Overview

• US cultivation supply firm's Q1 revenue rose 7.5% yr/yr, beating analyst expectations

• Net loss narrowed to $4.9 mln from $9.4 mln, reflecting cost reduction efforts

• Company reaffirmed 2026 outlook for revenue and breakeven adjusted EBITDA

Outlook

• GrowGeneration reaffirms 2026 revenue outlook of $162 mln to $168 mln

• Company expects breakeven Adjusted EBITDA for full-year 2026

• GrowGeneration sees Q2 2026 net sales between $42 mln and $44 mln

Result Drivers

• COMMERCIAL B2B SALES - Co said revenue growth was driven by continued strength in its commercial B2B division and a more focused operating footprint

• PROPRIETARY BRAND PENETRATION - Higher proprietary brand sales contributed to margin expansion and long-term value strategy

• COST REDUCTION INITIATIVES - Lower operating expenses and narrower net loss reflected cost-reduction actions and retail footprint optimization

Company press release: ID:nGNX3NbMwZ

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Beat	$38.4 mln	$36.45 mln (3 Analysts)
Q1 EPS		-$0.08
Q1 Net Income		-$4.9 mln
Q1 Basic EPS		-$0.08
Q1 Gross Profit		$9.7 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the home improvement products & services retailers peer group is "buy."

• Wall Street's median 12-month price target for GrowGeneration Corp is $1.25, about 10.7% below its May 11 closing price of $1.40

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