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

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Key Takeaways

  • GRWG posted a Q3 loss of 4 cents per share, narrower than estimates and below last year's 19-cent loss.
  • Revenues fell 5.6% y/y to $47 million but beat both estimates and the company's guidance.
  • The gross margin rose to 27.2% on higher private label sales, lifting adjusted EBITDA to $1.3 million.

GrowGeneration Corp. (GRWG - Free Report) reported a loss per share of 4 cents in the third quarter of 2025, narrower than the Zacks Consensus Estimate of a loss of 9 cents. The company had reported a loss of 19 cents in the third quarter of 2024.

GrowGeneration generated revenues of $47 million in third-quarter 2025, which declined 5.6% year over year due to fewer retail locations compared with the prior year. The top line surpassed the consensus estimate of $42 million and came above the company’s guidance for the quarter.

GrowGeneration Corp. Price, Consensus and EPS Surprise

 

GrowGeneration Corp. Price, Consensus and EPS Surprise

GrowGeneration Corp. price-consensus-eps-surprise-chart | GrowGeneration Corp. Quote

GRWG’s Gross Margin Rise Y/Y in Q3

The cost of sales declined 12.2% year over year to $34 million in the quarter. The gross profit moved up 18.3% year over year to $12.9 million. The gross margin was 27.2% in the quarter under review compared with 21.6% in the prior-year quarter. The upside was driven by higher private label penetration within the company’s Cultivation and Gardening segment.

Selling, general and administrative expenses decreased 23% to $5.7 million in the quarter under review. Total operating expenses fell 31.5% year over year to $16 million in the third quarter of 2025.

Adjusted EBITDA was $1.3 million in the quarter against the prior-year quarter’s negative $2.4 million.

GrowGeneration’s Q3 Cash Position

At the end of the third quarter of 2025, GRWG had cash and cash equivalents of $27 million, flat with the end of 2024. Inventory was $40 million, and prepaid inventory and other current assets were $9.2 million at the quarter end. Total current liabilities, including accounts payable and accrued payroll and other liabilities, were $29.3 million at the quarter’s end.

GRWG’s Q525 Guidance

The company expects revenues of $40 million for the fourth quarter of 2025.

GrowGeneration Stock Price Performance

In the past year, GRWG shares have lost 4.3% compared with the industry’s 12.6% decline.

 

Zacks Investment Research Image Source: Zacks Investment Research

 

GRWG’s Zacks Rank

GrowGeneration currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of An Agricultural Products Stock in Q3

Bunge Global SA (BG - Free Report) reported third-quarter 2025 adjusted earnings of $2.27 per share, which beat the Zacks Consensus Estimate of $2.23. The bottom line, however, marked a 1% year-over-year dip.

Bunge Global’s net revenues were $22.16 billion, surging 71.6% from the year-ago quarter. The top line, however, missed the Zacks Consensus Estimate of $26.55 billion.

Agriculture Products Stocks Awaiting Results

Hydrofarm (HYFM - Free Report) is expected to report third-quarter 2025 results this week. The consensus estimate for Hydrofarm’s top line is pegged at $35.7 million, indicating an 18.8% decline from the prior-year quarter’s reported figure.

The company is expected to report a loss of $3.08 per share, implying an improvement from the loss of $2.60 per share incurred in the year-ago quarter. Hydrofarm has a trailing four-quarter average earnings surprise of negative 31.36%.

BrightView Holdings, Inc. (BV - Free Report) is scheduled to report fourth-quarter fiscal 2025 results this week. The consensus estimate for BrightView’s revenues is $721.6 million, indicating a 0.9% decline from the prior-year quarter’s figure.

The company is expected to report earnings of 32 cents per share, whereas it registered earnings of 30 cents in the year-ago quarter. BrightView has a trailing four-quarter average earnings surprise of 1.1%.

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