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Dec 31, 2024
GrowGeneration Q4 2024 Earnings Report
GrowGeneration reported a decline in revenue and gross profit in Q4 2024, but proprietary brand sales increased.
Key Takeaways
GrowGeneration posted Q4 2024 revenue of $37.4 million, a decrease from the prior year due to store consolidations. The company's gross profit margin declined to 16.4% as a result of inventory rationalization efforts. Despite a net loss of $23.3 million, proprietary brand sales grew to 30.4% of total Cultivation and Gardening sales, supporting future margin improvement. The company remains focused on cost reductions and business transformation efforts.
Revenue decreased 24.4% year-over-year to $37.4 million.
Gross profit margin fell to 16.4% due to strategic inventory adjustments.
Net loss improved to $23.3 million compared to $27.3 million last year.
Proprietary brand sales grew to 30.4% of Cultivation and Gardening revenue.
GrowGeneration
GrowGeneration
GrowGeneration Revenue by Segment
Revenue by Segment
Cultivation and Gardening Revenue
CapyFin.comStorage Solutions Revenue
CapyFin.com Forward Guidance
GrowGeneration expects a return to profitability in 2025, with revenue stabilizing and margin improvements driven by proprietary brand growth.
Positive Outlook
- Projected 2025 revenue range of $170 million to $180 million.
- Expecting Adjusted EBITDA to improve to a range of -$2 million to +$2 million.
- Gross profit margin expected to expand to 29%-31%.
- Proprietary brands expected to reach 35% of Cultivation & Gardening sales.
- Continued cost reductions anticipated to improve profitability.
Challenges Ahead
- Revenue decline expected due to ongoing store consolidations.
- Continued gross margin pressure from industry-wide pricing compression.
- Restructuring costs may still impact short-term financials.
- Macroeconomic uncertainties could affect demand.
- Potential challenges in expanding e-commerce and B2B channels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income