Financial Data and Key Metrics Changes - The company reported net revenue of approximately $41 million for Q2 2025, exceeding guidance of $40 million and reflecting a decrease from $53.5 million in the same period last year [7][15] - Gross margins improved to 28.3% in Q2 2025, up from 26.9% in Q2 2024, driven by higher proprietary brand sales [9][17] - The net loss for Q2 2025 was $4.8 million, or negative $0.08 per share, an improvement from a net loss of $5.9 million, or negative $0.10 per share, in Q2 2024 [18] Business Line Data and Key Metrics Changes - Proprietary product sales accounted for nearly 32% of total revenue in Q2 2025, up from 21.5% in the same period last year, indicating a stronger focus on higher-margin products [8][15] - In the MMI storage solutions segment, revenue reached $8.1 million, up over 69% sequentially, reflecting strong demand and product diversification [12] Market Data and Key Metrics Changes - The company is expanding internationally, having signed a distribution agreement with V1 Solutions for commercial sales across the European Union and launched a proprietary product line in Costa Rica [11] - The company noted a significant backlog in durable goods, indicating a recovery in demand within the industry [40] Company Strategy and Development Direction - The company is focused on transforming into a leaner, more profitable, product-driven business with an emphasis on B2B customers [6] - The acquisition of Viagro is seen as a strategic move to enter the home gardening market and strengthen the proprietary brand portfolio [11][27] - The company aims to achieve gross margins in the 30% range and is actively working to mitigate tariff impacts through diversified sourcing and improved supply chain efficiency [30][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for growth in the lawn and garden space and the positive impact of cannabis reform on the cultivation ecosystem [14][27] - The company is not providing full-year 2025 guidance due to uncertainties in global trade policy and cannabis reform but expects sequential revenue growth in Q3 2025 [20] Other Important Information - The company ended Q2 2025 with $48.7 million in cash and no debt, providing flexibility for working capital and growth initiatives [13][19] - The company is continuing to rationalize operations and expects further cost savings in the latter half of 2025 [20] Q&A Session Summary Question: Insights on the Viagro acquisition and opportunities in the gardening space - Management sees tremendous opportunity in the lawn and garden space with the Viagro acquisition, which brings strong relationships and products that can crossover into cannabis [27] Question: Future gross margin expectations amid tariff risks - Management aims for gross margins to reach the 30% range and is implementing strategies to mitigate tariff impacts while maintaining competitive pricing [30][33] Question: Status of expense reductions and future cuts - Management confirmed ongoing cost reductions and expects additional improvements in SG&A and operating expenses in the latter half of the year [38] Question: Industry outlook and capital investments - Management noted a significant backlog in durable goods and observed clients beginning to refurbish their portfolios, indicating a positive shift in industry dynamics [40] Question: Timeline for repositioning the business towards commercial focus - Management believes most internal needs are met and anticipates significant savings and growth opportunities by the end of Q4 2025 [46][48]

