GrowGeneration (GRWG) came out with a quarterly loss of $0.10 per share versus the Zacks Consensus Estimate of a loss of $0.08. This compares to loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -25%. A quarter ago, it was expected that this company would post a loss of $0.10 per share when it actually produced a loss of $0.14, delivering a surprise of -40%. Over the last four quarters, the company has not been ab ...

Companies like Bunge (BG) , West Fraser Timber Co. (WFG) , GrowGeneration (GRWG) and Hydrofarm (HYFM) are poised to gain from strong end-market demand and their ongoing strategic growth initiatives aimed at capitalizing on these trends. The Zacks Agriculture – Products industry comprises companies that are either involved in storing agricultural commodities, distributing ingredients to others or engaged in farming crops, livestock and poultry products. Some are engaged in purchasing, storing, transporting, ...

Item 2.02 Results of Operations and Financial Condition On July 22, 2024, the Company announced a strategic restructuring plan focused on long-term profitability and advancing growth initiatives in key areas of its Gardening and Cultivation segment such as its proprietary brands, commercial sales, and e-commerce business. These restructuring plans primarily include reductions in cost structure by closing and consolidating twelve redundant or underperforming retail locations, in addition to the seven retail ...

There is much to consider when looking to invest in pot stocks. However, money is being made both in and out of the market. So what are the steps to see better odds at making a profit? The more info you have on the sector or companies of interest the better decisions you can make. Knowing how profitable or not profitable a company is can be crucial. You want to invest in a company that is showing some type of progress or expectancy of future gains. GrowGeneration Corp., through its subsidiaries, owns and op ...

Core Viewpoint - GrowGeneration Corp. (NASDAQ:GRWG) is being highlighted as a potential investment opportunity despite its current challenges, including declining revenue and lack of profitability. The stock is considered a Top Pick again due to its liquidity, strong balance sheet, and potential benefits from changes in cannabis regulation [2][3][9]. Financial Performance - For Q1, GrowGeneration reported revenue of $47.9 million, which was at the high end of the guided range of $45-48 million, but this represented a 16% decline year-over-year. Adjusted EBITDA was worse than expected at -$2.9 million [6]. - Analysts had projected 2024 revenue to be between $205-215 million, with adjusted EBITDA ranging from -$2 million to +$3 million. Post-report, projections have been adjusted to a revenue decline of 7% to $210 million and an adjusted EBITDA of -$2 million [6]. - For 2025, revenue is now expected to rise 7% to $225 million, with adjusted EBITDA remaining at $4 million. The adjusted EBITDA margin is low at 2%, compared to 8% in 2021 [6][14]. Market Position and Analyst Coverage - GrowGeneration is part of the New Cannabis Ventures Global Cannabis Stock Index and has been included in the Q3 rebalancing, indicating decent trading volumes and market interest [4]. - The number of analysts covering GrowGeneration is relatively low compared to larger multi-state operators (MSOs), with only 2 analysts providing coverage for 2025 estimates [17][18]. Stock Valuation and Outlook - The stock trades below its tangible book value, with a market cap of approximately $132.5 million, which is about 92% of its tangible book value. The company is debt-free and had cash reserves of $31 million at the end of Q1 [14]. - The current ratio is high at 4.8X, indicating strong liquidity. The enterprise value is about $71 million, which is nearly 18 times the projected adjusted EBITDA for 2025 [14]. - The stock has declined approximately 97% from its peak in early 2021 but has held above key support levels, suggesting potential for recovery if market conditions improve [20]. Regulatory Environment - Changes in cannabis regulation, particularly the potential rescheduling from Schedule 1 to Schedule 3, could positively impact GrowGeneration by improving the financial health of its customer base, although this is not guaranteed [9][14].

Group 1: Market Overview - The cannabis sector is characterized by volatility, with market reactions often influenced by news on reform, leading to sector-wide price movements [8] - Investors are advised to take profits when available, regardless of the size, to mitigate risks associated with market fluctuations [1] Group 2: Key Companies - Jushi Holdings Inc. is a vertically integrated cannabis company involved in cultivation, processing, retail, and distribution for both medical and adult-use markets [10] - GrowGeneration Corp. operates retail hydroponic and organic gardening stores across the United States and is set to participate in Oppenheimer's 24th annual conference [17] Group 3: Corporate Governance - The number of directors for Jushi Holdings Inc. has been fixed at five, with all nominees from the proxy statement elected [4][15] - The company's 2019 Equity Incentive Plan has been approved and renewed, allowing for unallocated entitlements [16]

