GrowGeneration Corp reported its financial results for the fourth quarter and full year ended December 31, 2025, showing modest revenue growth in the quarter alongside significant improvements in profitability and cost control. Fourth quarter net sales reached $37.8 million, slightly up from $37.4 million in the prior year, while proprietary brand sales continued to gain traction, rising to 35.8% of Cultivation and Gardening revenue from 30.4% a year earlier. Margins improved notably, with gross profit margin increasing to 24.1% from 16.4%. At the same time, the company reduced expenses meaningfully, as store and other operating costs fell 26.8% to $6.8 million and total operating expenses declined 44.4% to $16.7 million. These changes contributed to a narrower net loss of $7.4 million compared to $23.3 million in the prior year, along with an adjusted EBITDA loss of $2.0 million versus $8.1 million previously.
For the full year, net sales were $161.7 million, down from $188.9 million in 2024, primarily reflecting retail store consolidations over the past two years. Despite the decline in revenue, the company improved underlying performance metrics, including an increase in proprietary brand penetration to 32.8% from 24.2% and a 370 basis point rise in gross margin to 26.8%. Operating expenses were reduced by $9.5 million, or 23.5%, while the net loss improved to $24.0 million from $49.5 million in the prior year. Adjusted EBITDA loss also narrowed to $6.0 million, representing an $8.5 million improvement year over year. GrowGeneration ended 2025 with a strong balance sheet, holding $46.1 million in cash, cash equivalents, and marketable securities, and carrying no debt.
Darren Lampert, GrowGen's Co-Founder and Chief Executive Officer, commented, "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%. These structural improvements drove a 58.9% year-over-year improvement in Adjusted EBITDA and reduced our GAAP net loss by more than half, reflecting the strength of our operating discipline and strategic focus."
"As we enter 2026, GrowGen is operating with a significantly leaner cost structure, a growing portfolio of proprietary brands, and a strong balance sheet with $46 million in cash and no debt. With growing traction across our commercial channel, proprietary brands, and Storage Solutions segment, we believe GrowGen is positioned to deliver breakeven Adjusted EBITDA for the full year and continue building a scalable, multi-channel platform serving the controlled environment agriculture market," added Mr. Lampert.
The full results can be found at the link here.
For more information:
GrowGeneration
www.GrowGeneration.com
