GrowGeneration Improves Gross Margin 370bps, Authorizes $10M Buyback, Forecasts Breakeven 2026
GrowGeneration posted full-year net sales of $161.7M, compared to $188.9M, but improved gross margin by 370 basis points to 26.8% and reduced GAAP net loss by over $25M to $24M. GrowGeneration closed 2025 with $46.1M cash, no debt, approved $10M buyback and projects $162M–$168M revenue with breakeven EBITDA in 2026.
1. Fourth Quarter and Full Year Sales Performance
GrowGeneration reported Q4 net sales of $37.8M, up 1.0% from $37.4M a year earlier, and full-year net sales of $161.7M versus $188.9M prior, reflecting retail consolidations. Proprietary brand penetration rose to 35.8% of Q4 Cultivation and Gardening sales and 32.8% for the full year.
2. Margin Expansion and Cost Reductions
Gross profit margin expanded to 24.1% in Q4 from 16.4% and to 26.8% for the year, up 370 basis points. Store and operating expenses fell 26.8% to $6.8M in Q4 and total operating costs declined 23.5% full year, reflecting streamlined operations.
3. Earnings Improvement and Cash Strength
GAAP net loss narrowed to $7.4M in Q4 from $23.3M and to $24.0M full year from $49.5M, while adjusted EBITDA loss improved by $6.1M in Q4 and by $8.5M full year to a $6.0M loss. The company holds $46.1M in cash and marketable securities with zero debt.
4. 2026 Guidance and Share Repurchase Program
The board authorized a $10M share repurchase program. For 2026, revenue is projected between $162M and $168M with breakeven adjusted EBITDA expected, leveraging a leaner cost structure, proprietary brand growth and traction in commercial and storage solutions channels.