GRWGGrowGeneration Corp. faces significant headwinds with declining revenues and profitability, and a volatile stock price. While it operates in a growing sector, current fundamentals and recent performance do not warrant a strong buy recommendation. Long-term prospects depend on a turnaround in its operational efficiency and market strategy.
GrowGeneration operates in the hydroponics and organic gardening sector, which benefits from the growing trends in indoor farming, sustainable agriculture, and increasing consumer interest in home gardening and plant-based lifestyles. However, the company's execution and profitability challenges temper these positive thematic tailwinds.
GrowGeneration exhibits significant financial challenges, including declining revenues, negative profitability, and negative free cash flow. While the balance sheet shows some assets, the overall financial health is concerning.
The stock exhibits a consistent downtrend across multiple timeframes, with prices trading below key moving averages. Momentum indicators suggest weakness, and recent price action indicates selling pressure.
| Factor | Score |
|---|---|
| Indoor Farming & Hydroponics Growth | 80 |
| Sustainable Agriculture & Organic Products | 75 |
| Home Gardening Trend | 70 |
| Regulatory Environment | 50 |
| Competitive Landscape | 50 |
| Factor | Score |
|---|---|
| Valuation | 60 |
| Profitability | 10 |
| Growth | 20 |
| Balance Sheet Health | 65 |
| Cash Flow | 25 |
| Factor | Score |
|---|---|
| Trend Analysis | 30 |
| Momentum | 40 |
| Volume Confirmation | 50 |
| Support & Resistance | 35 |
| Short-Term Performance | 40 |
Positive Short-Term Momentum
The stock has shown a positive 5-day performance of -0.9%, and a strong 1-month performance of 26.44%.
Improving Debt Position
Total debt has decreased from $42.47 million in Q4 2023 to $37.03 million in Q4 2024, indicating a reduction in leverage.
Negative Earnings and Declining Revenue
The company has consistently reported negative EPS (e.g., -0.16 in Q2 2025 estimate, -0.39 in Q1 2025 reported) and a significant year-over-year revenue decrease from $422.49M in 2021 to $188.87M in 2024.
Consistent Net Losses and Negative Margins
Net income has been negative since at least 2022 (e.g., -$49.51M in 2024, -$46.50M in 2023) with negative net margins (e.g., -26.2% in 2024).
August 2025
7
Next Earnings Date
H: $
A: $
L: $
H: 41.39M
A: 40.96M
L: 40.15M
GrowGeneration Corp., through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. It operates through two segments, Cultivation and Gardening, and Storage Solutions. The company engages in the marketing and distribution of nutrients, additives, growing media, lighting, and environmental control systems, as well as other indoor and outdoor cultivation products. Its products include proprietary brands, such as Charcoir, Drip Hydro, Power Si, Ion lights, The Harvest Company, and more. The company operates a chain of stores in Alaska, California, Colorado, Florida, Maine, Michigan, Missouri, New Jersey, New York, Ohio, Oklahoma, Oregon, Rhode Island, Utah, and Washington, as well as growgeneration.com, an online superstore; a wholesale distribution business for resellers; and benching, racking, and storage solutions business under Mobile Media or MMI brand. In addition, it offers mobile storage systems, static shelving, and other accessories, such as desks, lockers, safes, and secured storage. Further, the company provides various services, including site surveys, floor plan designs, capacity analysis, seismic calculations, permitting, and installations. It serves diverse markets with its products and services, such as agriculture, retail, warehousing, office and administrative, food service, hospitality, golf and country clubs, and more. The company was formerly known as Easylife Corp. GrowGeneration Corp. was founded in 2008 and is based in Greenwood Village, Colorado.
1.88 USD
The 39 analysts offering 1 year price forecasts for GRWG have a max estimate of 2.50 and a min estimate of 1.25.