Group 1: Core Insights - GrowGeneration Corp. (GRWG) has launched its B2B Pro Portal, a state-of-the-art e-commerce platform aimed at streamlining purchasing for commercial cultivators and retailers, emphasizing a B2B customer-centric approach [1][2] - The Pro Portal features automated quoting, direct ordering capabilities, and real-time inventory tracking, which are expected to enhance the procurement process for commercial growers [2][4] - The platform aims to drive operational efficiencies across the supply chain, reducing expenses and boosting margins to enhance profitability [4] Group 2: Customer Benefits - The B2B Portal allows commercial growers, including cultivators, greenhouses, and vertical farms, to minimize administrative tasks and improve user experience, fostering customer loyalty and retention [5] - Customers can access real-time inventory and pricing, check availability and bulk pricing on thousands of products, and utilize self-service tools for faster decision-making [6] - The portal also offers convenient shipping options and tailored financing solutions to assist in purchasing high-value equipment [6] Group 3: Market Performance - Over the past year, GRWG's stock has decreased by 62.5%, contrasting with a 10.1% decline in the industry [7] - GRWG currently holds a Zacks Rank of 4 (Sell), indicating a less favorable outlook compared to other stocks in the basic materials sector [9]

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GrowGeneration Corp. (GRWG) reported an adjusted loss per share of 27 cents in the fourth quarter of 2024, wider than the Zacks Consensus Estimate of a loss of 18 cents. The company reported a loss of 18 cents in the fourth quarter of 2023.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The company had recorded $6.7 million non-cash impairment of goodwill and intangible assets related to prior acquisitions in the quarter. Including this, GRWG reported a loss per share of 39 cents in t ...

GrowGeneration Corp. (NASDAQ:GRWG) Q4 2024 Earnings Conference Call March 13, 2025 4:30 PM ET Company Participants Philip Carlson - MD, KCSA Strategic Communications Darren Lampert - Co-Founder and CEO Greg Sanders - CFO Conference Call Participants Aaron Grey - Alliance Global Partners Mark Smith - Lake Street Operator Hello, everyone, and welcome to the GrowGeneration's Fourth Quarter and Full Year 2024 Earnings Conference Call. My name is John, and I will be your operator for today's call. [Operator Inst ...

Financial Performance - GrowGeneration reported a quarterly loss of $0.27 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.18, representing an earnings surprise of -50% [1] - The company's revenues for the quarter ended December 2024 were $37.44 million, missing the Zacks Consensus Estimate by 2.36%, and down from $49.45 million a year ago [2] - Over the last four quarters, GrowGeneration has not surpassed consensus EPS estimates, and it has topped consensus revenue estimates three times [2] Stock Performance - GrowGeneration shares have declined approximately 39.1% since the beginning of the year, contrasting with the S&P 500's decline of -4.8% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.13 on revenues of $39.96 million, and for the current fiscal year, it is -$0.36 on revenues of $182.94 million [7] Industry Outlook - The Agriculture - Products industry, to which GrowGeneration belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact GrowGeneration's stock performance [5][6]

Financial Performance - Net sales for the year ended December 31, 2024, were $188.9 million, a decrease of $37.0 million, or 16.4% compared to $225.9 million in 2023[174]. - The company reported a net loss of $49.5 million for 2024, compared to a net loss of $46.5 million in 2023, marking an increase in loss of $3.0 million or 6.5%[173]. - Gross profit for 2024 was $43.7 million, representing a gross profit margin of 23.1%, down from 27.1% in 2023, reflecting a decrease of $17.5 million or 28.6%[173]. - Operating expenses for 2024 totaled $95.7 million, a decrease of $15.4 million or 13.9% compared to $111.1 million in 2023[173]. - Net sales for the year ended December 31, 2024 decreased by $0.9 million due to inventory sales discounts related to the restructuring of 12 retail locations, while same-store sales increased by approximately 0.9% driven by commercial sales growth[176]. - Gross profit fell to $43.7 million for the year ended December 31, 2024, a decrease of $17.5 million or 28.6% from $61.3 million in 2023, primarily due to a decline in sales volume[179]. - The company reported a net loss of $49.510 million for 2024, compared to a net loss of $46.496 million in 2023, indicating a worsening of 4.3%[244]. Restructuring and Cost Management - The company incurred aggregate restructuring costs of $2.4 million, with expected total restructuring costs reaching $2.7 million, aimed at improving gross profit margin and generating annualized cost savings of approximately $12.0 million[158][160]. - The restructuring plan included closing 12 underperforming retail locations, in addition to 7 locations closed in the first half of 2024[156]. - Cost of sales decreased by $19.5 million or 11.8% to $145.1 million for the year ended December 31, 2024, compared to $164.6 million in 2023[178]. - Operating expenses decreased by $15.4 million or 13.9% to $95.7 million for the year ended December 31, 2024, compared to $111.1 million in 2023[181]. Asset and Equity Changes - Total current assets decreased to $113.208 million in 2024 from $147.451 million in 2023, representing a decline of 23.2%[242]. - Stockholders' equity fell to $120.093 million in 2024, down 30.7% from $173.395 million in 2023[242]. - The company’s property and equipment, net, decreased to $15.493 million as of December 31, 2024, from $27.052 million in 2023[334]. - Total intangible assets on the balance sheet as of December 31, 2024, were $8.779 million, down from $16.180 million as of December 31, 2023[346]. Impairment Losses - Impairment loss was $6.9 million in 2024, down from $15.7 million in 2023, primarily related to goodwill and intangible assets[185]. - The Company recorded a goodwill impairment loss of $5.9 million for the year ended December 31, 2024, following a quantitative assessment of its reporting units[338]. - The recoverability assessment of long-lived assets identified impairment losses of $6.2 million and $0.7 million for the years ended December 31, 2023 and 2024, respectively[211]. - The Company recorded a total impairment loss of $127.8 million related to goodwill and intangible assets for the year ended December 31, 2022[342]. Cash Flow and Liquidity - Net cash used in operating activities was $1.8 million for the year ended December 31, 2024, compared to net cash provided of $1.4 million in 2023[197]. - Cash, cash equivalents, and marketable securities totaled $56.5 million as of December 31, 2024, with no extraordinary demands or commitments anticipated[192]. - Total cash and cash equivalents at the end of 2024 were $27.47 million, down from $29.76 million in 2023 and $40.05 million in 2022[250]. - The fair value of cash equivalents as of December 31, 2024, was $16.945 million, down from $17.300 million in 2023, reflecting changes in liquidity[303]. Internal Controls and Audit - The company identified material weaknesses in internal control over financial reporting, affecting the reliability of financial statements[228]. - The audit opinion expressed an adverse opinion on the effectiveness of internal control over financial reporting as of December 31, 2024[233]. Market and Strategic Initiatives - The company’s growth strategy focuses on consolidating assets within the fragmented hydroponics industry to leverage efficiencies and enhance profitability[162]. - The Storage Solutions segment aims to expand its customer base and penetrate new industries, including controlled environment agriculture and country clubs[164]. - Proprietary brand sales as a percentage of Cultivation and Gardening net sales increased to 24.2% for the year ended December 31, 2024, up from 18.8% in 2023, reflecting strategic initiatives to boost sales volume[176].

