GrowGeneration Q3 Earnings Beat Estimates, Revenues Dip 6% Y/Y

Core Insights - GrowGeneration Corp. (GRWG) reported a narrower loss per share of 4 cents in Q3 2025, compared to a loss of 19 cents in Q3 2024 and better than the Zacks Consensus Estimate of a loss of 9 cents [1][8] - The company generated revenues of $47 million in Q3 2025, a decline of 5.6% year over year, attributed to fewer retail locations, but exceeded the consensus estimate of $42 million and the company's guidance [2][8] - Gross margin improved to 27.2% in Q3 2025 from 21.6% in the prior year, driven by higher private label sales, resulting in a gross profit of $12.9 million, an increase of 18.3% year over year [3][8] Financial Performance - Cost of sales decreased by 12.2% year over year to $34 million, while selling, general and administrative expenses fell 23% to $5.7 million [3][4] - Total operating expenses dropped 31.5% year over year to $16 million, leading to an adjusted EBITDA of $1.3 million, a significant improvement from a negative $2.4 million in the prior year [4][8] Cash Position - At the end of Q3 2025, GRWG had cash and cash equivalents of $27 million, unchanged from the end of 2024, with inventory at $40 million and total current liabilities at $29.3 million [5] Future Guidance - The company anticipates revenues of $40 million for Q4 2025 [6] Stock Performance - Over the past year, GRWG shares have declined by 4.3%, while the industry experienced a larger decline of 12.6% [7]