Industry Overview - The cannabis sector is experiencing significant speculative trading, influenced by future laws and regulations, particularly the DEA's recent agreement to reschedule cannabis to class 3 narcotics [1] - The legal cannabis industry has made substantial progress globally, with operators working to meet increased product demand, resulting in strong revenue generation and earnings [2][3] Investment Outlook - The cannabis sector is viewed as a promising mid to long-term investment opportunity, with a positive outlook for the industry and potential for strong profits [3] - Investors are encouraged to conduct thorough research and develop a strategic plan to maximize investment returns [3] Company Highlights - **Trulieve Cannabis Corp.**: Recently opened its 200th dispensary, marking a significant milestone in its growth as the world's largest legal cannabis retailer [5][6] - **GrowGeneration Corp.**: Operates retail hydroponic and organic gardening stores in the U.S. and is participating in the KCSA Cannabis Virtual Investor Conference [7] - **Jushi Holdings Inc.**: Reported Q4 2024 financial highlights, including total revenue of $65.5 million, gross profit of $32.3 million with a margin of 49.4%, and an adjusted EBITDA of $13.3 million, reflecting a year-over-year improvement [8]

How Will The Marijuana Stocks Trade After Being RescheduledMarijuana stock investors are keeping focused on the future of the industry. With the potential shift in the scheduling of cannabis, people want to be prepared. There is a bit of uncertainty about what will happen when cannabis gets rescheduled. Many worry that it will negatively impact legal operators and various niches in the industry. However, when news first surfaced there was a bit of an uproar and a rise in momentum for marijuana stocks.But si ...

GrowGeneration (GRWG) came out with a quarterly loss of $0.14 per share versus the Zacks Consensus Estimate of a loss of $0.10. This compares to loss of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -40%. A quarter ago, it was expected that this company would post a loss of $0.12 per share when it actually produced a loss of $0.18, delivering a surprise of -50%.Over the last four quarters, the company has not been able ...

