UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________________________ FORM 10-Q _________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 27, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-11593 ____________________________________ The S ...

Scotts Miracle-Gro logo Key Points Scotts said it has paid down $1.5 billion of debt, delivered consistent free cash flow, margin and EBITDA improvement, and expects leverage to return to historical norms “in the threes” later this fiscal year. The company is investing in brands, new product innovation and e‑commerce while driving cost and supply‑chain efficiencies through automation and AI to support disciplined growth. Shareholders approved all four proposals at the AGM — electing directors, ratif ...

Core Insights - The cannabis sector is evolving, with ancillary companies better positioned than plant-touching operators due to lower regulatory risks and better resilience during market downturns [1][2] - Ancillary cannabis stocks can benefit from consistent demand for cultivation supplies, regardless of which operators gain market share [2] - Investors are focusing on improving margins and cost discipline as ancillary companies restructure and strengthen their balance sheets [3] Company Summaries GrowGeneration (GRWG) - GrowGeneration is a leading retailer of hydroponic and cultivation supplies, serving both commercial cultivators and home growers without operating cannabis dispensaries [5][9] - As of late 2025, GrowGeneration operated 24 locations across 11 states, offering a range of products through both physical and online channels [7] - Recent financial performance showed revenue growth, improved gross margins, and a narrowing of net losses, with management expecting continued revenue growth in 2026 [9][10] Hydrofarm Holdings Group (HYFM) - Hydrofarm manufactures and distributes hydroponic equipment and supplies, focusing on lighting and climate systems without operating dispensaries [11][13] - Recent financial results indicated a year-over-year revenue decline due to softer industry demand, but management is working on restructuring and improving supply chain efficiency [13][14] - Hydrofarm carries higher risk but also offers higher potential rewards, making it a speculative option for traders [15] The Scotts Miracle-Gro Company (SMG) - Scotts Miracle-Gro is known for consumer lawn and garden products and has historically been involved in the cannabis supply chain through its Hawthorne Gardening business [16][18] - The company has shifted its strategy by selling its Hawthorne division, focusing on core consumer businesses while retaining some indirect cannabis exposure [18][19] - Financial results reflect this transition, with stable gross margins and a focus on generating steadier cash flow, making it a conservative option for investors [19] Final Thoughts - Ancillary cannabis stocks present unique opportunities, with GrowGeneration showing turnaround potential, Hydrofarm offering higher-beta exposure, and Scotts Miracle-Gro providing defensive positioning [20]

The Scotts Miracle-Gro Company (NYSE:SMG) is included among the 13 Best February Dividend Stocks to Buy. UBS Revises Scotts Miracle-Gro (SMG) Outlook as Consumer Staples Pressures Persist On January 14, UBS nudged its price target on The Scotts Miracle-Gro Company (NYSE:SMG) up to $66 from $61 and left its rating at Neutral. The firm said the consumer staples space is still dealing with a tough backdrop, but there are signs that fundamentals could start to look better in 2026. Scotts Miracle-Gro is best ...

