GrowGeneration announces second quarter financial results

GrowGeneration has announced financial results for the second quarter of 2025.

In the second quarter of 2025, GrowGeneration reported net sales of $41.0 million, marking a 14.7% increase compared to the previous quarter. The company's proprietary brand sales as a percentage of their Cultivation and Gardening net sales rose significantly to 32.0%, up from 21.5% in the second quarter of 2024. Additionally, GrowGeneration improved its gross profit margin to 28.3%, compared to 26.9% in the same period the previous year. The company successfully reduced store and other operating expenses by approximately 22.9%, bringing them down to $7.9 million from $10.2 million in the prior year. Despite these improvements, GrowGeneration still reported a net loss of $4.8 million, though this was an improvement over the $5.9 million loss in the same quarter of the previous year. The adjusted EBITDA loss slightly increased to $1.3 million from $1.1 million in the prior year's second quarter. However, the company maintained a strong financial position with cash, cash equivalents, and marketable securities totaling $48.7 million and no outstanding debt.

Darren Lampert, GrowGen's Co-Founder and Chief Executive Officer, commented, "In the second quarter, GrowGeneration delivered sequential improvements for revenue, gross margin and operating expenses — clear indicators that our strategy is taking hold. We also improved Adjusted EBITDA by $2.7 million quarter over quarter, reflecting the early impact of our cost control and margin improvement initiatives. We are building a leaner, more profitable, product-driven organization focused on business-to-business customers. Notably, proprietary brand sales grew to nearly 32.0% of total Cultivation and Gardening revenue, underscoring the strength and momentum of our owned brands. These brands include Char Coir, Drip Hydro, The Harvest Company, Ion LED lighting, and most recently, Viagrow. We remain on track to achieve our goal of proprietary brands to represent 35.0% of segment sales by year-end."

"We continue to execute against a comprehensive transformation and growth strategy aimed at enhancing long-term profitability and positioning GrowGen for sustained success. During the quarter, customer adoption of our online B2B portal exceeded our internal expectations, we expanded into the home gardening segment, and increased penetration with mass-market retailers through the Viagrow acquisition. Internationally, we established distribution partnerships in the European Union and Costa Rica. Internally, we've further streamlined operations and reduced costs, reinforcing two of our core values of discipline and efficiency. With a strong balance sheet and no debt, we are well-capitalized to support our growth initiatives. While there is more work to be done, we are confident in our direction and our ability to deliver long-term value by staying focused on execution and innovation," added Mr. Lampert.