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents unaudited condensed consolidated financial statements, including balance sheets, operations, equity, cash flows, and notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | ASSETS (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Cash and cash equivalents | $23,309 | $27,471 | | Marketable securities | $25,399 | $28,984 | | Accounts receivable, net | $10,425 | $7,361 | | Inventory | $41,737 | $40,295 | | Total current assets | $108,988 | $113,208 | | TOTAL ASSETS | $160,610 | $174,352 | | LIABILITIES & STOCKHOLDERS' EQUITY (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Accounts payable | $11,608 | $8,146 | | Total current liabilities | $27,266 | $24,274 | | Total liabilities | $53,889 | $54,259 | | Total stockholders' equity | $106,721 | $120,093 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $160,610 | $174,352 | - Total assets **decreased by $13.7 million** from $174.352 million at December 31, 2024, to $160.610 million at June 30, 2025[12](index=12&type=chunk) - Total stockholders' equity **decreased by $13.372 million** from $120.093 million to $106.721 million during the same period[12](index=12&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) | (in thousands, except per share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net sales | $40,963 | $53,536 | $76,666 | $101,424 | | Gross profit | $11,594 | $14,421 | $21,301 | $26,785 | | Loss from operations | $(5,274) | $(6,514) | $(15,148) | $(15,946) | | Net loss | $(4,811) | $(5,896) | $(14,188) | $(14,733) | | Net loss per share, basic | $(0.08) | $(0.10) | $(0.24) | $(0.24) | - Net sales **decreased by 23.5%** for the three months and **24.4%** for the six months ended June 30, 2025, compared to prior-year periods[14](index=14&type=chunk) - Net loss **improved by 18.4%** for the three months and **3.7%** for the six months ended June 30, 2025, year-over-year[14](index=14&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) | (in thousands) | Balance as of Dec 31, 2024 | Balance as of June 30, 2025 | | :------------- | :------------------------- | :-------------------------- | | Common Stock (Shares) | 59,403 | 59,772 | | Common Stock (Amount) | $59 | $60 | | Additional Paid-In Capital | $375,677 | $376,492 | | Accumulated Deficit | $(255,643) | $(269,831) | | Total Stockholders' Equity | $120,093 | $106,721 | - Total stockholders' equity **decreased from $120.093 million to $106.721 million**, primarily due to a **net loss of $14.188 million**[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(6,750) | $(4,044) | | Net cash provided by investing activities | $2,699 | $6,182 | | Net cash used in financing activities | $(111) | $(4,317) | | Net decrease in cash and cash equivalents | $(4,162) | $(2,179) | | Cash and cash equivalents at end of period | $23,309 | $27,578 | - The net decrease in cash and cash equivalents was **$4.162 million** for the six months ended June 30, 2025, an increase from the prior-year period[18](index=18&type=chunk) - This was primarily driven by **increased cash used in operating activities** and **decreased cash provided by investing activities**[18](index=18&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. General Business Overview](index=8&type=section&id=1.%20General%20Business%20Overview) GrowGeneration operates Cultivation and Gardening and Storage Solutions segments, with 29 retail locations and online presence - GrowGeneration operates two major lines of business: **Cultivation and Gardening** and **Storage Solutions**[20](index=20&type=chunk) - As of June 30, 2025, the Company has **29 retail locations** across 11 states and an online superstore[21](index=21&type=chunk) [2. Recent Accounting Pronouncements](index=8&type=section&id=2.%20Recent%20Accounting%20Pronouncements) The Company is evaluating the impact of recently issued accounting pronouncements, ASU 2023-09, ASU 2024-03, and ASU 2025-05 - **ASU 2023-09 (Income Taxes)** is effective for annual periods beginning after December 15, 2024, and will be adopted in Q4 2025[26](index=26&type=chunk) - **ASU 2024-03 (Expense Disaggregation Disclosures)** is effective for fiscal years beginning after December 15, 2026[28](index=28&type=chunk) - **ASU 2025-05 (Credit Losses for Accounts Receivable and Contract Assets)** is effective for annual periods beginning after December 15, 2025[29](index=29&type=chunk) [3. Fair Value Measurements](index=9&type=section&id=3.%20Fair%20Value%20Measurements) Financial assets and liabilities are classified into a three-level hierarchy, with cash equivalents as Level 1 and marketable securities as Level 2 | (in thousands) | Level | June 30, 2025 | December 31, 2024 | | :------------- | :---- | :------------ | :---------------- | | Cash equivalents | 1 | $12,961 | $16,945 | | Marketable securities | 2 | $25,399 | $28,984 | - Changes in fair value of marketable securities were **$0.2 million** (3 months) and **$0.4 million** (6 months) for June 30, 2025[32](index=32&type=chunk) [4. Revenue Recognition](index=10&type=section&id=4.%20Revenue%20Recognition) Net sales are disaggregated by segment and product line, with accounts receivable and customer deposits showing changes | (in thousands) | Accounts Receivable, Net | Customer Deposits | | :------------- | :----------------------- | :---------------- | | Balance as of January 1, 2025 | $7,361 | $2,404 | | Balance as of June 30, 2025 | $10,425 | $2,448 | | Increase | $3,064 | $44 | - Accounts receivable **increased by $3.064 million** from January 1, 2025, to June 30, 2025[37](index=37&type=chunk) - Of customer deposits as of January 1, 2025, **$1.6 million was recognized as revenue** during the six months ended June 30, 2025[37](index=37&type=chunk) [5. Property and Equipment](index=1

