GrowGeneration Q1 Revenue Rises 7.5% to $38.4M, Net Loss Improves
GrowGeneration posted Q1 revenue of $38.4 million, marking 7.5% year-over-year growth, and narrowed GAAP net loss by $4.5 million to $4.9 million. Proprietary brand penetration rose 500 basis points to 37.0%, store expenses fell 27.2% to $6.4 million, and cash totaled $41.1 million with no debt.
1. Q1 Financial Performance
GrowGeneration reported net sales of $38.4 million in the first quarter of 2026, a 7.5% increase year-over-year, with gross profit of $9.7 million and margin of 25.4%. The company narrowed GAAP net loss to $4.9 million and reduced Adjusted EBITDA loss to $1.6 million.
2. Cost Reduction and Operating Leverage
Total operating expenses declined 23.4% to $15.0 million as store and other operating expenses fell 27.2% to $6.4 million. This reflects the impact of retail footprint reductions and targeted cost actions driving improved operating leverage.
3. Proprietary Brand Penetration
Proprietary brand sales accounted for 37.0% of Cultivation and Gardening revenue, up from 32.0% in the prior-year quarter, supporting margin expansion goals and positioning the company on track to reach a 40% year-end target.
4. Liquidity and 2026 Outlook
GrowGeneration ended the quarter with $41.1 million in cash, equivalents, and marketable securities and no debt. The company reaffirmed 2026 guidance of $162–168 million in revenue and approximately breakeven Adjusted EBITDA.