Overview

* GrowGeneration ( GRWG ) Q3 net sales rose 15.4% sequentially, beating guidance

* Adjusted EBITDA for Q3 turned positive at $1.3 mln

* Proprietary brand sales increased to 31.6% of cultivation and gardening revenue

Outlook

* GrowGeneration expects Q4 2025 revenue of approximately $40 mln

* Company anticipates positive revenue growth and adjusted EBITDA in 2026

* GrowGeneration ( GRWG ) aims for proprietary brands to reach 40% of segment revenue in 2026

Result Drivers

* PROPRIETARY BRANDS - Proprietary brand sales increased to 31.6% of cultivation and gardening revenue, driving margin expansion

* OPERATING EXPENSES - Store operating expenses declined 27.8% year-over-year, contributing to improved profitability

* GROSS MARGIN IMPROVEMENT - Gross profit margin increased to 27.2% from 21.6% in the prior year, aided by higher private label penetration

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $47.25 $41.40

mln mln (2

Analysts

)

Q3 EPS -$0.04

Q3 Net -$2.44

Income mln

Q3 Basic -$0.04

EPS

Q3 Gross $12.86

Profit mln

Q3 -$2.44

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "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 ( GRWG ) is $2.00, about 26.5% above its November 5 closing price of $1.47

Press Release:

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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.)