenses.
Key Takeaways
GrowGeneration delivered sequential improvements in key financial metrics for Q2 2025, with net sales up 14.7% quarter-over-quarter and an improved gross profit margin. The company also reduced store operating expenses and selling, general, and administrative expenses, leading to a narrower net loss compared to the prior year. Proprietary brand sales significantly increased, contributing to margin expansion.
Net sales reached $41.0 million, marking a 14.7% sequential increase.
Gross profit margin improved to 28.3% from 26.9% in the prior year, driven by higher private label penetration and stronger margin from Storage Solutions.
Proprietary brand sales accounted for 32.0% of Cultivation and Gardening net sales, up from 21.5% in Q2 2024.
Net loss narrowed to $4.8 million from $5.9 million in the same period last year, reflecting cost control and margin improvement initiatives.
GrowGeneration
GrowGeneration
GrowGeneration Revenue by Segment
Revenue by Segment
Cultivation and Gardening Revenue
CapyFin.comStorage Solutions Revenue
CapyFin.com Forward Guidance
GrowGeneration expects continued sequential growth in net sales for the third quarter of 2025, with total consolidated net sales anticipated to exceed $41 million. However, the company is not providing a full-year 2025 financial outlook due to macroeconomic uncertainties.
Positive Outlook
- Expected total consolidated net sales to exceed $41 million for Q3 2025, indicating continued sequential growth.
- Ongoing network optimization strategy, including store consolidations, aims to improve efficiency.
- Expansion into the home gardening segment and increased penetration with mass-market retailers through the Viagrow acquisition.
- Established international distribution partnerships in the European Union and Costa Rica.
- Strong balance sheet with $48.7 million in cash, cash equivalents, and marketable securities and no debt, providing capital for growth initiatives.
Challenges Ahead
- Not providing full-year 2025 financial outlook due to macroeconomic uncertainty.
- Concerns stemming from global trade policies.
- Potential changes in consumer demand.
- Continued retail pricing pressure.
- Actively monitoring developments and exploring strategies to mitigate risks, indicating ongoing challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income