PART I FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Unaudited financial statements show decreased assets and equity, a widened **$8.8 million** net loss in Q1 2024, and negative operating cash flow [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$230.4 million** by March 31, 2024, from **$239.1 million** at year-end 2023, primarily due to reduced marketable securities and prepaid assets Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $141,720 | $147,451 | | Cash and cash equivalents | $31,050 | $29,757 | | Marketable securities | $30,280 | $35,212 | | Inventory | $66,028 | $64,905 | | **Total Assets** | **$230,393** | **$239,090** | | **Total Current Liabilities** | $29,337 | $30,930 | | **Total Liabilities** | **$65,085** | **$65,695** | | **Total Stockholders' Equity** | **$165,308** | **$173,395** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 net sales decreased by **15.7%** to **$47.9 million**, resulting in a widened net loss of **$8.8 million** compared to **$6.1 million** in Q1 2023 Q1 2024 vs. Q1 2023 Statement of Operations (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net sales | $47,888 | $56,827 | | Gross profit | $12,364 | $16,289 | | Income (loss) from operations | $(9,432) | $(7,420) | | **Net income (loss)** | **$(8,837)** | **$(6,134)** | | **Net income (loss) per share, basic & diluted** | **$(0.14)** | **$(0.10)** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$3.7 million** for Q1 2024, a reversal from the prior year, with cash and equivalents increasing by **$1.3 million** to **$31.1 million** Q1 2024 vs. Q1 2023 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net cash from operating activities | $(3,676) | $3,457 | | Net cash from investing activities | $4,997 | $19,313 | | Net cash from financing activities | $(28) | $(86) | | **Net increase (decrease) in cash** | **$1,293** | **$22,684** | | **Cash at end of period** | **$31,050** | **$62,738** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail business structure, accounting policies, segment realignment, a **$6.0 million** share repurchase program, and a **$0.3 million** legal settlement recovery - The company operates through two main business segments: **Cultivation and Gardening** and **Storage Solutions**, with **46 retail locations** in **18 states** as of March 31, 2024[22](index=22&type=chunk)[23](index=23&type=chunk) - In March 2024, the Board authorized a share repurchase program for up to **$6.0 million** of its common stock, commencing April 1, 2024[60](index=60&type=chunk) - A legal dispute with Total Grow was resolved, resulting in a **$0.3 million** settlement recovery in February 2024[64](index=64&type=chunk) Disaggregated Revenue by Segment (in thousands) | Segment | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Cultivation and Gardening** | **$43,108** | **$49,127** | | Proprietary brand sales | $9,726 | $9,027 | | Non-proprietary brand sales | $33,382 | $40,100 | | **Storage Solutions** | **$4,780** | **$7,700** | | **Total Net Sales** | **$47,888** | **$56,827** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **15.7%** Q1 2024 net sales decline to store consolidations and lower Storage Solutions sales, resulting in a **$8.8 million** net loss and **$2.9 million** Adjusted EBITDA loss, while maintaining adequate liquidity [Overview and Growth Strategy](index=18&type=section&id=Overview%20and%20Growth%20Strategy) The company operates two segments, focusing on consolidating the fragmented hydroponics industry, while reducing costs through store consolidations and expanding commercial sales and proprietary brands - The company's main growth strategy is to consolidate assets in the fragmented hydroponics industry[85](index=85&type=chunk) - In response to market conditions, the company is reducing costs by closing and consolidating retail locations, with **four stores** consolidated in early 2024[87](index=87&type=chunk) - Key growth strategies for the Cultivation and Gardening segment include expanding commercial sales, distribution, and promoting proprietary brands[89](index=89&type=chunk) [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Q1 2024 net sales decreased by **15.7%** to **$47.9 million**, driven by declines in both segments, while gross profit margin fell to **25.8%** due to pricing pressure and consolidation costs, leading to a **$9.4 million** operating loss - Net sales decreased by **$8.9 million** (**15.7%**) year-over-year, primarily due to the consolidation of **17 retail locations** and lower sales in the Storage Solutions segment[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) - Gross profit margin decreased by **290 basis points** to **25.8%**, driven by industry pricing compression and non-recurring store consolidation costs[104](index=104&type=chunk) - Proprietary brand sales increased to **23%** of Cultivation and Gardening net sales, up from **18%** in the prior year[100](index=100&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, the company had **$112.4 million** in working capital and **$61.3 million** in cash and marketable securities, deemed adequate for the next twelve months, with a **$6.0 million** share repurchase program authorized - The company had **$61.3 million** in cash, cash equivalents, and marketable securities as of March 31, 2024[113](index=113&type=chunk) - Management believes the company is adequately funded to support operations for the next twelve months[114](index=114&type=chunk) - A share repurchase program for up to **$6.0 million** was authorized, commencing April 1, 2024[115](index=115&type=chunk) [Non-GAAP Financial Information](index=23&type=section&id=Non-GAAP%20Financial%20Information) The company reported an EBITDA loss of **$5.6 million** and an Adjusted EBITDA loss of **$2.9 million** for Q1 2024, compared to smaller losses in Q1 2023, with adjustments primarily for share-based compensation and restructuring Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income (loss) | $(8,837) | $(6,134) | | EBITDA | $(5,643) | $(2,628) | | **Adjusted EBITDA** | **$(2,871)** | **$(1,802)** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company refers to its 2023 Form 10-K for quantitative and qualitative disclosures about market risk - For information on market risk, the company directs investors to Item 7A of its **2023 Form 10-K**[122](index=122&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective as of March 31, 2024, due to identified material weaknesses, with an ongoing remediation plan in place - Management concluded that disclosure controls and procedures were not effective as of March 31, 2024, due to previously identified material weaknesses[125](index=125&type=chunk)[127](index=127&type=chunk) - Identified material weaknesses exist across the Control Environment, Risk Assessment, Information and Communication, Monitoring Activities, and Control Activities components of the COSO framework[132](index=132&type=chunk)[133](index=133&type=chunk) - A remediation plan is underway, including engaging third-party specialists, hiring a dedicated controls manager, implementing new systems, and adding personnel with technical accounting experience[136](index=136&type=chunk)[137](index=137&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no material legal proceedings during the quarter - There were no legal proceedings to report for the period[143](index=143&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) The company refers to its 2023 Form 10-K for a summary of its risk factors - For information on risk factors, the company directs investors to Item 9A of its **2023 Form 10-K**[144](index=144&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Board authorized a **$6.0 million** share repurchase program commencing April 1, 2024, with no repurchases made in Q1 2024 - A share repurchase program for up to **$6.0 million** was authorized on March 20, 2024, to begin on April 1, 2024[145](index=145&type=chunk) - No common stock was repurchased under the program during the first quarter of 2024[145](index=145&type=chunk) [Item 6. Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data files - The report includes required exhibits such as CEO/CFO certifications under Sarbanes-Oxley Sections 302 and 906, and XBRL data files[151](index=151&type=chunk)