GrowGeneration Reports First Quarter 2025 Financial Results

Core Insights - GrowGeneration Corp. reported a first quarter net sales of $35.7 million, a decrease from $47.9 million in the same period last year, primarily due to the closure of 19 retail locations in 2024 [4][6] - Proprietary brand sales increased to 32.0% of total Cultivation and Gardening revenue, up from 22.6% year-over-year, reflecting the strength of the company's product portfolio [5][6] - The gross profit margin improved to 27.2%, compared to 25.8% in the first quarter of 2024, indicating operational efficiency [7][9] Financial Performance - The company reported a net loss of $9.4 million for the first quarter of 2025, compared to a net loss of $8.8 million in the same quarter of 2024 [9][10] - Adjusted EBITDA loss was $4.0 million, worsening from a loss of $2.9 million in the prior year [10][26] - Cash, cash equivalents, and marketable securities totaled $52.6 million with no debt, providing financial flexibility for future growth initiatives [6][10] Operational Strategy - The company is transitioning to a regional fulfillment center model and focusing on B2B engagement, moving away from same-store sales as a key performance metric [3][12] - Store and other operating expenses decreased by approximately 17.3% to $8.8 million compared to $10.6 million in the first quarter of 2024 [8][9] - The company has withdrawn its full-year 2025 financial outlook due to macroeconomic uncertainties and is exploring strategies to mitigate risks [12] Future Outlook - For the second quarter of 2025, GrowGeneration expects total consolidated net sales to exceed $40 million [13]