GrowGeneration Corp Exceeds Q2 2025 Revenue Expectations Amid Strategic Shifts and Restructuring

GrowGeneration Corp reported Q2 2025 net revenue of $41mln, exceeding guidance, driven by 32% proprietary product sales and expanded gross margins to 28.3%. However, net revenue decreased from $53.5mln in Q2 2024, and the company reported a net loss of $4.8mln. The company launched a digital B2B platform and ended the quarter with $48.7mln in cash, providing financial flexibility for growth initiatives.

Title: GrowGeneration Corp Reports Q2 2025 Earnings: Revenue Surges, Net Loss Narrows

GrowGeneration Corp (GRWG) reported its fiscal 2025 Q2 earnings on August 11, 2025, showing a net revenue of $41 million, which exceeded the company's guidance of $40 million. This performance was driven by a significant increase in proprietary product sales, which accounted for 32% of total revenue, up from 21.5% in the same period last year. The company also reported an expanded gross margin of 28.3%, compared to 26.9% in the same period in 2024.

Despite these improvements, net revenue decreased from $53.5 million in Q2 2024, reflecting a smaller retail footprint and ongoing softness in business-to-consumer demand. The company reported a net loss of $4.8 million in Q2 2025, an improvement from a $5.9 million loss in Q2 2024. Adjusted EBITDA was negative $1.3 million, a decline from negative $1.1 million in the same period last year, primarily due to lower sales volume.

GrowGeneration ended the quarter with $48.7 million in cash, cash equivalents, and marketable securities, and no debt, providing financial flexibility for growth initiatives. The company launched a digital B2B platform, GrowGen Pro Portal, which has shown significant adoption by commercial customers.

The company is not providing full-year 2025 guidance due to uncertainties in global trade policy and cannabis reform, indicating potential future volatility. Store and other operating expenses, while reduced, still reflect the impact of ongoing restructuring and store closures.

On the earnings call, CEO Darren Lampert highlighted the company’s strategic transformation into a leaner, product-driven business focused on B2B customers. He emphasized the 32% increase in proprietary brand sales compared to 21.5% in the prior year, along with a gross margin of 28.3%. Lampert expressed cautious optimism about the company’s long-term growth potential, including opportunities from the Viagrow acquisition, international partnerships, and potential cannabis policy changes.

References
[1] https://www.ainvest.com/news/growgeneration-2025-q2-earnings-narrowed-losses-optimistic-outlook-2508/
[2] https://finance.yahoo.com/news/growgeneration-corp-grwg-q2-2025-070616827.html
[3] https://seekingalpha.com/news/4483599-growgeneration-sees-proprietary-product-sales-rising-to-40-percent-in-2026-while-expanding