GrowGeneration Q3 revenue declines, narrows FY guidance
GRWG•GrowGeneration’s third-quarter revenue fell year over year to $44.78 million, while net income was $237,000. The company narrowed its 2026 revenue guidance to $163 million–$165 million, withdrew adjusted EBITDA guidance and announced further cost reductions, including store closures.
1. Quarterly results
GrowGeneration reported third-quarter revenue of $44.78 million, below the $45.55 million consensus estimate. Net income was $237,000, and adjusted EBITDA returned to positive territory as gross margin improved and operating expenses fell 7.1% year over year.
2. Guidance and cost cuts
The company narrowed its 2026 net revenue guidance to $163 million–$165 million and withdrew adjusted EBITDA guidance due to restructuring and store closures. It expects cost reductions to support improved profitability in 2027.
3. Margin factors
Proprietary-brand sales rose 19% year over year and accounted for 40.6% of cultivation and gardening revenue. Gross profit also benefited from a $2.6 million reduction in cost of sales due to IEEPA tariff refunds.
