The revenue beat and reaffirmed guidance are positive, but the EPS miss and declining gross margins (25.4% vs 27.2%) temper enthusiasm. Watch Q2 guidance of $42M-$44M revenue for confirmation of seasonal ramp. The stock may trade on the revenue beat and cash position, but the EPS miss caps upside near-term.
Price Chart
Executive Summary
GrowGeneration reported Q1 2026 revenue of $38.4M, beating the $36.5M consensus, but EPS of -$0.12 missed the -$0.08 estimate by 50%. The company reaffirmed its 2026 outlook of $162M-$168M revenue and breakeven Adjusted EBITDA, with proprietary brand penetration rising to 37% of cultivation revenue.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $38.4M, up 7.5% YoY from $35.7M, beating consensus of $36.5M
- GAAP EPS -$0.12, missing consensus of -$0.08 (50% miss)
- Net loss improved to -$4.9M from -$9.4M YoY, a $4.5M improvement
- Adjusted EBITDA loss narrowed to -$1.6M from -$4.0M YoY
- Reaffirmed FY2026 revenue guidance of $162M-$168M and breakeven Adjusted EBITDA
- Proprietary brand penetration reached 37.0% of Cultivation & Gardening revenue, up from 32.0% YoY
- Cash, equivalents, and marketable securities of $41.1M with no debt
- Closed 4 retail locations in Q1 as part of network optimization
Financial Impact
Revenue beat consensus by $1.9M (5.2%), but EPS missed by $0.04 (50%). Net loss improved $4.5M YoY.
Risk Factors
- EPS miss of 50% vs consensus signals ongoing profitability challenges
- Gross margin declining YoY due to product mix shift and store closure costs
- Dependence on seasonal Q2-Q3 outdoor cultivation for full-year profitability target
- Continued retail footprint reduction may limit top-line growth
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3293373 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 18, 2026 5w ago | Insider Cluster | $1.57 $1.43 | ▼ −8.92% | ▼ −9.12% | $1.47 (−6.37%) |
May 12, 2026 24w ago | Press Release | $1.61 $1.54 | ▼ −4.35% | ▼ −3.73% | $1.47 (−8.70%) |
Apr 30, 2026 25w ago | Press Release | $1.32 $1.78 | ▲ +34.85% | ▲ +29.88% | $1.47 (+11.36%) |
Mar 19, 2026 31w ago | Press Release | $1.16 $1.18 | ▲ +1.72% | ▼ −7.59% | $1.47 (+26.72%) |
Mar 5, 2026 33w ago | Press Release | $1.12 $1.10 | ▼ −1.79% | ▲ +2.00% | $1.47 (+31.25%) |
US Market Status
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