Core Insights - The cannabis industry is evolving with a focus on efficiency, margin recovery, and balance sheet strength as operators adapt to tighter capital markets and shifting regulations [2][19] - Ancillary cannabis stocks provide alternative exposure to the industry, supporting it without directly selling cannabis, thus avoiding many regulatory risks while benefiting from cultivation and retail improvements [1][19] Industry Trends - Growers are upgrading equipment, improving yields, and cutting costs instead of reckless expansion, favoring well-positioned ancillary suppliers [2] - Federal reform discussions create volatility, but the demand for essential products like nutrients and lighting remains consistent, offering attractive risk-reward setups for investors [3][19] Company Summaries GrowGeneration (GRWG) - GrowGeneration is a leading hydroponics and cultivation supply company, serving cannabis growers with essential products like lighting, nutrients, and climate control [5][7] - The company has shown signs of stabilization with sequential revenue improvement and expanded gross margins, marking a return to positive adjusted EBITDA [9][10] - Key focus for GRWG is on margin sustainability and potential earnings amplification with a modest rebound in cultivation spending [10] Hydrofarm Holdings Group (HYFM) - Hydrofarm is a distributor focused on controlled environment agriculture, providing essential tools for indoor cannabis cultivation [10][11] - The company has faced revenue declines and compressed gross margins due to reduced capital expenditures from growers, but it has made progress in reducing operating expenses [11] - Investors should monitor revenue stabilization, as even flat sales could improve cash flow if costs are controlled [12] The Scotts Miracle-Gro Company (SMG) - Scotts is known for lawn and garden products but has exposure to cannabis through its Hawthorne Gardening division, which supplies hydroponic equipment [14][16] - The decision to divest Hawthorne simplifies the business and reduces cannabis-related volatility, allowing a focus on its core consumer segment [16] - Financially, Scotts has shown improving margins and prioritized debt reduction, making it a lower-risk option for investors seeking stability [17][18] Investment Considerations - Ancillary stocks are critical to the cannabis ecosystem, as growers rely on supplies and systems [22] - Each highlighted company serves different investor profiles, with GrowGeneration focusing on recovery, Hydrofarm offering higher risk and leverage, and Scotts providing stability [20][21]

Scotts Miracle-Gro (SMG) reported $354.4 million in revenue for the quarter ended December 2025, representing a year-over-year decline of 15%. EPS of -$0.77 for the same period compares to -$0.89 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $350.63 million, representing a surprise of +1.08%. The company delivered an EPS surprise of +25.68%, with the consensus EPS estimate being -$1.04.While investors scrutinize revenue and earnings changes year-over-year and how they compare w ...

The Scotts Miracle-Gro (NYSE:SMG) Q1 2026 Earnings call January 28, 2026 09:00 AM ET Company ParticipantsBrad Chelton - VP of Treasury, Tax & Investor RelationsCarla Casella - Managing DirectorJim Hagedorn - Chairman and CEOJosh Meihls - Senior VP and Chief Growth OfficerMark Scheiwer - EVP, CFO and Chief Accounting OfficerNate Baxter - President and COOConference Call ParticipantsAndrew Carter - AnalystChris Carey - Senior Equity AnalystJonathan Matuszewski - Consumer AnalystJoseph Altobello - Managing Dir ...

The Scotts Miracle-Gro (NYSE:SMG) Q1 2026 Earnings call January 28, 2026 09:00 AM ET Company ParticipantsBrad Chelton - VP of Treasury, Tax & Investor RelationsCarla Casella - Managing DirectorJim Hagedorn - Chairman and CEOJosh Meihls - Senior VP and Chief Growth OfficerMark Scheiwer - EVP, CFO and Chief Accounting OfficerNate Baxter - President and COOConference Call ParticipantsAndrew Carter - AnalystChris Carey - Senior Equity AnalystJonathan Matuszewski - Consumer AnalystJoseph Altobello - Managing Dir ...

The Scotts Miracle-Gro (NYSE:SMG) Q1 2026 Earnings call January 28, 2026 09:00 AM ET Speaker1Good morning. Welcome to Scotts Miracle-Gro's first quarter 2026 earnings webcast. I'm Brad Chelton, Head of Investor Relations. Speaking today are Chairman and CEO, Jim Hagedorn, President and Chief Operating Officer, Nate Baxter, and Chief Financial Officer and Chief Accounting Officer, Mark Scheurer. Jim will provide a strategic overview, Nate will provide a business update, and Mark will follow with a review of ...

First Quarter ended December 27, 2025 Quarterly Earnings Report Supplemental Financial Presentation January 28, 2026 Please view this presentation in conjunction with our Q1 2026 earnings release, which is furnished on Form 8-K, our related pre-recorded remarks and additional information regarding our non-GAAP financial measures, including GAAP to non-GAAP reconciliations, available on our website at https://investor.scotts.com. 1 Safe Harbor Disclosure Statements contained in this presentation, which addre ...