Key Takeaways
- GrowGeneration achieved full year net sales of $161.7 million with proprietary brand sales reaching $44.0 million, representing 32.8% penetration compared to 24.2% in the prior year.
- The company's Board of Directors authorized a $10 million share repurchase program that may continue for up to two years, subject to market conditions and regulatory processes.
- GrowGeneration improved its full year GAAP net loss by $25.5 million to $24.0 million and enhanced Adjusted EBITDA by $8.5 million compared to the previous year.
- The company maintains a strong balance sheet with $46.1 million in cash and marketable securities while carrying no debt obligations.
- GrowGeneration projects 2026 revenue between $162 million to $168 million with expectations to achieve breakeven Adjusted EBITDA for the full year.
GrowGeneration Delivers Strong Margin Improvements
GrowGeneration Corp. (NASDAQ: GRWG), one of the nation's largest suppliers of specialty products for controlled environment agriculture, reported significant operational improvements for the full year ended December 31, 2025. The company achieved gross profit margin of 26.8%, representing a 370 basis point improvement compared to 23.1% in the prior year.
Fourth quarter net sales reached $37.8 million, a 1.0% increase from $37.4 million in the prior year period. The company's proprietary brand sales penetration continued its upward trajectory, reaching 35.8% of Cultivation and Gardening net sales in Q4, compared to 30.4% in the previous year.
Leadership Commentary on Transformation
“2025 was a transformational year for GrowGen. We further streamlined our operating footprint, expanded proprietary brand sales to 32.8% of Cultivation & Gardening revenue, and delivered a 370 basis-point improvement in gross margin to 26.8%,” said Darren Lampert, GrowGen's Co-Founder and Chief Executive Officer.
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