Core Viewpoint - The market anticipates GrowGeneration (GRWG) to report flat earnings with a quarterly loss of $0.18 per share and revenues of $38.34 million, reflecting a 22.5% decline year-over-year [1][3][12] Earnings Expectations - The earnings report is scheduled for March 13, 2025, and could influence stock movement based on whether actual results exceed or fall short of expectations [2] - The consensus EPS estimate has been revised down by 18.18% over the last 30 days, indicating a bearish sentiment among analysts [4] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for GrowGeneration is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.86% [10][11] - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [8] Historical Performance - GrowGeneration has not been able to meet consensus EPS estimates in the last four quarters, with a significant surprise of -72.73% in the most recent quarter [12][13] - The company is currently rated with a Zacks Rank of 3, which complicates the prediction of an earnings beat [11] Conclusion - Overall, GrowGeneration does not appear to be a strong candidate for an earnings beat, and investors should consider additional factors before making investment decisions [16]

Financial Results - GrowGeneration Corp. announced preliminary financial results for the fiscal year ended December 31, 2024[5]. - The press release detailing these results was issued on February 6, 2025[6]. - The report does not include specific financial figures or performance metrics in the provided content[7]. - No specific guidance or future outlook was provided in the available content[7]. Company Information - The company is listed on the NASDAQ under the trading symbol GRWG[4]. - The company is not classified as an emerging growth company[4]. - The report was signed by CEO Darren Lampert[12]. Documentation - The press release is attached as Exhibit 99.1 to the Current Report on Form 8-K[8]. - The financial statements and exhibits are not deemed "filed" under the Securities Exchange Act[7]. Product and Market Activity - There are no mentions of new products, technologies, market expansion, or acquisitions in the provided documents[7].

Industry Overview - Marijuana stock investors experienced a slight increase in trading this week, driven by potential changes in the cannabis industry and a push for better regulations for legal operators [1] - The performance of cannabis companies has not always aligned with their trading success, indicating volatility in the market [2] - There is potential for short-term trading opportunities as the industry has been in a downtrend, and any chance to take profits is seen as a win [3] Companies to Watch - **GrowGeneration Corp.** operates retail hydroponic and organic gardening stores in the U.S. and recently launched three new premium product lines in grow lighting, essential accessories, and mediums for indoor growing and greenhouse hydroponics [4][5] - **The Scotts Miracle-Gro Company** manufactures and markets products for lawn, garden care, and indoor gardening, reporting Q1 2025 sales of $416.8 million, a slight increase from $410.4 million in the prior year [8][11] - **Jushi Holdings Inc.** is a vertically integrated cannabis company involved in cultivation, processing, retail, and distribution for medical and adult-use markets, with Q3 2024 financial highlights showing total revenue of $61.6 million and a net loss of $16.0 million [12][15]

Investment Group Overview - Alan has been running the investing group 420 Investor since 2013, focusing on publicly-traded cannabis stocks [1] - The group moved to Seeking Alpha in 2023 and closely covers 23 stocks [1] - Features include 2 model portfolios, 10 weekly videos with chart analysis, 3 weekly summary pieces, a monthly newsletter, and a chat for questions [1] - A sub-service called The Big Picture helps investors stay updated on the cannabis sector [1] Professional Background - Alan Brochstein, CFA, is one of the first investment professionals to focus exclusively on the cannabis industry [2] - He started his career in the securities industry in 1986 and managed investments in institutional environments [2] - Founded AB Analytical Services in 2007 to provide independent consulting to registered investment advisors [2] - Managing partner of New Cannabis Ventures, a leading provider of financial information in the cannabis industry since 2015 [2]