Core Insights - GrowGeneration Corp. reported net sales of $41.0 million for Q2 2025, reflecting a 14.7% increase sequentially but a decline from $53.5 million in Q2 2024 [4][6] - Proprietary brand sales accounted for 32.0% of total Cultivation and Gardening revenue, up from 21.5% in the same period last year, indicating strong brand performance [5][6] - The company achieved a gross profit margin of 28.3%, an improvement from 26.9% in Q2 2024, driven by higher private label penetration [7][6] Financial Performance - Net sales for the Cultivation and Gardening segment were $32.9 million, down from $46.1 million year-over-year due to fewer retail locations [4] - Storage Solutions segment net sales increased to $8.1 million from $7.4 million in the prior year [4] - Store operating expenses decreased by approximately 22.9% to $7.9 million compared to $10.2 million in Q2 2024 [8][6] Profitability Metrics - Gross profit was $11.6 million for Q2 2025, down from $14.4 million in Q2 2024, attributed to decreased sales volume [7] - The net loss narrowed to $4.8 million from a loss of $5.9 million in the same quarter last year [9][6] - Adjusted EBITDA loss was $1.3 million, slightly worse than a loss of $1.1 million in Q2 2024 [10][6] Strategic Initiatives - The company is focusing on a transformation strategy aimed at enhancing long-term profitability, including expanding its online B2B portal and entering the home gardening segment [3] - GrowGeneration established distribution partnerships in the European Union and Costa Rica, indicating international expansion efforts [3] - The company aims for proprietary brands to represent 35.0% of segment sales by year-end 2025 [3] Operational Footprint - As of June 30, 2025, GrowGeneration operated 29 retail locations across 11 states, with a total retail and warehouse space of 709,000 square feet [11] - The company closed two retail locations as part of its network optimization strategy [11] Future Outlook - For Q3 2025, the company expects total consolidated net sales to exceed $41 million, indicating continued sequential growth [13] - Due to macroeconomic uncertainties, the company is not providing a full-year 2025 financial outlook at this time [12]

Core Viewpoint - GrowGeneration Corp. will release its financial results for the second quarter ended June 30, 2025, on August 11, 2025, after market close, followed by a live earnings conference call [1]. Company Overview - GrowGeneration Corp. is the largest specialty retailer of hydroponic and organic gardening products in the United States [3]. - The company offers a wide range of products including nutrients, additives, growing media, lighting, environmental control systems, and proprietary brands such as Charcoir, Drip Hydro, Power Si, Ion lights, and The Harvest Company [3]. - GrowGeneration operates an online superstore for cultivators and has a wholesale business for resellers, as well as a benching, racking, and storage solutions business called Mobile Media or MMI [3]. Earnings Call Information - To participate in the earnings call, domestic participants can dial 1-(888)-699-1199 and international participants can dial 1-(416)-945-7677, using the conference code 53471 [2]. - The call will be webcast and accessible through the Investor Relations section of the GrowGeneration website, with a replay available approximately two hours after the call for about 90 days [2].

Group 1 - Alan Brochstein is a pioneer in the cannabis investment sector, having focused exclusively on this industry since 2007 [1] - He founded AB Analytical Services to provide independent consulting to registered investment advisors [1] - Brochstein is the managing partner of New Cannabis Ventures, which has been a key provider of financial information in the cannabis industry since 2015 [1] Group 2 - Alan has led the investing group 420 Investor since 2013, which focuses on publicly-traded cannabis stocks [2] - The group covers 20 stocks, providing investment news, earnings report previews, and post-report analyses [2] - Additional features of the group include a model portfolio, 10 weekly videos with chart analysis, 3 weekly summary pieces, a monthly newsletter, and a chat for questions [2]

Core Insights - GrowGeneration Corp. is the largest specialty retailer of hydroponic and organic gardening products in the U.S. and will showcase innovations at Cultivate'25 from July 12-15, 2025 [1][2] Company Overview - GrowGeneration offers a wide range of products including nutrients, additives, growing media, lighting, and environmental control systems, featuring proprietary brands like Charcoir, Drip Hydro, and The Harvest Company [6] Event Participation - At Cultivate'25, GrowGeneration will present its proprietary portfolio of cultivation products and services tailored for modern greenhouse, nursery, and commercial growing operations [2][3] Product Innovations - The company will highlight new and proven products from its brands, including Viagrow, Charcoir, Drip Hydro, and Ion lights, emphasizing its commitment to innovation and performance [3][5] Expansion Strategy - GrowGeneration is expanding into the lawn, garden, and nursery sectors through The Harvest Company and Viagrow, providing scalable, retail-ready solutions for growers nationwide [3]

