Revenue: As of FY2026 Q1, the actual value is USD 38.39 M, beating the estimate of USD 36.45 M.EPS: As of FY2026 Q1, the actual value is USD -0.08, beating the estimate of USD -0.0833.EBIT: As of FY2026 Q1, the actual value is USD -5.589 M.<h3>Financial Metrics (Three Months Ended March 31, 2026 and 2025)</h3><h4>Net Sales</h4>GrowGeneration Corp. reported total net sales of $38,391 thousand for the three months ended March 31, 2026, marking a 7.5% increase from $35,703 thousand in the same period of 2025.<ul><li>Cultivation and Gardening Segment: Net sales for this segment increased to $31,897 thousand in 2026 from $30,911 thousand in 2025, driven by improved durable product sales and increased demand for capital investments.<ul><li>Proprietary brand sales within this segment grew to 37.0% of net sales in 2026, up from 32.0% in 2025.</li><li>Proprietary Brand Sales were $11,803 thousand in 2026 and $9,883 thousand in 2025.</li><li>Non-Proprietary Brand Sales were $20,094 thousand in 2026 and $21,028 thousand in 2025.</li><li>Consumables sales were $23,002 thousand in 2026 and $23,434 thousand in 2025, with consumables as a percentage of segment net sales decreasing to 72.1% in 2026 from 75.8% in 2025.</li><li>Durables sales were $8,895 thousand in 2026 and $7,477 thousand in 2025.</li></ul></li><li>Storage Solutions Segment: Net sales increased to $6,494 thousand in 2026 from $4,792 thousand in 2025, primarily due to increased demand for commercial fixture sales and large-scale projects in the retail industry.<ul><li>Commercial Fixture Sales (Durables) were $6,494 thousand in 2026 and $4,792 thousand in 2025.</li></ul></li></ul><h4>Cost of Sales</h4>Total Cost of Sales was $28,651 thousand in 2026, an increase of 10.2% from $25,996 thousand in 2025, attributed to a higher durable product sales mix and inventory disposal costs from retail location closures.<ul><li>Cultivation and Gardening Segment: Cost of sales was $24,729 thousand in 2026 and $23,007 thousand in 2025.</li><li>Storage Solutions Segment: Cost of sales was $3,922 thousand in 2026 and $2,989 thousand in 2025.</li></ul><h4>Gross Profit and Margin</h4>Total Gross Profit was $9,740 thousand in 2026, relatively flat compared to $9,707 thousand in 2025.<ul><li>Total Gross Profit Margin decreased to 25.4% in 2026 from 27.2% in 2025.</li><li>Cultivation and Gardening Segment Gross Profit: Decreased by 9.3% to $7,168 thousand in 2026 from $7,904 thousand in 2025, mainly due to a higher sales mix of lower-margin durable products and inventory disposal costs.</li><li>Cultivation and Gardening Segment Gross Profit Margin: Decreased to 22.5% in 2026 from 25.6% in 2025.</li><li>Storage Solutions Segment Gross Profit: Increased by 42.7% to $2,572 thousand in 2026 from $1,803 thousand in 2025, due to increased sales volume and a higher sales mix of large-scale projects.</li><li>Storage Solutions Segment Gross Profit Margin: Increased to 39.6% in 2026 from 37.6% in 2025.</li></ul><h4>Operating Expenses</h4>Total Operating Expenses were $15,005 thousand in 2026, representing a decrease of 23.4% from $19,581 thousand in 2025.<ul><li>Store Operations and Other Operational Expenses: Decreased by 27.2% to $6,401 thousand in 2026 from $8,792 thousand in 2025, largely due to retail store closures.<ul><li>Cultivation and Gardening Segment: $5,079 thousand in 2026 and $7,369 thousand in 2025, with employee costs of $1,942 thousand (2026) and $2,661 thousand (2025), and facilities costs of $2,034 thousand (2026) and $2,756 thousand (2025).</li><li>Storage Solutions Segment: $1,322 thousand in 2026 and $1,423 thousand in 2025, with employee costs of $736 thousand (2026) and $747 thousand (2025), and facilities costs of $405 thousand (2026) and $394 thousand (2025).</li></ul></li><li>Selling, General, and Administrative: Decreased by 2.6% to $6,926 thousand in 2026 from $7,112 thousand in 2025, due to cost rationalization initiatives and lower share-based compensation.</li><li>Estimated Credit Losses: $67 thousand in 2026 and $92 thousand in 2025.</li><li>Depreciation and Amortization: Decreased by 55.1% to $1,611 thousand in 2026 from $3,585 thousand in 2025, mainly due to asset retirements from restructuring and certain intangible assets reaching the end of their useful lives.</li></ul><h4>Segment Income from Operations</h4><ul><li>Cultivation and Gardening Segment: $2,089 thousand in 2026, up from $535 thousand in 2025.</li><li>Storage Solutions Segment: $1,250 thousand in 2026, up from $380 thousand in 2025.</li></ul><h4>Other Financial Metrics</h4><ul><li>Loss from Operations: - $5,265 thousand in 2026, compared to - $9,874 thousand in 2025.</li><li>Other Income: $324 thousand in 2026, compared to $497 thousand in 2025, primarily due to reduced investment income.</li><li>Net Loss before Income Taxes: - $4,941 thousand in 2026, compared to - $9,377 thousand in 2025.</li><li>Net Loss: - $4,922 thousand in 2026, compared to - $9,377 thousand in 2025.</li><li>EBITDA: - $3,654 thousand in 2026, compared to - $6,289 thousand in 2025.</li><li>Adjusted EBITDA: - $1,584 thousand in 2026, compared to - $4,030 thousand in 2025.</li><li>Share-based Compensation Expense: $255 thousand in 2026 and $503 thousand in 2025.</li><li>Restructuring Plan Costs: $0 thousand in 2026, compared to $1,141 thousand in 2025, with restructuring activities substantially completed as of March 31, 2025.</li><li>Consolidation and Other Charges: $1,515 thousand in 2026 and $96 thousand in 2025.</li></ul><h4>Cash Flow</h4><ul><li>Net Cash and Cash Equivalents Used in Operating Activities: - $5,048 thousand in 2026, compared to - $3,829 thousand in 2025.</li><li>Net Cash and Cash Equivalents Used in Investing Activities: - $3,679 thousand in 2026, compared to net cash provided by investing activities of $9,160 thousand in 2025.</li><li>Net Cash and Cash Equivalents Used in Financing Activities: $0 thousand in 2026, compared to - $60 thousand in 2025.</li></ul><h4>Future Outlook and Strategy</h4>GrowGeneration Corp. is pursuing a growth strategy focused on consolidating assets in the hydroponics industry, leveraging its wide product selection, strong proprietary brands, and strategic distribution capabilities. The company is actively seeking accretive acquisition opportunities and expanding its Storage Solutions segment into new customer types and industries, including controlled environment agriculture (CEA), industrial, and country club verticals. A strategic restructuring plan, substantially completed by March 31, 2025, aimed at long-term profitability through cost structure reductions, retail location closures, workforce reductions, and operational improvements in inventory management and sales.

GrowGeneration | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 38.39 M