GrowGeneration Corp. reported third‑quarter 2025 results that surpassed consensus expectations, with revenue of $47.3 million—up 15.4 % sequentially and down 5.4 % year‑over‑year—while earnings per share fell to a loss of $0.04, beating the consensus loss of $0.09. Gross profit margin expanded to 27.2 % from 21.6 % a year earlier, and the company returned to positive adjusted EBITDA of $1.3 million, a $3.7 million improvement over the same quarter last year.
The earnings beat was driven by a combination of disciplined cost management and a favorable shift in product mix. Proprietary brands now account for 31.6 % of cultivation and gardening revenue, up from 23.8 % a year ago, and the higher‑margin mix lifted overall profitability. CEO Darren Lampert noted that “the third quarter marked an inflection point for GrowGeneration, with net sales of $47.3 million, up 15.4 % sequentially, expanded gross margins to 27.2 %, and returned to positive adjusted EBITDA.” The company’s focus on B2B channels and proprietary brands has also helped offset headwinds from tariff‑related costs.
Segment‑level data show that cultivation and gardening revenue grew strongly, while storage‑solutions sales remained flat. The mix shift toward proprietary brands, which carry higher margins, explains the margin expansion and the positive adjusted EBITDA. Management highlighted that the company’s cash position of $48.3 million and absence of debt provide a solid balance‑sheet foundation for continued investment in inventory, infrastructure, and brand development.
Looking ahead, GrowGeneration guided for fourth‑quarter revenue of approximately $40 million and expects continued positive revenue growth and adjusted EBITDA in 2026. The guidance reflects confidence in the company’s turnaround strategy and the momentum generated by the proprietary‑brand expansion, while also acknowledging the need to manage ongoing tariff impacts.
After the release, the market reacted positively, with aftermarket trading showing gains that reflected investor enthusiasm for the earnings beat, margin expansion, and the company’s forward‑looking guidance. Some analysts noted caution around the company’s guidance for the next quarter, but the overall sentiment remained upbeat due to the strong financial performance and the strategic shift toward higher‑margin B2B and proprietary brands.
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