Industry Overview - The cannabis industry is experiencing continuous growth, leading to optimism among investors despite current market conditions [1][2] - There is a lack of sustained volatility in cannabis stocks, which has hindered shareholder profits [2] - Federal legalization is speculated to be a key resolution for the public sector of cannabis companies [2] Company Highlights - **GrowGeneration Corp.** operates retail hydroponic and organic gardening stores in the U.S. and has entered a distribution agreement with V1 Solutions for its products in the EU and Costa Rica [4] - **Hydrofarm Holdings Group, Inc.** manufactures and distributes hydroponics equipment in the U.S. and Canada, reporting a decrease in net sales to $40.5 million from $54.2 million [6][5] - **The Scotts Miracle-Gro Company** reaffirmed its full fiscal year 2025 guidance and is involved in the manufacture and sale of gardening products [8][10] Financial Performance - Hydrofarm's gross profit for Q1 2025 was $6.9 million, with a gross profit margin of 17.0%, down from 20.2% [11] - Adjusted gross profit margin decreased to 21.0% from 23.4% [11] - The company reported a net loss of $14.4 million, an increase from $12.6 million, and an adjusted EBITDA of $(2.4) million compared to $0.3 million [11]

Core Insights - The cannabis industry is experiencing significant progress and innovation, despite many marijuana stocks underperforming [1] - The market is divided into two main areas: large multi-state operators (MSOs) and ancillary companies that provide services or products related to cannabis [2] - Ancillary marijuana companies are performing better due to their diversified business models, which help them withstand market fluctuations [3] Company Highlights - **Hydrofarm Holdings Group, Inc.**: Reports Q1 2025 earnings with net sales of $40.5 million, down from $54.2 million; gross profit decreased to $6.9 million with a gross profit margin of 17.0% [7] - **GrowGeneration Corp.**: Operates retail hydroponic and organic gardening stores; recently entered a distribution agreement with V1 Solutions to expand its market presence in the EU [8] - **High Tide Inc.**: Engages in cannabis retail across North America; recently opened two new Canna Cabana locations in Toronto and Winnipeg, indicating strong market performance in Manitoba and Ontario [11]

Financial Data and Key Metrics Changes - The company reported a cash position of $52.6 million as of March 31, 2025, with no debt, indicating a strong financial foundation for future growth opportunities [18] Business Line Data and Key Metrics Changes - Proprietary brand sales represented approximately 32% of reported cultivation and gardening net sales, marking the highest percentage in the company's history [16] Market Data and Key Metrics Changes - The company is one of the largest hydroponics suppliers in the United States, with ongoing efforts to expand into the home gardening market and enhance e-commerce platforms [15] Company Strategy and Development Direction - The strategic focus for 2025 includes expanding the proprietary portfolio of brands, widening the customer base through initiatives like the new B2B portal, and driving profitability through improved margins and cost discipline [19] - The recent acquisition of Viagra, a lawn and garden business, is aimed at diversifying the company's value proposition and expanding its reach into the consumer market [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on emerging market opportunities, supported by a strong balance sheet and disciplined execution [17][20] - The company aims to continue executing its strategic priorities to drive further growth and profitability [19] Other Important Information - The meeting confirmed the election of five directors and the approval of executive compensation and the appointment of Grant Thornton as the independent registered public accountants for the fiscal year ending December 31, 2025 [12][13] Q&A Session Summary Question: No questions were submitted during the Q&A session - The company noted that there were no further questions submitted at this time, indicating shareholder satisfaction with the information provided [22]

Industry Overview - The cannabis industry is experiencing significant growth globally, with legal cannabis expanding rapidly [1] - Despite the industry's growth, marijuana stocks have not seen comparable success, but there is potential for profitability in the future [1][2] - Companies are expanding operations and forming partnerships to meet increasing consumer demands [1] Market Sentiment - There is a cautious sentiment among investors regarding the long-term advantages of owning marijuana stocks, as the sector has not shown a consistent recovery [2] - Short-lived trading jumps have made it difficult for investors to capitalize on profits, leading to speculation about future performance [3] Company Highlights - **GrowGeneration Corp.**: Operates retail hydroponic and organic gardening stores in the U.S. and has entered a distribution agreement with V1 Solutions to expand into the European Union and Costa Rica [4][6] - **Hydrofarm Holdings Group, Inc.**: Manufactures and distributes hydroponics equipment in the U.S. and Canada [7] - **The Scotts Miracle-Gro Company**: Engages in the manufacture and sale of gardening products and has reaffirmed its fiscal year 2025 guidance [10][12] Financial Performance - The Scotts Miracle-Gro Company reported a decrease in net sales to $40.5 million from $54.2 million, with a gross profit margin decline to 17.0% from 20.2% [13] - The company experienced an increase in net loss to $14.4 million compared to $12.6 million, and adjusted EBITDA was $(2.4) million compared to $0.3 million [13] - U.S. consumer net sales showed low single-digit growth, with a non-GAAP adjusted EBITDA forecast of $570 million to $590 million [14]